So I have this can of HOMINY in my pantry!

I have a can of whole white hominy in my pantry.  It has been there for quite some time.  The truth is that my husband won't touch it and I cannot eat the entire can alone.  So I keep it.  Maybe someday it will end up in the Boy Scout food drive bag or go in the basket for a needy family's Thanksgiving dinner.  Wherever it goes, it is destined to sit on a pantry shelf.  It's just one of those things everyone has, but no one eats, somewhat like the Christmas fruitcake. 

I am sure you are wondering what hominy has to do with a career in real estate.  Good question,  let me muddle my way thru my 2 am thoughts and explain the symbolic meaning, I randomly assigned to this can of hominy.

First of all, I do not "need" this can.  My pantry is full of food.  In fact, if we start eating today, our pantry will sustain us for at least 3 months before we get to that can of whole white hominy.  So you might say I purchased more food than I needed.    Now, back to where I come from, keep in mind, I am a Broker for approx 70 licensees in the state of Oklahoma.  As a broker, it is my job to keep costs down, whether my cost or the agent's costs, but somewhere along the way, each licensee must take responsibility for what he spends, particularly if he is buying hominy.  So since somebody has to say it---here goes, don't buy anymore brokerage services (or hominy) than you need!

What you are paying for as a licensed associate is what your broker provides in exchange for a portion of each commission check.  In recent years, associate paychecks have increased and broker portions have decreased.  Management has twisted and turned and learned how to make it on less from the producers, while picking up the difference in other ways, generally office fees.  Take for instance my little community, there are several real estate companies, all of them have their strengths.  I am sure that you can recognize each economic model.

• Company A is an independent office formed years ago.  They have a very distinctive sign and a very well known phone number.  They are the best at what they offer.  Their offices are comfortable and convenient.  Each associate is offered a private office with shiny new furniture.  They have a lot of staff, offering their associates the best in support.  Their technology and equipment is adequate but not exactly state of the art.  They are, without question the best in their category.  Most associates are very seasoned, so little training is offered.  Full broker support and E&O coverage is paid by the broker.  All this is available for a 30-40% take on each commission check.  I just gotta ask, "Do you need all that hominy?"  It ok if you do, but I'm "just saying . . ."
• Company B is a newer company but they have "the look!"  The offices are beautiful with a fair amount of competition among associates for premium spots. Associates also have a monthly bill to pay for those nice offices.  The staff is friendly, but here you are expected to make (and pay for) your own copies, input your own mls, and handle your own files.  Interestingly enough, Company B only "charges" you enough in your commission split to add up to around $20,000 (cap*), while Company A would be about twice that for their superior services.  The "spirit" of training is an integral part of the culture, so although encouraged, very little is offered.  Broker services are good and E&O is supplied.  If this is the hominy you're buying, it's first class.  Ok, I am gonna say it, "cause somebody has to," Do you really need all that hominy?  If not, why are you paying for it?
• Company C is all the franchises thrown together.  If you've been around long enough, you know that the main differences are in the colors.  Red, blue or gold, all the current real estate franchises have excellent trainers and training programs.  The name recognition that comes with the power in a franchise is tough to recreate.  All the major companies have good broker support, national camaraderie, sign recognition, etc., in fact they are way over the top in what they offer.  Question is, do you need what they offer?  Remember it comes with a price.  Most franchises are around $21,000 year (cap*) including local and national fees.  Just me, but way more hominy than I will ever eat!

So what's the message?  Recognize that all the brokerages in your community are the best a something.    Select the real estate brokerage that has all the ingredients you need, nothing more and nothing less.  Lastly, keep in mind, this business is fluid.  What works for you today, may not be best for you tomorrow.  Be aware of the day you need to change.

Remember, no sense in paying for hominy you are not gonna eat!

*cap is the total amount each associate pays annually before receiving his 100% commission check