I currently have my license hung with a 100% commission internet broker so it wouldn't cost me any monthly fees. I'd like to focus on building business as an agent in 2018 (thus far I haven't actively worked for business except for family and friends) and wondering if I might be better off at a bigger broker with a local office who offers in office training classes, etc. I've met with one so far and the benefit I see is meeting other agents, training classes, and possibly being able to sit open houses for some of the busier agents to possibly meet some buyer clients. The negative is it would cost me a lot more money. A recent transaction I've had the commission was around $21K, with my current broker the cost to me is less than $700. If I were already with the broker I've met with the cost for the same transaction would be been over $3K plus the monthly office expense of around $150/mo.
Wondering if the traditional brokerage is work the extra expense? Will sitting other agents open houses bring enough business to make it worth it? Is the training offered any better than I can learn on my own? Does working for a traditional broker provide any advantage for business leads?
I see 2 main positives to being with a big name brokerage.
1) Branding. If you believe in the power of their brand in the market place, then it might be worth it.
2) Being viewed as a serious agent in the market place, both by the general public and other agents.
Really the second plays off of the first. Im a big believer in the power of a good brand, and my brokerage takes more than $50k a year off me. However I doubt I would be doing the volume of business I do if I were at a no name brokerage. There is a reason why when you look at the Real Trends list of top agents, nearly all are at big name brokerages.
You make very good points. Thank you
Maria, I just started with Keller Williams and they offer a lot of training as well as a great environment to learn from experienced agents. Plus you get so much access to technology, marketing materials, and everything else that makes you look and feel like a serious business. I suggest looking up a KW Market Center near you and talk to a team leader. They'll be happy to explain all the costs and benefits.