Comparing RE/MAX Business Model with traditional Real Estate Broker

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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 …

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.

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  • 1. Why RE/MAX business model isbetter than the normal broker’s business model? www.remax-mgm.com
  • 2. What a normal broker model is?Invest in office (space and interiors)Do transactions to earn moneyWhen business grows keep employeesPrefers to keep relatives , friends so there is less or no cheatingOpen another branch only if a relative or a very trustworthyperson is available. www.remax-mgm.com
  • 3. Investment in OfficeMinimum 500 sq feet office is required Either rented or ownedOverheads of running an officeManpower costOther Expenses, like government compliances www.remax-mgm.com
  • 4. Transaction Oriented Approach:In normal broking business, you just do transactions, but notfocus on building relationships. (As the first priority is to run theoffice)No long term visionNo training available on how to increase businessLess technological useEach office tries to create own brand www.remax-mgm.com
  • 5. High Running cost:If your business grows , you have to keep more employees –which are hard to findBy keeping more employees , you are adding cost in yourbusinessYou also need to retain employees by giving them more moneyMore employees, More Management , More Time, More Cost www.remax-mgm.com
  • 6. Trustworthy Employees:There is always a risk of cheating in business in real estatebrokerage due to lack of documentation.A businessman tries to keep known and trustworthy friends andrelativesIt is difficult to get relatives who can be successful brokers www.remax-mgm.com
  • 7. Multi-City BranchesYou 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 youMostly the relatives lives in same area/city www.remax-mgm.com
  • 8. Why normal brokers are not successful?Not scalableRevolving door mentalityNo viability for branding ,training or technology www.remax-mgm.com
  • 9. Not ScalableIt is difficult for individual to expand the businessVolume of business stays limited due to capacity constraints.Due to cyclical nature of the industry the broker cannot committo high fixed costs www.remax-mgm.com
  • 10. Revolving door mentalityEmployees come and the broker trains themThey learn and work for sometime and leave the business when theybecome expertSo the broker looses on all the investment he has done on this person.Moreover, the employee becomes competitor. www.remax-mgm.com
  • 11. No scale for brandingIn today’s competitive market advertisement is necessary which is acostly affair.If you don’t do advertisement, you don’t do generate enough leads tostay busyEach office tries to build its own brand, which takes years.As all competitors are also doing the same, the cost of advertisementincreases and effectiveness decreases.
  • 12. No scale for trainingTraining requires a class full of students and a trainerWith 3 employees, the broker doesn’t have any scale for trainingNo ready made courses are available for the broker to send hisemployees to.Moreover good employees don’t join the broker and he has toget freshers or people outside industryCustomers on other hand demand best service, which requiresmore training to employee
  • 13. No scale of technologyWebsite and software needs to be made to market the listingonline.However a small office doesn’t have financial or technicalresources to do all thatTechnology 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 withRE/MAX, the worlds most productive work force of real estatebroking.
  • 15. About RE/MAXWorld’s leading real estate network.Presence in 91 countries & nearly 7000 franchised office.A business model that has made millionaires out of strugglingbusiness ownersTurning real estate brokers in to real estate investment manager.Nobody in the world sells more real estate than RE/MAX. www.remax-mgm.com
  • 16. What is RE/MAX model ? 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 www.remax-mgm.com
  • 18. ComparisonOwn 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 betterservices.Developers and customers are in search of skilled & professional real estatebrokers. www.remax-mgm.com
  • 20. Why join RE/MAX ?Power of the RE/MAX Name Worldwide Real Estate Leader Premier Market PresenceTechnological Edge Premier Market PresenceNetworking and Referrals Main Street. Not Wall Street.On-Demand Education Take a Step Above the CrowdCommon AdvertisingRecruiting SupportIn Business for Yourself, But Not by YourselfFranchise Support www.remax-mgm.com
  • 21. Traditional Business Model vs RE/MAX business model? www.remax-mgm.com
  • 22. Problems in normal business modelsHigh manpower costsHigh manpower turnoverHigh branding costsNo training effortsHigh monitoringNo supportNo cooperation from competition www.remax-mgm.com
  • 23. Benefits in RE/MAX business modelsLow manpower costsLess manpower turnoverLess branding costsTraining & MotivationLess monitoringSupport at every stageCooperation from competition www.remax-mgm.com
  • 24. Problem in other broking businessLow inventoryUnskilled agentsLack of technological useDissatisfied customers www.remax-mgm.com
  • 25. Benefits in RE/MAX broking businessHigh inventoryTrained & Skilled agentsUse of technologySatisfied customers www.remax-mgm.com
  • 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 BrandOther features of this model: Accountable Flexibility in running franchise www.remax-mgm.com
  • 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 www.remax-mgm.com
  • 28. Franchise SupportSales Associate Orientation program (SAO) gives your new recruits all theinformation on RE/MAX’s programs and servicesInformation on training, business planning, awards andrecognition, conferences, rallies, retreats, technology, trademark and graphicstandards, referrals, community care programs etc.franchise owner, recruiting and retention is the lifeblood of your business www.remax-mgm.com
  • 29. In Business for Yourself, But Not by YourselfThe RE/MAX organization was created by top real estateprofessionals for top real estate professionalsWith the RE/MAX name working for you worldwide every day,you have every opportunity to rise to heights you may neverbefore have dreamed of.your own successful real estate company using the best systemand support services in the industry, you owe it to yourself tolook closely at RE/MAX. www.remax-mgm.com
  • 30. Recruiting SupportThe RE/MAX brand, market share and advertising give you abetter opportunityStart with an online site devoted exclusively to recruitingwww.remax-mgm.comYou can send your prospects to the site before you meet withthem, giving them a strong knowledge of the benefits andservices RE/MAX has to offer. www.remax-mgm.com
  • 31. National AdvertisingOur print ads are in all the major home magazinesSales associates capitalize on the top-of-mind awareness.Award-winning RE/MAX advertising helps RE/MAXBroker/Owners recruit Sales Associates www.remax-mgm.com
  • 32. Networking and ReferralsRE/MAX Affiliates refer their clients directly - agent-to-agent,with no middleman adding additional cost - to over 100,000Sales 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 referraltransmission.RE/MAX referrals flow from one experienced agent directly toanother based on criteria they select themselves www.remax-mgm.com
  • 33. Use of technologyRE/MAX has developed one of the world’s most advancetechnology platforms- GryphtechIt is for India operation which would give an unmatchedtechnological advantage to your agents.Gryphtech offers a suite of high quality application which ensurethat not only your agents are able to present their listing moreimpressively.Also empower you with powerful administrative tools to helpyou take control of your business. www.remax-mgm.com
  • 34. Satisfied CustomersRE/MAX is one of the most trusted brand in the world.Skilled & Professional agents makes customer satisfiedThe customer is further assured of safety of the transaction.The broker associates introduce themselves as a part of theRE/MAX network , thy will give the customer the assurance of abrand. www.remax-mgm.com
  • 35. RE/MAX’s unique business modelAt RE/MAX everyone wins- agents get maximum commission.Agent has more satisfaction and motivation to work harderMore inventory , sales , profitEveryone work as entrepreneurLess agent monitoring required www.remax-mgm.com
  • 36. Key reasons to join RE/MAXPower of a global brandMarketing and lead generationTrainingTechnologyAgent Technology ToolsOffice Technology ToolsNetworkBusiness for yourself , but not by yourself www.remax-mgm.com
  • 37. Power of Global BrandThe day you join RE/MAX, everybody knows your name.RE/MAX is synonymous with quality, integrity, professionalismand experience.Extensive national advertising, worldwide sponsorship of majorsports events and the collective power of marketing bythousands of AffiliatesIts a fact: Buyers and Sellers flock to RE/MAX. www.remax-mgm.com
  • 38. Marketing & Lead GenerationThe RE/MAX network enables you to explore and generaterelevant leads.A fraction of the cost through co-operative participation withother RE/MAX affiliatesEvery time any RE/MAX affiliate undertakes a marketing initiativein the country, it is your brand RE/MAX that gets promoted. www.remax-mgm.com
  • 39. Agent technology toolsContact management system for allReferral manager for transactionsMarketing tools for reaching out to more peoplePersonal webpage and email addressUnlimited property listing with photographsBuyer Match www.remax-mgm.com
  • 40. Office technology toolsPerformance tracking of associatesGoal setting for your officeComparing your office performance with other officesComplete analysis of office like inventory, lead generation ,agent’s daily activities, transaction reporting www.remax-mgm.com
  • 41. TrainingSkill development & knowledge sharingProfessional training program for associates for improving in earningUse of technology in real estate businessRE/MAX frequently organise training to upgrade skills & knowledgeTraining programmes are focused on improving the earnings of eachassociatesTrainings are more focused on some of the important topics likeSales , Technology & Real Estate fundamentals. www.remax-mgm.com
  • 42. RE/MAX business model is better than the other businessAgent centric companyRun by entrepreneurs at every levelAffordable investmentLeast operating costFocused on skill development, training, use of technologyBiggest networkSupport at every levelAssurance of a brandUnlimited potential , endless possibilities www.remax-mgm.com
  • 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 franchiseSolicited for franchises are open right now in the following areas:Gujarat, Mumbai , Maharashtra ,Ahmedabad, Vadodara, Surat, Rajkot, Pune, Aurangabad, Nasik , Thane. www.remax-mgm.com
  • 44. Make the decision that will make your life JOINCall us : 1800-121-7100 or email us : mgm@remax.in