Being successful in real estate sales requires an investment in time and dollars.  It requires focus, committment and energy.  

There's always risk of failure looming and the best way to reduce the risk is to choose your first office carefully. 

An agent new to the business should consider the following when choosing the office they will be a part of:

1.     Training - Is it structured, tested and provided by someone who specializes in working with inexperienced agents.

2.     Cost of Doing Business - Some real estate companies make their money by selling agents services.  Not only will the agent pay for training but overhead at these offices could be as high as $1,500 per month.

3.     Company Referrals - Companies such as those above, have no interest in generating revenue for agents.  It's important for new agents to be with a company whose business plan includes generating transactions through advertising or brand name.  Company generated business may be enough to help the agent over the initial hump.

4.     Brandname Recognition - New agents have credibility when they associate with a company that enjoys strong brand name recognition.  The brand name helps reduce the sales friction of inexperience.

5.     Continuing Opportunity - Not only the initial opportunity, but also advanced training or career development.  Corporate relocation opportunities and referrals.

6.     Resources - Marketing campaigns, materials or technology  agent can use to build their careers and income.

Desk Rental Office vs Service System Office

Desk Rental Offices:

• The business strategy is to shift the liabilities and risks

          away from ownership and onto agents;

• Management support and career coaching is minimal;
• Training for new or experienced agents may be non- 

          existent;

• Lower fees translate directly into lower levels of support
• Agents must generate all of their business, company

          generated business opportunities are minimal;

• Equipment or other enhancements such as upgraded phone systems, computer equipment etc. are paid for by the agents on a pro rata share basis even though those items will be owned by the office;
• Agents pay personal expenses on a monthly basis, including costs such as coffee, forms, sign installations, use of key safes, computers or fax machines;
• Agent payments must be paid monthly, regardless of income;
• Start-up costs for agents are higher at these offices because agents must pay for signs, key safes, initial deposits, and other personal expenses.

Service-System offices are generally local franchisees of larger national organizations.  As a rule these organizations:

• Have excellent training;
• Pay expenses rather than charge the agent;
• Create business opportunities for the agents because of the brand names and national affiliations;
• Have better support systems including non-competing brokers;
• Develop wider perspectives within the real estate industry;
• Participate in national referral services to produce sales leads for agents;
• Offer brand awareness and consumer preference giving newer agents credibility on their first day of affiliation;
• Engage in  "Lead Generation" activities for the benefit of

          agents.