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					                                 RE/MAX INTERNATIONAL
                                            MYTH/REALITY GUIDE




                                               2010 CENTURY 21 Recruiting




This document is for internal use only and not to be distributed outside the company. Information in this document has been gathered through company
websites and interviews with former agents of RE/MAX, may not apply to all RE/MAX offices. The views expressed in this Guide are not necessarily the
                                                                  views of CENTURY 21.
                                                Table of Contents


Company History ............................................................................................................. 2

RE/MAX Vulnerabilities ................................................................................................... 4

Sources - Vulnerabilities.................................................................................................. 7

Questions Agents Should Ask ......................................................................................... 8

RE/MAX Myths/Realities ............................................................................................... 12

Sources - Myths/Realities.............................................................................................. 14

National Company Comparison ................................................................................... 15

Local Office Comparison ............................................................................................... 16

Monetary Value – How much do you really make working for RE/MAX? ...................... 17

Examples ...................................................................................................................... 18

Example of Commission Split After Fees ...................................................................... 19

Example of Category of Expenses ................................................................................ 20

Example of Monthly Invoice .......................................................................................... 21

Example of Financial Obligations .................................................................................. 23




RE/MAX International Myth/Reality Guide 2010                    1                                    CENTURY 21 RECRUITING
                                               RE/MAX History1
History:
    -1973 – Founded in Denver, CO by Dave and Gail Liniger
    -RE/Max – “Real Estate Maximums”
    -“Agent-centric” model
    -Began franchising in 1975
    -Grew extensively through “Master Franchising” in the 1980’s
    -Still owned and operated by founders
    - Regions corporate and independently owned

Leadership:
    -Dave Liniger – Co-Founder & Chairman
    -Gail Liniger – Co-Founder &Vice Chairman
    -Margaret Kelly – CEO
    -Vinnie Tracey – President
    -Bruce Benham – COO
       -Joe Reynolds – EVP Affiliated Companies
       -Jack Kreider – EVP Regional Services
       -Elton Ash - Regional Executive Vice President, Western Canada
       -Nick Bailey - Regional Vice President, Florida
       -Terri Bohannon - Regional Vice President, Central & Northern Ohio and St. Louis Region
       -Nathan "Chip" Brekken - Regional Vice President, Southwest Region
       -Adam Contos - Regional Vice President, California and Hawaii
       -Sara Levine - Regional Vice President, Pennsylvania / Delaware
       -Kevin Northrup - Regional Vice President, Pacific Northwest Region
       -Kerron Stokes - Regional Vice President, Central Atlantic and Carolinas
       -Rob Terranova - Regional Vice President, Mountain States

Number of offices: 7,100
    -Areas of highest franchise growth in US: Texas, Carolinas and Florida
    -Areas of highest franchise growth internationally: Italy, Portugal and Czech Republic

Number of agents: 96,000

Number of countries: 70

Philosophy:

   In exchange for paying a management fee and a share of the office overhead, agents keep
    maximum amount of commissions and receive the best support services to attract top
    agents and most recently, the top newcomers, to real estate.

   Independence – Brokers let agents make their own decisions on:
    -Commission rates
    -Personal advertising and promotion




RE/MAX International Myth/Reality Guide 2010          2                     CENTURY 21 RECRUITING
              -Office selection:
                 Private office
                 Shared office
                 Work station (cubicle)
                 Unassigned (remote or at home agent)

          Profitability for the office is based on the ability to recruit enough agents to cover overhead
          expenses
          •   5% broker service fee necessary for broker/owners to survive and make money
              (No longer referred to as 100%, but maximum commission concept)
          •   Most companies use ancillary services to make a profit
          •   Offices that have not reached critical mass of agents to cover overhead, have heavy listing
              and selling broker/owners. There is heavy consolidation of these offices, often to larger
              RE/MAX offices.

          Value Proposition:
              100% concept, independence, experienced agents, commissions, perception of top agents
              only private office for pay

          Corporate Social Responsibility:
              Susan G Komen for the Cure and Childrens Miracle Network, since 1992 donated over $90
              million. Also support RE/MAX Tour for the Troops.

          Technology:
              -Corporate web site: Yes (www.RE/MAX.com)
              -Intranet site: Yes (Mainstreet)
              -Design Center: Yes
              -Lead Generation System: Yes (LeadStreet)

          Corporate logo:
              RE/MAX red-over-white-over-blue yard sign, trademarked red, white & blue hot air balloon
              (adopted in 1978 with tagline, ‘Take a step above the crowd’)

          Training:
              -RE/MAX Satellite Network (RSN)
              -RE/MAX University, recently launched
              -RE/MAX 365 newly launched initiative that is intended to boost agent productivity through
               “town hall” meetings that will be broadcast to agents’ homes and offices and through a
               training program called “RE/MAX Ultimate Agent”.




1
    www.remax.com website



          RE/MAX International Myth/Reality Guide 2010      3                            CENTURY 21 RECRUITING
                                         RE/MAX Vulnerabilities
Agent Fees
         Agent monthly fees (usually paid monthly even if have no business) 1

              •   Security Deposit
              •   Initiation Fee (one time and may include fee for annual dues)
              •   Management fee (services provided by broker)

              •   Franchise fee - 5% (4% goes to broker, 1% goes to region and international)

              •   Shared Office/Fixed Expenses:
                           Desk fees (by sq ft)= private office, shared office or cubicle
                           Overhead
                           Furniture
                           Equipment lease (fax, phone, etc)
                           Utilities
                           Local phone service
                           Secretarial and administrative expenses
                           Janitorial and other professional services (toilet paper, cleaning supplies)
                           Real and personal property taxes
              •   Personal Expenses
                      Long distance, Internet access and user fees
                      Postage
                      Yard signs
                      Stationary
                      Copies (per copy) – Color, B/W
                           Advertising and promotional brochures
                           Business cards
                           Faxes
              •   Miscellaneous Expenses(anything broker deems necessary or requested by
                  majority of agents to run the office) coffee, water, kitchen supplies

              •   Regional Group Advertising Fund Fee

              •   Annual Dues

              •   Late Payment Fees (if monthly bill not paid in full by due date, late fee assessed)

              •   Interest (interest owed on paying a monthly bill late plus the late fees)




RE/MAX International Myth/Reality Guide 2010          4                            CENTURY 21 RECRUITING
                              RE/MAX Vulnerabilities (continued)
        Other Fees :   2



              •   Transaction fees - per transaction (can vary by office)

              •   Regional fees - (can vary by region)

              •   Advertising fees (also called institutional fee)

              •   Closing fees

              •   Customer Appreciation Party

              •   License fees

              •   Sales Council fees

              •   Startup fees

              •   RE/MAX 101 Training fee (one time)

              •   LeadStreet - per month per agent

              •   Technology fee - per month (Intranet usage, email address, etc)
    
         Agents pay for all their own advertising, on average an agent spends $5,000 annually on
         advertising and promotion.3

        Monthly fees must be paid at end of month or a late fee and interest can be charged. 4

        RAPP (RE/MAX Alternative Payment Plan) – called the ‘No Stress’ plan, for agents who
         are not comfortable paying a large fixed monthly fee.5
              •   Lower monthly fees charged with a percentage of each transaction withheld
                  towards the remainder of the fees.
              •   Usually an additional charge collected as service fee for the RAPP program.
              •   All deferred fees to be paid in full before switching to a higher commission plan
                  and/or leaving the company.

        There is no cap on fees unless a broker implements one.

        Higher split offered (90/95/100) but with all the fees charged your commission is not as
         high as you think.

Culture
        New agents can ‘get lost’ in the shuffle6
              •   RE/MAX offers minimal office support – basically on your own.
              •   Minimal to no training
              •   Lacking team environment
              •   No regular office meetings




RE/MAX International Myth/Reality Guide 2010         5                          CENTURY 21 RECRUITING
                                     RE/MAX Vulnerabilities (continued)
               ‘Created a culture where agents operated largely as independents within the office. It
               did not create a culture of people working together to improve their own success and the
               success of the whole office.’ 7

              Changing dynamic of the corporate culture with new agents now being recruited.

              Some regions independently owned and operated, not corporate owned.

                         -corporate may offer numerous benefits, training etc but each region does not
                          have to offer it. Inconsistent services across regions.

              No national medical, dental, 401K plans offered (unless broker wants to pay for it, local
               regions or individual offices may).

              Agents not required to attend staff meetings.8

              No broker councils

              Agent assumes all liability for anything that happens in connection with the agent’s
               activities and agrees to pay all damages, costs and expenses, including attorneys’ fees
               and the amount of any E&O insurance deductible incurred by RE/MAX in connection
               with any claim or judgment.9

              Agent must give 60 days’ notice when resigning in addition to paying all applicable fees,
               dues, expenses, charges or other amounts owed under Independent Contractors
               Agreement. Failing to do so may result in paying additional charges.10

              RE/MAX describes itself as being ‘in the business primarily of marketing, selling and
               servicing real estate brokerage franchises.”11

          Agent Testimonials
              Agents pay for any type of office supplies they will need.

              Fees too high for agents to pay and with the market not doing well it is hard to get
               business.

              Level of benefits at RE/MAX does not compare – support, training, health, dental, 401K,
               client follow up program, business benefits, etc.

              No team support, very competitive culture, each agent and office for themselves (they
               are their biggest competitor). Other offices try to recruit agents and steal business.

              New agents are being recruited there is resentment from experienced agents and don’t
               want to help them out.

              Minimal hands on training except online. Only regional training (no mandatory or
               corporate unless individual broker mandates it) – each associate has to pay for it.

              Weekly office meetings are not something that is usually done in RE/MAX offices except
               for maybe to bring in guest speakers.

  *Some of the vulnerabilities in this document are opinions of former RE/MAX agents, office managers and brokers interviewed and do not
reflect the opinions of Century 21 Corporate. Any fees and expenses referenced have been attained from interviews, written documents and
                                              the RE/MAX Independent Contractor Agreement.

     RE/MAX International Myth/Reality Guide 2010                   6                                    CENTURY 21 RECRUITING
                                                  Sources – Vulnerabilities

1
 Category of agent fees taken from the RE/MAX International Independent Contractors Agreement, Agent fees can vary regionally and
by office.

2
    Interviews with former RE/MAX agents

3
    RE/MAX Corporate Report

4
    RE/MAX Independent Contractors Agreement, April 2004

5
    RE/MAX Alternative Payment Program ("RAPP"), RE/MAX International Independent Contractors Agreement

6
 Benefits and Competitive Advantages of RE/MAX Affiliation –
http://www.remax.com/inside_remax/become_an_agent/benefits_advantages/index.aspx

7
    2007. “Keller Williams Realty.” Case: HR-29. Stanford: Stanford Graduate School of Business.

8
    RE/MAX Independent Contractors Agreement, April 2004

9
    RE/MAX Independent Contractors Agreement, April 2004

10
     Terminations & Obligations under the RE/MAX International Independent Contractors Agreement

11
     Inman News “RE/MAX sues First American”, April 25, 2008




           RE/MAX International Myth/Reality Guide 2010           7                                CENTURY 21 RECRUITING
                           Questions Agents Should Ask RE/MAX
Fees/Contract:
What monthly fees will I have to pay?

         -Administration fee
         -Desk fee
         -Email fee
         -Long distance
         -Phone line fee
         -Black and white copy fee
         -Color copy fee
         -Fax
         -Advertising fee
         -Technology fee
         -Participation fee
         -Storage fee
         -Franchise fee
         -Transaction fee

        What are the upfront fees to join the company?

        Am I charged fees once I sell over a specific amount?

        Do I have to pay a fee even if I don't have any sales?

        I’ve heard that with most of your company’s contracts there are provisions where you
         can put a lien on my home if you claim that I owe you money. Is that true? (If yes) Isn’t it
         also true you could hit me with all filing costs, court costs and attorney’s fees, in addition
         to any money you may claim that I owe you?
         Does your contract specifically state the terms and conditions of what you could do to
         me if you decide to put a lien on my home? (If yes) May I have a copy of the terms and
         conditions for my attorney to review? (If no) Where is the lien provision in the contract?

        I feel that this penalty is far too severe of a consequence if I were to for some
         unforeseen reason owe you money. Will you stipulate in the contract that this will never
         be a recourse you would use on me if I did owe you money? (If not) Why not? My
         current company would never do this to me, aren’t you suppose to be the freedom and
         independence company?

        Why do I have to sign a contract that forces me to pay rent payments for one year? Can
         I sign for three months? (If no) Why not?

        I’ve heard that the only way that I can be released from your mandatory twelve month
         contract is with a sixty day written notice from me to you that I’m leaving, is this true? If I
         were to leave immediately after notifying you, why would you force me to pay sixty days
         rent if I’m not here? I’d like to have the sixty-day harsh penalty removed from the
         contract; will you do that for me? (If not) How about thirty days?




RE/MAX International Myth/Reality Guide 2010        8                             CENTURY 21 RECRUITING
                Questions Agents Should Ask RE/MAX (continued)
        I’ve heard that if I were to leave your company at any time prior to the completion of the
         mandatory one-year contract that I would have to pay you, upon leaving the company,
         the total amount of the cumulative free rent and rent for the sixty-day notice time frame,
         is that true? (If yes) If you gave me the three months free rent for joining you and I had to
         pay you for the sixty days as well, if my monthly rent was $1,000, wouldn’t that mean I’d
         have to write you a check for $5,000 if I decided to leave after three months? (If yes)
         Why would you do that to me? Will you take that provision out of the contract you want
         me to sign?

        What is the late charge on my monthly bill? I’ve heard that your company charges 18-
         20% interest in addition to high late penalties if for some unforeseen reason I can’t pay
         on time. Why is this interest rate so high? Will you lower this if I joined your office?

         What are my assurances that my desk cost will not escalate next year?

        How many of your agents are on the RAPP, “deferred cost-stress free” plan vs. the
         standard “full cost-stress” plan?

        Will you provide me with a detailed, itemized, written list of what expenses are covered
         under each plan and what expenses are not covered?

        Will you give me a detailed breakdown of where my money is spent on a monthly basis?
         Will you give me copies of actual expenses that you incur?

        If the office needs additional or replacement equipment, support staff, etc., what are my
         costs? Are they limited and is this in writing?

        If the number of agents increases, do my costs and expenses go down like they should?
         (If not) Why not? (If so) When?

        (If under “stress-free” program) Why is there a security deposit? Did everyone pay this?
         Do I earn interest on my deposit? (If no) Why not? It’s my money, isn’t it? Do you spend
         my security deposit or is it held in an independent escrow account, as it should be?
         Have you ever waived this for anyone in your office?

        (If under “stress-free” program) What is this “initiation fee” and is it refundable if I leave?
         Have you ever waived this for anyone in the office? Do other offices in the state ever
         waive this fee?

        (If under “stress-free” program) What is this monthly “administrative fee”

        I’ve heard that other surrounding offices associated with your company charge less for
         desk space and regional expenses than you do. Why do you charge more than they do?

        Who decides where my “shared expense” money is spent? Do you? Do the other
         agents? Is it both?




RE/MAX International Myth/Reality Guide 2010        9                             CENTURY 21 RECRUITING
                Questions Agents Should Ask RE/MAX (continued)
    Commissions and other related items:
        Can I negotiate my commissions w/ Buyers/Sellers? If so, is there a penalty for doing
         so? How is the split handled if the fee is negotiated down?
        How do your commissions splits work?
        What commission will you offer me?

        May I see a copy of your commission plan?
        Will my commission change at the end of every year and start over at the beginning of
         each year?

        How many agents achieve 100% commission plan?

        One of the messages that your company sends out is that if I join you, “I’m my own boss,
         running my own business”. If I leave, for any reason, do you immediately release all of
         my listings to me and my new office? Who gets my listings? Do I receive a commission
         if each sells?

        Will you give me a printout (names deleted) of 12 months expenses from similar
         production level associates in your office?

        (If under “stress-free” plan) What would my starting commission split be? 70/30 or
         80/20? How much do I have to pay you in company dollars before I “graduate” to the
         maximum costs stress plan?

        With all of these new expenses that I would incur if I joined you, what would my TRUE
         vs. FACE VALUE commission split be?

    Benefits of joining
        Do I get my own desk?
        Do I have to have a certain production to get a private office?
        Does your telephone system have the ability to page me when I have a message on
         voice mail? Is there a charge for voice mail?

        Does your phone system follow me when a call comes in and I’m out of the office?
        Are hook-ups DSL,T1 or modem?
        Do you have any kind of retirement program? If so, please explain.

        Do you have any kind of health insurance program? If so, please explain.
        How many computers/printers/fax/copiers are available to the agent?
        Do you offer email to the agents?




RE/MAX International Myth/Reality Guide 2010      10                          CENTURY 21 RECRUITING
                Questions Agents Should Ask RE/MAX (continued)
    Office Culture
        What type of career path can you offer me?

        Do you have a marketing plan? What is it?

        What type of support will you provide me to get started? Is there a ramp up period?

        Is there a minimum I need to sell every month/year?
        Average production per agent in this office?
        Do you/your managers also list/sell and possibly compete with agents?

        Do you offer regular office meetings? Do you provide us with trends, competitor info,
         issues, etc?

        Explain how your lead referral system works?

        How many leads do you generate per month?

        What does this office do to help generate leads for agents?

        Tell me why I should choose you over a competitor? What things separate you from
         your competitor?
    Training:
    Please describe your training program and costs for:
        New agent training
        Experienced agent training

        Do you promote designations and if so do you share in this cost?
        Do you pay for any outside training?
    Relocation:
        Do you have a relocation department?

        Who is your company affiliated with?
        How are relo leads distributed?
        Are there qualifications to receive referrals?

        I’ve heard that your company puts out a relocation directory and that agents have to buy
         space in, how much does that cost me and how many of your agents are in it?




RE/MAX International Myth/Reality Guide 2010      11                        CENTURY 21 RECRUITING
                                  Myths/Realities About RE/MAX
Commission & Fees
Myth:   RE/MAX agents keep the maximum allowed amount of their commissions “I have a
90% or 100% commission split”.1
Reality: RE/MAX must now charge a 5% franchise fee (1% goes to region and 4% goes to
RE/MAX International). They don’t tell you about the office fees for doing business - desk fees,
manager’s fees, photocopy and office supply fees, or you may have to wait to reach a level
before you can even get bumped up. There are many hidden fees such as desk, phone, fax,
photocopy, etc. In a bad economy such as this you still have to pay fees when you make
nothing. When the market is good you still have to share that money with all the agents in the
office.

Myth: I can/do make more money at RE/MAX.
Reality: Your split may be more BUT look at what else you may be paying for (royalty fee,
office fees, annual fees, advertising fees, etc). 20% of agents do 80% of the business and 80%
of agents survive on the 20% that is left. Your split may be more BUT look at what else you
may be paying for (office fees, annual fees, etc). Also, office culture is very competitive and you
have to compete for business with other agents, brokers and nearby offices.


Culture
Myth: RE/MAX is a great place to further my career.
Reality: RE/MAX still trails Century 21 in brand name and company size according to the
2007 Millward Brown Study. RE/MAX is famous for the ‘every man for himself’ mentality so it’s
difficult to progress in this type of environment.

Myth:    RE/MAX allows their agents to make their own decisions on commissions, office
structure, etc.
Reality: Be careful of promises of “Independence” which can mean little to no guidance and
support. No team environment, regular office meetings or staff to assist you with listing
presentations and other help you may need. No office structure means no leadership or
direction. Who makes sure agents are aware and adapted the latest technology, tools and
trends, and if not then who makes sure they are trained? Who voices concern for the office or
region?

Myth: RE/MAX is the leading brand.
Reality: According to the 2007 Millward Brown study, RE/MAX is ranked #2 after CENTURY
                                                        2
21 in brand awareness (58%) and name recognition (28%).

Myth: RE/MAX has an innovative Lead Routing System.
Reality: RE/MAX ‘LeadStreet’ tells an agent they have leads but they are not able to track
them unlike LeadRouter from CENTURY 21 that captures, matches and delivers leads to a
qualified agent by cell phone, then tracks and monitors the life of the lead and finally analyzes in
real time.
Myth: RE/MAX has the industry’s best training via satellite network, online and classroom.
Reality: Training varies by region and there is no corporate mandated training. Most training
is paid by the agent. Training is not interactive only online. Little to no mentoring or coaching
unless you pay for it.




RE/MAX International Myth/Reality Guide 2010     12                           CENTURY 21 RECRUITING
                           Myths/Realities About RE/MAX (continued)
  Myth: You’re in business for yourself not by yourself
  Reality: At RE/MAX you’re in business by yourself, there is no support or backup system.                                  At
  CENTURY 21 you get ongoing support at the corporate, regional and office level.

  Myth: At RE/MAX you are free to build your own personal sales team.
  Reality: Agents can build their teams with assistants but usually have to pay RE/MAX a yearly
                                      3
  fee for this which can become costly.
  Myth:    RE/MAX agents have the freedom to be creative with unlimited promotion and
  advertising to generate a continual stream of qualified prospects.
  Reality: Agents pay into an advertising fund but end up paying for any local advertising they
  do.
  Myth:    At RE/MAX, you have complete control of how much of your income you put back into
  your business and how you allocate business expenses. 4
  Reality: With all the fees and business expenses you are charged, your final take home
  income is a lot less. How can you have complete control of your income and expenses with a
  shifting of the market and office size that will directly affect your monthly expenses and therefore
  how much income you put back into your business?

  Myth:    Agents benefit fully from business-expense tax deductions. The maximum commission
  concept means agents don't immediately lose a percentage of income - and the tax deductibility
  of that "expense" - to a broker. 5
  Reality: In order to deduct expenses you must spend money. The average you end up
  getting back from the government is about $0.40 for every $1 spent.
  Myth: Prosper in any market.
  Reality: There is no guarantee or promise of being successful especially in today’s market.
  There is even a clause in RE/MAX agreements that states no one can guarantee or promise
  any level of success or income. 6
  Myth:   More professionally managed office and administrative support. Have peers that are
  your equal
  Reality: Often you must pay for administrative help or share with everyone else in the office.
  Other peers in the office can feel threatened and not be so willing to help or share with you.




*The myths/realities referenced in this document are statements made on www.remax.com, regional RE/MAX websites and written
documents given to prospective recruits, former RE/MAX agents, office managers and brokers. They are also taken from interviews
with former RE/MAX agents and Jim Gilreath Seminar. The myths/realities do not reflect the opinions of Century 21 Corporate.




  RE/MAX International Myth/Reality Guide 2010                   13                                   CENTURY 21 RECRUITING
                                                  Sources – Myths/Realities

1
 Benefits and Competitive Advantages of RE/MAX Affiliation –
http://www.remax.com/inside_remax/become_an_agent/benefits_advantages/index.aspx

2
 2007 Ad Tracking Study. The survey results are based on 1,216 online interviews with a national random sample of adults (ages
25 – 54) who are equal decision makers and who have bought or sold a home within the past two years or plan to purchase or sell
a home within the next two years. Brand awareness questions are based on a sample of 1,216 respondents with a margin of error
of +/- 2.4% at 90% confidence level. The study was conducted between February 19th - October 7th, 2007 by Millward Brown, a
leading global market research organization.

3
    RE/MAX International Independent Contractor Agreement

4
 Benefits and Competitive Advantages of RE/MAX Affiliation –
http://www.remax.com/inside_remax/become_an_agent/benefits_advantages/index.aspx

5
 Benefits and Competitive Advantages of RE/MAX Affiliation –
http://www.remax.com/inside_remax/become_an_agent/benefits_advantages/index.aspx

6
    RE/MAX Independent Contractors Agreement




            RE/MAX International Myth/Reality Guide 2010          14                               CENTURY 21 RECRUITING
                                   National Head to Head Comparison
                                       CENTURY 21 and RE/MAX



                           Programs

     Preferred by customers1                                            64%                      58%

     Name recognition1                                                  42%                      28%

     International referral system                                      YES                      YES

     Internationally recognized signs                                   YES                      YES

     National TV and magazine advertising                               YES                      YES

     National and regional conventions                                  YES                      YES

     State of the art marketing tools                                   YES                      YES

     National client follow up program                                  YES                      NO

     National medical and dental benefits                               YES                      NO

     Awards and contests                                                YES                      YES

     Lead Routing System                                                YES                      YES

     National personal TV Advertising                                   YES                      NO

     National company participation in marketing                        YES                      NO




1
 2007 Ad Tracking Study. The survey results are based on 1,216 online interviews with a national random sample of adults
(ages 25 – 54) who are equal decision makers and who have bought or sold a home within the past two years or plan to
purchase or sell a home within the next two years. Brand awareness questions are based on a sample of 1,216 respondents
with a margin of error of +/- 2.4% at 90% confidence level. The study was conducted between February 19th - October 7th,
2007 by Millward Brown, a leading global market research organization.




     RE/MAX International Myth/Reality Guide 2010           15                                CENTURY 21 RECRUITING
                      Your Local Office Head to Head Comparison
                              CENTURY 21and RE/MAX


                       Programs
                                                        Local C21 Office   Local REMAX Office
Sales training in this office held continuously

High Speed T-1 lines at each desk

Computer network desk connection

Company paid postage (farming)

No phone charges

E&O (no charge to agent)

Flyer programs at no cost

Generous commission splits

Color copier

No hidden fees (desk, phone, copier, rent, etc.)

Transaction coordinator




*Brokers can customize this page to their individual companies and offices (if their CENTURY
21 company does not offer one of these services, feel free to delete or modify).

Make sure you list all your services you provide and the cash value associated with each.




RE/MAX International Myth/Reality Guide 2010       16                          CENTURY 21 RECRUITING
          Monetary Value – How much do you really make working for RE/MAX?


                       What Do You Pay For?                                CENTURY 21                            RE/MAX

             Desk Fees                                                           FREE                          $800 - $1800

             Virtual Presentation Library                                        FREE                            $350 & up

             @century21.com email                                                FREE                            $20/month

             eGreetings program                                                  FREE                            $139/year

             Life@Home Newsletter                                                FREE                      $90 - $149 per year

             Fine Homes & Estates Review Newsletter                              FREE                         $149 per year

             Website Design/Update                                               FREE                $300-$500 plus per year

             Company Intranet                                                    FREE                     $100 & up per month

             Training Classes                                                    FREE                  $25 - $50 & up per month

             Photocopies                                                         FREE                         $0.10 per copy

             Phone access                                                        FREE                (random amounts for code)

             Business Benefits Discount Programs                                 FREE                          (prices vary)

             Management Costs                                                                                  (prices vary)

             Office Operation Cost                                                                             (prices vary)

             Office supplies                                                                                   (prices vary)




 Attention BROKERS, please feel free to customize this chart per office and type of agent you’re recruiting by
adding or deleting services you may not offer.

RE/MAX may not offer some of the above items so the average industry values were used. These prices are only
intended to be used as a guideline. Prices and availability vary among individually owned RE/MAX offices and industry
standards. Please check your area for prices and availability.



This document is for internal use only and not to be distributed outside the company. Information in this document has been gathered through company
websites and interviews with former agents of RE/MAX, may not apply to all RE/MAX offices. The views expressed in this Guide are not necessarily the
                                                                  views of CENTURY 21.


          RE/MAX International Myth/Reality Guide 2010                   17                                    CENTURY 21 RECRUITING
                                     RE/MAX Examples of:


                         Actual Commission Split After Fees
                                       Category of Expenses
                                               Monthly Invoice
                                        Financial Obligations




RE/MAX International Myth/Reality Guide 2010         18          CENTURY 21 RECRUITING
                  Example of RE/MAX Commission Split After Fees




*Example is from a RE/MAX New Jersey office




RE/MAX International Myth/Reality Guide 2010   19         CENTURY 21 RECRUITING
                                     Example of Category of Expenses




Source: RE/MAX Independent Contractors Agreement




      RE/MAX International Myth/Reality Guide 2010   20                CENTURY 21 RECRUITING
                             Example of RE/MAX Monthly Invoice




RE/MAX International Myth/Reality Guide 2010   21                CENTURY 21 RECRUITING
Source: Example of RE/MAX monthly invoice to agent.




   RE/MAX International Myth/Reality Guide 2010       22   CENTURY 21 RECRUITING
                                      Example of Financial Obligations


                                                                                  N/A


                                                                                  $1500 ($100/closing for
                                                                                  first 15 closings)

                                                                                  $575/month

                                                                                  $750/month

                                                                               5% Broker Service
                                                                                    PLUS
                                                                               1% Operating Deficit
                                                                               Fee

                                                                                  $150/month




                                                                                  Billed for: phone,
                                                                                  copies, advertising



                                                                                  $100/month




                                                                                  $360/year


                                                                                 $100 late charge if not in
                                                                                          th
                                                                                 full by 5 day of
                                                                                 following month bill was
                                                                                 given.
                                                                                 $250 additional charge
                                                                                                  th
                                                                                 if not paid by 15 day of
                                                                                 following month bill was
                                                                                 given.




Source: RE/MAX Independent Contractors Agreement – Financial Obligations



      RE/MAX International Myth/Reality Guide 2010               23        CENTURY 21 RECRUITING

				
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