Realty Source® Vs The virtual eXperience
Let’s look at the facts. This new eXperience is the hot new choice when it comes to brokerages, just as KW was 10 years ago. I was recently approached by a national publication about the differences in business models.
The analysis below is based upon the following factors:
12 transactions per year
Average price of $500k
Average of 2.5% Commission
Total GCI: $150,000
|Realty Source Fees:
$1,188 Yearly Office Fees
|New hot eXperience Fees:
$99 “Startup” Fee
Realty Source® agents will earn $16,343 MORE PER YEAR than a Virtual eXperience agent in the above-mentioned scenario.
But wait, this company offers stock options?!?! Let’s say you actually meet the criteria to earn the stocks, after the 3 year vesting period, what is your stock worth? Is it up? Down? If the real estate market takes a dive, what do you think will happen to the stock of a real estate brokerage?
Let’s say that you are a Realty Source® agent and invest the $16,343 YEARLY savings into marketing for your business that brings you a meager 2x return. You are earning an additional $32,686 PER YEAR that you are free to invest as you choose.
While waiting for your $16,000 in stock to vest, the Realty Source® agent has invested $98,058 into their retirement fund, stocks, real estate, etc. The $16,000 in stock you might receive would have to increase 512% over those 3 years (good luck with that) to be comparable to a Realty Source agent.
The numbers don’t lie.
What can you do with an additional $98,058 over the next 3 years?
Is following the “herd” worth taking $98k out of your pocket? Smart agents would say no.