Independent Contractor to the Highest Power :Founded in 1973, the RE/MAX® franchise now has more than 100,000 agents world-wide. The premise was to allow agents maximum freedom to run their business and to pay them 100% of their commissions. Agents would pay for their office expenses via a "desk fee" and pay their own marketing expenses.
Attract the Best and Most Experienced:By creating a model as close to a completely autonomous business as possible, RE/MAX wants to attract the more experienced agent. As the expenses for their office space, phones, copies, marketing and more are all the responsibility of the agent, those with established track records and financial stability were more likely to join this franchise. Speaking to their agents, it's clear that they value the independence and the ability to retain all of their earned commissions.
What are the Fees to the Agent?:No longer 100% commission for new agents, it's now 95% with a 5% corporate marketing fee off the top. This pays for the national advertising and the national IDX search linkup system that purports to have all the listings in the country available at the national corporate web site. Other fees:
$390 corporate fee paid by the agent
$195/month fee to corporate from each agent
Negotiated fees for office and services that agent and broker determine based on space and service requirements.
Other Options for Commission Splits Now Offered by Brokers:In order to attract more agents, many of whom might be fearful of a monthly overhead expense before they're established, many RE/MAX brokers offer other split setups, one example was a 70/30 for new agents, with reduced fees.
Individuality and Competition Follow Independence:Visualize a group of independent accountants or attorneys who share space in an office complex for financial, client access and marketing reasons. Other than their common office structure, they are competitors and not in a social or sharing office culture.
There is an identification with the franchise and an overall cooperative attitude, but the RE/MAX office definitely has that together-but-separate feel of a group of business people going their own ways. Particularly in the case of private offices, you find great individuality of furnishings and styles.