EXIT Realty Corp. International adopted the same method of recruiting done in the Insurance industry. The key to profits is sign up fees from new recruits. While traversing on the borderline of legality, CEO Steve Morris denies that Exit is a pyramid scheme. Morris states that because only one level of residuals are paid out, no laws have been broken in the US.
Exit Realty generates the bulk of its profits from new recruits' sign up fees. These fees can range from $200 to $400. http://www.joinrealexit.com/FeesyouShouldExpect. Once a recruit is signed on, he may run into additional fees in things ranging from stationary to seminar costs.
According to various trade journals such as Realty Times, the first year failure rate is over 86%, and for those brokers or agents who have survived, over 70% have an income less than $30,000 (see Real estate broker). With these figures, the annual membership fee of $295 plus training course fees of $320 or more becomes the main source of revenue for Exit Realty Corp.
Exit proclaims that an agent can make more than 100% but that is done with erroneous basic elementary school mathematics. The formula proclaims that by making 10% off each of your recruits, you will earn more than 100% because each recruit generates 10% of their income for you. 10% from 11 recruits, according to the formula, would translate to a profit of 110% for the recruiter. If one follows the same argument, going to a store to purchase 10 boxes of cereal and paying 7% tax on each box, would incur a total of 70% tax. This, of course, defies any branch of mathematics.
EXIT was founded by CEO Steve Morris in 1996. It has grown in only 10 years to over 1,100 offices and more than 32,000 real estate professionals in North America. That makes it the fastest growing real estate franchise ever.
The growth of EXIT REALTY and EXIT REALTY PROPERTIES is substantially credited to the effectiveness and quality of its training programs. The mandate of the EXIT Realty system is to give their agents every opportunity to get the most and best out of themselves and others. Excellent teaching, training and coaching is a prerequisite for ALL of their agents and this means that they can better serve their clients.
EXIT Realty has a one of a kind sponsoring program that allows real estate agents to produce new sources of residual income. EXIT is adding 200+ agents/week in North America. It has paid out over $100 million in sponsoring bonuses since 2000. It won the Champions of Industry Award, a Pat Summerall production, http://www.bizjournals.com/dallas/stories/2004/11/15/daily58.html, for 2004 as seen on CNN Headline News.
This information is a summary of information from EXIT Realty marketing sources. See www.exitrealty.com for more information.
1. EXIT Annual Dues. $295.00
2. Regular training program fees. First program is FAStTRAC at a cost of $320.00.
3. Errors and Omission: E&O $18.00. Each transaction incurs a $18 Error and Omission fee.
4. Realtor Fees. These fees are incurred by all agents and are paid directly to your local Board of REALTORS. Please inquire with the Broker in Charge.
5. Transaction fee of $150.00 for all transactions.
6. No desk fees just like all other realty companies.
7. You are responsible for all your business needs such as stationary, cellular phone, and related business requirements.
- article on Exit Realty based on interview with founder
- [mms://video.lantrax.com/exit/UpClosePersonal18min.wmv Exit promotional video]