comparing re/max business model with traditional real estate broker
TRANSCRIPT
Why RE/MAX business model is better than the normal broker’s
business model?
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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.
What a normal broker model is?
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Minimum 500 sq feet office is required Either rented or owned
Overheads of running an office Manpower cost Other Expenses, like government compliances
Investment in Office
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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
Transaction Oriented Approach:
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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
High Running cost:
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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
Trustworthy Employees:
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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
Multi-City Branches
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Not scalable Revolving door mentality No viability for branding ,training or technology
Why normal brokers are not successful?
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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
Not Scalable
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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.
Revolving door mentality
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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.
No scale for branding
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
No scale for training
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
No scale of technology
The broker can break the vicious cycle by joining hands with RE/MAX, the worlds most productive work force of real estate broking.
How to grow?
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.
About RE/MAX
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What is RE/MAX model ?
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What else to say
Is RE/MAX model successful ?
91 Countries 7000+
Offices 100,000+ Agents 20,00,000+
Transactionswww.remax-mgm.com
Comparison
Own Business
High Capital Investment
Variable Running Expenditure
High Manpower Cost
Limited Market Presence
Network
Advertising/ Branding
Limited Reach
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.
Why Indian real estate market needs RE/MAX ?
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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
Why join RE/MAX ?
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Traditional Business Model vs
RE/MAX business model?
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High manpower costs High manpower turnover High branding costs No training efforts High monitoring No support No cooperation from competition
Problems in normal business models
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Low manpower costs Less manpower turnover Less branding costs Training & Motivation Less monitoring Support at every stage Cooperation from competition
Benefits in RE/MAX business models
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Low inventory Unskilled agents Lack of technological use Dissatisfied customers
Problem in other broking business
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High inventory Trained & Skilled agents Use of technology Satisfied customers
Benefits in RE/MAX broking business
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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
Why RE/MAX business model ?
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RE/MAX’s Agent Centric Business Model
Brokerage
RemaxBroker Office & Broker As-sociates
• 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
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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
Franchise Support
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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.
In Business for Yourself, But Not by Yourself
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The RE/MAX brand, market share and advertising give you a better opportunity
Start with an online site devoted exclusively to recruiting www.remax-mgm.com
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.
Recruiting Support
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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
National Advertising
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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
Networking and Referrals
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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.
Use of technology
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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.
Satisfied Customers
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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
RE/MAX’s unique business model
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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
Key reasons to join RE/MAX
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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.
Power of Global Brand
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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.
Marketing & Lead Generation
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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
Agent technology tools
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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
Office technology tools
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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.
Training
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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
RE/MAX business model is better than the other business
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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.
Who can Apply for a Real Estate Franchise?
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Make the decision that will make your life
Call us : 1800-121-7100 or email us : [email protected]
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