RE/MAX was founded in Denver in 1973 and was responsible for popularizing an operating concept that virtually revolutionized the Real Estate Industry.
The owners, Dave and Gail Liniger, recognized that an organization comprised of only the most experienced and successful agents would be very attractive to the consumer and created a program to appeal specifically to those agents. The key to their strategy was to have their agents share in the cost of the office overhead and to be personally responsible for all the expenses associated with marketing a home. In return for accepting that risk, they would retain 100% of the commissions earned.
This contrasted with the traditional business model that required agents to give up as much as 50% of their sales commissions to their brokers in exchange for access to an office environment and marketing services.
At RE/MAX, the fact that the agent is personally invested in marketing not only provides extra motivation to get the job done but also allows them the flexibility to allocate those advertising dollars in whatever way provides the client with the best results. In traditional brokerage offices, the office manager generally controls the budget for advertising and the agent’s flexibility is limited. RE/MAX agents are simply more motivated than their peers because, if your home doesn’t sell, the agent has not only lost the time they’ve devoted to the sales effort, they’ve lost the capital they’ve invested as well.
In addition, because RE/MAX agents are in control of their own marketing, they are free to spend what’s necessary to market a home. In a more traditional environment, there is usually a set budget and approach to advertising and the agent is limited by those restrictions.
And that formula works! For the ninth consecutive year, the 2019 REAL Trends 500 survey – one of the most widely followed reports in the real estate industry – showed RE/MAX agents at participating brokerages outsold competing agents on average by more than 2-to-1. With over 125,000 agents in more than 110 countries and territories, nobody in the world sells more real estate than RE/MAX!