Why does re-max attract more aggressive agents


Question:

In the U.S. real estate brokerage industry, brokers employed by large brokerage firms have traditionally worked for a portion of the commissions they generate. That is, if a house sale generates a 6% commission split equally between the brokers for the two sides (standard in many markets in the U.S.), the broker on one side might personally pocket 1.5% with 1.5% going to the firm for which the broker works. In return for a share in the broker's commissions, the firm provides the broker with an infrastructure, such as clerical support, phone services, and office space, and especially for new brokers, a base wage.

In comparison, RE/MAX, a national brokerage firm, permits its agents to keep 100% of the commissions they earn. The firm provides clerical services, phones, and the like, and charges its agents a fixed monthly fee for those services. RE/MAX is known for having the most aggressive agents in the business on average. If you want to find an aggressive, hardcharging agent, going to RE/MAX is usually a safe bet.

Why does RE/MAX attract more aggressive agents?

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Microeconomics: Why does re-max attract more aggressive agents
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