I Need A Franchise!

I will get an office to work from at Re/Max, C-21 or Coldwell Banker.

• Well depending on your attendance schedule you MIGHT get a desk. It's more likely you will need to have your home office to work from.

I will get floor time or up time at my Franchise office.

• You will get floor time this is for certain. Also you will certainly be answering the phones to set appointments. Since franchise brokerages do not locally advertise their location to drive business, it is very unlikely you will receive any walk in or phone referrals. Floor time is a nice way to say receptionist.

C-21 and other franchises advertise lots of properties on their websites.

• Yes, they market ALL of the MLS properties on their websites as their own. SO DO WE and you will have this capability to do so on your own site with us.

Listings sell faster when sponsored by a franchise.

• This is the single most misrepresented statement yet! Listen, All of the real estate companies utilize the same tools. no single listing sells slower than another because of the name on the sign! Listings will sell quicker based on how the agent markets the product and the skills of the agent to negotiate the offer.

I have received an offer from C-21 for $35 a month and $175 a transaction. Stating there are no additional costs so why join Real People Realty?

• Let's get the facts strait. Franchises have Franchise Fees, Period! That’s how they exist. So if there is a franchise office out there claiming there is no franchise fee they are lying to you. Their corporate agreement does not allow them to pass money through their account without paying at least 8% off of all gross commissions earned. You just have to ask yourself is a franchise name worth an additional 8% minimum off your check?

A franchise will do more marketing for my listing.

• NO THEY WON'T your listings will not get any more publicity than you are willing to do for it. They will not be placed in any publication unless you pay for it to be there. Now calculate how much of your share you will need to spend to advertise your listing. Oh yea, don't forget to deduct the franchise fees, desk fees, or splits from your check. To be fair some Franchises will do some moderate advertising for you, but you will need to contribute money to an advertising fund for the office.

I will get more listings if I am with a franchise.

• Stop and interview a few agents, ask how they get their listings. You will find an interesting pattern. As you know 90% of an agents business is by referral. This means friends and family, with the remaining 10% coming from the internet. Think about before you became a realtor when you wanted to buy or sell or even look at property. Did you think "I'll call Re/Max" OR "I'll call John Doe" who, for the sake of this example, may just be a Re/Max agent? You said John Doe, If you didn't you were referred to someone by a family member or you scoured the internet and called someone.

People do not walk into a real estate office to buy or look at homes any more. a recent survey shows more than 95% of all home buyers look to the internet to find a property and in many cases will call or submit an inquiry online directly to the agent. Do not fool yourself into thinking that client you just took out to view property yesterday is not sitting at the office browsing the internet looking at property, even though you are e-mailing him or her listings. We have hired some of the top producing agents from top franchises because they realize their business comes their efforts, not their Franchise.

The facts are, franchises want you to believe your high desk fees and advertising fees are a necessary cost to be a realtor.

Let's do the math...

Commissioned earned at a franchise $5000.00

Franchise fee 8% off the top $ 400.00

Commission split 40% for the company $1840.00 or monthly desk fee at least $1500.00

E&O $ paid quarterly?

Internet surcharge $ monthly for domain or internet listings

Advertising fee 2.5% $ 125.00

Your share $2760.00

Commission at RPR $5000.00

Frankchise fee RPR $0

Transaction fee RPR $ 299.00

Your Share at RPR $ 4701.00