I think you should get rid of the Lexus and recruit more agents. The newer and greener the better for you. And, don't forget, charge for the coffee. "Coffee is for closers!"  http://youtube.com/watch?v=TROhlThs9qY

Well, I can tell you offer a LOT! Kia makes a fine RE car. Good Luck.

Chevy made a Lumina - good cheap transportation that the clients will follow from one listing to the next. Recruit - it's the system NAR has created.

Mike, how serious are you about this?  I am debating the merits of joining a high-split national brokerage vs going on my own as a solo broker.

Mike - I tried operating out of coffee shops when I switched to an office that was 45 minutes from my home. My area of expertise was not near the new office but they were the new franchise that was growing fast and I wanted to be part of it. Working out of your trunk and in restaurants got old fast and I also got tired of always picking up the tab since the restaurant was usually our starting point when I was meeting new clients (probably not very professional either). If you have four agents and don't have the drive to grow the office like Michaela has done with hers, then I would move on into the new year solo. Having managed two offices, I know the headaches involved and the babysitting it often takes. Maybe it's time to just smell the roses and have your free time to yourself. I've kicked back this past year and have moved into things I enjoy more, spending less time with real estate, and truly enjoying it.

You should look in joing the MILI Group INc.

You can build as many agaents as you want. Mili will give you an office when you have 20 agents under you. Mili will cover office expenses.

You will beable to diversify your craft with Mortage and Real estate and Insurance and share your knowledge with others. It's  a great enviroment to work because you know your knowledge is helping someone else regradless a new agent or a customer.

check mili out at

www.miligroup.net

it could be a solution and also  gives your agents the opportunity to  branch out and releases you from financial headache of running your own brokerage.  

if any questions email at lauren.friese@miligroup.net

Mike, My uncle, a broker for over 25 years has "gone small" in the past few years. He owned a Century 21 franchise and had numerous agents with him, but decided to sell that office and down size. He loves to tell stories about those big office days. He says he had to physically break up a fight between two female agents angry about who a client belonged to. There were numerous other dramas as well. He and I have made more money by investing in real estate, both commercial and residential than by traditional brokerage anyway. Brokering our own deals saves us money and brokering for others adds capital for our investing, it is a good business model. My uncle has been building custom homes in the past few years, though that business has slowed also. It is a great time to invest, however. That is what we have found, sometimes brokering other people's deals is a hot business and then their are times like this where brokering our own deals is the way to go.

Mike:

I LOVE the 3 L Business Model!  Can we team up and "license" it to others worldwide?  We can have a central P2 site as the "hub"!  

I know exactly what you are talking about with non-producing agents.  Maybe you could look to bill them $500 a month if they don't do a deal or something to shore up the bottom line.  What is frustrating as a "Broker" at times is that the average agent does not respect or understand how much you are giving up to get them going.

I have three offices and at times have to be more of a "parent" than a Broker.

Thanks for sharing your feelings with us.

My business model was like that when I was a Prudential ePartner, and it is going back to that now.

My boutique office sat and collected dust for the most part over the past 3 years--we just never met clients there. So I am channeling that wasted $$ into better things for us and our clients, and am in the process of consolidating my physical office into my home office.

The agents prefer to work from their respective home offices. They e-mail or fax me file contents for their transactions, so I'm legal and organized.

We do so much of our work online that meeting at Starbucks etc is easy.

Can't do this with agents you have to babysit all the time, but in our case it is ideal.

Office meetings, via e-mail.

NP. That way you can keep your agents and reduce your overhead DRAMATICALLY.

I'm saving 16k/year doing this. And the agents have not 'yet' approached me for a raise. LOL

Mike, the bulk of my business is also from out of town buyers with whom I cultivate an online relationship.  My broker is 15 miles away (he closed up shop here in town last year) so I pick clients up at their motel or meet them at a coffee shop.  I also do a lot of rentals, which is a great source of buyers and listings.  So having earned my broker license and with all the virtual office components in place, solo seeems like the way to go.

Mike, With your expertise you can do anything you want. Go to a big broker and cut a deal or stay small and focus on your nitch. I strugled for years as a small broker, grew it huge and today, I am a free man. It all depends on what you want to do. Good luck! Mike

Mike,

I've never posted here, but I've been lurking in the background for quite some time, absorbing everything from all the experienced agents here.

The Mili Group isn't a scam, but's it one of those multi-level networking organizations.  Some good friends of mine are part of Mili, and that's actually how I came to get my license a year ago.

Even though it's not a scam, there's tremendous pressure to constantly invite friends, family neighbors, whoever, to their weekly meetings and build your "downline".

My friends are Filipino, and the organization seems to be predominantly Filipino, asian, etc., and they all seem to have huge families and/or networks.  The majority of their transactions come from family and friends.  

The two things I didn't like was the constant pressure to invite, invite, invite, and also the fact that my friends work constantly and hardly ever see their kids.  They are top-level producers and have tons of agents signed up in their "downline", so they're always going to meetings, training their downline, etc.

And, yes, you get a percentage of your downline's transactions, but your initial split is so low that in order to make money, you have to have a lot of people in your downline.

It wasn't for me -- I got out fairly quick.

Anway...   just wanted to share that bit of info.

Thank you all for the great information you provide with your posts!

~Tammy Fertig

Mike,

Thank you for this blog it is very informative. I second what Mike Bowler said, you have the expertise to do anything you want. Good luck. It helped me to see that you Candace and Gene-whose posts I have learned so much from-are moving away from the traditional office setting. It makes sense-I am a long way from being at your levels-but I think it says something about the direction knowledgible brokers are going now.

Mike, my Broker went through the same type of stress that you are going through. He scaled back, worked out of his home, he doesn't drink coffee. After about one year his wife went crazy and he opened a new office, hired me and four other agents, went crazy and decide to open a second office about 70 miles away.  Now his wife is going to work for him at our office and he sits in his recliner at home and watches basketball.  He sells more real estate now than he ever did. His wife handles all of his children(Agents).  and she is a pleasure to work for, I might add. So enjoy and find your slippers, life is to short.

MIke, I have been  full time, licensed agent since 1978. During that time, I managed a large office for a large local company with 40 agents, opened my own company and managed 30 agents, sold the company to a regional company, managed one of their offices for a year, took a promotion a went back into sales.  Four years ago, I opened my own firm as a "Sole Practictioner" and I can tell you I have NEVER, EVER regretted my decision to be solely on my own. Whatever I earn, I keep, I control my own destiny! Sink or swim- call me Johnny Wiesmuller!

Mike a lamborghini is pretty economical isn't it? You would certainly look the part sipping away at your latte :)

[Nate sez re his broker:] he doesn't drink coffee.

He IS crazy . . .  LOL

Seriously, this is a good point . . . to work from home successfully, there needs to be a dedicated  'sanctuary' where no noise or interruptions will affect business, OR disturb the rest of the home's inhabitants--and v/v.

Ha ha Chantal -- Mikey would look coooool !

OR Land Rover, Lincoln Navigator! You could run quite the mobile office!

I work for a small company. I prefer this over the big guys. I work from home and unless I really need to tell my broker something the only time I really go to the office is to pick up mail and a check.

We have a great relationship in this manner. While we do have an office it's all the way on the other side of town. He gives me the basics that I cannot get on my own and for the most part the rest is up to me. I can eat steak or bologna!

I've deployed our development team to bring a fourth membership level to Point2 NLS . . .

Point2 NLS Standard

Point2 NLS Professional

Point2 NLS Premium

Point2 NLS Espresso

The Espresso package has everything offered in the other packages, but also includes. . .  a high-powered WiFi signal booster so that you can get your wireless access OUTSIDE of Starbucks (no more "Latte Overhead") and a built-in Open/Closed display that plugs into your cigarette lighter (Lexus-compatible) and displays your "office hours" on your front windshield.

Expected time to market is six months.  The software will be included on all 2009 Starbucks Sampler CDs.

:)

If you can get Dunkin Donuts to "buy in", I'll upgrade!

Point2 NLS Espresso, Carey sign me up! what a great plan! Mike, you are so fortunate (as are the rest of us) to have such brilliant minds for peers.

Mike you could hire an assistant that can also drive you around in a stretch Lexus.  ??

Mike

When I opened my office, my original plan was not to warehouse desks for agents to linger around.  I have about 1400 sf and 3 desks where agents can meet clients but agents don't have a desk of their own. I have one desk for my part time assistant and I have a breakroom/storage in the back and, of course, my office area.  It is an open office concept.  When a totally new agent starts, they can camp out in the office with their laptop until they are comfortable enough to be in their home office. An agent can choose to help out with the phones for floor time but I don't require it. I farm out 90% of the leads from the website and most of the phone calls on a rotation basis. I pay $400 a month + electric + water for my office.  My agents are on a high split without a transaction fee/desk fee but they do have to pay e/o per closing.  I'd like to add 5 or 6 agents. I have 3 agents now, one who never comes by and works a small town about an hour from here-just sends me her paperwork and an occasional phone call to update me, one who works here locally out of his house and stops by about once a week, and a newby who has camped out in the office and almost ready to fly solo.

Seems to be working but if I do add agents, I'd like to do a monthly roundtable with the agents for training, updates, share ideas, just touching base sort of stuff.  Right now with only 3, it isn't complicated but if I add 5 or 6 more, I think it would drive me crazy and I wouldn't get anything done.

I am wondering if the Mili Group is like Exit Realty?

Mike said:

Actually, Gene, when I think about, my business this past year came mostly from out-of-town buyers using the internet and I met them at the hotel where they are staying.

That is why we joined Solid Source Realty. We were meeting our clients at the office and then taking them out for breakfast. Now we do not need to go into an office, so we pick up our out- of-town buyers from their hotels. We take them to breakfast, get to know them, and then off we go to look at properties!

We have really enjoyed this arrangement because it suits our style. We are both very self-motivated and we don't need a lot of supervision and the office just "tied us down."

Since you are a broker, I think you would have a lot more fun and a lot less stress without the overhead. Maybe once you go solo, you will meet  an agent who is yearning to work from their home.

I wish you the best!

Mike reading over everyone's ideas and statements.  What would a stretch Limo cost you?  They have phones, Internet, refreshments, comfortable seating.  It would save on office overhead, lattes and if you get the model large enough it may fit all your agents as well as their clients?  You would only need one employee, uniformed or not.  And Limo does start with an L.  

Jana

If you get one of those limos with the hot tub.....now we're talking!  I'll movie to Savannah.  I'll drive (I am from Boston, after all) and pay for my own uniform.  I will also become licensed in GA and work from home when you don't need a taxi.

WOW, Carey! Point2 NLS Espresso - Expected time to market is six months! Advanced Access has been trying for over a year to complete the 3.0 conversion to 4.0 and now you will have this in only 6 months! Another reason to use P2 over AA! Drink up!

Lindsay - From what Tammy wrote EXIT is nothing close to that. Having been with EXIT I can tell you that adding a down-line is simply a way to earn in EXCESS of 100% at no cost to those that you 'sponsor' and it is being done by many agents. They have a winning concept but the office was just too far from my home and I like going to the office.

I work for the largest company in our State.

It is hard to compete with what they do and what the seller thinks works.  The truth is that the internet is a leveling out of the big guys vs the little guy.  If you get and plan on being an online service because your clients are online due to the type of market your in, you can compete!  Not only can you compete you are not bogged down by management and expensive it cost the large companies to what you can do.  You can do more actually. And your name and number are on everything. Ideally have 2 agents/brokers on their own to work together for the sake of agency looks good to me.

A team but separate!  No head aches and someone to manage when your gone. If your not tech savy, and don't work the internet well being on your own would be to much and I wouldn't bother,

and I believe the internet is here to stay.

My account husband tells me I made more money working from home just saving on gas.  Less time back and forth. I'm more organized and

getting more done.  I'm just waiting for the broker license now!

Trust your gut.....If this doesn't work for me I'll probably get out of real estate all together.  I have also accumulated alot of stats that support

what I do vs what the company did for me...It goes a long way in that listing presentation!  good luck!

Mike, if you agree with that, then you should agree that as "independent agents" we should be able to hold our own license. Like independent insurance agents, we could pick and choose which broker we would list (our listings) a client's property. All according to which brokagerage offers the best product or avenue of getting the particular type of home SOLD. We could pick which office or sales meetings to attend to stay abreast of the changes taking place. Some home owners may be better served by MOM & POP realty while another home would get the best results from a C21. We could really look out for the best interest of the home seller by holding our own inventory with different brokers for different homes. That would level the playing field for the home owner facing all those agents claiming to be "buyers" agents.

The winds of change are a blowing.

EXIT is not a MLM company. We are single level residual with retirement and beneficiary benefits. This is not based on profit share it is based on gross commission. We've had brokers in GA close their offices and bring all their licensees with them to EXIT. As the sponsor you would make 10% of each of your sponsored agents gross commission, paid to you by way of an EXIT Success(debit) Card within 72 hours of each closing. The plus, you have no overhead for these agents. If you have any questions or comments give me a call. 770-616-3458

Mike, I used to be the coffee shop agent ever since I started in real estate back when I worked for Prudential. I never had the need to go to the office ... only met with maybe two or three clients at the office over 3 years.

Then I decided to go on my own and worked out of my house for about a year and because I wanted to hire other agents, as Gene mentioned, I opened up an actual office. There is now 6 of us and truth to be told, I don't think we really need the office at all. I've only used it once to meet with a client and I don't think my other agents have ever used the place to meet with their clients either. And I don't have time to sit there all day long ... I have work to do. Plus, when I did try a few times to be in more, there was no walk-in traffic anyway.

I'd say if you don't need the office, close up the space but keep the agents if they are worth it and want to stay with you even without the space.

If you want another suggestion for an "L" car, go with this one ... http://www.lada-auto.ru/

Mike I'm having the same thoughts regarding letting all of my five inexperience new agents go and stay by myself, all I do all day is train them, answer questions and do everything for them I'm beginning to think that I'm their secretary instead of their broker I don't have time to go out and search for my own customers.

Mike, I wholeheartely agree with you on the ease of being a "road-warrior" type of agent - only I'm a "LIL" agent - License, Infiniti, and Laptop kinda 'gal :>)  I say "absolutely stick to your 3-L plan" and you'll end up earning more money and have lower costs.

Before I moved over and started working with Michaela, I was a Prudential "Platform" E-agent for 4 years and Starbucks (or Panera with free wi-fi) was my "office" - I hardly ever went into my actual office which was a 45-minute drive.  Only to turn in paperwork and basically "make an appearance" or attend the monthly sales meeting. My clients actually thought it was great that they didn't have to come in to the office and I would just either meet them at their hotel, if they were a RELO client, at their home or at a Starbucks or other convenient location for them.

Now that I'm working at Michaela's smaller independent company, I still work the same way and love it, plus I don't have all of the huge commission splits and overhead costs and other time/money-wasters that I used to have at my former "big-box R/E" company, as I like to call it.  With P2's wonderful advertising through my website, I'm actually getting more calls, showings and traffic on my listings now than I ever did with Pru!

Happy Road Warrior Agent

Good Luck Mike,  close up the office and if you don't need an office why do your agents need it.  I have yet to be in my brokers office for more than 10-15 minutes every blue moon.  He has provided a very nice office, desks, computers and a chair I've sat in once.  If it wasn't for Earnest Money Deposits I might never be in the office.

Invest your office lease dollars in a nice fixer upper and rent it or flip it.

I am currently selling south side real estate and gearing up for a couple of northside properties, knocking down walls, pulling wire, and pounding nails relieves alot of stress.  Once again good luck.

Interesting insight Mike.  I ran a company with 150 employees before I got into Real Estate and I can tell you that employees were by far the biggest head ache that I had to deal with.  I think down sizing may not be a bad thing.  Ironically at times when people down size they see individual profits go up.  Stress goes down as well.

So mr Farmer

what did you do or decide..inquiring minds want to know?

I have since got my broker license and so far it's great.

Agents left at the my old office are seeing a down turn in commissions

just do to lack of buyers...Michigan is looking at 2 more years of this.

I don't need much more to do what I did last year.  so first year in business....better than expected.  The online business is working.