Revised Realmerica Associate Plan
Due to a continuing sluggish housing market it is now necessary to implement new strategies for survival. There are currently more than 18 million houses across the country standing vacant that have not sold [See Housing Crash]. I have personally never seen a market like that which we are now seeing. Realtors, Loan Officers and various ancillary service providers are leaving the industry in mass every week. In the past month three of my favorite loan officers have thrown in the towel. Bigger and stronger real estate companies than Realmerica and The Buyer's Advisor have folded, merged or sold to stronger competitors. Our goal is remain in business and weather the storm, but I need your help. As of the end of April we continue to operate in the red. We simply can not continue to do this or we too will become a casualty.
Therefore, effective immediately we are implementing the following changes:
The Executive Plan has been eliminated. None of our associates had selected this plan, so there is no harm to anyone in deleting it from our pay plan.
Associates with The Buyer's Advisor shall be responsible for an annual associate fee of $190. This 2008 prorated fee of $95 is due no later than June 1, 2008. As always, there is no MLS access as an associate with The Buyer's Advisor and no ability to list properties. Associates with The Buyer's Advisor will earn 70% on commissions generated.
The following changes are being made to the Associate Plan for agents with Realmerica Realty:
Unchanged: Any associate partnering with Broker on a listing transaction shall split fees at 90% with company holding 10% in order to cover listing expenses. Associate will earn 45% of commission generated. The company will cover the cost of listings in all such cases. Associates receiving Broker referred leads not in partnership agree to a 20% referral fee.
Many of our associates have not paid any associate fee this year and I have been lax in seeking it because I know that many people are hurting financially, but we are no longer able to operate in this fashion. Associates who wish to keep their license active with either Realmerica Realty or The Buyer's Advisor need to contact me no later than May 10, 2008 to make payment arrangements. It is never my intention to be hard or overly demanding, but unfortunately associates who do not contact me by May 10th will be released from the company and your license will be placed on inactive status.
The changes that have taken place in our industry have been dramatic for many people. I have spent much time in thought wanting to do what is best for all. Regardless of what you decide to do know that I am thankful for your friendship and for the years that we have had together. My prayer for each of you is that God would bless your family and your future. Those who choose to remain with the company will have an opportunity to earn more when the market does turn around, but I fully understand that each of us must do what we must do.
Whatever the case should be, know that I am your friend and I wish you God's blessings. For those who remain, let us put our hands to the plow and move forward with the assurance that all things will work together for good.
Sincerely,
Kenneth Koon
Broker
Old Plan
Total Commission Generated
Earn
Earn$0-60,000 60%
60%Over $60,00065%
65%Monthly Associate Plan Fee
for 2008 - $20
Or $200 annually
Company provides
- MLS ACCESS
- Company Letterhead up to 30 sheets per month
- Standard Yard Signs
- Lockboxes
- Business Cards 1000 per year
- 100 Presentation Flyers per listing
New Revised Plan
Total Commission GeneratedEarn
Earn$0-30,000 70%
70%Over $30,00075%
75%Monthly Associate Plan Fee
for remainder of 2008 - $45
Or $120 per quarter
Company provides
- MLS ACCESS
This plan allows the associate to earn more on each sale, while allowing the company to move out of the red. We have cut our company overhead as far as we can. Your help will assure that we are able to maintain our staying power.
