Setting the Stage for Setting the Stage for ChangeChange

This is one of the most This is one of the most important meetings we will important meetings we will

ever have!ever have!

Time to shake up the Time to shake up the industryindustryAGAIN!AGAIN!

GOALSGOALSBy the End of 2012 We Will By the End of 2012 We Will

Be At…Be At…

By the End of 2012 We Will By the End of 2012 We Will Be At…Be At…

58 New Franchises (Net)

By the End of 2012 We Will By the End of 2012 We Will Be At…Be At…

1,928 New Executives (Net)

Now, let’s go back to look at Now, let’s go back to look at our evolution and how we’re our evolution and how we’re going to get there…togethergoing to get there…together

Where We’ve Come FromWhere We’ve Come From

• Dale’s vision in 1965:– 100% commission for all– Little in the way of company-

paid services– Focus only on the top 10% of

producing agents

Where We’ve Come FromWhere We’ve Come From

• Evolution of the concept:– Widespread exposure of the brand in North

America– Menu pricing for commissions– Addition of technology tools, training &

education, mass marketing and communications

Where We’ve Come FromWhere We’ve Come From

• Today’s “Norms”:– Low consumer confidence for buying real

estate– Tighter lending standards– Marketplace shift to low cost providers– Competition outside of brokerages (NAR,

MLSs, outside companies)– All companies offering robust toolsets

Where We’ve Come FromWhere We’ve Come From• Our Current Pricing Plans:– Inconsistent: some flat fees, some GCI, etc.– Mutated over the years

• Market Conditions & Industry Changes

– Offered in some areas and not others– Losing $ because we cannot track closings– Need consistent Franchise Management

System• Tracking• Reporting• Payments

Where We’ve Come FromWhere We’ve Come From

• What do Brokers & Agents WANT today?– Support in organizing their businesses– Help maintaining their business (bringing it

back to “where it was” in the height of the market)

– Synergy with other productive agents– Real estate knowledge and help– To be at a company that is affordable and

that provides value and support– LEADS

Where We’ve Come FromWhere We’ve Come From

• What Brokers & Agents DON’T Want Today:– To pay add-on fees for each additional

service they get (We live in an era of “free” with the growth of downloads, applications, blogs, etc.)

– Agents today are more cautious about paying monthly fees up front (even if they’re productive)

– Variable Costs vs Fixed Costs

Here’s Where We’re AtHere’s Where We’re At

• National existing homes sales are on track to clear 5 million in 2011 which is slightly higher than the number of closed homes in 2010.

• The Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 4.6 percent to 84.5 in September from 88.6 in August but is 6.4 percent higher than September 2010 when it stood at 79.4.

• According to NAR Chief Economist Lawrence Yun, there should be an overall improvement in closed sales in the coming months of 2011.

Here’s Where We’re AtHere’s Where We’re At

• Housing market is by no means back to “normal” but falling inventory is a good indication in the right direction. The number of existing homes for sale fell to 3.5 million in September 2011.

• By January/February 2012 there could very well only be 3 million homes for sale nationwide (compared to 3.6 million in July 2011 and 4.6 million in July 2008).

• 62% of all NAR brokerages are unaffiliated brokerages

Here’s Where We’re AtHere’s Where We’re At

Remember These?

• Innovative, Entrepreneurial Spirit• Trusted, Effective Advocates• Connected, Caring Family• Uniquely Personalized Experience

Here’s Where We’re AtHere’s Where We’re At

• We have a solid and established brand name

• We have experienced Brokers and Executives in many major (and small) markets

• We have industry knowledge• We have high quality support

Here’s Where We’re AtHere’s Where We’re At

Let’s talk about our support staff at Realty Executives International:

• Recent promotions• New positions• Our goals for support of you and your

regions

Here’s Where We’re AtHere’s Where We’re At

Your Regional Stats:• Region Name• # of Open Offices• # of Active Executives• # of Franchise Sales YTD

Here’s Where We’re AtHere’s Where We’re AtOur Collective International Stats (As of

10/31/2011):• 546 Open Offices • 8,393 Active Executives• 104 Franchises (19%) have been with us

for 10 years or more• 202 Franchises (37%) have been with us

for 5 years or more

Here’s Where We’re AtHere’s Where We’re At

Our Collective International Stats (As of 10/31/2011):

• 39 Franchises have been renewed to-date in 2011

• 116 Franchises are up for renewal which equates to 1,144 Executives

Here’s Where We’re Here’s Where We’re GoingGoing

Our 2012 Growth Goals…

Here’s Where We’re Here’s Where We’re GoingGoing

By Year-End 2012…

10% Net Growth in Offices = 58 New Franchises

Here’s Where We’re Here’s Where We’re GoingGoing

By Year-End 2012…

23% Net Growth in Executives = 1,928 New Executives

– 58 New Franchises X 5 Executives/Per New Franchise = 290

– 3 New Executives X Existing Offices = 1,638

Here’s Where We’re Here’s Where We’re GoingGoing

By Year-End 2012…

We will have…

10,321 Executives604 Offices

Here’s Where We’re Here’s Where We’re GoingGoing

We have a need for change and a need for growth in 2012. We won’t accomplish these things without working together.

We’ve had to take a long, hard look in the mirror at areas we need to improve upon and are making changes in how we approach the year from both growth and support standpoints…we need for you to do the same in your regions.

Here’s Where We’re Here’s Where We’re GoingGoing• We need for you to keep your REGIONAL

DEVELOPER “hats” on over the next two days• All conversations should be from the regional

perspective so we can best discuss on the same playing field

• Stay focused on NEW franchise sales…• We are a FRANCHISE SALES & SUPPORT

organization• All conversations should circle back around to

two things…

Here’s Where We’re Here’s Where We’re GoingGoing

• How is what we’re talking about going to lead to 58 new franchises and 1,928 new Executives in 2012?

Let’s keep it focused and work together!

Before we get started…let’s review

some verbiage definitions so we’re

all on the same page

Definition of TermsDefinition of Terms

• Executive Access:– Backend intranet for Realty Executives–Will become the one place for

Executives to go to run their business every day

–With house the new dashboard –What you know about it now and what it

is for you when you leave will be two different things

Definition of TermsDefinition of Terms

• Franchise Management System:– Replacing the current Superlative

Database–Will keep track of rosters–Will do REI billing–Will feed into RealtyExecutives.com

website –Will be on the planetRE platform

initially

Definition of TermsDefinition of Terms

• Broker Management System:– Online transaction management – Financial management of the brokerage

Definition of TermsDefinition of Terms

• Pipeline:– Systematic approach to selling the

Realty Executives franchise– The process of gathering important

prospect data– The tool you use to manage your

prospects

Definition of TermsDefinition of Terms

• Prospects:– People to whom you are working on and

communicating with to sell a Realty Executives franchise

Definition of TermsDefinition of Terms

• Address Only Sale:– A franchise sale where the territory

given is the physical address of the office only

– I.e.: 123 Main Street Anytown, ST is the territory

Now let’s get going…Now let’s get going…