But wait! Why not have incentives for the new realtor to succeed and become their own broker. Why not have incentives for them to start their own office and at the same time have incentives for the broker, like Bob, to encourage them to do just that? Why not compensate the original broker for helping a realtor become successful so that the original broker gets a small percentage from the business when a realtor they have trained becomes their own broker.
What if the original broker received an ongoing override (albeit a much smaller percentage) when that realtor becomes a broker? Maybe we could even provide further incentives for both Bob, and the new broker Bob just helped to start the new brokerage office. We could do that by giving both Bob and Bob’s new broker a small percentage when that new broker helps another realtor start their own brokerage office?
Wouldn’t that be a true win-win situation? It sure would. Isn't that a much better business model? You bet because it is one where everyone benefits and has a vested interest in helping others succeed? Further, if I helped more people become brokers than Bob even though Bob got me started couldn’t I earn more than Bob? Surely I could. Now that’s a fair compensation plan. THAT’S MLM!