REALTY ONE GROUP
Founded in 2005 and headquartered in Laguna Niguel, California, the “unbrokerage” cites a dynamic and inviting “coolture” so unique it had to create its own word for it.
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“Here, people have the ability for brand and leadership to navigate and guide their agents through the changing, shifting market through coaching driven by our industry experience,” says Mike Clear, COO and CFO of Realty ONE Group. “Our unique value proposition is our 6 Cs…commissions, community, coaching, culture, connect and care. Those categories are how we drive our business, and it all kind of surrounds our purpose-driven brand.”
The company provides a set of technology tools that allows franchisees to run their business. They also give them 100% commission so they can decide how they want to approach their marketing and lead generation initiatives.
“This market is changing and shifting, and we are very much a franchise that allows freedom for our franchisees to recruit and give attention to their customers because we give them the systems and process to run a smooth brokerage,” explains Clear. “It all goes to our manifesto, our core values. In the last year we closed the loop by bringing what we call our gold standards. It’s basically a set of behaviors around the word ‘golden,’ because our brand colors are black and gold.”
Realty ONE Group attracts franchise interest based on its branding and culture. It considers itself strategic, and is selective about where it wants to grow and the types of owners it wants to partner with.
“You have to have the right mindset,” says Clear. “A lot of companies can go and sell a ton of franchise units, but if they’re not going to open, thrive and grow, it’s not ultimately great for the brand. Our selectiveness helps every other owner because it represents the brand in the right way.
“We’re growing through the headwinds,” adds Clear. “Our agent count is growing. We believe we’ll attract people during this market cycle, and we’ve entered nine countries. We’re very upbeat about growth while helping current franchisees navigate this shifting market.”
Fast Facts
- The company stresses that having 100% commission go to the agent allows them to be their own CEO.
- On pace to sell nearly 100 franchises in 2022, Realty ONE Group has been selling 80 – 100 franchises through the last four years.
RE/MAX
Founded in 1973 and headquartered in Denver, Colorado, each RE/MAX office is independently owned and operated.
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“We’re a very growth-oriented company, and extremely entrepreneurial, meaning that our owners and top agents across the network are where we get our best innovations and ideas,” says Peter Luft, vice president of franchise sales at RE/MAX LLC. “The quality of that network, and the entrepreneurial spirit behind it, is what fuels RE/MAX’s growth.”
The early days of RE/MAX were designed by top producers for top producers. And back 30 to 50 years ago, RE/MAX was a good place to start your brokerage and grow it with like-minded people.
Today, according to the company, RE/MAX has become the standard in top performers, with agents generally averaging twice the production of those of most competitors. And the experience level of those affiliated with RE/MAX set the brand apart.
“That differentiator, combined with the entrepreneurial, control-your-own-destiny type of environment, fuels the growth of those top people,” explains Luft. “It’s like the old adage that you play better golf with better golfers. When you’re surrounded by top people in the business, it tends to elevate your game as well.”
The compound effect of advertising dollars spent by stakeholders has a significant impact on the consumer’s awareness and demand for RE/MAX’s service. From a branding perspective, consumers’ awareness of the brand is far and beyond the majority of its competitors.
“Agents generally know that their brand is vitally important,” insists Luft. “But when they tie it to a brand that the consumer associates with high experience and high productivity, all the things that we market the brand for, it’s a winning combination for the agent.
When it comes to compensation, according to Luft, RE/MAX is either the most expensive place to be or the least expensive, depending on one’s production level. “Generally, if you’re not really productive, it’s going to be pretty costly. Everybody’s got to carry their weight. If you’re highly productive, it can be the most lucrative environment you can work in,” notes Luft.
“RE/MAX has grown the most when the market shifts and adjusts and cools,” says Luft. “The reason is because most traditional companies lean on less productive agents for a substantial portion of their cash flow. When the market tightens, the lower-producing agents have a more difficult time producing, and the company’s cash flow gets squeezed. That negatively impacts the top producers, who then look for change.”
Fast Facts
- The company is in 110-plus countries, and its red, white and blue balloon is recognized globally.
- There is an M&A initiative promoted among RE/MAX franchise owners, which is important from a growth perspective.
UNITED REAL ESTATE
Founded in 2011 and headquartered in Dallas, Texas, United Real Estate cites creating cost-efficiencies to return more dollars to employees and their families, clients and communities.
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“If you and I were in an elevator and we had three floors to the lobby for me to tell you what’s different about United, I would say that we are what a franchising system could be if they could start completely over with a clean sheet of paper,” says Rick Haase, president of United Real Estate. “For us, that goes from tools and services and support to the proprietary technology platform that helps our brokers succeed.
“Our compensation model gives our agents the highest opportunity to retain their gross commission income and the costs associated with being part of a national network,” adds Haase.
According to the company, most franchise systems today charge their brokers an amount of money that is a multiplier off of the gross commission income. And when they do that, it’s good for their bottom line, but doesn’t leave enough of the top-line revenue to pay agents what they want, need and deserve to stay with the company. While this creates challenges as far as recruiting and retention, United’s approach has remedied that financial problem.
“We went down a path that required a huge investment into proprietary platforms and systems so that we could keep our cost structure low and run a franchising system that is super affordable but super product-rich,” explains Haase. “And that is one of the reasons we’re growing.”
United operates through a lot of consultation with brokers transitioning to a new brand, a new franchise or even wanting to be bought by the national franchisor.
At United, the hero in the story isn’t the brand. It’s the broker and the agent they’re trying to serve.
“When you approach the business that way, all of a sudden your language changes, your approach changes and it becomes diagnose before prescribing,” notes Haase. “That may sound like a soft issue, but it’s not. It’s core to our success.”
Fast Facts
- One of United’s key drivers is to put transactions together, be they new franchises, M&A or both, that accomplish what current business owners are looking for.
- The company has moved from the 139th largest brokerage in the U.S. to No. 7, according to RISMedia’s 2022 Power Broker Report.
WEICHERT, REALTORS®
Founded in 1969 and headquartered in Morris Plains, New Jersey, Weichert, REALTORS® believes that online shoppers need to experience properties in-person, and has reinvigorated its open house program.
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“Every broker understands that it’s the relationships they build and maintain that make the difference in growing their business,” says Bill Scavone, president of Weichert Real Estate Affiliates, Inc. and Weichert, REALTORS®. “Our highly skilled team internalizes brokers’ goals and makes their success our priority. Our affiliates truly understand what it means to have a real dream advocate that will motivate and coach them as leaders to be their very best.”
Weichert provides tools and systems at every level that are integrated to help brokers reach the results they’re looking to achieve. They also pride themselves on offering exceptional support and guiding brokers along the path to success.
“We always ask ourselves, ‘how can we do it better?’” says Scavone. “We believe we have decoded the essence of what makes a brokerage truly successful and have made it easily accessible to inspired leaders across the country who want to do something of significance in their communities.”
Cost and compensation go hand in hand with added value at Weichert. What they’ve learned over the years is that the key to any successful model is the ability to create sustainable added value for all the stakeholders of a company.
“We keep our costs fair and simple with no hidden fees,” explains Scavone. “Our belief is to provide tremendous value and invest in high ROI products, services and systems for our affiliates. We also know that you simply cannot grow without good people, so our people-first philosophy strikes the right balance between empowering us to grow, providing our agents with all the support and resources they need to thrive and delivering a consistent first-class experience to the consumer.”
After having navigated an ever-changing industry landscape for over 53 years, Weichert knows that high-quality and consistent customer service is in demand in all markets. Its hyperlocal approach to lead generation, which is relationship driven and targets its primary market areas, has been very successful. This approach ensures that the company’s real estate professionals can truly own their markets by finding the buyers and sellers first, then providing a first-class consumer experience that will create even more business.
Fast Facts
- The company’s compensation model is set by the local affiliates; the franchisor does not dictate any particular plan.
- Understanding how to turn a casual visit into a sale, Weichert holds more open houses than anyone else.