EXIT Realty Ranked #5 Brand in Units Sold in Middle Tennessee for First Two Months of 2010 | Does working for a 100% no fee real estate company earn you more money?
We just pulled the metrics from the local real estate board and EXIT Realty as a brand has moved up two spaces from 7th to 5th in Units Sold by Brand in Middle Tennessee.
Today I received, as many of you might have received, an email from a real estate company touting how they offer 100% and how an agent can keep so much more of the commissions earned. The email touted that over 100 closings had taken place already this year. So I checked it. It was a bit exaggerated. I found only 75 closings for the first two months from that brand across 3 offices with over 230 agents registered at those 3 offices.
Let's just say that an average real estate closing yields $5000 in commission. This company offers 100% of commission to the agent as long as they agree to pay an annual fee, let's say it is $359 per year. The math works out like this:
- 75 closings at $5000 each = $375,000 in Gross Commission Income to the agents
- $375,000 in income over two months = $187,500 in Gross agent Income per month for the agents
- $187,500 spread over 230 agents registered with this brand = $815 per agent on average in Gross Income
- Almost forgot the $359 per year, so the first month NET was only $815 - $359 = $456 NET INCOME PER AGENT!
- REALITY: only 50 of the agents had closings proving that it is just a holding company for licenses.
- REALITY: Active agents average Income is $187,500 / 50 = $3750, but didn't they join the 100% firm to make $100,000's of dollars. and this shows that they are on track to earn $45,000!
- What about the brokerage? Oh they collected $359 from 230 agents or $80,570 or $6880 per month for 12 months.
- Divide that over 3 offices and it is $6880 / 3 = $2290 per month per office in Gross income.
Agents, need support, systems, training, brokers that can hold them accountable and get the most and the best of them. So next time you see an ad touting a 100% split ask yourself 100% of what? Will it help to grow my business? Are they there to support me? Are systems in place to grow my business? Then do the homework and you can always contatc our regional office to discuss confidentially a move that you want to consider we are up front about the real estate market. I am not picking on this one real estate company in particular because there are others out there, we would invite thos e brokers to talk to us about an EXIT franchise to allow them to offer more to the agents. The goal is to help agents to grow thier business not to provide a place for thier license to hang in avoidance of retirement of thier license.
Want to read more about how at EXIT you could make more than 100%, check out Vince Arcuri's blog post on this topic.
Tennessee | Kentucky | EXIT Realty Franchises offered by EXIT MidSouth
EXIT is Real Estate Re-Invented, contact us to learn more.
EXIT MidSouth | 1441 New Hwy 96W | Suite 2-81 | Franklin | TN | 37064
615.523.3133
Each Office Independently Owned and Operated.
Not intended to solicit broker owners currently under a contract.
This is not a solicitation to sell a franchise, only for informational purposes.
