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Save Money or Build Wealth? Is the Transaction Fee Model Best For You? · The Real Estate Agent Playbook

• 0:00
  choosing a brokerage isn't all about saving money
• 0:03
  and the truth is some of the transaction
• 0:05
  brokerage models I've been running lately
• 0:07
  are absolutely more expensive
• 0:10
  you know
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  they they tout a hundred percent brokerage model
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  the truth is
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  there is no one hundred percent brokerage model
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  because even if there's a transaction fee
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  you're paying a little bit
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  but I left a transaction fee and my dad was my broker
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  and here we are absolutely crushing it where I'm at
• 0:27
  so I'm gonna dive into this
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  and see if the decision to state a transaction fee
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  based model is best for you
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  or it's actually costing you thousands stay tuned
• 0:42
  what's up guys Jeremy Kane real estate agent playbook
• 0:44
  and this one's near and dear to my heart
• 0:46
  as I help and talk to agents
• 0:49
  about brokerage models and decisions
• 0:51
  so I know a ton of the models
• 0:53
  and I'm running numbers right now for brokerages and
• 0:56
  or brokers and brokerages
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  and it's absolutely insane to me that
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  most brokers have no idea
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  the savings they would get at a cap
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  split model versus transaction model
• 1:08
  so we're gonna dive into that
• 1:10
  this is a little bit brokerage specific
• 1:12
  on this channel we're talking about
• 1:14
  you know how to grow your business organically
• 1:16
  and absolutely crush it because ultimately
• 1:18
  I don't love paying lead generation systems
• 1:20
  I don't love paying the brokerage
• 1:22
  I don't love you know paying all these overlays
• 1:25
  and splits that make it so expensive to
• 1:27
  be a real state agent so
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  I have grown my business to be a 3 time icon agent
• 1:31
  at my current company
• 1:33
  but I wanna help you win every single day of the game
• 1:35
  real estate so that sounds good to you
• 1:37
  please like the video throw me a comment
• 1:39
  let's have some engagement
• 1:41
  but ultimately
• 1:41
  if you subscribe and hit that notification bell
• 1:44
  you'll be notified when I release two videos a week
• 1:46
  and if something I've already said interests you
• 1:49
  and you wanna have a conversation and run your numbers
• 1:51
  please book a call with me below
• 1:53
  and we can absolutely dive in
• 1:55
  to joining the record breaking group
• 1:57
  The Wolf Pack Eddie Xperialty
• 1:59
  but if you need more let's keep watching okay
• 2:01
  so first and foremost I completely
• 2:04
  understand how expensive it is to be in this business
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  right we we get in or like yeah
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  we're gonna go do this we're gonna
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  you know have leads and lead generate
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  and my broker just gonna provide me leads
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  and all the things and then reality strikes right
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  certainly if you do join a brokerage
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  where they're providing leads
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  you're gonna pay up usually about 60 to 70% um
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  in referral fees of some sort
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  at least for the good ones
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  and then you also have your license fee
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  your eno insurance your you know contracts software
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  your um brokerage monthly fees
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  all of these fees start to add up
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  not to mention the Realtor board dues
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  and
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  all of these things that kind of hit you all at once
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  right I tell people it's usually about 2,000
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  $3,000 at least in my state to get up and running
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  and so all of these fees start to add up
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  and then we're in a position where we were like okay
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  we thought we were okay but you know
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  we had some things come up in the fees
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  and all the stuff and now what
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  now we're you know desperate for the next sale
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  and we struggle to get our footing
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  and so
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  you know
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  the truth is that regardless when all this dust settles
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  right that all of those fees are included in you know
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  almost every brokerage model there is right
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  because um that's how you know
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  especially the ones that operate on these tight budgets
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  that have you know
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  just very small fees
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  they are just paint keeping the lights on
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  so that has a problem because then all the sudden
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  we're at this all a card option
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  we don't have the tools we don't have the resources
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  we're a contractor with a hammer and a screwdriver
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  that doesn't even have a battery attached to it
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  and what do we what do we do right
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  so then we have to go out and kind of build all these
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  all a car resources to build
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  you know what we think will be a lucrative kind of
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  kind of setup
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  so typically at these transaction fee brokerages
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  there is you know
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  not necessarily a ton of leads just sitting there
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  the truth is I don't know if you are aware
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  but as an agent if you're in the business
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  you know this the leads that are passed around
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  are often sold to multiple different people
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  and the truth is the word lead is much
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  much a lot misaligned in my opinion because if it's
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  you know handed out to
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  you know 5
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  10 agents whatever
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  you know across multiple brokerages
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  so on then what actually happens
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  because a lot of times
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  these leads are someone who just clicked on one thing
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  let me see the pictures
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  they put their information in and they did that
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  and then they go to the next place and they're like
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  okay let me see the pictures and then
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  you know you got a lead from Zilla
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  you got a lead from realtor
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  com you got a lead from y Lopo
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  all the different things it's one lead
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  it's one person it's one opportunity
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  and oftentimes
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  if they're clicking around on the internet
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  and giving people their information
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  they might not even be ready to buy
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  so are they really a lead
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  we'll let you decide
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  but the point is that all the card options
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  and having the Crms and the systems in place
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  and all of the things gets expensive
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  and if you are
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  at a brokerage that doesn't offer these things
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  or does offer a very limited
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  you know scope of these
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  because the next secret is
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  some of these CRMs and these websites
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  they really limit them down
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  because they can only afford
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  you know certain pieces of the platform
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  because the fees aren't as expensive
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  you see the problem with building this all a car
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  it takes a very special
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  driven individual that understands marketing
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  to make those right choices
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  and at the end of the day
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  if we're putting money out for these olive cart systems
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  and you know programs
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  are we really at 100% brokerage
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  are we missing out you know
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  from the brokerages that offer a little bit more
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  although they may you know
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  on paper charge a little bit more
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  so next as we roll down and you know
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  sometimes we we get you know
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  so focused in and business is good
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  and things are rolling in
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  this is for my experience agents
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  then we kind of hit this you know
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  roadblock or something changes
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  the commission changes or all this
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  and you know we have these emails
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  these candy mails that come from our broker that say
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  you know
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  go listen to this attorney or go listen to this right
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  and there's no real collaboration right
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  because
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  by nature of being at a transaction brokerage model
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  people are like well
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  everything's in it for myself it's my business
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  I can do this so
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  you often times have a very shut off group of people
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  who just have you know
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  the brand that they're all you know
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  unknowingly building the brand to success
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  um not their own
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  but they're
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  they're kind of shut off and there's no collaboration
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  so when you step back and you're at a brokerage
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  there maybe there's a revenue share system or rep
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  maybe there's some equity ownership
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  there's a little bit more camaraderie within those
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  just by the nature of the setup of the model right
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  I know our group at the Wolfpack
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  extremely collaborative not every agent that I talk to
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  or I help is in my downline or upline
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  the truth is that it creates a culture of collaboration
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  because if we win
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  we all win because we all are equity owners
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  owners of our company we're not renting our business
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  we're not building that brand up
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  and so it behooves of us to actually collaborate
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  and so I've seen brokerage model after brokerage model
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  and a lot of them talk about they're like well
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  it's cheap so we don't really have that
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  you know ultimate collaboration
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  I will tell you
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  that some transaction shops do a really good job
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  they have the office culture
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  but there are few and far between because by nature
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  the person saying well
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  this is my money why would I
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  you know invest it into the brokerage
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  based on the split or whatever
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  now on the other end of the perspective
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  there's of spectrum there's a ton of
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  you know brokerages that charge
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  hundreds of thousands of dollars to their agents
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  and they've created like this ultimate
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  you know brand and you know
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  you have to be a part of this brand to you know
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  sell houses and that's just not true as well
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  so there is a fine line of this collaboration of okay
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  like we are all our own brand
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  we are all independent contractors
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  and are we doing this right now out of
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  you know collaboration to build
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  the entire group in the companies brand
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  or are we just focused on the companies brand because
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  you know this
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  that or the other thing so that's absolutely huge
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  and I get it when you first start
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  you know if it's like
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  oh this is cheaper
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  it's only 25 bucks a month versus 85
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  or there is no monthly fee
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  it's just a split well
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  those models struggle to kind of stay afloat
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  because they cannot offer their agents the
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  you know opportunity for the collaboration
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  so if you're considering and you're a new agent okay
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  this is what this looks like
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  maybe it's a little bit more expensive overall
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  but then I get a website and I get a CRM
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  and I get a collaboration
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  I get all this specialty training
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  especially the stuff that we offer at the Wolf Pack
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  you want more information about that
• 8:58
  book a call at the re agent Wolfpack
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  com and we can talk about all the things we offer
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  in addition to our brokerage brand as well
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  but if we're sitting back and looking at it
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  how are we actually gonna launch into this business
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  how are we actually going to get up and running
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  or if we're stagnant how are
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  how is going to
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  this model where we just feel like we do everything
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  and you know
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  how is that going to encourage your growth
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  um I
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  I tend to believe you know
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  we are the people we surround ourselves with
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  so often times
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  when you go into these cultures that are more
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  me first I'm gonna save all my money
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  all the things not throwing it into you know uh
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  revenue share pool or the equity ownership piece um
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  then you know
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  and it's certainly not all even at my brokerage
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  but um there there's different layers to this
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  but there's only enough money in the bank to you know
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  put out so much
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  and so if you're at one of those brokerages
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  it has limited fees limited splits all the things well
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  what can they actually provide the agents
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  and what have do they have in place
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  you know to supplement for the lack of you know
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  income stream that you know
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  brokerages really struggle with
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  then the next thing hopefully you're still with me
• 10:11
  if you are
• 10:13
  you you know you do survive right
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  so you go to the transaction shop
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  and you're absolutely
• 10:17
  make sure that you run the numbers because
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  you know I've run numbers for people at you know
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  transaction shops that are supposedly cheap and great
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  and you know offer all this stuff
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  but when you're talking 30
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  40 50
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  100 transactions in a single year
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  it makes absolutely no sense
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  the transaction fees do actually add up
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  I ran one for an agent recently where she would say
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  40 thousand dollars being on the EXP 80
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  20 split with a 16 thousand dollar cap
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  as opposed to her you know
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  brokerage transaction fee model
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  what she is currently doing
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  so the hundred percent model
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  cost 40 k more per year to that agent
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  that's real money
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  and when your average purchase prices hundred 75
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  202 25
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  whatever it is $40,000 is a lot of money
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  so think about those locations that we deal in
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  and you operate in
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  think about the transaction volume as it stacks up
• 11:12
  and what actually makes sense right
• 11:15
  and if you want to actually run the numbers
• 11:17
  your numbers we will sit down
• 11:19
  we will go through it we'll run them
• 11:20
  you know through a spreadsheet or on a
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  you know pen and paper
• 11:24
  and we'll make sure that you are actually getting
• 11:27
  the best bang for your buck
• 11:28
  when you make these brokerage decisions
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  I've just seen it over and over and over again
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  for my personal experience
• 11:34
  I was actually going to make 20
• 11:37
  five hundred dollars more
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  when I net everything together right
• 11:40
  the stock awards the
• 11:42
  you know revenue share with
• 11:44
  you know all the things
• 11:45
  I was actually making $2,000 more than I was
• 11:49
  at my dad's brokerage the cheapest brokerage
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  you know in my entire state
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  and coming over to EXP because of the value and how
• 11:57
  you know the the model is structured
• 11:59
  so make sure you're actually aware of what's going on
• 12:02
  because sometimes you know
• 12:04
  when we're reaching for those you know
• 12:06
  increase transactions like okay well yeah
• 12:08
  I'm gonna be here until I get there
• 12:10
  but can you get there
• 12:11
  in the current environment that you're in
• 12:14
  that's the question you have to ask yourself
• 12:16
  and ultimately can you get there quicker
• 12:18
  with the resources that are offered
• 12:20
  you know at at the next brokerage
• 12:22
  it might be a little more expensive on the front end
• 12:24
  but will ultimately get you to that goal and that
• 12:27
  you know income that you're actually looking for
• 12:29
  and then finally the
• 12:30
  the transaction shops typically do not have
• 12:33
  the long term growth opportunities right
• 12:36
  EXP was kind of
• 12:37
  the revolutionary company that came out with
• 12:40
  you know revenue share
• 12:41
  switched it from profit share at the kw model
• 12:44
  which really shouldn't even be in the same sentence
• 12:47
  because profit share is you know
• 12:49
  after the company pays all its bills
• 12:51
  and all the office bills
• 12:52
  and all the employees and all of that
• 12:54
  or revenue share comes off
• 12:55
  when that money hits
• 12:56
  you know comes into the brokerage on a split
• 12:58
  then it goes out to the revenue shareline immediately
• 13:02
  so you know exactly what it is
• 13:03
  it appears littler on the front end
• 13:05
  but as that adds up over time
• 13:07
  it's absolutely massive you know
• 13:09
  10 million x of what I've seen you know
• 13:13
  and heard from people who've been in
• 13:14
  the profit share model for an
• 13:16
  extended amount of time so that long term growth right
• 13:19
  we wanna really look at this realtors don't retire
• 13:22
  they expire that I mean
• 13:24
  ultimately was the the saying that I was like okay
• 13:28
  well what am I gonna do right
• 13:29
  if I hoard all my commissions
• 13:31
  and I'm paying for websites
• 13:33
  and paying for this and paying for that ultimately
• 13:35
  do I have you know any sort of exit strategy
• 13:39
  do I have any of that
• 13:40
  that's included with this cheaper model
• 13:42
  because ultimately
• 13:44
  I could still be there absolutely crushing it
• 13:46
  and it's on me to take you know
• 13:48
  the half of my income or whatever they
• 13:50
  they're saying now and invest it with
• 13:52
  you know my financial planner or invest it personally
• 13:54
  or whatever that looks like
• 13:56
  and sometimes that investment is like well
• 13:57
  should I invest in my business or should I invest in my
• 14:00
  my future and so being at a brokerage
• 14:02
  it offers equity ownership
• 14:04
  that offers revenue share
• 14:05
  that offers a competitive commission split
• 14:08
  there's much more that goes into a brokerage model
• 14:11
  in the cap split
• 14:12
  or the transaction fee or the monthly fee that you
• 14:14
  you know we become so obsessed with
• 14:17
  when we're looking at these brokerage models
• 14:19
  so if any of this struck accord
• 14:21
  if you're interested in chatting about my experience
• 14:24
  here's the deal I want what's best for you
• 14:25
  I wanna help you win every single day at the game
• 14:27
  real estate so let's reach out
• 14:29
  you can book a call with me below
• 14:31
  you can shoot me a text 3 0
• 14:32
  3 2 1 0 0
• 14:33
  3 7 8
• 14:34
  I'd be happy to talk about your situation
• 14:37
  run your specific numbers and see what makes sense
• 14:40
  because ultimately this model isn't for everyone
• 14:44
  but for me it absolutely was a game changer
• 14:46
  it took my you know
• 14:48
  retirement goals from you know
• 14:50
  probably 65
• 14:51
  I'm gonna retire from production when I'm 48
• 14:53
  because all of the income streams
• 14:55
  and the opportunity that was provided
• 14:58
  because I opened my eyes from a transaction shop
• 15:01
  and actually did the math
• 15:02
  and this one made way more sense
• 15:04
  and I promise you it will for you too
• 15:06
  so let's chat please like comment
• 15:08
  subscribe if you're here for the organic stuff
• 15:10
  and we will absolutely crush this together
• 15:12
  go get a win today bye bye