Knowing the Competition Is what we do

#1 in Manitoba!

#1 in Ontario … Over 10 000 strong!

Having success recruiting Top Teams No new franchises in 2015 “The shiny new toy” Having success recruiting Top Teams No new franchises in 2015 They lost 2 franchises in BC and AB! Fees and Simplified Residual Model shared next… Leadership Council and ownership…..

Royalty Fee: 6% GCI capped at $3000/annually. - Typical brokerage splits: 70/30, 80/20* and 90/10** capped at approx. $20 000/year. Transaction fees: $100 after brokerage capping + monthly office fee ($300-$600) + monthly marketing/admin fee ($55-85) *Previous GCI for 2 years must be > $100,000 and brokerage cap must be guaranteed. **Previous GCI for 2 years must be > $200,000 and brokerage cap must be guaranteed.

Residuals made easy… 1. Calculation of Market Center Profit: Gross Commission Income (GCI) $150,000 (-) 70% Agent Split $105,000 (=) Company Dollar $ 45,000 (-) KW Approved Costs $ 22,500 (=) KW M.C. Profit (or Loss) $ 22,500 2. Creation of Monthly Profit Share Pool: Profit Share Pool Owner Profit Level 1 (first $2,990) 25% $ 747.50 75% $2,242.50 Level 2 (next $8,250) 35% $2,887.50 65% $5,362.50 Level 3 (above $11,240) 50% $5,630.00 50% $5,630.00 $9,265.00 $13,235.00 The formula for distributing profits based on the agents each agent recruited to the company, the productivity of those agents, and the cash profits generated by each market center.

Residuals made easy… 3. Contribution to Profit Share by Agent: Agent Total % of Company $ Company $ Profit Share John contributed $3,886 out of total $45,000 = 8.64% Total Profit Contribution to Share Pool Profit Share That 8.64% X $9,265 = $800 4. Distribution of Profit Share to Agent’s Upline (KW Team Members Who Recruited the Agent): 1st Level Sponsor Mary gets 50% $400 2nd Level Sponsor Tom gets 10% $80 3rd Level Sponsor Joe gets 5% $40 4th Level Sponsor Nancy gets 5% $40 5th Level Sponsor Jane gets 7.5% $60 6th Level Sponsor Mike gets 10% $80 7th Level Sponsor Carol gets 12.5% $100 100% $800 The formula for distributing profits based on the agents each agent recruited to the company, the productivity of those agents, and the cash profits generated by each market center.

International dues of $400/year and 1% of GCI (Capped at $2000/annually) Regional dues of $277/month Failed attempts at conversions. Losing agents in MB!

Re/Max Brokerage Fees – Western

Re/Max vs RLP Franchisor Fees – Sales Reps Our largest competitor Their plans are… Confusing? Clever? Misleading? Expensive? They are currently number one in many markets..…but we have the momentum. To be number 1 everywhere, we must beat them and we are doing this in many markets already.

Re/Max vs RLP Franchisor Fees – Teams

The Real Numbers… Get to know their plans locally. Determine your competitiveness in the market for your fee structure. Leverage potential fee advantage for teams. Prepare an apples to apples comparison…

Slow and steady wins the race! Royal LePage market share has gone from 15-16% to more like 19% while Re/Max has dropped from 35-36% to 29-30%

5 markets with detailed MLS data: Toronto Hamilton - Burlington Kitchener - Waterloo London - St. Thomas Windsor – Essex County

Highlights (Past 12 months vs. 2014) TREB: Unit share Re/Max -0.8% / RLP +0.5% WECAR: Unit share Re/Max -1.5% / RLP +2.1% KWAR: Unit share Re/Max -3.4% / RLP +0.5% LSTAR: RLP still #1 in unit/volume share and agent count! RAHB: RLP still has the largest sales force with a $30K higher average sale price than Re/Max!

Opportunity Markets?? * Agent Count

2016 Kickoff Webinar … Presented by David McGhee – VP Coaching, Buffini and Company You will learn how to: Set your target for success Implement your plan and stay highly accountable Generate 40% of your leads for the year in the first 3 months The science of the seasons - specific takeaways on what you need to be doing and when to it in order to exceed your goals Create your best year ever Royal LePager's can register here: https://www.eventbrite.ca/e/webinar-sales-success-getting-off-to-a-fast-start-in-2016-with-david-mcghee-tickets-20063407191 * Agent Count