The origin and history of RE/MAX

By
Real Estate Agent with John L. Scott

The question most often asked at RE/MAX is pretty straightforward: what does the word "RE/MAX" mean?

The answer is self-explanatory and elegant in its simplicity: RE/MAX is an acronym for Real Estate Maximums.

It means that an agent working for RE/MAX will garner the maximum amount of commissions and in the process provide top-notch service.

Incredible as it may sound, this concept was a kernel in the mind of Dave and Gail Liniger, founders of RE/MAX, who in 1973, thought that the traditional split between brokers and agents was far from being a fair deal for agents. And they wanted to change the status quo.

At the time, most real estates offices operated on the commission-split model requiring agents to forfeit fifty-percent of their earnings in exchange for an office and services.

This system was, of course, skewed since those contributing to any office were the top earners subsidizing the bottom earners and perpetuating the notion that real estate professionals were amateur part-timers.

The Linigers believed that to attract the top professionals, an office would have to allow them to earn all of their commissions and in return, they would have to share in overhead expenses and pay for management services.

The concept was not only innovative but revolutionary at its core and it encountered plenty of detractors and nay-sayers who did not believe that it would work.

It would, however, fundamentally shift the relationship between brokers and agents and in the process impact the industry in an irreversible manner.

And, to the disappointment of the opposition, it worked.

Since, RE/MAX has grown exponentially becoming a force to be reckoned with and in the process changed public perception of agents.

Along the way, it garnered accolades for having the most educated and professional sales force, for having a well-compensated one and for being a front-runner providing support, education and tools to those with entrepreneurial hunger and stamina.

Additionally, RE/MAX Satellite Network (RSN) was introduced to help the membership become even more professional by offering continuous education and advanced training courses in addition to constant updates on the state of the real estate industry. It continues to be the only satellite television network dedicated solely to the real estate industry.

Other services that were offered to its members were relocation and asset management, commercial investment, an international referral network, intranet and Internet Web sites and introductions to the latest technological tools.

With its red, white, and blue colors and its ever-present balloon as part of large advertising and media campaigns, RE/MAX is globally recognized by the public as a trustworthy leading force in the industry.

Its unprecedented growth has also come from outside the United States expanding to Canada where it is the largest real estate organization, and to Africa, Asia, Middle East, Australia, Europe, Mexico, New Zealand and South America.

Its sales force has now surpassed the 116,000 mark closing nearly 2 million transactions and making it the largest real estate franchise sales organization in the world.

RE/MAX International is divided into regions and RE/MAX of Georgia, Kentucky, Tennessee and Southern Ohio franchise rights are owned by Howard McPherson, President and Owner, who purchased the rights in 1978 and went on to expand the RE/MAX brand throughout the four states.

Since 1992, RE/MAX has been the official real estate sponsor of The Children's Miracle Network raising more than $67 million for Children's Hospitals in addition to supporting Little League, the Susan G. Komen Foundation and many more events in the Region.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Groups:
Invest in Idaho!

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the graph to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the eye to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
204,699
Chris Tesch
RE/MAX Bryan-College Station - College Station, TX
College Station, Texas Real Estate
Jason, I'm with you!  I love RE/MAX!  I worked with a different company for one year before I came aboard.  The split was 50/50 until you had paid them 18K except that, before the 50/50 split a 12.5% "service fee" was taken off the top of every transaction.  That first year I paid over 35K in fees and had an office that I shared with 2 other people.  I came to RE/MAX 5 years ago and have paid less than 20K in fees each year and have a great private office!
Jan 21, 2007 04:37 AM #1
Rainer
46,929
Jason Provencio
John L. Scott - Boise, ID
Yeah if I was with an office that had me on an 80-20% split, I'd have paid over $20k each of the last 2 years, so I have saved $10,000 or so over 2 years and had the pride of working for RE/MAX as well!
Feb 02, 2007 03:41 PM #2
Rainer
1,725
Erica Attewell
RE/MAX Omega - Medina, OH
I've been with RE/MAX for the past three years and more than doubled my income!  My other company tried to brainwash us about the desk fees but you just have to sit down and do the math.  Wev'e really grown in Northeast Ohio.  I never look back, but I feel at home.  Working the same amount of time and making double---who would have thought????
Feb 04, 2007 08:42 PM #3
Rainmaker
69,426
An Marshall
Berkshire Hathaway - St. Augustine - Saint Augustine, FL
Your St Augustine Real Estate Consultant

I have been researching the history of the real estate industry so I appreciate what novely and innovation RE/MAX brought to the field.

Dec 28, 2009 09:48 PM #4
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tshirt to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
46,929

Jason Provencio

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cat to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information