Excerpts from an interview with Founder and CEO of EXIT Realty Corp. International, Steve Morris
Q. As a franchise operation, when did EXIT Realty officially open for business?
A. It all started on September 3rd, 1996 in Toronto, Canada.
Q. What has been accomplished over the last 11 years?
A. We have sold over 1,200 EXIT franchises in North America and recruited over 40,000 salespeople into the system.
Q. Have the residuals made a difference?
A. Yes, beyond my expectations. Over $120,000,000 has been paid out to our associates since the year 2000 for sponsoring salespeople into EXIT.
Q. Is this benefit a supplement to their sales commission?
A. Yes, they are paid 70/30 on their first $100,000 of gross and 90/10 the balance earned annually plus residuals.
Q. Are these residuals multi-level?
A. No, they are single-level and are paid out at a rate equivalent to 10% of the gross production of the salesperson sponsored into EXIT as their transactions close. This is all deal-driven, not profit-driven.
Q. Does this amount vary?
A. Yes, it reduces to 7% when the sponsoring agent retires and later to 5% as a beneficiary benefit.
Q. Is this legal?
A.Yes. It is approved at all governmental levels in all states and provinces.
Q. Why is it legal?
A. Independent contractors are allowed, by law, to have a part-time job. EXIT’s head office simply acts as a secondary employer in the recruitment of its sales force. It has absolutely nothing to do with the public or a transaction in real estate.
Q. Is it mandatory for EXIT agents to sponsor?
A. No, it’s simply financially beneficial.
Q. Is the sponsoring limited in any way?
A. The broker of the office has the last say as to who is recruited for quality control. Other than that, our associates can sponsor salespeople into any office in the entire system and receive the benefit.
Q. How does EXIT differ from traditional companies in this regard?
A. EXIT specialize in effective teaching, training and coaching that specifically designed to burn out the inhibition of dealing with stangers. We specialize in self-image modification and reinforcement, canvassing and negotiations, presentations and public relations. All this is taught by experts. It’s all motivating, educational and strategic.