Start With a Company?

Question

I Received my Real Estate Salesperson License in September of 2012, I have yet to start with an real estate company. After meeting with Keller Williams, my thoughts was to pick them. I want to hear feedback from other agents; Is Keller Williams a good to place to start with training and learning the business a little more? How much are your fees monthly? How long did it take to sell your first home?

Ned Carey · Answer

Keep in mind you choice of broker is not a lifelong commitment.  Agents change brokers all the time.

Joel Owens · Answer

A brokerage doesn't make a broker or agent successful. YOU make yourself successful by constantly learning and pushing yourself to a level that few attain.

That makes you valuable to clients as many want the best in their respective field.

The KEY question is do you have a full or part time job doing this on the side or is this you have to make closings or you will quit in 60 days because you can't pay the bills to survive??

What's your breakeven every month?? Is it 1k,2k,3k?? You need to know this numbers. All you are at most brokerages is another agent that might get one or two closings before they flame out. So these brokerages stack them deep to meet their closing volumes.

90% of agents  fail the first year. After 5 years 80% of the agents that lasted that long end up leaving the business. This business is not for the faint of heart to be at the top.

Anymore specific questions just ask.

Ryan Befort · Answer

Since this is already posted, I will just chime in my questions as well.  Can you just jump into the brokerage for all of the training and then grow your brand on your own after a year or so?  I have yet to read up fully on this, as I recently just peaked an interest in possibly becoming an agent.  I noticed Keller Williams has a 70/30% split; does anyone know how long or how many deals this lasts for?

Lastly, since I live on a state line, would I have to get licenses for both KS and MO in order to serve the highest quantity of clients?  Thank you for your contributions already to this thread as well!

Ramon Jenkins · Answer

or Ned Carey " book of business " - comment -

Ramon Jenkins · Answer

Joel Owens, can you go into more details  
regarding " book of business"

Joel Owens · Answer

Hi Heidi,

Many of  the agents are coming from JOBS where they collect a paycheck. They know nothing about running a business or generating leads and growing their brand.

When they worked a job before they had no clue about all the behind the scenes stuff that goes on to watch the customer give them the business. All they did was service the customers already there but not seeing how it happened.

Typically a new agent has a small sphere of influence at least to draw from with family and friends. This results in maybe 1 to 2 deals the first year even if they are a dud in creating additional business.

The first 10 years as an agent goes usually like this.

First 3 years is 80% new business and 20% from your existing sphere of influence.

Next 3 years is about 50% new business and 50% repeat business.

Next 4 years is about 20% new business and 80% repeat business.

It's not that you aren't getting new business it's that by now you have a group of people that you know and want to work with on a daily basis and do not want the ONE OFF deals that take a bunch of your time and energy. You want the long term relationship that works for both parties. The numbers I posted above are just averages and if someone has a business from before with a larger sphere to start, family already in the business for generations, or came from politics or other areas then they can grow much faster. The typical agent is usually what I posted above. The number one mistake is not having the reserves to last until your first closing and then outlining a plan to not only survive but flourish in the career. Many people get into this business for the wrong reasons of making money only which is why they fail.

You have to want to truly serve people and help them reach their goals. The money is nice but not the only motivator in the equation. There has to be a payoff in other ways and a connection to your clients. Their lives, their hopes, their goals, their investment dreams, their friendships is what matters the most. Of course they have to be ready, willing, able, and realistic with their goals for you to work with them.

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From Ned Carey below in quotes

"Keep in mind you choice of broker is not a lifelong commitment. Agents change brokers all the time."

My addition below:

I would like to add but that does not make them successful. The main point of brokerages is to INCUBATE and CONTROL the agent. This is why for new agents they have the website they give you, business cards, etc.

They want you to feel a sense of obligation to them so it will make it harder for you to leave when you search out a better commission split etc. The agents see all this free stuff as a way to save money.

Instead you should get your own website, own materials, slogans, etc. so that if and when you leave you simply change the brokerage name rather than starting from scratch. Also pay attention to the IC independent contractor agreement. The brokerage could claim your whole sphere or " book of business" when you leave. Yes you are working under the brokerage so technically they are the brokerages clients. The relationship they have many times is with the agent and not the brokerage so they will want to follow the agent.

Heidi Rogers · Answer

Great advice, Joel. I always enjoy your posts. I've never heard the burnout statistics for real estate agents before--what are the main causes of burnout in your opinion?

JOAN DICKIE · Answer

Keller Williams is a good company for me.  I belong to Keller Williams in Wisconsin and MN.  Things I like about Keller Williams is the extensive online training available and  tremendous support.  Typically there are no desk fees, but there are fees for the website, mls, e & o insurance and small admin fee.  There is no hammer from above threatening you if you have low or no sales (which some people need).  There is no set time for your first sale.  It totally depends on  how you work.  My first sale took a looong time, but I started in 2009.  Do you plan on doing mostly personal investment, or mix in sales for others also?

James Vermillion · Answer

Welcome to BP Rasheena!

I noticed this is your first post, so please consider intruding yourself in the New Member Introduction section of the forums:

http://www.biggerpockets.com/forums/55-new-member-introductions

I do not know the specific fees and structure of Keller Williams but have you met with several other brokerages yet?  If not, you should consider it, that way you can compare the various companies with one another and make sure you choose the one that best suits your needs.

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