Why do You Work There?

My last brokerage was owned by a publicly traded company. When the housing market hit the skids they fired every managing broker and hired in cheaper. The dingbat that replaced my broker kept calling me kathy, katy, karen, you name it. I would have thought that someone would have handed her a spread sheet that showed her Karen was number two in the company and she should have learned her real name. One day she called me Catherine and I turned to her and said, “Catherine quits and so does Chris”. I was one of the few remaining agents. The rest had crossed the street and followed the broker to Keller Williams.

We left our last company due to its lack of internet presence. We’ve been with this company since 2005 and we have outgrown their technology. They still have a great internet presence and marketing but on our own we’ve done better. They also pretty well leave us alone and we work from a home office 95% of the time.

I work where I work because I have autonomy to do what I want, I happen to work with my mother (and she wouldn’t change companies), the physical location is great and the commission structure works for me.

My firm is also small enough where I don’t have to worry about one of three hundred agents sullying the company’s name and reputation. I’ve looked elsewhere and the arguments about (slightly) better commission structure don’t carry water with me – there’s more to life than money.

I love my company and have been deemed “unrecruitable” by other large offices in town. Yes. I am a real estate trainer and a technology coach for my company, but it goes beyond that.

What I love is that it IS a large national company – but you will never see ads for the company, as they would rather spend their $$ on bettering their agents. The available education and technology (for all levels of agents) is awesome. No, not all offices utilize all the tools that my company offers, but it IS there for the taking.

Like any major company, I know there are jacked-up offices around and the business model is not for everyone, but the company – as a whole, is better for ME and MY goals than any other that I have found.

I love that they listen to the issues that agents have and try to head off major problems at the pass. We were being taught how to survive and thrive in a down market for almost 3 years now. This pendulum swing was not as rough as it was for the less prepared. (P.S. Gary is publishing a book called “The Shift” which will be available in a couple months…)

What would it take me to leave? Well, if all the offices in my area shut down, I would move to Austin, TX. I would only leave if all the offices in the world shut down. I am a lifer.

Would I ever go out on my own? No way. I have a split with my company that caps at $21,000 a year. We are at 100% midway through the year. And? There is NO way I could hire a team of receptionists and office staff for just $21k a year. My $$ is well spent, here.

You know… I could go on and on, but I won’t.

Oooh, I need the answers to this because all the brokers in my area are trying to compensate for the slow market by frantically panning through the silt looking for flakes of gold recruiting veteran agents. Some have even resorted to agent development. Desperate times call for desperate measures.

As a future licensee, I used to think I would choose the broker with whom I had the best working relationship, but these days my priority would be on virtual office support and productivity. I want a broker/mentor who already gets it so that I can model on his or her success and I’d rather be mobile than share a hutch.

Mike, would 25 AG points make you feel better? 😉

I get points? Well, hell, I’ll start posting more often.

Bob, for me compensation is not the WHOLE point of working, plus just looking at the split doesn’t tell you the whole story about potential income.

I understand where you are coming from and I don’t think there is any magic in “broker”, but there is productive benefit in systems that can be put together in companies that perhaps would be difficult for the typical individual agent to put together — some people are good at devising and implementing systems and others are good at being a part of the system but not devising and implementing them – so for many agents it’s a matter a of choosing which system to be a part of that will be most beneficial compensation-wise and professional-wise.

Looking at the split (and i am not suggesting you are saying to look only at the split) is short-sighted if you plan on having a long career, with professional development being a part of that plan.

For me there needs to be a balance of competitive pay and good management. I am willing to give a little when it comes to payment structure, for better management and open communication. I would leave is the management changed and the open communication wasn’t there anymore.

1. Broker integrity
2. Fair commission split vs what the company dollar buys
3. Personal connection

@Eric: If the split is right, it doesn’t matter what the broker does. The issue has always been how many agent commission dollars are cause as a result of the broker/francise dollars the agent pays.

There must be some quid for the pro quo ( sorry, that’s a little Bloodhound lingo). 😉

Yes, Bill. It the relationship was key with about 80% of the agents in the office who followed him. It was a mass exodus. I held on for a few months because of my heavy listing load.

Bill: awww, if I’m a hero, you need to get out more! …but I appreciate the props

When I was practicing, my issues were integrity of the Broker AND the ability to do my own thing and know the broker trusted me. It was also a issue of my Broker from knowing that on day one, I wouldn’t do anything to hurt the company, but I certainly wasn’t there to promote the company. I didn’t expect the company to get me business and in return they shouldn’t expect me to promote the company.

Was the compensation split a large issue? Affiliation with the company should enhance my business, it shouldn’t be a deterrent. Often a company offering an 80% split doesn’t do me any good if other agents go out of their way to show my listings. After a few years of doing business well, you’ll make a good name for yourself and the company doesn’t matter (actually I am a huge supporter of becoming our own team/broker at some point). However, for agents in the first three years or so, they need to look for a healthy commission plan, education, broker access and support.

A new agent should look for a company where the broker is easily accessible. I don’t care if they give you a mentor – you need someone who actually has experience AND authority to bail you out of an issue, should it exist.

Too often we have agents who call me for help, because neither they nor their mentor can reach the broker and don’t know what to do. Often I can point the agent in the right direction, but advise them to still speak with the broker before taking action, because a lot of this job requires a backbone and my advise may be either more conservative or aggressive based on risk versus reward. Only a broker can make those risk vs. reward decisions.

As far as compensation is concerned, if the split is 50%, but the broker enhances my business with and gives me twice the client base through exposure, support, initiatives, reputation etc… than I am ok, because I may get 10 deals on my own at 80% somewhere else – but 20 deals at 50% is better.

Compensation isn’t everything. A broker can give me 100% split, but if the have a bad reputation in the community and with other agents than it will hurt my business and 100% of nothing isn’t worth anything at all.

“Even what’s her name @Cgriffith…” ROFLMAO!

@Bill ….Hmm ….”confluence” had to look that one up!

Well the Broker actually passed away a few years ago but fortunately his successor has followed the management style. For me it was simple, he didn’t put a lot of restrictions on me but was always there when I needed to talk about a problem with a client or a deal. He was smart and tough, didn’t take any bull and didn’t give any.

I always tell people trying to decide on a company that the Broker is key. You have to connect and be able to talk about the problems that inevitably come up. When you are new to the business you will need a lot more of that. The Broker that isn’t out selling property himself, but whose only job is keeping the office running smoothly and mentoring agents, is the one you want.

Was with Century 21 from 1992 – 1996. Been with REMAX from 1996 – present. The initial draw to REMAX was the commission structure. It made sense financially that once we were consistently selling several million a year, that we could afford to pay the monthly office fees for a higher commission split.

Stay there because the broker really makes an effort to be an industry leader. Staying ahead of everyone else with information, technology, and innovation.

The only reason I’d leave would be if the environment vastly changed – I’m perfectly happy where we are currently.

[Note: Its really up to the broker. Each office even within the same franchise can vary tremendously.]

I like the money and know I can leave anytime. The Prudential name is sound and we have market share in the community. Many agents come and go. Got a private office and the a/c works great in the summer. Never have any real needs from the broker in the last 5-6 years.

As long as I am selling 40-60 homes a year I will be fine. No one is looking over your shoulder.I do most of my business in other areas away from my office which is strange. I can stop in the other branches whenever I need to and kow most of the agents in all those offices.

The grass may be greener other places and until my plan is changed I will be happy. Where else can you make this much money in New Orleans.

I’ve been with the same brokerage since I started in 2004, and for me it wasn’t money or technology – there are several large brokerages where in all likelihood I’d have received similar opportunities starting out, similar educational settings in which to thrive or die, and good locations for walk-in business and floor duty (of which I’m a proponent, 1/2 of my business my first year came from floor duty). For me, it came down to environment.

I knew that every brokerage would be difficult, as we’re all competing for the same business, so I wanted to be at a place where I knew I could get along with the other agents, yet be autonomous in the way that I ran my business. I wanted to be in a house that provided opportunities, sure, but I wanted to enjoy the people I was working with, and I think we’ve accomplished that. I’ve seen some agents come in that didn’t jive personally, and there have been others that have become great colleagues and friends. Some of the relationships with agents and staff that I’ve formed I’ll have for years, and in a business where every morning we’re starting unemployed I enjoy that camaraderie. If I’m able to run things as I want to, without heavy-handed oversight, and enjoy the people I pass in the hall … I’m happy.

I’ve looked elsewhere, and still get calls from agents who want me to switch and combine efforts, but I’m just not interested. The grass isn’t always greener, and the numbers bear that out. In one instance, if I had left Coldwell Banker and went to a large regional brokerage, I’d have been giving up the CB franchise fee but then would be paying for the broker’s overhead, like individual copies and desk rental. That’s something that’s not part of my current agreement with the CB franchisee, so it ends up being a wash.

Environment … technology … splits … … flexibility … it’s different for everyone, but I’ve really enjoyed this post. Thanks for putting it out there, Bill!

I started with my first firm because agents with other companies told me that if they were just starting out…they would choose the Broker at this particular office. I was great advice and a great place to train. Unfortunately, the company fell behind with technology and I was feeling frustrated with not being able to advance with technology. I found a company that embraces technology, but unfortunately, is very corporate driven and not agent focused. Someday…….my prince will come…or else I’ll just create a virtual one!