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seal

Beach Lover
Apr 17, 2006
182
48
Re: Take your real estate business to a whole new level

It's the Amway pyramid compensation plan business model...but instead of selling detergent and air freshener they sell condos and houses :dunno:

Over the last couple years, the market was flooded with newly-minted RE agents chasing the easy money. With many now seeing their commissions drying up, the environment is ripe for the likes of GRM to once again give them something to get excited about. GRM had its big nationwide launch at the most recent NAR convention in NOLA. The folks who visited their information booth are now fanning out across the nation recruiting underlings. Additionally, I'm sure they'll be cranking out a never-ending supply of motivational books, tapes and conferences so the followers can fund the lifestyles of those on the top.

If this concept takes offs, and the leaders can sufficiently jazz their underlings, the GRM crowd may be serious competition for the traditional Realtor. But in the near-term, I find it difficult to believe that this Amway-like business model will be as successful for agents selling real estate than it was for agents selling floor cleaner...especially in a declining RE market.


.

I love it. I never dreamed this thread would get this many views. Thank you for generating curiosity and interest. I have talked with three people. They might just join GRM. Amazing!!!

Amway is a fun way to make no money. :funn:

We have people making seven figures already in GRM...more to come. We have an 80/20 split for producing agents, with no desk fees, and no franchise fees. Our pay plan pays six levels deep, based on gross commissions, with no cap. Compare that to Keller Williams, Exit, Avalar. Great companies, just compare.

In order to receive commissions, an agent must be licensed and go through a background check, just like an other RE professional.

Yep, the RE market might be declining here in the Panhandle, more so in other parts of Florida, but other parts of the country did not experience a bubble like Florida, California, Arizona, and Las Vegas. Why not have the ability to recruit agents from areas where the market is still relatively strong? Can you do that now?

More important, if you are a producing agent, what is your exit strategy?
Hubert Humphrey benefited from having his two previous companies being sold to Citigroup and Aegon(one of Zach Johnson, 2007 Masters champion's sponsors). When GRM is sold in a few years, he will distribute 20% of the equity to the field reps based on how much they have helped build the company. That is the end game. Build up the company and sell it; it is done every day in this country.

GRM is a new concept that you should take a serious look at and not be worried about. This one, www.iggyshouse.com, you might want to be worried about.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
Re: Take your real estate business to a whole new level

I love it. I never dreamed this thread would get this many views. Thank you for generating curiosity and interest. I have talked with three people. They might just join GRM. Amazing!!!

The primary target audience (recruitees) are the feckless, newly-minted RE agents who just happened to be onboard the last train to Bubbleville. Seasoned, professional Realtors will be a much, much harder sell.

If the prospective new recruits happen to Google Hubert Humphrey they'll find he and his ilk are more about selling a "six-figure dream" to the underlings (in ANY profession, be it finance, insurance, mortgage lending or RE) and skimming their take off the top.

The organization's focus is on recruiting, recruiting and recruiting and less about providing a service to their clients who are about to make the most costly and important purchase of their lives.

Humphrey and his cabal of hungry followers will probably provide some new and unexpected competition to the traditional Realtors...but will the public warm up this new breed of Stepford Realtors? :dunno:
 

seal

Beach Lover
Apr 17, 2006
182
48
Re: Take your real estate business to a whole new level

"Feckless"? Everyone was a greenie at some point. :razz: As competitive as real estate is, if an agent is not providing good service, the client will go somewhere else, no matter what company is involved.

"Skimming?" If an agent is paid 80% commission and does not have to pay desk fees and/or franchise fees, there is not much left to skim.

"Recruiting, recruiting, recruitng"? RECRUITING = GROWTH. Ask any Broker/Owner what they would like to spend more time on (besides going to the bank to deposit checks!!)...recruiting..growing their business. We offer a system whereby RE professionals can go BEYOND being IN the real estate business to BUILDING a business. Move beyond the anxiety of "when will my next closed side happen?"

I see a very bright future....not "Economic Meltdown Imminent".

As Voltaire said, "Nothing can stop an idea whose time has come".
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
Re: Take your real estate business to a whole new level

"Skimming?" If an agent is paid 80% commission and does not have to pay desk fees and/or franchise fees, there is not much left to skim.
.

In one of the four videos on the link you provided, it was stated that the agent who recruited a newbie took a portion of the recruit's commissions. It also stated that those commissions went right up the chain to the agent who recruited the agent who recruited the agent who recruited the newbie who actually worked for the commission. I believe that is where it cut into the 80%.
 

jimmyp5

Beach Lover
Mar 1, 2006
104
0
Seagrove
Re: Take your real estate business to a whole new level

You're scaring me, scenethief -- your posts sound like you've been drinking out of that kool-aid vat.

Most MLM schemes I've seen over the years are based on building one's business, not only by recruting one's network/downstream/whatever, but by bringing a product or service to the consumer that's new/different/cheaper/not available elsewhere, like Amway or vitamins or pre-paid phone cards, etc.

what's being brought to the consumer here, that they can't get elsewhere? and, feckless or not, why on earth does an agent in Oklahoma want some of his $$ to go to me in Florida, other than to get a chance for him to get $$ from agents in other states? This is the chain-letter, house of cards aspect that I find very objectionable. Like any pyramid scheme, it only works because eventually there's no one else to recruit down at the very bottom. There's no magical well of $$ that flows six layers up.
 
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30A Skunkape

Skunky
Jan 18, 2006
10,286
2,312
53
Backatown Seagrove
Re: Take your real estate business to a whole new level

A blurb from Clark Howard's website regarding multilevel marketing:

multi-level marketing


You make money in two ways in a multilevel marketing organization: you buy products from the company and resell them to customers, and you recruit people into the organization and earn a commission off their sales.
Don't join a multilevel marketing organization unless you have sales ability, you believe in the product, and the product is priced fairly.
Don't join if the main purpose of the organization is rounding up new recruits. Such an organization may be an illegal pyramid.
If you're an outstanding salesperson who would do well at multi-level marketing, you would probably do better by selling through a traditional sales channel, where you don't have to split your commissions.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
Re: Take your real estate business to a whole new level

To those 3 people who are interested in GRM, I suggest you read this link: (http://www.vandruff.com/mlm.html) entitled "What's Wrong with Multi-Level Marketing?

The link reads in part:

The People Machine

Chernobyl had a control system that failed. MLMs have no control mechanisms at all.

Where is the "switch" that can be flipped in an MLM when enough sales people are hired? In a normal company a manager says, "We have enough, let's stop hiring people at this point." But in an MLM, there is no way to do this. An MLM is a human "churning" machine with no "off button." Out of control by design, its gears will grind up the money, time, credibility, and entrepreneurial energy of well-meaning people who joined merely to supplement their income. Better to just steer clear of this monster to begin with.

There is simply no way to avoid the built-in failure mechanism of MLMs. If a company chooses to market this way, it will eventually "hire" (with no base pay and charging to join) far too many people.

Thus, the only "control system" will be the inevitable losses and subsequent bad image the MLM company will gain after it does what it was designed to do: fail. And sooner or later we have got to stop blaming this particular MLM company or that, and admit that the MLM technique itself is fundamentally flawed.

New Solution: A Retarded MLM

Some modern incarnations of MLMs attempt to address this particular problem by limiting the number of people you can sponsor, say, to four. But the same geometric expansion problems exist; the failure mechanism has just been slowed down a bit. And now there is the added problem of even more unnecessary layers in the organization.

The claim that an MLM is merely a "common man" implementation of a normal real-world distribution channel becomes even more absurd in this case. Imagine buying a product or service in the real world and having to pay overrides and royalties to five or ten unneeded and uninvolved "distributor" layers. Would this be efficient? What value do these layers of "distributors" provide to the consumer? Is this rational? Would such a company exist long in a competitive environment?
----------------------------------------------------------------

3 People: You've been sufficiently warned.

Mr Seal: What say you?
 

Geo

Beach Fanatic
Dec 24, 2006
2,750
2,782
Santa Rosa Beach, FL
Re: Take your real estate business to a whole new level

Really interesting thread. Here's my unsolicited 2 cents-

Scenethief, I admire your ability to remain positive and professional despite the tone of many of the responses. I think you will do well in whatever you do. I wish you the best...

I thought Kurt said that if someone is posting something with the intent to sell it [or promote it] that the rest of us should reserve commentary that poo poos it...

With that in mind, I find that the posts in this thread that help clarify, define and uncover the specifics of Scenethief's program are totally appropriate. But those that cast judgement based on preconceived notions or other negative experiences in MLM (or that speculate whether or not potential recruits/realtors would find value in the program) are arguably unfair and inappropriate...

If Scenethief had started a thread that says, "What do you think of the potential success of joining something like this?" then that would be a different story...

2 Cents...

Cheers,
George

P.S. Full disclosure: I am not part of any MLM business, nor have I ever been.
 
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