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As an admin with EXIT I create the monthly invoices for our agent, so let me help you better understand exactly what our agents pay. Our agents pay exactly $110 per month. This includes there E&O Insurance, advertising and all other fees. The only thing an EXIT Agent pays monthly otherwise is for their own printing, which is $0.03 per copy. There is no desk fee's, Broker management fee's, and certainly no Shared Office Fees! Our Franchise owner pay's the rent of our building and to keep the office running. As for the split you are correct it is a 70/30 split. The agent gets 70% and the company gets 30%. Which in a nut shell means right from the beginning Exit offers a much better split. After you reach $100,000 in sales you go straight to a 90/10, (90% to the Agent and 10% to EXIT). The 10% that you discussed that goes to the person that recruited the agent comes from EXIT's original 30%, which technically means EXIT gets 20% and the recruiter gets 10%. The 10% is what is called a Signal Level Residual. The recruiter will get 10% of what the agent makes up to $10,000 a year, at which time the agents split changes to the 90/10 and the recruiter will no longer receive the 10% until the new year. This means that for every agent recruited you have the potential to earn an extra $10,000 per year (10 agents X $10,000= $100,000 per year). Please be reminded this is offered to all the EXIT Agents from the moment you sign on. For more information or a better understanding you can watch this video https://www.youtube.com/watch?v=9D3RHb3Fsjs.
I do want to thank you for your information, breakdown and better understanding of your company. It is always nice to see a company that is not scared to show everything upfront and does not hide their fees until after the agents are to far in to back out.
As an admin with EXIT I create the monthly invoices for our agent, so let me help you better understand exactly what our agents pay. Our agents pay exactly $110 per month. This includes there E&O Insurance, advertising and all other fees. The only thing an EXIT Agent pays monthly otherwise is for their own printing, which is $0.03 per copy. There is no desk fee's, Broker management fee's, and certainly no Shared Office Fees! Our Franchise owner pay's the rent of our building and to keep the office running. As for the split you are correct it is a 70/30 split. The agent gets 70% and the company gets 30%. Which in a nut shell means right from the beginning Exit offers a much better split. After you reach $100,000 in sales you go straight to a 90/10, (90% to the Agent and 10% to EXIT). The 10% that you discussed that goes to the person that recruited the agent comes from EXIT's original 30%, which technically means EXIT gets 20% and the recruiter gets 10%. The 10% is what is called a Signal Level Residual. The recruiter will get 10% of what the agent makes up to $10,000 a year, at which time the agents split changes to the 90/10 and the recruiter will no longer receive the 10% until the new year. This means that for every agent recruited you have the potential to earn an extra $10,000 per year (10 agents X $10,000= $100,000 per year). Please be reminded this is offered to all the EXIT Agents from the moment you sign on. For more information or a better understanding you can watch this video https://www.youtube.com/watch?v=9D3RHb3Fsjs.
I do want to thank you for your information, breakdown and better understanding of your company. It is always nice to see a company that is not scared to show everything upfront and does not hide their fees until after the agents are to far in to back out.
Thank you for sharing! Now my question is simple. How large is your office? How much did your broker pay in total sponsorship monies last year?
If an agent has a gross commission income of $125,000, without any sponorships, what was their net?
With my firm, they would make $125,000 less 5% = $118,750 less $2,832 (ad fund) less $400 (RE/MAX, LLC) fee less $10,200 management & shared office expense= $105,318 or a (84.25-15.75 split)
The numbers you gave above are $125,000 - $30,000 - 12,500 - 1,320 or $81,180 net. Is that correct?
I am asking just to understand, not to be critical in any way, for sometimes, I can see the Exit numbers working, but I wonder how often do they really work within your own office?
Doesn't all this bickering come down to this? Regardless of who's better or who's split is awesome or who has the smallest fees. When I look at my office we have almost 200 agents. Only around 44 of them each month are active. Out of that only 6-8 are truly producing. So, whether you are a KW agent, Re/Max, or anywhere for that matter, those who succeed, succeed. It doesn't matter what pay plan they have. Get you a pay plan and then maximize that plan. It's that simple. Ya'll are doing waaaaay too much math for me, my head hurts after reading this thread lol.
Good Morning, I have asked my BIC to compute this for me and this is how she explained it to me based on 125K with no sponsorship. The first 100K is on a 70/30 Split, the last 25K is on a 90/10 split. Additional Fees that you may be referring to our an annual Membership Fee of 325.00 and 2500 Year Transaction Fee (taken from each transaction in the amount of 180-225 depending on the commission amount.) and 500 Regional Development Fee (taken in the increments of 35.00 per transaction). So with that said the agent would net 89175.00. There are no other fees ever required by our EXIT office. Lock-boxes, Signs, Office, Internet, Phone, Desks, etc are provided by the office.
Good Morning, I have asked my BIC to compute this for me and this is how she explained it to me based on 125K with no sponsorship. The first 100K is on a 70/30 Split, the last 25K is on a 90/10 split. Additional Fees that you may be referring to our an annual Membership Fee of 325.00 and 2500 Year Transaction Fee (taken from each transaction in the amount of 180-225 depending on the commission amount.) and 500 Regional Development Fee (taken in the increments of 35.00 per transaction). So with that said the agent would net 89175.00. There are no other fees ever required by our EXIT office. Lock-boxes, Signs, Office, Internet, Phone, Desks, etc are provided by the office.
So, let me see if I understand, are you saying that an agent in your office would be paying $16,143 per year ($1,345.25 per month) for lock-boxes, signs, an occassional/itinerant use of the office with its internet, phone, & desks? The $16,143 is the difference between what I posted ($105,318 for an agent in our office with $125,000 Gross Commission Income) and what your BIC calculated.
I am not about to say that your BIC and your office are not the reason that an agent accomplished $125,000 as I am certain that we have taken $25,000 GCI agents and because they are with us, they increased their production to over six figures. So, I know there is value due the BIC for their leadership, mentoring, and other office attributes. This is just a pure apples to apples approach. It certainly does not represent any other RE/MAX office, and it certainly makes no intent to discount another brand or office. A reader must keep those values in mind as they consider the points made in this thread.
I'm a KW agent and I just want to clarify because the second sentence is rubbing me the wrong way. I've been with the company for almost 4 years and there is one person here because of me...and I didn't ask her to come. She found out I left Weichert and she followed me. So that everyone understands how we operate, there are no quotas, requirements, penalties etc. if you don't bring agents on board at KW. Because I don't care about profit sharing, I don't care if I bring anyone in or not.
As for brokerages, to each his own. All I care about is that I get paid on time and my broker doesn't treat me like an employee. If I ever leave KW, I'll either end up with a boutique type operation or I'll start my own.
I'm with KW and wouldn't ever consider going somewhere else. Our fees are far less than other brokers and we get a lot more. Training is huge as is profit sharing. Yes, we recruit for our brokerage but we don't have to. Why not share an awesome, caring company that's HUGELY successful with those you care about? KW speaks for itself and it's all positive.
I'm with KW and wouldn't ever consider going somewhere else. Our fees are far less than other brokers and we get a lot more. Training is huge as is profit sharing. Yes, we recruit for our brokerage but we don't have to. Why not share an awesome, caring company that's HUGELY successful with those you care about? KW speaks for itself and it's all positive.
Ever is a long time. Fees vary by locale. Each office is independently owned/operated regardless of the franchise. Different strokes for different folks.
I'm with KW and wouldn't ever consider going somewhere else. Our fees are far less than other brokers and we get a lot more. Training is huge as is profit sharing. Yes, we recruit for our brokerage but we don't have to. Why not share an awesome, caring company that's HUGELY successful with those you care about? KW speaks for itself and it's all positive.
Not really. There is a KW office near me that has recruited over 300 agents into an office that probably should have 60-80 at most.
Those excess agents can't make a living and have to cut their fees just to get a little income.
I'm with KW and wouldn't ever consider going somewhere else. Our fees are far less than other brokers and we get a lot more. Training is huge as is profit sharing. Yes, we recruit for our brokerage but we don't have to. Why not share an awesome, caring company that's HUGELY successful with those you care about? KW speaks for itself and it's all positive.
I'm at KW myself. Fees do vary by locale, true. But I think that our costs cover fantastic training opportunities. I like that there is a cap to royalty fees and commission split to the office. I also like that in my area, it's doable to reach those caps and then make 100%.
Based in my area, if I made 125k, I would be taking home somewhere in the vicinity of 90k. That's not too shabby. And I think the training and perks (such as a twice/week personal trainer at the office) is worth the extra money.
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