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Working for "The Owner"
Mom & Pop
brokerages are the traditional real estate brokerage firms,
which primarily offer services to clients in a small
geographic area.
The focus is
usually on sales quotas, and repeat business from friends
and relatives – not on holistic, long-term marketing
strategies.
In addition, Mom
& Pop brokerages typically offer agents little independence,
as they are forced to operate according to
the owners personal policies and opinions.
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Risk vs. Reward
Independent 100%
commission firms offer an independent agent
individuality and allows you to charge your clients, within
firm guidelines, the commission fees you choose.
However,
independent 100% agents must face expenses (often over
$1,000 per month), such as administrative fees, advertising
fees, royalties, and other such fees as they deem necessary.
The inability to
sell a home for these agents can be devastating since the
agent with the 100% firm must pay the fees regardless of
their volume of sales. |
Business as Usual
Brokers that
split commissions work with their agents on a commission
split basis. Although some charge office fees
too, many limit fees charged and make their money by taking
30% to 50% of the agents income at each closing.
Brokers that
split commissions usually offer basic training programs
usually consisting of cold calling and asking family and
friends for referrals.
Very few have
proven training programs specifically designed to
help professionals cultivate a long lasting client base.
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