I reserve the right …
I reserve the right to completely change my mind anytime I want.
I heard this line in a movie but it got me to thinking about a question I see frequently from agents.
What brokerage/company should I choose?
I won’t say it doesn’t matter because it does but what is the worst that can happen? You make a mistake. So what? Did you learn anything? I’m guessing you did so either way you win.
I got lucky and picked a company I loved from the very beginning. I did have to switch offices to get with one that fit my dress code (I was not corporate enough for the first one) and to find folks who supported the way I wanted to do this business but it was inside the same brokerage. Even different offices can feel different. Pay attention as you interview them.
I chose to work by referral from the start and that was tough to find support but I did it and you can too. It’s what I teach on this blog and in my courses.
You do need to know what they will charge you for the support and training you get. You are hiring them to teach you, support you and provide encouragement and coaching. All that costs money but my offices it’s pay as you go. Lead with revenue is what we teach.
My office charges 30% of my commission until I pay them a total of $18,000. After that, I am 100% for the rest of the year. I also pay about $100 a month for office fees, E&O insurance, MLS and tech fees. There’s more to it than that in the fine details but those are the numbers. It works out to about a 90/10 split in my case when all is said and done.
Most classes are free or pretty inexpensive for the required info and I had access to top agents to ask questions when I first started. We also provide a productivity coach and that is also paid as a part of my commission if you want it.
There are companies who charge flat fees, transaction fees, smaller splits, etc. They charge less and in most cases, they should. You really do get less.
There are some who will charge more. I’ve seen 50/50 splits with no caps. Not sure how long that model can continue and I don’t know how you could get more than we provide. We are the No.1 training company in the US. Not just in real estate but in all industries.
That makes us better than NASA.
Your biggest challenge after doing the math is finding an office that will be there for you when you need it. Talk to agents who’ve been there a short time and some who’ve been there for years (if you can’t find any you might want to keep looking).
Everyone is on their best behavior when you’re interviewing and if you’re new you are not bringing a ton of money to the table but if the folks in the office are open, willing to teach and are available then it might be a good place. You can trust your gut for some of this. If it doesn’t’ feel right then keep looking.
And as I said at the beginning, if you make a mistake and you figure that out quickly, move. It’s a hassle and you might not be able to take your listings with you (you ought to ask about that because if I left I am able to take mine) but it’s better than staying with the wrong office. You will either find a great place and love where you are like I did or you’ll learn something and move on.
One cautionary note I’ll offer is related to change. Sometimes it’s not the office or staff you need to change. Sometimes it’s you. I would not encourage you to move over money unless you find out your split is not consistent with the industry. A 70/30 split is fairly typical with a cap. As I said, there are some who charge less and they should.
Be careful jumping ship over money, splits, leads and the tactical stuff inside a brokerage. The old saying of ‘no matter where you go, there you are‘ holds true in this business especially. If you are not willing to do the work it takes to be successful then changing companies will just be a distraction and delay the inevitable.
Take a good look at yourself first.
As an invitation, I’m willing to talk about this with anyone who wants to. My number is below or we can get together on a video chat via zoom. I just got off a chat with a person who isn’t even licensed yet. I really want to help you so call me on it and see.
Thanks for listening,
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- I got confused
- They are giving me leads…