A real estate agent is cruising into their golden years after having seen the best and worst of real estate. The book was outdated by MRIS, grab a key, Combo lock boxes made their way into sentry locks after morphing a few times. So, what does a real estate agent to prepare for retirement. According to NAR 90% of the agents don’t schedule their taxes much less then prepare for their future.
When you retire, unless your kids are running your team, or you own a franchise pretty much within a year a retired realtor’s database will absorb itself. KWs model which was awesome, 35 years ago has failed to morph with the changing times. Everything is going digital including office space. But hey, you own the data??
That said the model of real estate is evolving. Kw offers profit share and in the beginning that worked well but never adjusted to people coming and going. Greedy team leaders or Ops has an agent wondering what happened to a friend only to be told that nothing can be done because sponsorship can’t be changed once its done. Who wins? Recruiting has gotten cut throat. With the bigger teams running around the world headhunting. ( I kid you not I spoke with a lady in California who knew my OP, from Maryland)
With the increase numbers of Franchises all over the place makes for a watered-down version of the original vision. Corporate has negotiated unfair caps for humongous teams. The biggest team who sells 1500 houses a year with a team of 120 plus agents pays 2 1/2 caps. or 56k. I recruited a friend who went to that team, guess what? I’ll never see a dime from him or anyone he recruits. Of course, profit share is based off the individual franchises profit. With the increase in rents for commercial property and rents the profit is minimal.
So, the answer was the creation of MAPS coaching and Bold and of course that helps the franchised sell more homes. Meanwhile the reimbursement of Bold cuts into profit. The real winner with MAPS is Keller Williams as it is a multi-million dollar business.
What about the AGENT in all of this?
While I was at my franchise almost every team meetings slide show was ladened with offers of coaching or pricey classes or seminars. Example, I was offered ALC as long as I went to the ALC clinic which was 250 bucks for the day and I got to meet Mo Anderson. Well not really, she sat in the same room I did. After three years, I felt like a cow being milked for the 63% the company gave me back. 70% minus the franchise fee and royalty fee. There was a shiny rainbow they allowed me to charge whatever I could get as the admin fee. However they took 37% of that as well.
It’s sound like I am complaining on the contrary. I just feel like I have woken up with a hell of a hangover.
The older models of real estate like Coldwell Banker, Long and Foster (who just sold) and all the other out of date brokerages really offer nothing in the way of retirement. Neither does any of the other models for that matter.
So along comes the new kid. EXP realty. Created by Glenn Sanford. Might just have the answer but the answer won’t be there for very long because it eventually will be watered down like KW. Remember Keller Who? Glenn came from KW, as a matter fact a lot of the pioneers who have battled in the last three years came from KW. True entrepreneurs understand what tEXP is offering now. We get it. At the very least they are trying a new model that might actually offer a retirement that isn’t competitive like profit share. It actually pays more if you don’t rip off the guy who made the introduction.
When Gene Frederick, Glenn Sanford plus Dave Gangnon, all from Keller Williams jumped it got my attention. I am not saying its right or wrong, but I am smart enough to understand that someone else has a plan for the cow once it can no longer produce milk.
Truth be told there has been a lot of grumbling within all the real estate camps and this might just be the answer. I wasn’t guilty of buying a four thousand-dollar mobile fax machine but I am guilty of switching to EXP because it make sense.
Once upon a time I weight 300 pounds and I walked into a Gold Gym. The trainer asked where do i see myself in five years. This was about 15 years ago. At 300 lbs I said dead. There is an incredible opportunity here and I don’t think its going backwards. However you can always get recruited backwards
I also heard all that stuff agents said about Docusign and Mris and Lockboxes… Forword thinking they said exactly the same thing about Netflix, Blockbuster and more. Those who fear change will end up out in the pasture.
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