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Chris Lefebv…, Real Estate Pro in Methuen, MA

What are your thoughts on revenue share plans?

Asked by Chris Lefebvre, Methuen, MA Mon Apr 12, 2010

What were the most important factors for you to decide on which agency to hang your license with? Do revenue share plans offer any incentives for joining one agency over another?

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8
It's all about the money honey
Web Reference: http://www.mdmrealtyinc.com
1 vote Thank Flag Link Mon Apr 12, 2010
I think the revenue share plan is a great incentive for some agents who are motivated to recruit others, I think it beatsprofit sharing as big companies with lots of bricks and mortar, and high overhead don't have much profit to share. Couples with high splits and low overhead your looking at a great business model.
0 votes Thank Flag Link Thu Jul 8, 2010
Well, I think it depends on the realtor. I personally don't like the revenue share plans because as in any work environment, there are those that are top sellers and those that just coast by. I think it eliminates the "hunger" that most sales professionals crave.
0 votes Thank Flag Link Wed Apr 14, 2010
I agree with the virtual environment part
0 votes Thank Flag Link Wed Apr 14, 2010
Chris, there seems to be two programs exploiting the 'alternative income stream' approach to growing the brokerage and agent income. The most prominate ties this income to ones ability to pursuade other agents to join the brokerage. This MLM approach to growing a real estate business doesn't appear to benefit many real estate agents. Only a extreme minority of agents qualify to share in this revenue sharing proposition.

The second program brokerage allows all agents to benefit through profit sharing. No recruiting, MLM or rah - rah. This brokerage demonstrates a real confidence in their process and system. Knowing the small print won't deny my expectation to participate in the brokerage profit, each small success encourages greater interaction and cooperation with peer agents to build and even more dynamic enterprise and to invest in the success of my peers.

Clearly, if profit sharing were a motivator, the second brokerage is where I would hang my sign. The challenge is seeing through the smoke and mirrors and drilling down to the statistics revealing the percentage of agents who benefit from the revenue share or even realize a mulitplier effect of the team building tidal wave. My research reveals the percentage of 'agent stars' in the revenue sharing based on recruitment environment is less than that of non-revenue sharing, non-MLM brokerages. The statistical proof simply isn't evident here in my piece of the Sunshine State.

As you can see, none of these reveue sharing propositions have proven themselves to the exent I would consider leaving the most recognized brand in real estate.
0 votes Thank Flag Link Tue Apr 13, 2010
Brokerages and franchises with these plans are great when the office makes a profit. BUt when overhead takes away that profit where is the benefit. Look at a company that offers you more $$$$ today and invest that into your business and retirement. You will make more money for yourself in the long term.
0 votes Thank Flag Link Tue Apr 13, 2010
I'm surprised at how much multi-level marketing is creeping into the real estate industry. I agree with James Gordon, if you can't sell - recruit. And if you're going to do that, why not just open your own office?
0 votes Thank Flag Link Mon Apr 12, 2010
Chris if you can't sell but can recruit I guess that a revenue share plan would be a good thing.
0 votes Thank Flag Link Mon Apr 12, 2010
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