A couple of things. First, the largest real estate company in Arizona (based on number of agents) is now Homesmart. Homesmart was already pretty damn big but on Tuesday it was finalized – they bought Dan Schwartz Realty. Dan Schwartz Realty was, itself, was already one of the top 3 companies in the state for number of agents. So was Homesmart. It is my understanding that – at least for now – both companies will continue to operate with their current names.
And now for the “big” news. I’ve just received a report that Mike Ferry’s coaching business is falling off. Big time. I have long considered him a predator, so I am happy to hear this. His company has had a pattern of high pressuring agents (who attend his free seminars) to sign up for coaching. Coaching is pretty much all he really sells – his events being a giant sales pitch for getting coached by his organization. For those who don’t follow the Mike Ferry coaching advice or who find it unworkable they are in for an additional shock, besides not having all that additional income they were sure to get. If they attempt to cancel their relationship they discover – as they have signed a contract – their account will be turned over to a collection agency.
It now happens that the state of California (EDD) recently ruled that all the coaches (I think he has averaged about 60 coaches at any given time since 1999) he has been paying as independent contractors are legally employees. Mike appealed and lost. Prediction: a big fine will soon be levied by California and I’m guessing the IRS will soon do the same. Also, from the very same little bird: a lawsuit from ex-coaches will soon be filed and made public to recover any money not recovered via the taxing agencies. My prediction: he will be out of money before any of them can collect anything.
Mike, once you see this you can have one of your attorneys send me a nice threatening letter. Here is my contact information.
Brian Brady says:
Homesmart?
What in the hell happened since I left town? Weren’t they like 30-40 agents, on 16th Street, in 2003?
Weichert Realtors built up in the 70s and 80s through acquisition. How big is Homesmart now, Russell?
March 19, 2008 — 9:46 pm
Ben says:
Thanks for posting this info about Ferry. I am sure that I am not alone in my feelings about Mike and his company. I was one of the agents stuck in one of his contracts..for $12000. I was crazy to believe and actually give that guy my credit card number.
March 19, 2008 — 10:56 pm
John Wake says:
HomeSmart has about 1,700 agents and Dan Schwartz 1,600. At 3300 agents total it’s now the largest brokerage in the Southwest.
The owner of HomeSmart, Matt Widdows, is a nice guy, and young too. I don’t know if he’s 40 yet.
His niche is using cutting edge technology and charging agents low fees. There is more than one payment plan but the basic plan is $25 per month and about $300 per transaction which includes E&O.
I like ’em.
John Wake
Associate Broker
HomeSmart
March 19, 2008 — 11:43 pm
Liz Carter says:
Mike Ferry has been my coash for 16 years and hes had my credit card for 16 years! He is the finest coach there has ever been and he has helped thouslands of Realtors become financially wealthy, including myself. Not only that, but he tells it like it is, and if you are not willing to listen and work, then no the system will not work. He does not sugar coat it, you have to work hard, do a great job for your clients, and be totaly honest with Mike, yourself, and your clients. If you do what he tells you to do it works, if you don’t it donesn’t. There is no majic pill…you have to go to work. Liz Carter
March 20, 2008 — 1:37 am
Ann Cummings says:
Russell – interesting like bird tidbit about Mike Ferry. I had always heard predator-like comments about him, and that people felt they were almost threatened when they’d try to cancel their services.
March 20, 2008 — 3:23 am
Steve says:
Liz seems to be confused about the post and defending Mike.
Liz, re-read…its about not paying taxes.
March 20, 2008 — 1:08 pm
Steve says:
for fun I google ‘Liz Carter’…she is all over the net defending Mike.
March 20, 2008 — 1:13 pm
Jillayne Schlicke says:
One of my major complaints about large trade show-like conventions is that the workshops where learning was suppose to occur were instead taught by representatives from the trade show vendors who didn’t really do much but hard sell their company’s products. The speaker would speak for free, with the understanding that he/she would be selling books, tapes, coaching, whatever, at the conclusion of the workshop.
Since the convention promoters did not have to pay their workshop speakers a fee, the convention cleaned up. In fact, I was asked to speak at a national convention 2 years ago and the education chairman asked me how much I was willing to pay. I said, “excuse me? You pay me not the reverse.” He said, “actually you pay us for the opportunity to expose our members to your services.” I said, “I have nothing to sell. Call me back when you’re ready to pay me for what’s in my brain.” He called back the next day and paid my required speaking fee.
I refuse to be a books/tapes/coaching person. Maybe I’m the fool, but it just seems unjust for the people who are PAYING to attend a convention.
If it’s sales-u-cation, then tell the attendees the truth and mark the price down to zero.
March 21, 2008 — 9:00 pm
Rod Rebello says:
John – glad to hear you are happy with HomeSmart. I am now a new HomeSmart agent, just converted from Dan Schwartz. They made it very easy to move.
March 21, 2008 — 9:21 pm
Marcy Goodall says:
We attended a Mike Ferry event a couple years ago and walked away with a seriously bad taste taste in our mouths. Mike
made a point of telling the 1500 of us in the audience how rich he was…mentioning his Rolls Royce, his new boat that he said cost millions etc. The guy was clearly all about money. Greed, pure greed.
Now, to hear that he hasn’t been paying his taxes on his employees is down right amusing. Maybe thats one of the things he teaches…support your luxury life style by not paying your taxes.
March 22, 2008 — 10:19 am
BRANDON RIDDICK says:
I LIKE LIZ HAVE WORKED WITH THE MIKE FERRY ORGANIZATION FOR THE LAST 6 YRS.
ITS FUNNY WHENEVER I SEE PEOPLE COMPLAINING ABOUT MIKE ITS BECAUSE THEY ARE SAYING HE CHARGED TO MUCH OR WOULD NOT LET THEM OUT OF A CONTRACT OR HE TALKED ABOUT THE THINGS HE HAS. WELL THE LAST TIME CHECKED MIKE HAS BEEN SAYING THE SAME MESSAGE NOW FOR CLOSE TO 30 YRS. PROSPECT, LEAD FOLLOW, GO ON APPOINTMENTS TAKE LISTINGS, SELL LISTINGS AND REPEAT. HE TELLS US QUITE SIMPLY CALL OUR C.O.I., PAST CLIENTS, EXPIREDS, FSBOS, THEN IF NECESSARY CALL AROUND JUST LISTED AND JUST SOLDS.
IN REGARDS TO CHARGING TOO MUCH HE DELIVERS EXACTLY WHAT HE CLAIMS TO, THE PROBLEM IS PEOPLE WILL NOT DO WHAT THEY ARE TOLD TO BY THE COACHES AND THEY DO NOT WANT TO BE HELD ACCOUNTABLE THEN THEY WANT OUT OF THE CONTRACT. IT IS NOT HIS FAULT PEOPLE DON’T DO WHAT THEY ARE TOLD BY THE COACHES AND THEN WANT TO RELEASED FROM A CONTRACT. THE CONTRACT PROTECTS BOTH PARTIES, IT COMMITS MIKE AND THE COACHES TO PROVIDE THE BEST COACHING AND ACCOUNTABILITY POSSIBLE BUT IT ALSO COMMITS THE CLIENT TO PAYING.
HELL I ONLY DO 10% OF WHAT MY COACH TELLS ME BUT I STILL MAKE MORE MONEY DOING THAT 10% BECAUSE I KNOW IN THE BACK OF MY MIND I HAVE SOMEONE HOLDING ME ACCOUNTABLE.
JUST LIKE WITH ANY CONTRACT READ BEFORE YOU SIGN, MIKE SIMPLY PROVIDES THE INFORMATION AND THEN IT IS UP TO THE INDIVIDUAL DECIDE IF IT IS RIGHT FOR THEM.
AS FOR ME I AM THANKFUL FOR THE INVESTMENT I HAVE MADE IN MYSELF THRU THE COACHING PROGRAM AND TO THE RETURN I HAVE SEEN OVER YRS INVOLVED.
July 27, 2008 — 5:17 pm