The first type hires as many new people as possible. They make representations to recruits that the sky is the limit to their real estate career. Waves of rookies join the company. Because they’re new, they need a desk, they need to work under the watchful eye of their manager. Who pays for all the overhead the “rookie farm” requires? The other agents in the office who are veteran, good producers. For whatever reason, the vets at this first type of real estate brokerage choose to participate in this system at, in some circumstances, a very large opportunity cost.

The second type of system, pioneered by RE/MAX, shuns rookies. Perhaps you’ve heard of their “above the crowd” catch-phrase? Sounds arrogant too. RE/MAX’s strategy (and mine) is to try to attract top producing agents. There’s a saying that goes, “if you want to improve your pool game, play with better players.” RE/MAX and Achieve need rookie farms because a slim fraction of those rookies actually evolve into top producers.

If you don’t know any real estate agents and you call my real estate office and ask for an agent to help you, your chances of working with a rookie is zero. Why take your chances anywhere else?

On the other hand, let’s say you don’t know any real estate agents and you call my competition and they give you a choice: take our best agent or take our newest. (Now before you make your choice, remember that you’re heading into probably the most important financial transaction of your life.) Who are you going to pick?

I’m very grateful that you took the time to comment.