I know times are tough, but this one takes the cake.  Many agents today are working for the worst commission split in the history of the real estate business.  What’s even worse is that in many companies, the agents are competing with each other just for the chance to work for nothing!  Here’s how it works.

With the failure of most traditional marketing to produce sufficient number of transactions for the average agent to survive, many agents have been forced to move to traditional companies to have enough business.  And those traditional companies have been happy to provide relocation leads at outrageous prices.

One major Atlanta broker-owner, speaking under the condition of anonymity, said that the agents in his eight offices have become more and more dependent on his company to provide sales opportunities.  He went on to explain that their relocation department pays a 40% referral fee to obtain relocation leads.  That’s before they pay another 8% (of the gross commission) to their franchise home office.

When you put those two huge expense together, that leaves only 52% to split between the company and selling agent.  In most traditional companies, the split on company provided business is 50/50, leaving the agent with only 26% of the gross commission.  And that’s before paying for gas, client meals, advertising, or other operating expenses.

Why would agents willingly pay out three-fourths of their commissions and only keep a fourth for themselves?  Only one reason: because they have to.  Today agents are finding it harder and harder to generate enough business to make a living.  Traditional real estate marketing has failed them, and most agents have dabbled in online marketing, only to waste their already limited budgets.

There is a new group of agents, however, that has rejected the notion of paying out three-fourths of their commissions and has instead taken their marketing into their own hands.  Many have departed from their typical “I love me” websites that are so prevalent in this industry, and have replaced them with very inexpensive LCM gateway technology.

This new class of agents is no longer dependent on their company for their livelihood.  They have taken control and started working smarter and not harder.  Many of them spend less to produce a steady supply of new business than they wasted each month using a typical website or small magazine ad that produced very little if any business.

Today it is not uncommon for an agent to wake up to find 2-3 new inquiries in his email inbox.  Not once in a while, but every day; day in and day out.  Sure, some will never become clients, but many will.  Now instead of spending the entire week trying to hustle up a sales opportunity, and then the entire weekend trying to show and sell homes, these agents are able to spend their time doing what they do best: working with clients.  Their marketing is on autopilot.

Is it easy money?  Of course not!  There is no money without work.  But it is possible to automate your marketing and free up a lot of your time that is currently being wasted chasing the next transaction.  Imagine what it would be like to have a pipeline of business backed up waiting to work with you.

So let me ask you a question:  Have you ever tried out LCM gateway technology?  If you haven’t I encourage you to take a simple test drive of our LCM and see it for yourself.  It costs nothing to check it out and if you decide to try it there is no contract or activation fee and with current pricing* you could spend less than a dollar a day and generate more business than you can work.

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Matt Jones is the founder and CEO of FavoriteAgent.com, nationally syndicated columnist, broker, and best selling author of LCM: The Secret to Success in the New Age of Real Estate, The Ultimate Listing Presentation, Traffic: How to Sell Fast and Net More, Becoming a Mega-Producer, The Science of Online Marketing, 10 Steps to Real Estate Success, 20 Questions: Everything You Always Wanted to Know about Real Estate but Were Afraid to Ask, The Virtual Office Model, Max-Bang!, and The NEW Ultimate Listing Presentation. Jones' North Carolina-based company has been profiled by major media outlets as an innovator and a pioneer in the industry, and CNN's Pulse on America claimed FavoriteAgent.com is "changing the way real estate is being done in America." This article is syndicated in the following locations: iTunes, YouTube, Stitcher Radio, BlogMattBlog.com, RealBlogging.com, NewsGeni.us, TheCommissionCheck.com, RevampedAgent.com, and now Amazon Kindle.