Yesterday I was reading Face book and caught a friendly competitor announcing/advertising that they were giving back $17583 of profit share that month. That got me really thinking.
What does this really mean? $17583 sounds like a lot of money!!!
My calculating /financial mind made me break that down. As of this writing they had 157 agents.
Wait!!! This calculates to $111.99 per agent. THAT’S NOT A BIG NUMBER!!!
This got me really thinking. They put such an emphasis on the profit share, but that is such a little number, what else do they get?
Okay, I’ll fess up, I brought the calculation one step further, I know their cap is $33000 per year and ours is $18000 per year. The savings is $15000 per person per year. If I took the savings each agent would receive times the number of agents 157 the total annual savings would be $2,355,000.
I believe the $17583 profit share was an unusually large month and therefore the reason for the broadcast. However let’s assume for comparison purposes it is not. If I took the $17,583 and multiplied it by 12 months the total profit share would be $210,996.
The total difference is $2,144,004, or $13,656 per agent.
Now we know that money is not everything, or everyone of these agents would leave and come to my office if they knew they were losing $13,656 each year.
If I were an agent looking for a new company, what would I want to know? Here are some questions I came up with?
What are the company splits?
Are there other options?
Is there room for growth?
Do you have team compensations, and how do they compare?
What will my out of pocket expenses be?
Do you have E&O insurance?
What does it cover?
Do you have in house training?
How does it and what are their qualifications?
Do you have a mentoring program?
Do you have accountability groups?
Is there a cost to training, mentoring, or groups?
Are you a Realtor Organization?
Do I have to pay for?
Is there internal competition?
Do you get company leads?
If so what is the cost?
Do I get a web site?
If so what is the cost?
How does your company rank locally?
Are you a franchise, and how does the franchise/Brand rank?
Are you know internationally?
Can I get paid for referrals?
Can I do agent to agent referrals?
Is there a company intra-net site where I can create marketing pieces, drip email campaigns, monthly newsletters and other marketing pieces, and training from any location?
If yes, is there a cost?
How much support do I get?
Is there office staff available?
There may be others, please comment and ad to the list!!!
Now this blog is not intended to trash another office. In fact, I am a big fan of the profit share concept. Profit share make each individual work for a common goal, the profit of the company. It makes each person accountable. I am also impressed how this organization gets the message out and promotes what they are about. They definitely get a buzz going. This blog is about digging deeper, and doing a full evaluation. Know what’s important to you. Don't get caught up in the fluff, and superficial.
If you want to know what our program is, ask? I did not want to publish in this blog, as we may have lost sight of what the blog was about.
Pam Crawford, ABR,e-PRO®,CRS,CDPE,LMC
Owner, REALTOR®, Managing Partner, MBA, BSBA
RE/MAX Professional Associates
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