A new agent just joined today. He came from a national franchise firm that had four successful offices. Now they are down to only one. It continues to be very hard for the traditional office to succeed in this market. It is even more difficult for them to justify to their agents their policy of paying the agent only a percentage of the toal commission rather than all of it like we do.
Even our agents have a hard time believing this business model is really possible. One day an agent came in to the office to get paid. She picked up her check for $15,000 and she came in my office to say thanks. She also said, “I know this is going to sound foolish but I almost feel guilty taking all of this money. Don’t you feel bad about giving the agent all of the commission?” My thought was I had not really thought about that. Then I answered her by saying, no because it’s not my money. You’re the one that had the buyer. You found the property. You saved the deal when it fell apart three times. You earned the full commission. We created the structure so you can do that. We know that if we our job right will have a lot of agents. For us, a little bit times a lot is a good thing. For the agents, keeping all of the commission less a small fee is a good thing for them too. She walked out happy with her $15,000 check.