How does the real estate broker function usually? How does he work differently then the competition so that he earns more? Learn from the most successful real estate company to earn more, by adopting its model and changing your business.
Comparing RE/MAX Business Model with traditional Real Estate Broker
1. Why RE/MAX business model is
better than the normal broker’s
business model?
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2. What a normal broker model is?
Invest in office (space and interiors)
Do transactions to earn money
When business grows keep employees
Prefers to keep relatives , friends so there is less or no cheating
Open another branch only if a relative or a very trustworthy
person is available.
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3. Investment in Office
Minimum 500 sq feet office is required
Either rented or owned
Overheads of running an office
Manpower cost
Other Expenses, like government compliances
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4. Transaction Oriented Approach:
In normal broking business, you just do transactions, but not
focus on building relationships. (As the first priority is to run the
office)
No long term vision
No training available on how to increase business
Less technological use
Each office tries to create own brand
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5. High Running cost:
If your business grows , you have to keep more employees –
which are hard to find
By keeping more employees , you are adding cost in your
business
You also need to retain employees by giving them more money
More employees, More Management , More Time, More Cost
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6. Trustworthy Employees:
There is always a risk of cheating in business in real estate
brokerage due to lack of documentation.
A businessman tries to keep known and trustworthy friends and
relatives
It is difficult to get relatives who can be successful brokers
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7. Multi-City Branches
You need a :
Trustworthy person
In the city in which you want to open a branch
Who is willing to start a real estate business
Wants to work under you
Mostly the relatives lives in same area/city
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8. Why normal brokers are not
successful?
Not scalable
Revolving door mentality
No viability for branding ,training or technology
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9. Not Scalable
It is difficult for individual to expand the business
Volume of business stays limited due to capacity constraints.
Due to cyclical nature of the industry the broker cannot commit
to high fixed costs
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10. Revolving door mentality
Employees come and the broker trains them
They learn and work for sometime and leave the business when they
become expert
So the broker looses on all the investment he has done on this person.
Moreover, the employee becomes competitor.
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11. No scale for branding
In today’s competitive market advertisement is necessary which is a
costly affair.
If you don’t do advertisement, you don’t do generate enough leads to
stay busy
Each office tries to build its own brand, which takes years.
As all competitors are also doing the same, the cost of advertisement
increases and effectiveness decreases.
12. No scale for training
Training requires a class full of students and a trainer
With 3 employees, the broker doesn’t have any scale for training
No ready made courses are available for the broker to send his
employees to.
Moreover good employees don’t join the broker and he has to
get fresher's or people outside industry
Customers on other hand demand best service, which requires
more training to employee
13. No scale of technology
Website and software needs to be made to market the listing
online.
However a small office doesn’t have financial or technical
resources to do all that
Technology is required to make employees more productive.
Without technology, employees do less work in more time,
which hinders the office growth
14. How to grow?
The broker can break the vicious cycle by joining hands with
RE/MAX, the worlds most productive work force of real estate
broking.
15. About RE/MAX
World’s leading real estate network.
Presence in 91 countries & nearly 7000 franchised office.
A business model that has made millionaires out of struggling
business owners
Turning real estate brokers in to real estate investment manager.
Nobody in the world sells more real estate than RE/MAX.
www.remax-mgm.com
17. Is RE/MAX model successful ?
91 Countries
7000+ Offices
100,000+ Agents
20,00,000+ Transactions
What else to say
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18. Comparison
Own Business RE/MAX
High Capital Investment
Nominal Affiliation Fee
Variable Running Expenditure
Minimum monthly expense
High Manpower Cost
Bigger office Space
Limited Market Presence
Biggest Brand
Network
Highest Market Presence
Advertising/ Branding
Largest Network
Limited Reach
Higher Advertising
Unlimited Reach
19. Why Indian real estate market needs
RE/MAX ?
The Indian G.D.P. growth of amongst the fastest across the world.
World’s top 5 economies and urbanization is spreading across the country.
There is a huge demand for professional people who can provide better
services.
Developers and customers are in search of skilled & professional real estate
brokers.
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20. Why join RE/MAX ?
Power of the RE/MAX Name
Worldwide Real Estate Leader Premier Market Presence
Technological Edge Premier Market Presence
Networking and Referrals Main Street. Not Wall Street.
On-Demand Education Take a Step Above the Crowd
Common Advertising
Recruiting Support
In Business for Yourself, But Not by Yourself
Franchise Support
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22. Problems in normal business models
High manpower costs
High manpower turnover
High branding costs
No training efforts
High monitoring
No support
No cooperation from competition
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23. Benefits in RE/MAX business models
Low manpower costs
Less manpower turnover
Less branding costs
Training & Motivation
Less monitoring
Support at every stage
Cooperation from competition
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24. Problem in other broking business
Low inventory
Unskilled agents
Lack of technological use
Dissatisfied customers
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25. Benefits in RE/MAX broking business
High inventory
Trained & Skilled agents
Use of technology
Satisfied customers
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26. Why RE/MAX business model ?
A business model which helps in:
Attracting most Professional agents of the market
Agents who are motivated to provide the best service
Attracting Most listing in the market
Build a Brand
Other features of this model:
Accountable
Flexibility in running franchise
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27. RE/MAX’s Agent Centric Business
Model
• Broker associates earning the maximum percentage on every transaction (45-81%)
• Broker office 9-45% and so on
• The gains for the broker owner multiply with every Broker associates he/she recruits
Brokerage
Remax
Broker Office & Broker Associates
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28. Franchise Support
Sales Associate Orientation program (SAO) gives your new recruits all the
information on RE/MAX’s programs and services
Information on training, business planning, awards and
recognition, conferences, rallies, retreats, technology, trademark and graphic
standards, referrals, community care programs etc.
franchise owner, recruiting and retention is the lifeblood of your business
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29. In Business for Yourself, But Not by
Yourself
The RE/MAX organization was created by top real estate
professionals for top real estate professionals
With the RE/MAX name working for you worldwide every day,
you have every opportunity to rise to heights you may never
before have dreamed of.
your own successful real estate company using the best system
and support services in the industry, you owe it to yourself to
look closely at RE/MAX.
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30. Recruiting Support
The RE/MAX brand, market share and advertising give you a
better opportunity
Start with an online site devoted exclusively to recruiting
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You can send your prospects to the site before you meet with
them, giving them a strong knowledge of the benefits and
services RE/MAX has to offer.
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31. National Advertising
Our print ads are in all the major home magazines
Sales associates capitalize on the top-of-mind awareness.
Award-winning RE/MAX advertising helps RE/MAX
Broker/Owners recruit Sales Associates
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32. Networking and Referrals
RE/MAX Affiliates refer their clients directly - agent-to-agent,
with no middleman adding additional cost - to over 100,000
Sales Associates in more than 7,000 offices in over 91 countries.
The referral experience is facilitated by the online referral roster,
which features automated forms and online referral
transmission.
RE/MAX referrals flow from one experienced agent directly to
another based on criteria they select themselves
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33. Use of technology
RE/MAX has developed one of the world’s most advance
technology platforms- Gryphtech
It is for India operation which would give an unmatched
technological advantage to your agents.
Gryphtech offers a suite of high quality application which ensure
that not only your agents are able to present their listing more
impressively.
Also empower you with powerful administrative tools to help
you take control of your business.
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34. Satisfied Customers
RE/MAX is one of the most trusted brand in the world.
Skilled & Professional agents makes customer satisfied
The customer is further assured of safety of the transaction.
The broker associates introduce themselves as a part of the
RE/MAX network , thy will give the customer the assurance of a
brand.
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35. RE/MAX’s unique business model
At RE/MAX everyone wins- agents get maximum commission.
Agent has more satisfaction and motivation to work harder
More inventory , sales , profit
Everyone work as entrepreneur
Less agent monitoring required
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36. Key reasons to join RE/MAX
Power of a global brand
Marketing and lead generation
Training
Technology
Agent Technology Tools
Office Technology Tools
Network
Business for yourself , but not by yourself
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37. Power of Global Brand
The day you join RE/MAX, everybody knows your name.
RE/MAX is synonymous with quality, integrity, professionalism
and experience.
Extensive national advertising, worldwide sponsorship of major
sports events and the collective power of marketing by
thousands of Affiliates
It's a fact: Buyers and Sellers flock to RE/MAX.
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38. Marketing & Lead Generation
The RE/MAX network enables you to explore and generate
relevant leads.
A fraction of the cost through co-operative participation with
other RE/MAX affiliates
Every time any RE/MAX affiliate undertakes a marketing initiative
in the country, it is your brand RE/MAX that gets promoted.
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39. Agent technology tools
Contact management system for all
Referral manager for transactions
Marketing tools for reaching out to more people
Personal webpage and email address
Unlimited property listing with photographs
Buyer Match
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40. Office technology tools
Performance tracking of associates
Goal setting for your office
Comparing your office performance with other offices
Complete analysis of office like inventory, lead generation ,
agent’s daily activities, transaction reporting
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41. Training
Skill development & knowledge sharing
Professional training program for associates for improving in earning
Use of technology in real estate business
RE/MAX frequently organise training to upgrade skills & knowledge
Training programmes are focused on improving the earnings of each
associates
Trainings are more focused on some of the important topics like
Sales , Technology & Real Estate fundamentals.
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42. RE/MAX business model is better
than the other business
Agent centric company
Run by entrepreneurs at every level
Affordable investment
Least operating cost
Focused on skill development, training, use of technology
Biggest network
Support at every level
Assurance of a brand
Unlimited potential , endless possibilities
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43. Who can Apply for a Real Estate
Franchise?
For a RE/MAX franchise you require :
Investment ability from 5 to 10 lakhs
An office space in any location
Flair to recruit agents to work in the franchise
Solicited for franchises are open right now in the following areas:
Gujarat, Mumbai , Maharashtra ,Ahmedabad, Vadodara, Surat
, Rajkot, Pune, Aurangabad, Nasik , Thane.
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44. Make the decision that will make your life
JOIN
Call us : 1800-121-7100 or email us : mgm@remax.in