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February 12, 2012
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Response To: Another Exception (OurBroker - 03/06/2001 06:15 PM)
Main Topic:

Can Low Fees Guarantee Broker Success?


Free marketplace - I think not
Posted By: LyleMartin - 03/07/2001 01:33 PM

Hi Peter,

I?d like to respond to your response to Kevin Moran.

You commented in your response that your article was ?neither negative or disparaging.? I didn?t see where Kevin implied that it was.

The title of your article asks the question ?Can Low Fees Guarantee Broker Success?? In your article, you state that discount brokerage has not had much impact, presumably on the lowering of fees. I have to agree. The reason however is not, in my opinion because consumers find discounted programs lacking. More likely it is because there just aren?t that many of us out there ? yet.

Why do most of the 700,000 REALTORS® and 300,000 plus other salespeople seek the ?market-level fees?? Because the fee structure has been protected by those very agents.

When someone attempts to lower the fee structure they are labeled as ?discounters.? If commissions truly are negotiable, and I advertise that my fee is 4.5% and charge 4.5%, why am I labeled a discounter? If an agent advertises they want 6% and then discount to a lower fee, such a label might then be appropriate.

If the business schools want to study and evaluate the issue, they need to look at markets where ?non-traditional? companies are operating. In our market, commissions have come down. We believe this is a direct result of the substantial business we do at our ?Full service with Savings? company.

The ?market-level? for commissions is not a result of the normal influences, such as supply and demand found in a truly free market place.

Our ?Exceptional Success? is indeed exceptional when you consider we are trying to change an entire industry.

Thanks for the discussion.

Respectfully,

Lyle Martin
www.assist2sell.com
Lyle@assist2sell.com


Responses to this Post

Market Factors
Posted by: OurBroker - 03/07/2001 03:45 PM

You Get What You pay For. Or Do You?
Posted by: LyleMartin - 03/07/2001 05:40 PM


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