The Self-Made Style: EXIT Realty?s Residual-based Philosophy Leads to Unprecedented Growth

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The Self-Made Style: EXIT Realty?s Residual-based Philosophy Leads to Unprecedented Growth

By Beth Bresnahan

When EXIT Realty emerged on the U.S. Franchise scene in 1999, the industry perceived it as an anomaly at best. As a brand new player with an unusual name, agents and brokers alike either didn?t totally comprehend the premise of the unique single level residual?based formula or were simply leery of a three dimensional real estate system that seemed too good to be true.

But today, thanks to the undaunted determination and discipline of this company?s leaders to build and stabilize a tremendously successful International real estate corporation, Toronto based EXIT Realty Corp. International has experienced unprecedented growth, especially throughout the United States.

The secret is out: People have witnessed the unbelievable success of The EXIT Formula and want in.

In just the past seven months from this writing, the number of franchises sold climbed from 320 to 390 and agents recruited from 4,800 to 7,200.

?That?s the speed that this company is growing,? says Tami Bonnell, president of U.S. Operations for EXIT Realty Corp. International and Regional Owner of New England, both headquartered in Burlington, Massachusetts. ?We?re not just focused on the real estate business, we?re concentrating on the business of real estate. There?s a big difference. We have positioned our approach strategically and deliberately with unique and specialized teaching, training, coaching, mentoring and accountability programs that are specifically designed to get the most and the best out of all of our people. We are continually raising the bar on industry standards.?

EXIT?s business methodology of single level residuals is unique in the real estate industry. ?The process starts with the agent?the most important person in the business,? states Bonnell. ?Whenever a salesperson is introduced to management and recruited into EXIT, the transactions that the new recruit closes generate a bonus payable to the individual who sponsored them into the company. This bonus is paid out by EXIT?s headquarters and is equivalent to 10% of the gross commissions earned per transaction per recruit. This later translates into a 7% residual retirement program and a 5% residual beneficiary benefit?two financial components that prior to EXIT have never been a part of any Realtor compensation package.

In 2003, EXIT Realty Corp. International paid out $9.1 million in single level residuals to its associates for sponsoring.

A Piece of the Action

?It is this very premise of getting a piece of the action through sponsoring that revolutionized the real estate industry and creates a future for real estate practitioners where there has never been one before and potential profitability for brokers unheard of in years gone by,? says Bonnell. It fosters a supportive attitude among agents and brokers alike and stimulates empathy for each other. Even the administrative force benefits with a $5 bonus generated from each sale paid out via EXIT?s head office in December as a special thank you for a job well done.

Chris Florek, broker/owner of EXIT Realty Center in Stoughton, Massachusetts is like many people who come to EXIT. He is self-made and possesses an entrepreneurial spirit. He is a former physical therapist who fell in love with the EXIT System. With business partner and co-broker, Alan Kosinski, he helped open up their operation and immediately began to lead by example by setting a good example. ?I utilize all of the outstanding sales and management tools provided by EXIT,? says Florek. ?We now have an office of 42 salespeople and these tools have been the key to our success. From the moment I started I was treated like family at every level of EXIT. It felt like the broker owner training in Toronto was a home away from home. Founder and CEO, Steve Morris, invited us all to his home for dinner and a special fun night. It was a great way to welcome us to the company.?

For keeping track of incoming residuals and production, Florek uses ?EXITrac,? EXIT?s transaction monitoring program that assists all EXIT associates regarding their accountability structure.

This system allows agents to go online and track the status of their transactions and the production of those who they introduced into the company. This stimulates mentoring and it induces synergy into the entire corporation. EXIT?s sponsorship is nationwide and Florek has recruited agents into EXIT from as far from Boston as New Jersey and North Carolina.

Tami Bonnell says this type of genuine, congenial and yet disciplined and successfully driven personality is a common thread through the entire EXIT franchise network.

?EXIT is very similar to a professional sports team,? says Bonnell, who is also a third Dan black belt in Tae Kwon Do. ?Some days the team carries you and on other days you carry the team, and most important is your ego does not get the best of you.?

Early Signs of Success

Tami Bonnell is one person who can truly claim that a career in real estate was indeed her destiny. She started her first business at age 11?The ABC Cleaning Company. She named it that so it would appear first in the telephone book. Everyday after school, she would get a ride to a local subdivision owned by builders and then clean the houses. ?One of the builders challenged me to sell a house,? she says. ?When I was 13, I actually sold one.?

She later sold homes during college to help pay for her schooling and by the time she was in her thirties, she had become one of the highest-ranking real estate franchise sales specialists in the country. The full manifestation of her incredible entrepreneurial spirit whereby she could fully reap the benefits of working in a supportive team environment came forth, however, the day she joined EXIT. The industry had desperately lacked what EXIT could now provide.

With increased productivity, Bonnell sold 50% of the regional or state rights for EXIT by population across the entire United States in just 365 days. To date, because of this tremendous success, only 25% now remains to be sold and Bonnell claims that the balance will be accomplished by year-end. Talk about preparation meeting opportunity.

The original launch of EXIT took place in Toronto, Canada on September 3rd, 1996. The EXIT Formula was originated by Steve Morris, Founder and CEO of EXIT Realty Corp. International. He did so as a result of his life insurance background previous to his 27-year tenure as a real estate broker. Bonnell credits him for creating historic change in the industry and for his unique ability to infuse a sense of confidence, excitement and success into everyone he encounters.

?Steve Morris has the uncanny ability to put the right people in the right places,? Bonnell says. ?Everyone is doing precisely the job they are best suited to do. Our entire company functions on the premise of specializing in what you do best and delegating the rest. I am very good at selling franchises, for example, but I?m not qualified to work in franchise support. It?s the effective harnessing of each individual?s strengths that makes for ultimate group power and a truly successful organization.?

To help them draw the best candidates, the company uses a simulator job aptitude testing system and a personality and temperament analysis program. This helps management delegate authority and responsibility more effectively.

Self Image Reinforcement

Bonnell adds, ?Everyone is a reflection of the company, thus special emphasis is injected at all levels of the corporation to reinforce the value of building a better business through empathy, encouragement and constructive support. The entire EXIT System, regarding the development of human potential, is based on self-image reinforcement coupled with goal achievement orientation. By working arm in arm each individual at EXIT has newfound leverage as a result of tapping into the energies of others. By comparison, this procedure is as truly valuable to the real estate business as was the discovery of the concept of horsepower to the automobile industry. The blending of complimentary forces makes for an effective level of integrated people power.

Progressive Realization

Tami Bonnell is constantly pounding the pavement in an effort to generate progress. Her focus is always on unfinished business. Today, the prime consideration at hand is finding precisely the right candidates to purchase the regional rights for the following States: Wisconsin, Illinois, Indiana and Ohio. This is the third step of EXITs corporate four point strategic approach in getting this big job done.

An Executive Training Format

All regional owners and broker/owners are totally indoctrinated into the EXIT System by comprehensive training. These five-day sessions are highly motivated, detail oriented and totally encompassing. They are organized and executed by the international team in Toronto. All training is open ended whereby everyone is invited to come back repeatedly for constant reinforcement. Each course is tailored specifically to the job at hand and backed up with well-orchestrated manuals of systems and procedures. Each course is taught by six specialists who pass down the wisdom, understanding and methodology necessary for each participant to go forth and do an outstanding job.

Bonnell says that people typically stay in companies where they know that they will continually grow and prosper and that EXIT?s training program is the greatest differentiator of all when it comes to top drawer components of success.

Driven to the Core

The residuals, franchise sales, dynamo personalities and coaching are undoubtedly what attract people to EXIT Realty. But what keeps the company running like a well-oiled machine are the back office systems and operations; technology, Web development and franchise support.

Steve Morris promoted Erika Gileo to Vice President of Operations for EXIT Realty Corp. International because she was the best real estate administrator and accounts manager in the entire industry, in his view. She was put in charge of designing and building a software program that would manage all production and calculate residual payouts for the entire EXIT system and to create a division of experts to execute, monitor and support it. She did this with incredible success. The program titled, ?MEMO? (Managing EXIT?s Momentum On-Line) was launched in March 2002.

Franchise Support

MEMO is designed to directly support the efforts of EXIT?s franchise support department, headed up by Susan Harrison. ?Franchise Support is totally accessible 12 hours daily to brokers and agents to answer all questions they may have about any aspect of the EXIT Formula or specific transactions,? says Harrison, who joined EXIT after 13 years of leading the administrative team of one of the largest offices for a major competitor. She also has assumed the responsibility of managing EXIT?s corporate Web site, www.exitrealty.com and the intranet site known as The EXIT Resource Center. Constantly focused on progress, Harrison creatively modifies these methodologies so that EXIT will experience full growth, productively and functionality through systems. Along these same lines, Erika Gileo has a streamlined flow of electronic transfer of residuals on tap for 2004.

Posh Headquarters

Last but not least in the news at EXIT Realty is their recent move of its world headquarters into a brand new office building in Toronto West. The office is state of the art: 15,000 feet of etched glass, rosewood trim, floor to ceiling doors and brass finishing whereby each office is individually temperature controlled.

This is executive d?cor at its finest. And, oh yes, a nine-foot bronze statue in the lobby titled, ?Self Made Man.? It depicts a Roman God-like man carving himself out of a thick imperfect rock. ?This statue says it all when it comes to EXIT,? says founder and CEO, Steve Morris. ?We create our own reality through reshaping and reinforcing our self image.? On a corporate level, EXIT is reshaping the entire real estate industry with single level residuals.

Mega Marketing

EXIT Realty Utah recently sponsored an NBA match up between the Utah Jazz and the L.A. Lakers. It was a big marketing success for the company. The owners of the company, both singers, sang the National Anthem on national television and all those EXIT Realty signs shone big and bright on the stadium “Jumbotrons.”


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