David Coffman

And who can blame them? It's like shopping for long distance phone rates!

There's enough "Smoke & Mirrors" and mis-direction perpetrated by Brokers and franchise owners, that half of them aren't even sure what they are selling to the agents.

First you have the companies that take 6%, 7% or 8% right off the top as franchisee fees or dues and they are bold enough not to count this as part of the actual commission. Guess what, If you start with 100% and subtract 8% your already at 92% and we supposedly aren't even started with the split?

WHAT?

Then you have the 100% offices. Here's a real mathematical impossibility! Who pays the light bill if it's a true 100% commission? Oh that's right.... there are monthly fees and large transaction fees that the broker pays the bills with. I guess if we call them fees it really isn't part of the split!

WHAT? That ain't right?

Oh, Oh then there's the desk fee models that you pay hundreds and thousands each month just for the privilege to work there and earn 100%. Yep, it's tax deductible! So, I guess that means it doesn't come out of the commission right? And what about the 100% when you total up all of the fees and divide by the total production? You mean you have to do that?

Come Again?

Wait, WAIT... here's another mind blower! Some brokers have the guts to sell agents on 100% commissions, but the broker tacks on a referral fee of up to 1.5% of the commission rate? What? We aren't going to call this fee part of a commission either?

Some of these are like giving out free loans to the broker until the next closing. Why should any agent pay a broker if they aren't earning anything or are between closings? That's the worst cash-flow model in the world. Any CPA worth their salt will tell you this is poor business practice for the agent!

Trust me... EVERYONE IS WORKING ON A SPLIT!

Listen up! Here's how to get to the bottom of it all.

Add up every cost you pay to operate your business and divide that number by the total GROSS Commission earned. Yes, before the national franchise takes their cut! Some times these costs aren't always paid to the broker.

For example: Some Brokers include Call capture systems free of charge to their agents. I know we do at our EXIT office. If you're buying a call capture system when someone else gets it for free, it's part of the split!

ADD ALL TOTAL COSTS, FEES, REFERRAL FEES, DESK FEES, COPY FEE, PHONE FEES, TECHNOLOGY FEES, CALL CAPTURE FEES, TRANSACTION FEES, MONTHLY BROKERAGE FEES, YEARLY DUES, CLASS OR TRAINING COSTS, LEAD CHARGES, PAPER FEES, OR THE "JUST BECAUSE FEE" THAT YOU'VE BEEN CHARGED.....

Then... Divide that number by the Gross commissions earned before anyone gets their hands on it. Whatever that number, no matter how small or large .... That is the split!

Now do the math! How Transparent is your Brokerage? Work with a broker that is transparent and honest. And discover the real cost or split!

I'm partial! I bought an EXIT Realty Franchise. I believe we win every comparison! And we haven't even talked about residual income paid out in the form of a "company development bonus". If you would like to know more, call me!

I consider my company one of the LUCKY ones in the market today. My partners and I have been in the business for what seams like forever, but we noticed something early on about leadership that keeps showing itself over and over. I speak of leading by example and controlling growth. Both are absolutely essential to success.

I'm constantly amazed at the ability of owner/brokers of small companies that run the whole show by themselves. My hat is off to all of them! All of them are heroes in my book regardless of their success level. The simple truth is that in order to grow and keep raising the standards by which any company operates, requires many people working in concert to make everything happen the way it is intended.

Yes, you hear about "leading by example" all the time in classes, leadership conferences and from real estate gurus, but it never really sinks in just how valuable the quality can be until you either set the perfect example or failed due to a poor example. As a leader you will always be able to feel confident when you are leading by Example. You can feel it in your bones, when the example you set isn't up to the standards you set for your agents or yourself.

This week our ownership team set a poor example. Not an earth shattering failure, but we felt it right away. We found ourselves in this position because the market required us to launch our REO division months before we were ready, and the simple truth is the rapid growth caught us unprepared. Not that I'm making excuses, we just found ourselves not far ahead of the agents in the training program being launched by one of our new partners.

The fact that leading by example is one of the very cornerstones of our company, is what made this minor failure so noticeable. You could see it in the eyes of the more experienced agents. It was like they couldn't believe their eyes. This was something they hadn't witnessed at our company before. Thankfully, we can regain our previous leadership reputation, with some simple adjustments and more preparation prior to future training meetings. Especially those that handle new topics.

Hopefully, you can take this message to heart by hearing my experiences rather than making the same mistake. No matter how large or small a company, leadership MUST always be in control and leading by example. People you lead will notice. And if you set a good example, those same people will follow you anywhere!

Today everyone is in the US & many parts of the world are being affected by the credit crisis in some way. Most businesses are being crushed while a tiny few are growing. For a positive example, some used car companies offering "Buy here-Pay here" financing, are experiencing an unprecedented boom. When lending sources dry up, those businesses that provide their own lending flourish.

Regardless of the positive or negative effect the credit crisis is having on you personally, the majority of Americans do not truly know how or why this has occurred. The truth is that most understand the problem on a personal or local level, but not on a base level.

Unlike the results & the remedy of the crisis, the cause of the problem is fundamentally simple. Please follow the link below for one of the most simple and understandable explanations of the credit crisis I've found.

http://www.crisisofcredit.com/

There is a lot of discussion on this topic. No one is sure just how well this will help those in need or if we are headed toward yet another problem by addressing the problem in this way, but one thing is for sure....

Confusion is rampant on the topic. I'm finding that many are posting information (right & wrong) and others are taking the posts as gospel. I'm concerned that like other Internet sources, the is a lot of bad information floating around out there. Some people will not take the time to vet the information and will pass on incorrect information to the public.

If we are going to use this new program to help our clients, let's at least make sure we have it right!

Get the scoop directly from Uncle SAM here:

http://www.federalhousingtaxcredit.com/

I'm just finishing off one of the worst weeks in years due to a really nasty cold, and it came to my attention, just how much I missed the interaction of my partners, office staff and agents that work at our EXIT office.

Even though I've owned many businesses and worked for some really great companies over my career, something is really special about the people I chose to surround myself with over the past few years. Just like every real estate company over the past 18 months, we've had a share of challenges. In most companies this is when you really see how strong the binds between coworkers have become or deteriorated.

I chose to buy our EXIT franchise because of the values, ethics and structured support the corporation offered. Little did I know that those that choose to work with me shine for those very same traits. I'm so thankful that I'm surrounded by such great people.

Next week will be all about showing those close to me, just how much I care for them! Life is short and the people around you are the assets of your life. Make sure your coworkers, family and friends know how you feel about them.

EXIT is Growing! And I just witnessed another reason why!