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[Picante]

I'm consiering starting my own agency in a few years. I think my c21 agency is good, but it bugs me how much of my commisson goes to them. Anyone have thoughts/suggestion about starting your own agency: start-up costs, generating business, liabilty, etc?

[teamsage]

Hi there,

Here are a few things I would consider. First, who is your competition in your area? What market share do you hold? How many agents are you looking to recruit? How much money do you have for advertising?

I use to work for C-21 and understand exactly how you feel regarding all the money they take. But I would think of all the money it will cost to compete with C-21 and all the other big name companies. These are just thoughts and only trying to help.

The number one thing to me is the advertising budget. If you can't beat your competition with advertising, then it is my opinion that you will be fighting an up hill battle. Also, when hiring agents, make sure you are getting enough money from their sales to keep your business going. I personally like a commission range. For example. Start your agents out at lets say 60% (new agents only), then for every, lets say $15,0000 they make in commission increase their pay by 5%. Allow them to reach up to 90%. Now for me the key to this is letting the agent stay at their top commission. Think of it like this. Once an agent reaches 90% they never go backwards. This will keep the agents loyal to you and working very hard, and it will also keep money coming in the office to cover expenses.

Please know that these are just simple steps and thoughts I have.

Good luck and feel free to contact me if you wish.
_________________
Troy Sage - Realtor - e-PRO
"Residential and Investment Specialist"
http://www.teamsagehomes.com
mailto:teamsage@gmail.com
951-834-2840
or
1-800-641-0452

[kensmith]

When you are getting a little closer you and I will have to have a serious talk. But for now consider Keller Williams. The training and marketing plans for the owners are great. You actually will normally profit in the first year, many offices open with a profit from day one, and you will not find a better culture IMO. If you want more specifics let me know and I can put you in touch with someone that can answer all of your questions without any presure.
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[teamsage]

Well said Ken. I was going to suggest Keller Williams, but didn't want to lead anyone down any path. There are great things about Keller Williams, and as with any company pit falls. I work for a family owned company and don't think I will ever change. But if I were to go anywhere at this point I would have to agree with Ken.