Spam today from RealtyExecutives, which really used to matter in Phoenix:
I love the monthly fee with the huge, larcenous split. RealtyExecs actually invented the 100% commission plan. It was that idea that Dave Liniger spirited away to Denver, where he founded ReMax. He discovered right away that a 100% brokerage is a giant cash sink — for the broker — but, luckily, his minions in Canada figured out how to combine the 100% claim with a hidden 5% split. Liniger flies in a private jet today because his 100% commission brokerages are all actually split shops.
Still, $95 a month plus a 15% split is a little steep. HomeSmart will do you a monthly deal for twenty-five bucks plus E&O. But before its ignominious bankruptcy, RealtyExecutives was charging on the order of $750 a month — nine grand a year! — whether you closed anything or not. In the interim, a whole lot of Big Names have moved from RealtyExecs to HomeSmart.
I love the rest of the ad, though: 78% of RealtyExecutives’ agents made less than six figures in 2011. And if the average agent closed 12 deals, that suggests that a whole bunch of those agents sold five houses or fewer last year.
And to think: You could be an “executive” too!