Zip is a publicly traded stock and a company that deals in discount brokerage services while portraying themselves as full service brokers. If you are looking at giving away part of your commissions to be able to compete, than maybe this is a good choice.

Since I don't know your skill level, it is hard to say if this is a good fit. If you are an accomplished agent, you may want to check out some of the other possibilities that reward you better for what you do. Keller Williams, Remax and some of the others that are full service but offer a good commission split.

It appears you have mortgage experience and don't need to go to a discounter to make your career successful.

Good luck in your selection.

Andrea - I have sent you a private email through your website about this subject.

Bee stop feeling bad!  I would like to know the differences in the different companies.  I knew someone with Zip who wanted to work from home and did most of her business over the Internet.  She lives in a rural area above Santa Barbara and rather than driving into Santa Barbara everyday, this worked out best for her.  So spill it, how is it working out?

Jana

Ok ok ok - I just didn't want to get into the debate again.  Here's a copy of what I emailed Andrea -

Andrea – It’s my pleasure.  So far, so good.  I’m getting lots of warm leads through the Zip website.  The leads are just like any other’s you get – they have to “incubate” and consistent follow up is essential.  Most people are surprised to hear from a real live person right after they register on the site and that gives you a foot in the door right away.

I’ve actually only been in the field with Zip for 2 weeks now.  I’ve received 35 leads and already have a couple who are looking to buy and sell.  I expect to get the listing next week.  Also, a buyer moving here (Seattle area) from California.  Not bad for 2 week’s work, really.

Zip has procedures in place with an Agent Platform computer system that lets you know when you have a new registered lead, a contact management system and a scoreboard to let you know how you are doing; i.e., you must respond to leads within 24 hours, must handle request within 2 days (listing appointments, viewing requests).

The hardest part for me is that I don’t know what to do with myself most of the time.  I’m so used to marketing myself – optimizing my website, sending newsletters, mailing post cards, advertising, etc.  I feel a little guilty most of the time now.  I make most of my calls between 7 & 8 in the evening when I know the prospects will be home and I most likely won’t be interrupting dinner.  So, I get to spend most of my day in my garden or networking in my community involvement projects.

I’m not allowed to talk about specifics regarding commission structure, however, I can tell you that I grossed $43K in commissions in 2006 and cleared only $15K after expenses.  I’ve done the math with Zip structure and if I did the same # of deals for the same money, I would clear a slightly higher amount of money.  With all of the leads I get from Zip, though, I’ll be making much more.  I’ll have more time to spend with my clients and actually working in RE instead of advertising, marketing and promotion.  If you are consistently closing one deal a month with Zip, they reimburse your expenses, including REATLOR® dues, MLS Fees, Cell Phone costs, mileage, office supplies, postage.  They provide all signs, business cards and promotional materials.  Zip also provides bonuses based on volume and customer satisfaction.

One thing I’ve found is that traditional real estate agents compare Zip with the Redfin model.  While it is true that the Zip model started out to be exactly like the Redfin model – basically, two techies looking for a way to empower the consumer to manage their own real estate needs – they soon realized that taking the RE agent out of the equation was not a good move.  Even Redfin has now hired field agents, albeit at a very low salary.  Traditional RE agents (especially who have been in the business longer than 5 years) truly seem to resent the fact that Zip discounts listings and offers rebates to buyers.  Agents have worked hard to make themselves successful and they seem resentful that others would be able to get business and be successful in a much easier way.  With so many people starting their home search on the internet, however, it just seems like evolution to me (as I’ve said in my posts).  Remember, I was with RE/MAX for 4 years and it’s tough tough tough.  Beyond REALTOR® dues, MLS fees, there’s the desk fee – mine was $250 a month, the commission split – mine was 80/20% - franchise fees ($500/year).  All this comes right out of your pocket.  It’s all tax deductible, but you have to survive until tax time.  If you’re not consistently closing 2-3 deals a month in traditional real estate, you’re practically starving.  That’s if you live in a high price point market like Seattle.  If you’re somewhere where the houses are less expensive – say median of $150-200K, you need to close a few more deals to eat steak.

Most of the leads received from Zip are buyer leads.  Many of those are also looking to sell, however, if you want to be a pure listing agent, it might not be the right way to go.  I prefer listings, so I’m still keeping my farm area to mail to on a monthly basis, but Zip will reimburse my postage.

See Bee stop saying your sorry!  I think there is a niche for all of us.  And I was right Zip is mostly Internet leads.  Are you allowed to refer to agents outside of Zip?  If you are don't forget your friends here!

By the way depending on where from CA, you shouldn't have any trouble selling.  We get crazy over the prices and beauty of WA.  Just don't lose touch because they might be moving back home after their first winter LOL  Make sure their loan doesn't have a pre-pay penalty!

Jana

I NEVER forget my friends :)

It's my pleasure, Andrea.  Good luck with your pursuit.

Get a 100% commission deal and "run your own business"

If you do more than 8 sales a year it's worth it.

If you don't do 8 sales a year you should rethink your career.

my 2 cents

Bee, Great info!  Sounds like it's showing some promise for you and I'm glad to hear that.  Keep us posted!

Jana - comments like Gary's on this thread https://www.reliberation.com/blogs/browardeast/archive/2007/06/10/evolution-of-the-homeless.aspx

that keep me in the frame of mind that I must either constantly apologize or defend the decisions I make with regard to real estate.  I am sorry that some feel that no one else deserves to be as successful as they are simply because the aren't doing it exactly the same way.  Proven success is a great model, but I'm not a frickin robot.  I've always been a rebel and I'll be damned if I'll let others' fear of someone doing well in a different/easier way stop me from being successful on my own terms.

Hi Bee and Andrea,

I apologize for joining this discussion this late in the game, but I just joined Reliberation and saw the comments about the pros and cons of working at Zip Realty. I understand that you Bee are already a Zip agent and that Andrea is considering Zip Realty as a possible option (maybe too late by now).

I have been an agent with Zip in the Boston area for over four years and can give you the benefit of my experience with this company. First I really enjoy working at Zip and I am happy with the financial and group benefits that I have earned and continue to earn, so forgive me if I sound positively biased.

Zip Realty offers everything that any agent might want. From the financial side agents receive: good earnings, health & dental benefits, 401K, paid expenses, bonuses, incentives, etc. In addition, we enjoy a great team environment where agents assist each other with coverage and advice on various issues. New agents are always under the tutelage of an experienced team leader to guide them through the real estate process.

We receive daily leads from potential buyers and sellers. Therefore, we don’t have to resort to the many paid referral programs or to the costly farming process to acquire clients.  Like in any other sales organization, leads don’t mean clients. The leads only represent the opportunity to convert potential clients into buyers or sellers. The rate of converting these leads to clients depends on the agent’s professional approach, effort, organization, salesmanship, perseverance, etc., which will also determine the agent’s rate of success.

We don’t have the usual expenses associated with marketing, advertising, mailings, subscriptions to referral services, etc. and this is reflected on a lower commission split. However, due to the fact that we are salaried employees, receive all benefits listed above and our transaction volume is high, our earnings translate to the equivalent of a top split.

Having stated all these facts I have to add that Zip is not for everyone.  Some agents prefer the semi independence of being a sub contractor or feel more comfortable dealing only with listings.  Others like to see the fat commission check before expenses for fewer deals, rather than see extra smaller checks, more deals and no expenses. These agents probably won’t do well at Zip.

Furthermore, I would like to clarify that Zip Realty is a full service organization offering rebates to buyers and lower listing fees to sellers. We don’t compromise the quality of customer service in return for lower commission fees. In fact, customer satisfaction is very high in our business approach.

In addition, those who think that we take advantage of their “listing efforts” should ask themselves: Who brings them the qualified buyers without whom the listings would be worth nothing? Buyers’ agents, of course, If there wasn’t any effort in procuring buyers, then we would be all rolling in green dough and enjoying our own private island.

I apologize for the lengthy note and hope that it helps Andrea and other agents considering Zip Realty. Good Luck! To you Andrea and Bee, I hope that you are doing great and being very successful at Zip.

Thank you, Bee and Abe.  

Before I knew zip.  And now I know Zip!