30 September 2019

These are some of the comments we’ve heard over the last 20 years, and they’re simply not true. Let's set the record straight and give you the lowdown:

1. “You can only join them as an independent contractor.”
It is true that RE/MAX was founded on the 100% commission model, where the agent gets to earn the full commission on a transaction and then pays back a service fee for services provided by the franchisee. Over time though the model has evolved to accommodate all types of commission packages and levels of experience, allowing an agent to join at a level they feel comfortable and an office to provide appropriate services.

2. “At that company, you’re left to fend for yourself.”
At RE/MAX, we certainly don’t leave agents to fend for themselves. Just take a look at the extensive training programs provided that are all geared around making the agents more productive – and we have the sales performance numbers to back that up. These are the types of comments you’ll hear from competing franchises that fear to lose their top agents or from low-producing agents who do not have definitive goals, plans and strategies to execute at a peak level.

3. “More like Feemax than RE/MAX.”
The best way to dispel the ‘Fee Myth’ is by way of a simple example. Let’s say that Joe is an Independent Contractor in a RE/MAX Office. He sells a house for R1,000,000. The commission total is R50,000. The three offices below are a traditional agency (50/50 split), High Commission agency (80/20 split) and RE/MAX:

  Traditional Agency (50/50 split) High Commission Agency (80/20 split) RE/MAX Independent Contractor
Gross Commission R50 000 R50 000 R50 000
Office/service fees (R25 000) (R10 000) (R3 250)
Estimated fixed fees     (R4 000)
Agent earnings R25 000 R40 000 R42 750

Even in this simple example, the RE/MAX office scenario is more favourable, providing the RE/MAX agent with R2,750 more in commission than the high commission split agency. In addition, what value does the ‘high comm’ office provide, other than the commission structure? Do they offer ongoing training, mentorship to their agents, multiple lead generation programmes, and the greatest brand recognition in the country and across the globe?

To further dispel this myth, let’s look what happens when Joe sells two houses. RE/MAX Fixed Fees are capped per month. So let’s say Joe sells two houses at R1,000,000 each. He then walks away with R89,500 in commission, which is R9,500 more than he would have earned if he were a part of a high commission brand:

 

Traditional

High Comm

RE/MAX

Gross Commission on 2 homes sold

R100 000

R100 000

R100 000

Office/service fees

(R50 000)

(R20 000)

(R6 500)

Estimated fixed fees

 

 

(R4 000)

Agent earnings

R50 000

R80 000

R89 500

Quite simply, RE/MAX provides real estate professionals with the best possibility of earning the maximum amount of commission while providing them ongoing training and support to make sure that they become peak producers within their suburb. RE/MAX? More like Dream/MAX.

If you are curious to join RE/MAX, contact us to find out more about our brand.

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