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Is this how all real estate brokerages operate?

Hey guys, I was recently hired by Prudential Real Estate but I was curious about the actual process. What Prudential has hired me to be is a Real Estate Agent. The position is commission based only. Is this how it is for all real estate agencies? Are there any position which offer stable salary with commission as a bonus? They also want me to front money for classes, business cards, and etc. which seemed some what awkward and if I wanted to call and talk to a manager, there were only two ladies which I am permitted to speak with. I am asking this question because this seems skeptical and may be a M.L.M. of some sort. Could anyone who is in real estate tell me about how most agent position operate and which company would be best to start with? I currently do not have my DRE but I do plan on taking the crash course Prudential offers or doing it through another brokerage. Prudential has selected me as one of the 20 candidates they were hiring due to a quick exam I took and they believe I scored as high as agents whom make $125,000+ annually. Any information is appreciated! Warm Regards, Jason Xiao I was actually taking classes to become an real estate agent anyways. I am already doing classes but I may do the crash course just to get it over with quickly. Not really suckered in to me, more like a door opened so I didn't have to really spend a lot of effort applying. I actually own a couple personal businesses also in retail sales and I have worked as a sales agent at target and Best Buy when I was younger. I have a "charm" according to all my previous employers. Hopefully my interest in cars and real estate would land me a higher paying job, thanks for all the replies.

Public Comments

1. Nearly ALL real estate agencies are commission only, and you are expected to pay for such things as business cards, required education, membership fees in the MLS, etc. Frankly, you were suckered with that 'quick exam-high score-$125K' a year sales pitch. They didn't hire you. They talked you into becoming an agent.
2. Yes, this is how they all operate - commission based only. Many agencies, however, will front the training courses (they host them themselves). Supplies are yours to pay for (cards, car signs, etc.).
3. If you list a house and it sells, you get half of the listing commission (which is half the total commission). If you sell a house you get half the selling commission. If you sell a house you listed you get both. (The brokers get the other half.) You can get a salaried position - if every broker in the county would give his or her right arm, and half their left, to get you. But the normal agent (and that includes people working in the same agency for 20 years) get commissions. Learn how to be an agent, not just a clerk with a license (which is what 99% of "agents" are). Read books on salesmanship. Sell the sizzle, not the steak. Know that you can sell any house in any amount of time for any price, but only 2 of those at a time. (Think about it - I could sell your house this evening for $10. I couls sell your house for half a million - in 50 years or so. Any 2.) If you become a good agent, and that can take a year or so, you can sell a house a week in a good market. Figure the commission on that (1/4 of 6% is 1.5%.) at even $100k per house (it's $1,500 before taxes, and you're an independent agent, so you pay your own taxes). When you become better, you can make more (sell what you list and you double your income.) $125k annually - in a good market - is pretty easy. In the current market? Not for a beginner, and it's a tough job for someone who's experienced. But if you sell the sizzle (learn what that means), you're driving past experienced agents who are on foot. (Selling is selling - most real estate agents are real estate agents, not sales people - they couldn't close a deal if it had a zipper and buttons on it.)
4. Yes that's how they all operate. And with some of them you have to pay desk fees and/or franchise fees as well. Expect to pay for every photocopy, form and fax. As well you will likely have license fees and errors and omissions insurance.