The Birth of a Revolution
Realty Executives is one of the most closely followed real estate franchises in the world. In 1965, the company first drew attention as the originator of the 100 percent commission concept.
Since its dramatic beginning in Phoenix, Arizona, more than 35 years ago, the company has become one of the fastest growing franchises in any industry. Publications like Entrepreneur, Success and Inc. Magazine have recently ranked Realty Executives as a leader based on such criteria as franchise growth, management stability and financial soundness. Realty Executives only began its aggressive franchise expansion in 1987. In 1988, there were 31 franchises and just 624 agents. Today there are thousands of Realty Executives sales associates in countries around the world. Our broker/owners are adding professional, top-producing agents every day, continuing our aggressive growth. For the home buying and home selling public, the news is even better. Because Realty Executives attracts professional and experienced real estate marketers to the company, the ultimate winner is the consumer who chooses the services of a Realty Executives agent
But, how did it all begin? Dale Rector is the visionary who founded Realty Executives.
By the 1960's, Dale Rector was a real estate professional who had worked for traditional real estate firms in Colorado and in Arizona. But he was unhappy. He had a number of grievances that weren't easily solved: a) His commission splits were used to train and support new recruits, rather than provide him with new and better support services. b) Inexperienced floor people were encouraged to respond to inquiries on his listings. c) He was expected to spend valuable field hours on office work. d) He was required to share commission checks on his own property purchases with the broker. e) He had no advertising control over his own listings.
Dale didn't sit still or complain for long. He opened his own split-commission firm. Soon he found himself becoming overly involved with the administrative duties essential to a smoothly run office. He also had to relinquish the selling time he had always enjoyed. Not surprisingly, Dale found his top sales associates frustrated with the split-commission system for the exact reasons he had been. Eventually, some would leave his office just as Dale had done earlier in his career.
The industry needed a change. How could he ensure that the top producers could work free from administrative duties and also free the office of deadwood?
In 1965, Dale Rector became the first man in the nation to open a 100 percent commission office Realty Executives. The concept, revolutionary at the time and now widely copied, was quite simple: Sales associates receive 100 percent of their commissions. Associates would share equally in office expenses. Offices would be coordinated by a full-time broker, whose salary was paid by the associates. The concept caught on. By 1972, the pilot operation in Phoenix, Arizona was producing the highest volume of all competitive independent real estate firms. By the 80s, with greater expansion, volume totaled more than the competitive national franchise firms in the area.
Each year, sales volume and the number of associates have grown - proof of the concept’s wide acceptance and success. Realty Executives rapid growth is no surprise. Give professional sales associates an environment where they can concentrate on what they love to do - sell, and they will get results!