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In the past few years, airlines have typically gone completely al-a-carte. Fly with a suitcase, there is a charge, need a pillow, there is a charge, need more than a teaspoon of peanuts, there is a charge, etc, etc, etc.
The corporate real estate brokerages, Cendant, BHHS, Weichert, etc, even KW, operate on a need for commission dollars. A few years ago, Cendant even changed the calculation order of how they get paid just to add a few dollars to their take. (I exclude RE/MAX and RE Executives because they are fee based rather than commission based)
Most mega-corp brands need all the money they can get. The typical RE/MAX franchisee, such as myself, are not big corporate firms. We simply pay RE/MAX a fixed marketing fee (in 2004, RE/MAX did change their format to take 1% of the gross commission income and divide that between the regions and the home office)
If Realogy can leverage Zip into a Zillow/Trulia/r.com killer
If Realogy can turn a property management company into Sellers & Buyers
If Realogy can leverage Zip technology into increased Market Share
In the Austin market, it's pretty standard to pay 50% for any company generated internet leads. However, there is not usually another split on top of that, just 50% all inclusive of other splits.
At the same $300k house at a $9000 commission, that's $4500 to the company and $4500 to the agent. The company is spending the money to generate the leads, and giving them to the agents, so it's free business the agent wouldn't have had beyond their own marketing.
Not to me...my local ERA took many of my leads and distributed them to agents on lower splits. I didn't realize how much I was losing until I left. Realtor.com and all the other sites they had would send the leads to leadrouter to a central database managed by a marketing person who would then distribute the leads. I get more leads in a week at RE/MAX than I'd get in a month at ERA and I'm carrying a 1/3 of the number of listings right now as I did there. They tout leadrouter as some great agent friendly lead generating source but frankly they just filter leads IMO. I much prefer the agent get their own leads and if you waste it so what? It's yours to do as you please.
Sounds about right. That's one of the reasons I left that umbrella and opened my own company which is a RE/MAX franchise. I understand why agents start there but I don't understand why agents stay there because there are 3 options where the agents will generally be more profitable - KW, RE/MAX, or independent.
Congrats on opening up your own shop!
Quote:
Originally Posted by middle-aged mom
Me too. I went with KW.
In my experience, the quality of leads from any automated lead generation system is lacking. I can and do appreciate that others may have different experiences.
Some CB offices are independent franchises and offer a tad more flexibility to the agent.
Not to me...my local ERA took many of my leads and distributed them to agents on lower splits. I didn't realize how much I was losing until I left. Realtor.com and all the other sites they had would send the leads to leadrouter to a central database managed by a marketing person who would then distribute the leads. I get more leads in a week at RE/MAX than I'd get in a month at ERA and I'm carrying a 1/3 of the number of listings right now as I did there. They tout leadrouter as some great agent friendly lead generating source but frankly they just filter leads IMO. I much prefer the agent get their own leads and if you waste it so what? It's yours to do as you please.
Totally agree. If an agent generates the business they need to get it back. That's horrible that you weren't getting prospects that were generated by your efforts.
We have an auto referral fee policy in place at my office so if an agent just gets swamped they can forward prospects, showings, etc to another agent and a referral fee is already in place. That way we can make sure that consumers get responded too in a timely manner. It works well for us. I call it a cooperative model, but we function like a lose team covering each other's vacations and such.
I get more leads in a week at RE/MAX than I'd get in a month at ERA...
I was with Remax for 11+ years. I received many leads through Leadstreet. Never closed a single one and most of my business is internet leads generated, so it wasn't/isn't me. The leads that came through leadstreet were horrible. I still have those leads in my database, and there still isn't any gold in them thar leads...
It's not the number of leads you get, it's the quality of leads that matter.
I was with Remax for 11+ years. I received many leads through Leadstreet. Never closed a single one and most of my business is internet leads generated, so it wasn't/isn't me. The leads that came through leadstreet were horrible. I still have those leads in my database, and there still isn't any gold in them thar leads...
It's not the number of leads you get, it's the quality of leads that matter.
I agree internet leads in general have a very low conversion rate so it's not specific to RE/MAX as most internet leads are simply not ready to buy yet. However, the point is it's better to get your leads and at least have a shot than not get them at all because they are being sent to another agent.
Side note-We've got a pretty good system between them and other online leads and convert them a decent rate compared to national averages. Our best buyer leads are sign calls without a doubt though.
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