My friend Bob was a Real Estate broker. Now before we get into the example please ask yourself a sincere question. What do realtors do when they become successful? Yes I said realtors, folks who sell houses.

Let me tell you what the successful realtors do. They go off and become their own real estate brokers and hire other realtor’s. Right? Yes that’s exactly what they do when they become successful.

So what happens to the broker, like my friend Bob, who got them started and paid for them to get trained, shared his call-ins, walk-ins, advertising, leads, etc... with them?

Tell me what happens to that broker with that investment in that realtor when that realtor walks out and becomes their own broker? When that realtor decides to leave and start their own Real Estate brokerage office does the broker, like Bob, who helped that new realtor get started in the business get anything for that? Silly right? Of course the broker doesn’t, and Bob was in exactly that position. In fact he had effectively trained his competition when it happened to him not once, but twice in two years.

Is that what you would call a good business model? Of course not. Would you want to take on all the overhead of an office, advertising and marketing, phones, computer systems, marketing, mailings, etc… and help realtors get trained and started only to have them go off on their own and become your competition after you trained them? Foolish question right? Of course you wouldn’t. This is not a business model that I as a businessman prefer to become involved with. Nor was it a business model that my friend Bob enjoyed.