So the other day I received the email below from a local real estate company. This is one of those 100% commission to the agent companies with a small monthly fee ($95 a month), and a small transaction fee ($495 I think). These types of companies are not unique. I hear about them all the time. The is an obvious recruiting campaign.
Here's the link to http://www.gasbuddy.com/ which shows what gas stations are charging for gas in ----
Most people will check the list and end up shopping at the station with the lowest price per gallon. However, we know of many agents that pay 20% or 30% more to their broker...so they might be interested in going to the gas stations that charge more.
Seriously, why would anyone pay more for anything in this economy? Your cost of doing business (including the cost of gasoline) keeps rising and commission checks keep decreasing due to the lower sales prices.
One way to put more in your pocket is to put less in your broker's pocket. Why not at least check out what ------- Realty has to offer besides a much better commission split? You have a lot to gain and only your current broker has something to lose.
A couple of thoughts came to mind when I was reading this. First, if I were to hang my license with this company, how will this increase my business? Other than getting all the commission, what is the competitive advantage? 100% of nothing is still nothing. Second, I love the line “Seriously, why would anyone pay more for anything in this economy?” I couldn’t agree more, commissions included! So it’s bad to pay your broker anything, but ok to charge huge fees to your customers?
I’ll be the first one to tell you there is room in any market for different models and fee structures. More power to you!
High splits, low splits, you pay this, I pay that, desk fees, etc. None of this matters if you don’t attract business. Give consumers what they want and need at a fair price and you can name the split.