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Real estate brokers all over the country are feeling the wrath of the industry’s fierce competition, with many becoming increasingly concerned about the disproportionate commissions, service fees, upfront costs, and recurring fees charged. It is evident that this broker model needs to change, but someone has to be willing to step up and lead the way.
With the current real estate broker model, if a real estate agent were to acquire $50,000 in Gross Combined Income (GCI), they would get to keep $30,000-40,000 of the GCI in commissions.
However, with a new broker model that is set to disrupt the industry, if a real estate agent were to acquire $50,000 in GCI, they would keep $48,000 of the GCI.
So, what exactly is the new broker model, and how does it relieve the pressure and concerns that many real estate agents are currently experiencing?
Sean Redinger, former 7-figure COO, is transitioning to the real estate broker model to transform the way real estate agents earn commissions. His new company, Cloud Realty is a marketing tool that operates as a virtual nationwide brokerage. It functions as both a referral brokerage and a cloud-based virtual brokerage. The cloud brokerage will allow real estate agents to keep 100% of their commissions on self-generated leads.
In addition, there are no up-front, recurring, or monthly costs for registered agents with Cloud Realty. After the first two transactions, there is only a one-time transaction fee to pay, along with the use of the CRM system for free. Therefore, an agent who joins but doesn’t close a single deal is not required to pay a single cent.
Sean Redinger’s mission statement is “keep your money, because we trust you to invest it into the right places. We know that based on our marketing experience if you’re paying a monthly fee on top of your paid advertising, you’re going to experience stress and anxiety, because we know the real estate sales cycle can take anywhere from 2-6 months.”
Sean Redinger noticed a gap in the market where real estate brokers were charging between $8,000 and $12,000 annually, with advertising costs on top of this expenditure. Sean believes that the $8,000-12,000 spent on service fees would be much more beneficial if they allocated it towards their own marketing initiatives instead.
Currently, Sean serves over 230 real estate agents in his marketing agency who previously could only afford $10 a day on marketing expenditure after they paid service and recurring fees. As a result, they could expect to see a transaction take place from months 4-6. However, taking away that service fee means they have $20-30 to spend on marketing a day, and his clients can now expect to see a transaction take place from months 2-4.
Every month, it’s either feast or famine for real estate agents, which is largely unsustainable and a cause for concern amongst the majority of agents who are competing within a hyper-competitive environment. Sean Redinger and his team at Cloud Realty are committed to bringing the best solution in the marketplace, creating a win-win for all parties involved.