Re:Zillow CEO: startups trying to disrupt real estate commis...
by sgc on Wednesday January 16, 2019 @07:50PM
(#18927308)
Agents make at least 60% from day one. It is easy to find a brokerage who will offer 70-80% day one. So in that respect I don't think it is a pyramid scheme at all. Also, there are plenty of brokers who work in a larger organization without being the broker of record. But as you noted, advertising is not free. It is extremely expensive to market as a real estate agent, and that marketing cost is why most agents fail. It is just too expensive to start. In my area, I would allot at least 30,000 a year to get going as an agent for the first year, and more each year after that.
Source: On the fence about dropping my license right now.
Re:Zillow CEO: startups trying to disrupt real estate commis...
by clairity on Thursday January 17, 2019 @05:58PM
(#18935468)
yah, it's not a pyramid scheme so much as it exhibits power law characteristics (80-20 rule and such).
Re:Zillow CEO: startups trying to disrupt real estate commis...
by Stryder on Wednesday January 16, 2019 @06:59PM
(#18926930)
Sounds like software engineering today.
Re:Zillow CEO: startups trying to disrupt real estate commis...
by AYBABTME on Wednesday January 16, 2019 @07:24PM
(#18927141)
Where most engineering interns are probably paid more than the median national household income? Where starting salaries are in the 6 digits?
Re:Zillow CEO: startups trying to disrupt real estate commis...
by richardknop on Thursday January 17, 2019 @09:00AM
(#18930775)
I mean come on, sure 120-150k starting salary out of university is only a thing in SF, Seattle etc but even in other parts software engineers are paid well. 80-90k in some city in midwest where housing is super cheap is a great middle class salary.
Re:Zillow CEO: startups trying to disrupt real estate commis...
by lgregg on Thursday January 17, 2019 @12:58AM
(#18928715)
Only in Tech Hubs like NYC or SV...
Re:Zillow CEO: startups trying to disrupt real estate commis...
by Latteland on Saturday January 19, 2019 @05:05PM
(#18949486)
How much lower is the starting pay in Boise, or Kansas City or some non-tech hub? My startup company pays well over 100k for college hires with no experience. And other companies pay more. Yes, we are in one of the tech hubs (Seattle). If other companies don't pay nearly as much, why would people work there?). You might pay 20k a year for your cool apartment in walking distance to bars, shops etc, but you have a great lifestyle.
Given some luck/skill and a lot of hard work, maybe they become large enough to start hiring agents themselves, and the cycle repeats.