Real Estate Brokerages Start Using Network Marketing Principles Part 2

February 9, 2010

Today, people are picking up on the idea of pre-selling.  That is, enticing people’s interest in your product/service before trying to sell them on it.  How is that done?  By demonstrating your unbiased expertise in the product/service’s field.  As I’ve mentioned over and over in my blog, expertise in their profession is also the most important thing a real estate professional brings to the table.

We are seeing a lot of our hierarchical, patriarchal institutions fade away, and that has a lot to do with the advent of systems and modes of thought like network marketing.  These systems are designed to empower and enrich all people involved, not just the top tier people as hierarchical institutions do.  But these new ways of thinking aren’t meant to oust hierarchy, rather to improve it for everyone involved.

It makes a lot of business sense when you look at it for a typical company with widely used products.  The more general appeal your product or service has, the more it makes sense in having your company’s people (whatever position they hold) benefit financially by introducing the products/services to people they know.  Businesses (especially internet based ones) have adopted network marketing and have called it affiliate marketing.  These companies offer anyone cash rewards for referrals leading to sales of any of their products/services.

Exit Realty is offering North America wide an affiliate type program to its sales reps.  I’ll quote their description of how it works:

“Let’s say you work as an agent for EXIT.  You introduce Mary to your broker and she is recruited as a salesperson.  This is called sponsoring at EXIT Realty.  As Mary’s transactions close, you are paid an amount equivalent to 10% of Mary’s gross production as a special bonus.  This is paid from EXIT’s head office and is deducted from the broker’s portion of the commission.  In this example, Mary earns $100,000 annually.  This means you will receive $10,000 in bonuses.  In the EXIT system, sponsoring can be done in any office right across the continent and it continues for as long as the agent introduced stays and produces business. In the above example, let’s say you sponsor in nine more agents producing the same amount of earnings.  You would then benefit financially to the tune of $100,000 annually.  This amounts to $1 million dollars over 10 years.  These bonuses are over and above your commission.“  (CONTINUED IN NEXT ARTICLE)

Filed under: Marketing Tips,Networking Tips

Tags: affiliates, branding, broker, broker of record, direct sales, downline, marketing, MLM, multi level marketing, network marketing, pyramid scheme, recruiting, sponsor, upline