The company that pioneered a new way for agents to retain higher commissions while equally sharing office and management expenses has come a long way since its beginning in 1973. Although it took agents a while to catch on that the new system was of greater benefit to the seasoned professional than to the beginner or part-timer, RE/MAX has since grown incrementally into one of the largest franchisers in the world.

According to RE/MAX President Daryl Jesperson, RE/MAX agents on average have more experience and sell more homes than other agents in the industry. RE/MAX agents average 12 years of experience, far exceeding the industry average. They also surpass their peers in professional designations or advanced education in real estate sales and marketing.

Over the last 25 years, national and international expansion has currently brought the franchise to more than 23 countries with more than 3,000 offices and 50,000-plus associates.

The company was the first and remains the only one to offer a satellite network channel for the continuing education of its members. More than 1,000 RE/MAX offices are receiving six hours of programming a day throughout the network signal, reaching more than 20,000 associates.

Daryl Jesperson looks at the year in review and the year ahead in this exclusive AgentNews interview.

A.N.: Let's look at where you have been and where you are going. What was the biggest news in 1997 for RE/MAX?
D.J.: One thing that comes to mind is our victory over Century 21 in a trade secrets case, in which the judge is awarding us our legal fees. That suit had gone on for a number of years. Another big news item is our continued growth and strength in North America, as well as a tremendous amount of expansion internationally in South Africa, Australia, Singapore, and other markets and our continued emphasis on technology.

A.N.: What is happening internationally?
D.J.: We are establishing franchises overseas. The cornerstone of our business, of course, is top-notch agents. One of the biggest hurdles in a real estate transaction is dealing with a competent party on the other end. We are training our people with our satellite network of information so they can obtain the CIPS professional designation, which means the agent has received specific education about international real estate transactions -- including everything from learning cultural differences to transactional differences. Even in the United States we have regional differences, so learning how people do things anywhere is important.

A.N.: Is international realty your company's focus for the future?
D.J.: It is a focus, but not our only one. We are positioning ourselves for the future. After the year 2000, a growing number of transactions will be international. We are not just looking at the year 2000, though; we are looking at 2010 and 2020.

A.N.: What about the changing face of the RE/MAX agent? Will there be a gain in multiculturalism there, too?
D.J.: We already have a broad cross-section, and it is growing all the time. Out of approximately 50,000 agents, we have 37 different languages spoken in our organization. We are in 23 countries. An agent who speaks more than one language can develop his or her own niche. Agents can promote that, and the immigrant population is a ready market for them.

A.N.: So the global village is impacting your future strategy?
D.J.: Partially. We still have to focus on our growth in America. The United States is still the bastion of homeownership in the world.

A.N.: What will be the big news for 1998?
D.J.: RE/MAX will be celebrating its silver anniversary. We will have a convention in March in Las Vegas, and we are very excited about the year.

A.N.: What will be the focus of the convention?
D.J.: We are looking to strengthen our market position, and we do that through a term we call Premier Market Presence(tm). That is a concept made up of community citizenship, market share, advertising, and agent professionalism. We have our satellite TV network where we offer leading-edge programming to help our agents remain at the forefront of education. It is one of the reasons we have more agents with CRS designations than any other company. That is important from a service level. The better- prepared the agent is, the smoother the transaction and the more likely customer is to repeat their business with that agent.

A.N.: Tell us more about the satellite network.
D.J.: We have the largest proprietary real estate satellite network, with business programming six hours a day, five days a week. The programming is designed to assist agents to obtain professional designations and to meet their continuing education requirements. Our people can sit in their offices and take exams or get certified to take exams -- depending on the state they are in -- instead of driving across town or across the state. It is an invaluable time-saver and a strong advantage for RE/MAX members.
We lead the race in technology. Our Realtors online are exposed to the latest technology developments, and we teach them online how to use programs like Agent 2000 and Windows 95. Our agents are better-prepared to take advantage of the tools technology has to offer.
Real estate is in the dark ages, and we are leading our people into the promised land and making it easier for them to do their jobs in an increasingly competitive environment.

A.N.: What is new for '98 in RE/MAX technology?
D.J.: We are putting up our own extranet. That will be a system that will allow our members, suppliers, and anyone who assists our members to communicate. There will be several levels of access, depending on a need-to-know basis. The purpose is to facilitate communication between our members, with things like referrals, and with people who impact our members. It will also be used for manual updates, contracts, etc. It will empower people.
We also have refined and expanded our Web site. The technological tools we provide for our people have been enhanced and expanded, and we expect that 1997 will show that we were involved in close to 1 million transaction sides.

A.N.: What do you foresee for the industry in 1998?
D.J.: I think that the coming year is an opportunity to reflect on past successes and look to the future. There were a lot of milestones for RE/MAX this year. We passed the 50,000 agent mark, 1 million transaction sides, and other accomplishments.
As for the future, I think it will be a banner year for opening new offices and adding new agents. I also think there will be continued consolidation in the real estate industry, which will create new opportunities. Agents will be either be the beneficiaries or the victims of consolidation. They will have to decide whether to buy into the piper's song that there is more money on ancillary services and products -- such as satellite dishes and cell phones -- instead of concentrating on the real estate concentration.

A.N.: Do you mean some agents will choose to sell cell phones on the side to their buyers and sellers?
D.J.: Absolutely not -- that's for other companies. RE/MAX has no intention of cluttering the real estate transaction with any other agenda. We are proud of the professionalism of our agents, and we intend to keep it that way. I think agents who divide their time between transactions seeking $20 here and there on products will soon find they are having fewer and fewer real estate transactions.

A.N.: After a record year for the industry, it seems like muckraking to ask you, but do you have any concerns about the future?
D.J.: Near term, things are great. Continued low interest rates and low unemployment will bring people into the housing market. But real estate is cyclical. Eventually it is bound to slow down, and then I think you will see a lot of people dropping out of the business.
People say, 'I'm going to give real estate a try,' but real estate ends up trying you. The business is not as easy as it was 10 or 15 years ago. There are more continuing education requirements, and the transactions are more complex and difficult.
There are a lot of baby-boomers in the business. Some will retire, and some will leave because they want less stress. They aren't leaving right now because the market is so good.

A.N.: Did you know that 1997 would be this good?
D.J.: No one predicted 1997 would be better than 1996, and I didn't, either. I think '98 will be a year of positioning, and there will be a lot of changes.
You know, people have an interesting mindset at the turn of a century. It is very psychological. They question who they are and where they are going. People will have to decide where they want to be and what company they want to be with. At RE/MAX, we are in a good position because we have a very clear idea of who we are and where we are going.