I’m going to tell you right from the top, Relevate is perfect for some agents and not perfect for others. My only priority in this blog is to give you straightforward information to help you decide what is best for you. Relevate is designed for top-producing agents who are currently selling at least $10 million in annual volume and also for agents who have the determination and talent to get to that level ASAP.
This blog is about what it costs to do business as a TOP PRODUCING AGENT at Relevate. Okay, top producers. It’s super important to know the cost of doing business at any brokerage you are considering. Stay tuned, and we’ll dig into the details.
Rather watch a video? Check it out below!
When most brokerages talk about costs, they’re only talking about the money you will be giving to them in the form of splits and fees.
To consider only those costs is fine for agents who do not do much business, because that’s pretty much all the costs they have. However, you, as a top-producing agent, are different… you have a seriously big business. And, right now, you are either:(a) still trying to handle it all by yourself and as a result, your life is WAY out of balance, and you are burning out (raise your hand if that’s you) or,(b) you have already hired buyers’ agents, and you are giving up way more money than you need to (trust me, more about that in a minute).
In either case YOU, as the owner of a $10M+ business, need great systems and support to help you with two things: marketing and client service. That support does cost money. The Relevate Business System was specifically designed to keep your total costs as low as possible while still giving you everything you need to not only do a great job for your clients but also have great work-life balance. And on top of that, to be free and energized to grow your business as much as you want to, without ever feeling out of control, or out of balance, or burned out, again.
Okay, let’s get RIGHT TO IT. I’m going to show you the actual numbers for 2022 of a mid-level top producer at Relevate Real Estate, compared to what those numbers would have looked like if she was an agent doing the same amount of business, as efficiently as possible, at any other brokerage.
The numbers for the Relevate agent are going to look weird. At first, you will say “no way would I be interested in that”. Then, as the comparison continues, you might say, “oh heck yeah I’d do that… but is this actually real, or is it too good to be true?” So after I show you the numbers, I’ll explain how the Relevate Business System works and it’ll make complete sense because it’s actually pretty simple. It’s just that no other brokerage is currently doing it.
Real-life comparisons: Relevate vs other brokerages
This Relevate agent closed $15M in volume in 2022. We’ll assume for our comparison she would have sold the same volume at another brokerage, that she would have earned the same Gross Commission Income (or GCI) from that $15 million in volume and that she would have earned the same transaction fee income. So far everything is the same.
What are the marketing, client service, and other costs at Relevate Real Estate?
Here is where things start to get very different. If our agent was at a different brokerage, we can assume she would have paid no more than about $21,000 in splits and fees to the brokerage because she would have a 95% split, or she would have capped at that level. She actually paid Relevate more than three times that amount, $73,324.
Looks like the other brokerage is winning big time so far. BUT this agent we’re using as an example here has been with other brokerages and she is excited to stay with Relevate for the rest of her career. That’s because of something called the Relevate Business System that does several things no other brokerage can do for her business, but let me finish telling you all the costs, and I promise I’ll explain that next.
The next line of the income statement is the cost for marketing. To bring in $15M in business at the other brokerage, she would have needed to spend about the industry average of 10% of her commission revenue on marketing to get listings for herself and buyers for her buyers agents for a total of $34,242.
The Relevate agent spent only $2,713 in marketing to get the same $15 million in volume. That’s a big difference. How is that possible? Well, as I said, I’ll explain that in a minute, and it’ll make complete sense. So far, the total costs are still lower at the other brokerage.
The next line shows the cost of Buyers Agents and Client Support. Here is where things really turn around for our agent at Relevate. If she was at the other brokerage, she would need buyers agents to convert the buyer leads and serve those buyers. There is no way she could ever do all that by herself.
Buyers agents need to get paid at least 50% of the commission from the buyer closings, AND our agent would need to provide and pay for a full-time transaction coordinator to help those buyers agents stay focused on lead conversion, showings, negotiating, and problem-solving. All that adds up to a lot of money.
The Relevate agent spends a lot less money in this area as well. And again, I’ll explain in a moment how that works, but for now, looking at the numbers and assuming they are real, which firm would you choose for our agent to be at?
There are a few more miscellaneous costs we need to account for. Things like auto expenses, E&O insurance, realtor association, MLS, bookkeeping, and accounting, etc. In this area also, Relevate is a bit lower here, but it’s not a huge difference. I just want to make sure we are accounting for ALL the costs of doing business at each brokerage.
How much take-home income can I expect at Relevate Real Estate?
Now we have arrived at the bottom line. At a different brokerage without the Relevate Business System, our agent would have taken home about $165,000. At Relevate, she actually took home over $250,000, or about $85,000 more. She definitely paid RELEVATE more than she would have paid the other brokerage but she TOOK HOME 68.4% of her commission because all her other costs were so much lower.
At the other brokerage, she would have paid the firm a lot less, but in the end, she only would have taken home 45% of her commission.
Now, which firm would you recommend for our agent? Before you make a final judgment though, there is one more consideration that is often even more important for most agents…
At the other brokerage, this agent would have had to hire, train, and manage a team of people, as well as plan and manage all the marketing herself, which would have added stress and stretched her average working hours to over 50 per week.
At Relevate she has a lot less to worry about. She pays Relevate to plan and manage all her marketing, to hire, train, and manage her team members, and to supply the proprietary software and processes that make everything run smoothly, so that at Relevate she works no more than 30 hours per week.
Is the Relevate system the right one for me?
Relevate is perfect for some agents and not perfect for others. My only goal is to give you the most complete information possible so you can decide what makes the most sense for YOU. One question we always hear is, “I can sell $10 or $15M and do all the work myself and keep almost all the money, why would I consider joining Relevate and paying all that money?”
My answer? Yes, I’m certain you could close $10 or $15M and do most everything yourself and keep most of the money, there are agents who pull that off. However, agents at Relevate do not CHOSE to do that for two reasons:
FIRST, they want time off to see their families and go to the gym and go on dates, and
SECOND, they are mentored by other agents at Relevate who are selling $20 or $30M, are taking home two or three times as much as they are, and currently working fewer hours than when they were selling $8M. So for them, the Relevate Business System makes sense.
Other big questions agents ask include the following:
- “What is your source for the costs of marketing, Buyers Agents, and client service at the other brokerage?”
- “What about the costs for the Relevate agent in this video, is she an exception, or are those numbers typical for Relevate agents, and can we see more actual examples?”
- “What is the process for planning the marketing, and how does that get paid for?”
- “What are the exact costs for the support team members and how do they get paid?”
- ”How and when do these costs get paid by agents at Relevate?”
- “Are there any fees or costs at Relevate other than what is listed here?”
- ”What if I like the idea of Relevate, but I already have a team? What happens to them?”
- And finally, “If this is so great, why are you giving all this information away? Aren’t you afraid some other brokerage will copy your ideas and steal your thunder?”
The Relevate Business System Advantage
Apart from financial benefits, Relevate agents enjoy a unique advantage. Our system handles marketing, team management, and other crucial aspects, enabling agents to work fewer hours and achieve better work-life balance. Ultimately, Relevate Real Estate is a perfect fit for agents who seek a balanced life while excelling in their real estate careers.
Thank you for taking the time to explore the costs of doing business as a top-producing agent at Relevate Real Estate. Whether you’re already a top producer or striving to become one, we’re here to support your journey.
We’re available to address your questions and concerns in more detail and remember, at Relevate, we’re dedicated to helping you achieve success and a balanced life in the real estate industry.
If you are an agent in the Triangle Area of North Carolina area and you’d like to visit with us to learn more about Relevate Real Estate, click HERE to set up a time to talk with us.