Let me state first and categorically that I am not leaving my brokerage. I actually have been having a protracted dicussion with a colleague about choosing a brokerage. He’s new to town (Arizona) and is looking for a brokerage. Now, I have a different perspective than a new agent might have, and certainly different than a “mega-agent” might have.<\/p>\n
For a new agent, I would assume that a person would want a brokerage that has excellent training to help launch a career. If I were new, I would want lots of help. I might like lots of classes, great mentors, lots of broker contact and communication, and possibly lots of “added stuff” like free printing, brochures, business cards, and the like. Of course, I would assume that a brokerage that has all of these extras will charge a higher commission split. I would expect to give them 20 – 30% of my money for these “helps.”<\/p>\n
However, if I were an experienced agent, I might like to have a brokerage where I have low fees, very little interference, and a broker that I like\/respect. As an experienced agent, I don’t need training, free stuff, and lots of oversight. I just need a place to hang my license so I can get to producing.<\/p>\n
Here’s a specific scenario that my friend and I discussed the other day. He was talking to a well known firm that is very large and growing. They have a tremendous “company culture,” lots of education\/support, and “profit sharing.” (You can probably guess. . .) Now, for all of these perks, the brokerage will take 30% of the agent’s\u00a0earnings until a certain dollar amount is collected, then the agent will go to 100%. What is the dollar amount? $18,000 per year. So, after he makes the company 18k, the rest of the money is his, with low monthly\/transaction fees.<\/p>\n
So, my question is, “Will all of these perks raise your productivity?” Will you earn enough “extra” to justify the expense of belonging to said firm?<\/p>\n
What say you all?<\/p>\n","protected":false},"excerpt":{"rendered":"
Let me state first and categorically that I am not leaving my brokerage. I actually have been having a protracted dicussion with a colleague about choosing a brokerage. He’s new to town (Arizona) and is looking for a brokerage. Now, I have a different perspective than a new agent might have, and certainly different than […]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-2575","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-general","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1019,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1019\/is-your-broker-profitable-traditional-brokerage\/","url_meta":{"origin":2575,"position":0},"title":"Is Your Broker Profitable?- Traditional Brokerage","author":"Brian Brady","date":"February 8, 2007","format":false,"excerpt":"Have you ever analyzed the business model your broker has? Try to run the numbers sometime and see just how much profit the owners(s) of your real estate brokerage really earn. I learned a lot about running a mortgage brokerage and real estate brokerage from 1999-2002. I've owned both and\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15573,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15573\/real-estate-brokerage-models-jeff-browns-dad-and-dead-cats\/","url_meta":{"origin":2575,"position":1},"title":"Real Estate Brokerage models, Jeff Brown’s Dad, and Dead cats.","author":"Eric Blackwell","date":"January 23, 2012","format":false,"excerpt":"If you have never read what Jeff Brown writes, STOP. Go read it. Seriously. Go to the right sidebar, scroll down to the Bawld Guy and click the archive link. Ok. ;-) Jeff's recent post brought up some good conversations that I want to shed some light on from my\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":613,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/613\/a-horrifying-thought-experiment-elaborating-on-a-brokerage-business-model-that-could-completely-disintermediate-buyers-agents\/","url_meta":{"origin":2575,"position":2},"title":"A horrifying thought experiment: Elaborating on a brokerage business model that could completely disintermediate buyer’s agents . . .","author":"Greg Swann","date":"November 7, 2006","format":false,"excerpt":"I wrote this this morning, and it's been bugging me all day:Here's a thought: The $99 divorce. It only works where the split is unclouded by children or property. But imagine a $999 FSBO package: The usual MLS-only marketing package with a buy-back guarantee for the buyer. Quoting me: \"From\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1199,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1199\/realtybots-will-make-sellers-happy\/","url_meta":{"origin":2575,"position":3},"title":"Realty.bots will make sellers happy","author":"Greg Swann","date":"March 23, 2007","format":false,"excerpt":"This is me in today's Arizona Republic (permanent link): \u00a0Realty.bots will make sellers happy We talked last week about the move by Realogy Inc. to supply millions of real estate listings from its national brokerage chains to upstart Realty.bots Google Base and Trulia.com. This puts the Realty.bots on the map.\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15462,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15462\/the-brokerage-biz-model-that-rocked-in-1966-is-still-rockin\/","url_meta":{"origin":2575,"position":4},"title":"The Brokerage Biz Model That Rocked In 1966 Is Still Rockin’","author":"Jeff Brown","date":"January 19, 2012","format":false,"excerpt":"Let's begin by establishing clearly -- this isn't new info -- just widely ignored. In fact, it's more likely than not most agents readin' this will roll their eyes for one of two reasons. One would be cuz it's old news to them. Not that they've ever contemplated using it,\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2258,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2258\/real-estate-representation-has-never-been-about-information-brokerage\/","url_meta":{"origin":2575,"position":5},"title":"Real estate representation has never been about information brokerage","author":"Greg Swann","date":"November 24, 2007","format":false,"excerpt":"I'm behind on these, but this is a good time to catch up. 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