New Agent Dilemmas

by Darrin DeRoches September 23 - 29, 2010

I was at an event last weekend, and I had a long conversation with a woman who just finished her real estate course. She was asking me a ton of questions: should she join a large company, or go with a small company?  She had interviewed at several different companies and was still unsure of her direction. Being a broker of a small boutique company, you would think I would just convince her to join me, but is it worth it to her and my company in the beginning?     When you first start out as a real estate agent, it’s hard.  You have no income and expenses can start piling up fast. If you join a large company, they will want desk fees, a cut of every deal, and if you are not selling, this can add up to over $10,000 in a year, and they will collect – even if they have to take you to court. So you can join a small company that will just take a bigger percentage of each deal, but will not charge you any upfront costs.  You will have to invest in business cards, signs, advertising, website, and a cell phone, and you will be an independent agent with either company.  So just pick the small company: there are no upfront costs, and you are on your way. Not so fast!     Depending on the company, you may not have the support or training a larger company will provide.  They have all the signs, cards, secretaries and mentors in place to help motivate you to sell, sell, sell.  They want you to sell since they are investing time and money in you. Having the recognition, logo and support may help you succeed while you learn the ropes. But it will cost you, and you may still not be any further ahead.      The woman I spoke with admitted she was only going to be part time, and that she can be a little lazy and needed coaching, so I suggested she went with a company that had a good exposure in her city and would not make her pay upfront fees.  A smaller company may take her on at a higher percentage to make a little money without having to spend too much time mentoring.  She can learn how to sell, invest in herself, and when the time is right go full time and make it her career.     I would have asked her to join my company, but when she admitted she was a little lazy and was not going to be a full time job, I thought it would be best for her to join a company that will be willing to have her part time.  I can work with part timers, buy lazy does not work.    V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.