What do you think of this model (residuals, etc)? (agent, commissions, sales)

[lawmom]

10% Sponsoring Residuals

When a salesperson is introduced to management and recruited into XXXX, each transaction that they close generates a bonus that's equivalent to 10% of the gross commissions earned by the recruit, payable to the individual who sponsored them into the company. The bonus is paid via XXXX's head office, and not subtracted from the new recruit's commissions. And it continues perpetually for as long as the new recruit stays with XXXX and generates sales.
7% Retirement Residuals

Should an "XXXX" salesperson decide to retire from selling real estate, a "pension plan" is created from the sponsoring bonuses that he or she has established. Also, the retiring salesperson retains the privilege of enhancing this pension plan while in retirement by continuing to sponsor salespeople into the company.
5% Beneficiary Residuals

The sponsoring bonuses you have created turn into a beneficiary residual providing added security for your family.
With XXXX Residuals, you can potentially earn much more than 100%!

The more people you sponsor into XXXX, the more you increase your residual income. XXXX Realty annually pays out many millions of dollars in residual bonus checks as a perpetual "thank you" for helping to build the company.
And all this, with NO DESK FEES!

Isn't it time you considered making the final business decision of your real estate career? Contact us today for detailed information on franchise and career opportunities with XXXX Realty. You'll be glad you did!



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First, a write up with so many exclamation points is always a red flag to me. Second, doesn't this have a pyramid scheme-ish quality to it?

[rjrcm]

Sounds like Exit Realty. Far as I know, they are a legitimate company.

[lawmom]

Shoot, meant to post this in the RE Professionals area, didn't see it there, and posted it again.

How do I delete this thread?

[Mike1306]

Yep, Exit
I always wondered how they could offer 110% or whatever their ad used to read.

I always hated going to their open houses because the agents are more worried about trying to recruit than anything else.

I am sure there are good agents with Exit but most I have dealt with has been complete morons.

I had one time where the agent was also owner and was to provide a survey before closing. She sent over a plat map to my agent who was representing the buyer and insisted it was a survey.

I had to get on the phone with her to try and explain a plat map was not a survey.

It did not end there, the BIC came to my office trying to tell me the plat map was a survey. I finally was able to explain the difference between a plat map and a survey.

Sorry for the rant but just my experience what that business model draws in many times.