These are comments we’ve heard over the last 20 years, and they’re simply not true.
1. “You can only join them as an independent contractor.”
2. “At that company, they eat their young. You’re left to fend for yourself.”
3. “More like Feemax than RE/MAX.”
Let's set the record straight and give you the lowdown:
1. It is true that RE/MAX was founded on the 100% commission model, where the agent gets to earn the full commission on a transaction and then pays back a service fee for services provided by the franchisee. Over time though the model has evolved to accommodate all types of commission packages and levels of experience, allowing an agent to join at a level they feel comfortable and an office to provide appropriate services.
2. At RE/MAX, we certainly don’t leave agents to fend for themselves. Just take a look at the extensive training programs provided that are all geared around making the agents more productive and we have the sales performance numbers to back that up. These are the types of comments you’ll hear from competing franchises that fear to lose their top agents or from low-producing agents who do not have definitive goals, plans and strategies to execute at a peak level.
3. The best way to dispel the ‘Fee Myth’ is by way of a simple example.
EXAMPLE:
Joe sells a house for R1,000,000. The commission total is R50,000. The three offices below are a traditional agency (50/50 split), High Commission agency (80/20 split) and RE/MAX.
|
|
Traditional |
High Comm |
RE/MAX |
|
Gross Comm |
R50 000 |
R50 000 |
R50 000 |
|
Less split to office/service fees |
R25 000 |
R10 000 |
R3 250 |
|
Less estimated fixed fees |
|
|
R4 000 |
|
Agent earnings |
R25 000 |
R40 000 |
R42 750 |
Even in this simple example, the RE/MAX office scenario is more favourable. The counter argument is always that in the traditional model, the agent’s advertisements and telephone calls are paid for by the office. One would have to consider whether that so-called value is worth over R15,000.
Even in an office with a ‘high comm’ model, RE/MAX is still a more favourable option. In addition, what value does the ‘high comm’ office provide, other than the commission structure? Do they offer ongoing training, lead generation, brand recognition and mentorship to their agents?
Look what happens when Joe sells two houses. RE/MAX Fixed Fees are capped per month.
|
|
Traditional |
High Comm |
RE/MAX |
|
Gross Comm |
R100 000 |
R100 000 |
R100 000 |
|
Less split to office/service fees |
R50 000 |
R20 000 |
R6 500 |
|
Less estimated fixed fees |
|
|
R4 000 |
|
Agent earnings |
R50 000 |
R80 000 |
R89 500 |
