By Kathy Bevan
Unfettered by its lawsuit against the Toronto Real Estate Board and CREA, which was resolved out of court in January, Realtysellers (Ontario) Limited has launched an aggressive expansion campaign. The Toronto-based firm is hoping to attract 2,500 new sales reps and 100 new brokers across Ontario within the year, through two new recruitment programs.
To achieve this rapid growth, Realtysellers is offering brokers what it describes as a “revolutionary” office owner program, based on a percentage of gross commission income — 10 per cent of the gross commission income up to $35,000 and five per cent over $35,000 — with no upfront or ongoing franchise fees.
“We’re going to provide the front and back office — the bricks and mortar — with reception, accounting, and administration. The broker gets to focus on the productive activities: recruiting and supervising agents,” says Realtysellers chairman Stephen Moranis. “There will be no franchisor up-front fees, no initial or ongoing fees, no investment required, no risk.”
Adds Moranis, “I believe the small storefront is unnecessary in our business right now. What’s a better storefront than having 100 signs on people’s properties, being on billboards or on the radio? To me that is a more effective storefront than having 150 bricks-and-mortar offices that no-one ever goes to.”
To beef up its sales force, Realtysellers is also offering commission splits: 60/40 up to $35,000 and 90/10 over $35,000, with a 100-per-cent option available as well. Until now, the company has been operating a salaried staff of 35 people, roughly half of which are licensed Realtors. Moranis says that the salaried sales force concept has been a success for Realtysellers to date, but the company’s expansion plans require embracing other business models.
“There’s no question, a commissioned salesperson brings a little more entrepreneurial flair to the table,” says Moranis. “But whether one is salaried or commissioned, it’s the quality of the person and the delivery of the services and value to the consumers that’s really what’s going to be what makes the difference, not specifically how they’re compensated.”
While the company plans to continue serving clients with its salaried salespeople, the focus may change to more of a corporate clientele. “We just got the CMHC contract for all trading areas in Toronto for distressed properties,” says Moranis. “Where we’ll probably go from here on is toward more corporate business. If we create a network of 2,500 agents across Ontario, we can go after Ontario government business.”
The firm is also eyeing expansion beyond the borders of Ontario, if its current provincial campaign is successful. “First, we want to expand and saturate the Ontario marketplace — that’s where there is huge opportunity for us,” says Moranis. “Everyone is going to basically operate under Realtysellers (Ontario) Limited, and it could then be Realtysellers (Alberta) Limited and Realtysellers (B.C.) Limited. We’re definitely looking to expand right across the country.”
