Some readers here may be a bit concerned that some of the writers here on BloodhoundBlog don’t find and report enough negative comments about various discount real estate companies. Relax. There is more.
I received the following email today from Dave Marron. As you will see, he is a former executive for Zip Realty.
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Hi Russell:
I saw that you posted on bloodhound about zipRealty awhile back. Did you see their earnings release the other day? I’m an ex-zip exec (and ex-KW broker) and I put my thoughts down on paper about the state of their company (see attached). Do you have any use for this? If not, it’s OK. I just thought I’d shoot it over to you in case you thought it was bloggable.
Thanks,
Dave
What’s Wrong with zipRealty?
Last week zipRealty released their “preliminary” fourth quarter results. I’ve been interested in this company since 1999 when I went to 
work for them. I
spent over four years at zip performing numerous jobs including VP of Sales. A couple of things popped out at me during their “preliminary” earning release conference call that just don’t make sense. Here are my observations.
One of the initiatives zip’s leaders gave for how they are going to improve in 2007 was an increased effort on training. Stock analyst Wendy Snow asked the team what they intend to do differently in the training arena that will make a difference in 2007. To this, Management answered that their “ideal candidate” would have the qualities of a strong trainer and strong real estate skills. They’ll also consider someone with strong training skills who could be “pick up the real estate craft quickly”. Are they kidding? They would hire a trainer who can “pick up the real estate craft quickly”. Would Pilsbuy, Madison and Sutro hire a legal trainer who could pick up the law craft quickly?
After leaving zipRealty I sold real estate for several years and I’m now an owner in a real estate technology company. The way that I learned the “real estate” craft was by going out and selling lots of homes. It’s not something that you can teach someone to do unless they are willing to actually do it. If they are willing to hire a trainer without real estate sales experience, I sincerely doubt that their new training initiatives will have any positive impact.
Recruiting and retention is critical to zip’s success. The company said that they will “…focus recruiting efforts on specific candidates and areas…We’ll take a lasered approach to recruiting as opposed to a shot gun approach.” This is going to be a huge challenge for the company.
Here’s the problem the company has created, unsuccessful agents leave because they’re not making any money. Successful agents also leave because they’re not making enough money. Let’s break down the compensation plan of an average zipagent:
Avg Net Revenue/Transaction $7,400
Avg zipAgent Commission 50%
Avg Agent Commission/Transaction $3,700
Transactions/Agent/Month .60
Avg Monthly agent income $2,220
Buzz Lightyear couldn’t laser in on a quality agent with that compensation package.
High turnover has also been a big problem. Zip agents are employees of the company, not independent contractors. The company believes that as employees, their agents should do whatever the company wants. Things like working weekends, weekdays, holidays, nights, mornings, and sucking up to management is expected. The reality is that the agents may be employees, but they don’t get salaries and they pay their own expenses (board dues, mls fees, phone bills, gas, car payment, etc.). The promise of a steady lead flow and good technology (plus maybe 200 stock options) isn’t enough to compensate a good agent to make the kind of commitment zipRealty asks – not even with the $2,200 per month cash flow!
Now, I don’t like it when people criticize without offering solutions (I’m also not a big fan of anonymous critics). So, here’s what I think zip should do to improve performance:
1. Acknowledge that you are a real estate company and start behaving like one. This company has 1,796 agents (as of 12/31/06) and they spent over $15,000,000 on operating expenses during the FOURTH QUARTER. Here’s my take on their “preliminary” results:
Q4 Revenue 23,000,000
Cost of Sales 10,350,000 (about 45% as reported on the call)
Gross Profit 12,650,000
Operating Expenses 15,150,000
Loss 2,500,000
I had to back into some of the numbers because their “preliminary” (what’s the reason for “preliminary” results again?) results lacked detail. Why is a real estate company with fewer than 1,800 agents spending $15 million per quarter on operating expenses? They completed roughly 3,100 sides in Q4. To give you a frame of reference, they complete about as many transactions as Prudential Carolina Real Estate who has about 900 agents and completed about 12,000 sides in 2005. Do you think Pru Carolina spends $60 million per year on operating expenses?
According to zipRealty.com, the company operates in 40+ markets. Each market is generally staffed by a district director, a broker and a staffing manager. That’s about 120 people managing 1,800 agents. Those managers and directors report up to the following team:
A VP of Business Development
An EVP of Operations and Business Development
An SVP of Planning and Operations
A VP of New Market Development
A VP of Online Marketing
A VP of Real Estate Sales (who has never sold a home)
An SVP, Chief Accounting Officer and Interim CFO (they’re probably looking to hire a CFO to take some of the load off of this fellow)
A VP and General Counsel
A VP and CIO
A President
A CEO
That’s a lot of management for an-1,800 agent company. To my knowledge, there is only one person with a VP or higher title who has ever sold a home. My question is – why is it necessary to have all of these managers? Since their agents are selling 7 homes per year (.6 per month) they either have the wrong agents, the wrong management, or both.
2. Get rid of the rebate. The rebate is unnecessary. Zip rebates about 20% of their gross commission to their home buyer customers. They provide a similar discount to home sellers. In my experience, the discount/rebate attracts buyers and sellers at the low end of the market. I sold houses for zip and gave the required rebates. I also sold homes for traditional firms and never gave a rebate. Guess what happened when I stopped giving a rebate. My average home sales price went way up and so did my average revenue per transaction. Most of my leads were sourced online just like zip’s so, this is a relevant comparison.
3. Invest your shareholder’s money. Zip is currently sitting on over $88 million in cash and short term investments. Most of that money was raised at their initial public offering back in November 2004. I was pleased to hear that they plan to increase their expansion by adding 8 – 12 new markets this year. At an average investment of $500,000 per new market, that’s a $6 million investment. Good start, now what are they going to do with the other $82 million their shareholders trusted them to invest (besides hiring a trainer)?
I do believe that zipRealty can be a much bigger player in the real estate industry. They are the best in the industry at generating leads for their agents. They also have fantastic technology to help their agents convert those leads. Now is the time to make significant changes that will drive the financial results their investors and employees expected. Unfortunately, based on their latest conference call, it doesn’t look like they intend to do so.
Allen Butler says:
Thanks for sharing that Mr. Shaw.
I was just moments ago reading a broker smackdown in the new Realtor magazine that came in the mail today. They seem to have quite a quandary on their hands concerning building a profitable business brokerage model. It seems fairly obvious that Zip has a twofold problem. First, their commission splits, 50% if reported accurately, are way low. No self respecting agent who produced any significant volume would work there, in spite of the best lead generation model in the business. Second, they have a very top heavy organization. The ratio of executives to worker bees is out of kilter.
February 27, 2007 — 11:47 pm
InmanBlog says:
[…] Marron also wrote BloodhoundBlog, and you can read his comments in their entirety in Russell Shaw’s post. […]
February 28, 2007 — 12:10 pm
Mike Davin says:
Analysing the discount real estate space is actually very easy. If the average brokerage firm makes at best a 5% net profit margin using agents who complete 8 or so sides a year, no discount broker can exist long term at the same 8 side-a-year productivity level. The firm that can increase agent productivity to 25+ sides a year can lower the payout rate if IT is the source of the productivity gain as the agents will still earn much more money. With high productivity and lower payouts, that firm has the luxury of lowering fees.
There will be zero commission changes in this industry until producivity improves, or the job description changes as the result of the consumer using the agent to do few tasks. Anytime you look at new models, focus on the producivity levels…it is the only thing that will matter.
February 28, 2007 — 1:00 pm
Kaye Thomas says:
The flaws noted by Dave Marron in the Zip Realty model are the same ones that should be of concern to Redfin and other companies trying to enter the discount real estate business. The major difficulty they all have is that none of the principals involved know (pardon the pun) zip about real estate or running a real estate company.
They have all these assumptions based on business models that don’t work for real estate. A new car model #XXXXX with package A or B or C is standard and can be purchased anywhere with minor variations in price.
This just simply isn’t true in real estate. These companies all think that the internet is going to change the entire role of the agent and it isn’t. The internet is a flashy media tool that real estate agents have used to their advantage. But it is only a one tool. You have to physically go into houses to compare one to another. You can’t properly see a home on the internet. The people buying into the idea that buyers will purchase a property by viewing a video or seeing the property only once have never sold real estate.
A good agent has local knowledge of all the particulars of a given market. There can be a substantial price difference by moving east or west one block. I doubt a discount company will have that caliber of agent. The good agents who know their markets and give their clients valuable advice and service aren’t going to work for these companies.
Another major flaw in most of these models is their failure to work with sellers on a realistic basis. Taking a seller’s money and giving him a sign, a lockbox and an MLS # is nothing more then a rip-off. Even the most sophisticated sellers need help with pricing and staging. They need help choosing a price that will get the property shown and bring the seller market value for his property. Most sellers just can’t do what an established agent can do to market a property. That is why most sellers wind up using a traditional company.
A big stumbling block for these companies is that they don’t understand that real estate is and always has been a business based on relationships between all parties. It’s not an inter-active video game. They don’t understand that sometimes the prevailing party wins because they were just nicer to everyone.
I’m not saying all traditional agents are good or that discount companies are bad… they aren’t. There is a place for discount brokerage for those who want to pay less and receive less service. There have been many changes in the real estate community and there will be more changes in the future because of competition from within the community not because of discount brokers. Most of these companies ride one horse…commission fees and many of their statements are not true. It’s the discount brokers who continue to push the famous 6% figure as a base for their operations… the rest of us who work in the business of real estate know better.
February 28, 2007 — 3:07 pm
Stephen Nestel says:
As a former ZipAgent, who learned the business and left for a more fruitful, entreprenaurial business model, I completely agree with Dave’s analysis. Great technology, top heavy, feckless, management and terrible commission splits. It suprises me that the investment community hasn’t caught on yet.
February 28, 2007 — 4:49 pm
Josh says:
A major problem with Zip Realty lies with something that they have control over and can immediately change, their website. If you visit their site http://www.zipreaty.com they don’t allow free access to the data without a full background, 3 step registration check. With a discount real estate company, like Zip, a major part of their business model is online presence, and thus the role of the Internet in the company. Furthermore, this is just an example of how Zip seems to be stuck in the middle, between Traditional Brokerages, Discount Brokerages, and Online Brokerages, in a time when the line is being drawn.
March 5, 2007 — 10:08 am
Frank says:
Great post.
I love the insider scoop.
I also run a virtual office. I still don’t get how they can be blowing through cash so quickly.
Also wouldn’t you see that the customer’s experience will diminish if you have low quality agents? You can have a great website, but until year 2015 when agents are removed from the equation, you need sharp people.
I think they should convert into a referral business and send out deals to sharp agents in other firms.
Frank
http://blog.FranklyRealty.com I wrote a long blog on rebates and a Frankly Client Bill of Rights.
March 9, 2007 — 11:23 pm
a friend says:
I hesitate to believe a critic of ones former employer. Honestly, Dave is right on! Zip is to Top heavy and to have ONE person with real estate sales experience in upper management is concerning. Although, this would explain the lack of consideration given to their agents. Actually, the commissions are considerably less than 50%! The actual commission split is 40/60. The agent also pays 8% for the wonderful technology they receive. Effectively, making the commissions 28%! So, ex. $10,000 commission, minus the “20%” to the buyer=$8000 minus the 60% + 8% (technology) to the company (68%)=$5440. To the agent=$2240. So, effectively the commission is not 50% it is effectively “28%!” Guess it cost a lot to have all those VP’s/Directors/Managers/Trainers. They can not keep producers with this type of compensation. Turnover is very high. They do a wonderful job training agents for other real estate companies. A lot of their agents are starving do to the lack of compensation and being micromanaged. Realtors get into the biz to be more independent and make money. So, pay attention other brokers and recruiters, if you seek good agents, I know a place where they have been trained and yearn for more return for their efforts! Respectfully, the company has a lot of great ideals and has bar none the best website I have ever seen. If they would simply invest in their agents, as they do their investments and management, perhaps they could be a major player in Realty! Until then, they will merely be the #1 discount brokerage firm, with a great website!
March 11, 2007 — 7:05 pm
Kathy says:
ZipRealty is a real rip off to work for. “a friend” has it correct. Effectively we (zip agents) make about 28% a deal. It makes me sick to be giving zip all that money to make the fat execs in California fatter and I’m struggling to pay my bills. Selling 3.8 million in homes last year for zip my big take was 32,000. Whoppee do.
March 15, 2007 — 8:21 pm
pissed says:
Absolutely! I’m a Zipper right now and it doesn’t work. The comp isn’t there.Beside what’s the motivation to list property, none. The model is bogus. If it where any good we would be shown sales numbers at sales meeting, They don’t!
March 21, 2007 — 7:07 pm
Successful Zip Agent says:
As with any job it is what you make it. Zip Realty offers the tools for success for seasoned agents like myself as well as “new to real estate” rookies. If you want to look at what traditional agents make lets take a look at the bottom line. A higher split perhaps. Higher expenses you bet. Pay for everything yourself, do free floor duty, pay an additional 7% social security tax as an independent, not to mention do your own tax accounting by paying quarterly taxes, what about the health insurance you need to pay as an individual not part of a group? Lets see…now lets spend time prospecting and paying for leads…the list goes on. What about the support you get from the traditional brokerage? A small broker doesn’t care who they hire. If they can breath into a mirror they are hired. The broker gets their share and the agents will pay for MLS, Board Dues, E & O, lock boxes, gas & milage, all thier own health insurance, leads….and more. Many times the only time the broker knows whats going on with an agent (or cares) is when they get in trouble with a client who complains.
The real winners at Zip Realty are the clients who get the service that they deserve and yes the rebate is great as well.
Zip Realty is cutting edge and the best business decision I have made in my real estate career of over 20 yrs. I would highly recommend it for agents who love what they do – service the clients. You will be appreciated and compensated.
April 6, 2007 — 6:24 pm
Jane says:
I am so happy to finally see someone write the truth for once. As a current Zip Agent, I know all about the low pay and the kissing up to managers that goes on. I 100% agree that they no longer need the rebate! New agents in CA are being started at only 35%!!!! Regular agents are at 40%. Do you call this a resonable pay scale for an agent in Southern CA?
Why are they so broke? Where is all their money going? Not to the agents that is certain.
The local managers have full control over the lead sytem and give “their” favorites all the warm leads.
You can be a top agent one minute and the next you are cut off. They demand that we go to meetings that are often located over 60 miles from our home. If you do not attend one then your leads are turned off.
Recently they started new training sessions and the local manager in our area has one of our agents lead the class giving his imput on how to win over clients. He is a “favorite” but nevermind that this guy has more customer complaints against him than Charles Manson’s rap sheet.
April 15, 2007 — 9:21 pm
Zippy says:
I agree with Kathy in California. I was a Zip agent in Florida and ZIPRealty is a ripoff in Florida too except she did not include her expences.
My calculations in Florida :
–Selling $3.8 million in homes with an Average Florida home @ 250k totals 15 home sales/year.
–Working at least 60 hrs /week x 50 weeks =3000 hours/ year.
$32,000 Total commission at 3000 hours / yr = $10.66 per hour
–Now deduct telephone bills, car payment, gas, wear an tear, added auto insurance, health insurance, disability insurance, dental insurance,life insurance, stationary, lock box, MLS dues, continuing education classes, and TAXES.
-Sad thing is you probably will no have to pay TAXES because you did not show a real profit.
-You are in the RED and will be OUT OF BUSINESS !!!!!!!!!
April 20, 2007 — 6:41 am
Zippy says:
I agree with Jane;
WOW !!!!!!!!!! This is what happened to me. One day you are in business and if you are not kissing up to management your leads become COLD and the next thing your leads are shut off. The District Manager is doing just this. I personally experienced it. He was not even man enough to leave me a message. Just 4 hours after my “1 on 1 meeting” I tried to log onto ZAP and my login password was invalid. I AM NOW OUT OF BUSINESS !!!!!!!
ZipRealty believe in the KNOCK YOU DOWN AND BUILD YOU UP approach to motivation. That may work with some people with not much business experience, but not seasoned business people who know what is going on here.
April 20, 2007 — 7:22 am
Zippy says:
For the year ended Dec. 31, 2006, ZipRealty reported a net loss of $20.6 million, compared with net income of $20.5 million for the full year in 2005.
“We are pleased with our fourth-quarter results, which exceeded expectations in terms of revenue and profitability,” ZipRealty CEO Richard Sommer said in a statement.
They LOST 20 MILLION DOLLARS in last three months of the year and they are pleased with the results. Well, if they’re happy about it, then I’m happy for them.
April 20, 2007 — 9:42 am
Sabrina says:
I initially started reading this article for research, but having been a prospective customer of Zip two years ago, I have to say, now I know why my agent was so pissed when we walked away. We were about to walk into a house deal that would’ve been a nightmare. I’m glad we walked away though, the house never sold and the owner ended up renting it out, but our Zip agent went so far as to scream at my husband on the phone. Poor guy probably couldn’t pay his bills as it was and his wife was due any minute with another baby.
April 21, 2007 — 8:02 am
Zippy says:
Look at the 64% of all buyers find a home without an agent
I would find a home myself and then call you at Zip to write an offer to get 20% of your commission.
I could also tell the listing agent I want 20% of their commission or I am going to Zip to get the 20%. Guess what happens? I get 20% of the double dip of 5 or 6%.. Evertthing is negotiable in this crappy market.
ZipRealty marketing terms as an Agent:
Zip = No money after expences and taxes
Zip up = shut up and don’t make any waves ( answer to every question: that is Zip policy )
Zap = Your leads have been shut off
Zapped – You are now out of business. You can not log on. “Thanks for all the free database support you gave us, sucker”
The Zapper; District Manager (Serge) using Spyware to control all your leads and being able to Zap you if you do not kiss up to management.
This is what happened to me as a Zip agent.
April 26, 2007 — 7:35 am
Kathy says:
I really wonder why Jeff Wagoner “resigned” with pay!! It’s really disgusting. Oh, if only the current Zip agents knew where their hard earned commissions were going!!!
April 26, 2007 — 12:11 pm
Michael says:
More than a few Zip Agents in these posts have mentioned the need to “kiss up to management.” Not that I don’t believe what you are saying, but I’m a prospective agent and would like to hear some specific examples of what you mean by “kiss up.”
April 26, 2007 — 1:10 pm
Zippy says:
Hello Mike;
Why would you even concider Zip when you will be broke?
Zip is a bogus business plan. Very high agent turnover. Top managemnet gets the cake and the agents get the crumbs.
This is a CASH COW for top managemnent.
This company stock will be de-listed in a declining real estate market and soon after out of business. Go look at other companies. Stop wasting your time. I did and learned this company is a scam.
April 26, 2007 — 2:57 pm
Kathy says:
Hi Mike: Go talk to Zip if you want but be smart about it. Really pay strict attention to the pay structure (yes it sounds good) but it’s not reality. Yes successful agent at Zip gets good money but she gets hot leads (your leads you couldn’t answer in time) and she kisses lot’s of buts. What you will be promised is lot’s of leads and you’ll get them. Lot’s of people browsing the site and don’t want to be botherd with you. A lot of the leads you get are working with another agent and the agent told them to use Zip website to look for homes. You’ll get clients that want to buy. You’ll be running comps for home sellers (your time), calling clients long distance (your dollar), sending out over hundreds of emails a day (your time) and you better keep that platform current. If you’ve been working with a client and happen to be out with another client (you will do lot’s of driving around so keep that gas tank full, your money)and that client you’ve been working with put’s in a request for a showing and you dont’ answer within a few hours (because you’re out with another client) they will see that on your platform and assign him to another (the successful agent). You can never take a day off because if you have a client ready to buy and they pop up on your platform, they go to (successful agent). You dont’ have diddly to say about it. They won’t even tell you. You’ll go looking for that client on your platform and find out he’s gone, and then you’ll call Sales Manager and get the run around. They never come right out and say anything. When you have a question, they pass the buck and when you take it higher they give you one on one coaching (and then read what happened to Zippy) And when your talking to Zip ask if the broker is non competing!! (He’s really just a puppet that does not complain) You want to survive at Zip, smile, smile, go to all the meetings, never never question anything and always watch your back with management (that’s all the suits standing up front to the right at the meetings). Always be two steps ahead of them. I was for two years, of course the first year I learned, then the second year I got smart. Smarter then them!! I am not a disgruntled ex-zipper, they train you like nobody else in the real estate business but you pay alot of money for that. They promote Zip NOT YOU, when the rebate check goes to your client it’s from ZIP, NOT YOU, when they send out calendars at the end of the year to all your clients it’s from ZIP, NOT YOU. When ZIP does anything IT’S ZIP, NOT YOU. Your name does not appear on any of that. You are not building a business for yourself you are making money for ZIP. I am a top notch real estate agent, but at another company.
April 26, 2007 — 5:39 pm
Zippy says:
Hi Mike,
Kathy is 100% correct. Just like the song goes “Zipidy doo da Zippidy Yeah! My oh my oh what a Wonderful day not to work for Zip. Make sure you build your business and not ZIP.
April 26, 2007 — 6:50 pm
Zippy says:
Hey look at Zip stock (ZIPR). It was a crappy stock during the biggest boom years ever in real estate. It lost about 66% when real estate was going up 50%. Guess what will happen in the worst years coming up in real estate ? I will give you a hint. Follow the trend.
Click on link:
http://quote.fool.com/chart.aspx?s=ZIPR&q=l&l=off&t=5y
The good thing is your 401k you will get more worthless shares. A story you can someday tell your grand kids on how you lost all your retirement money working for ZIPR. Don’t go down with the ship. Head for the life boats.
April 27, 2007 — 7:29 am
Happy With Zip says:
It’s amazing how a few agents who should probably never been in the Real Estate go against a company like Zip. If you want facts. 97% of all real estate agents don’t renew thier license after 1 year. The average pay for a real estate agent is 21k a year. I know everyone looks at Real Estate as a cash cow although it’s a 90/10 business and I am not surprised that there is not more disgruntal agents out there not only with Zip but with every brokerage firm. Richard Sommer is listening and making changes already with Comp and other things to take care of agents. At the end of the day, just like in every sales job it’s up to the agent to make sales. Many agents simply don’t call or have a 2nd job and they don’t put full efforts into thier daily activities. Nothing at Zip falls into your lap but again I can’t imagine that it does at any company. You will see that by 2010 Zip will be in the top 10 of all brokerage firms and that it’s business model will prevail. I guess I am in the minority on this board but then again people like to bitch more than they like to come up with solutions. Or even look at the glass half full..
April 27, 2007 — 9:29 am
Kathy says:
Good for you Happy Agent: Eileen is that you? Happy with Zip is probably female and if she knew what went on in corporate she would be outraged!!! In the two years I was Zip, management was given many opportunities to change. I went to lunches with mgmt when they wanted to know why agents were leaving. They were told there is no incentive for agents to go out and get their own business, ie: their own referrals, friends, family, their own listings, they would not be compensated for this, it was all on the same pay scale. Everything Richard Sommer has in his lap right now has been the complaints for many years. They were told when the selling agent gives a BONUS, on top of commission, that the agent should be able to keep it. They can’t and they still can’t. ZIP KNOWS EXACTLY WHAT THEY ARE DOING. BOTTOM LINE, Management wants more money for themselves. You’ll see, you’re nothing there but a number, a big fat sales number. Did you ever try calling when you didn’t get your check?
April 27, 2007 — 12:26 pm
Michael says:
There is definitely a lot of passion out there regarding ZIP, to say the least. I appreciate the caveats and explanations of the finer points of the ZIP business model. It will be interesting to talk with ZIP and see their reaction to some of these issues. I guess the answer to my question about what was “sucking up” to management is: attend all the meetings and never complain. Thanks again.
April 27, 2007 — 3:06 pm
Zippy says:
Mike;
Are you a bad reader ? Your statement: “the answer to my question about what was “sucking up” to management is: attend all the meetings and never complain.” There is a lot more wrong than just attending meetings and don’t complain. Really pay attention when you re-read Kathy’s April 26 and April 27 comments.
April 30, 2007 — 3:57 pm
ZIPPY says:
We now have rumors that certain Distric Directors are paying off other lower employees to make calls for their favorite Zip Agents. If you dare miss a meeting or conf call then you are sure to have your leads turned off.
“The Leads” have become worse in recent months. If you take a look at the last years top 10 agents from any given district, you will see that half of them our no longer with the company or half of them are waiting in line at the local food bank.
These District Managers are playing God to these peoples lead system….If I were Richard…I would take the power away from those managers asap! I feel sorry for the guy, he has to pick up the mess of a company that clearly has been failing for quite sometime.
When someone questions something there they just smile and then black list you. I have a feeling that they must be so broke that they are giving us leads from used telephone books dated 1965.
May 2, 2007 — 5:32 pm
Zappy says:
You go Kathy! We need to start sending Richard all these comments. So tired of their lead control and how they dangle them in front of you. The whole system is wrong. I wish more people would come forward and complain to Richard. I totally agree with you that they only seek to make a name for themselves. If this is what they want then why don’t they start paying us a regular salary?
Half of my clients could care less about the rebate.
GET RID OF THE REBATE!!!!
May 2, 2007 — 5:45 pm
Zippy says:
Zip Realty is starting to look more like The good, the bad and the ugly.
Duel: http://www.youtube.com/watch?v=sXldafIl5DQ
Music: http://www.youtube.com/watch?v=ZKlxyoPNaFI
May 3, 2007 — 7:34 am
Rookie Agent says:
Thanks to all who posted their honest opinions and experiences with ZipRealty. I’m a rookie agent who was browsing the internet to find out what ZipRealty’s commission split was because they have just come to Colorado and have given all of us a hard sales pitch (never mentioning what the commissions are). Glad I found your blog — it very likely has saved me from making a very bad business decision and a couple years of my career. I will keep looking for a better company to work for. Any suggestions? Thanks!!!
May 4, 2007 — 12:18 pm
Rich says:
I would replace most of the present management team, most of the Board and most of the policies. The one thing they seem to do correctly is internet advertising. They have no marketing, listing program, training. The management has sold fruit and hotel rooms, not real estate. In August the stock will be $3 unless rapid changes are made. One of the other major companies might consider a tender offer for the Zip internet rights. The stockholders meeting is May 24, 9:30 at the Palace Hotel, 2 New Montgomery St. San Francisco. Will management present a program or will they be happy?
May 6, 2007 — 4:50 pm
Zippy says:
I will get ZERO commission that Zip had nothing to do with.
This is the reason why having a union in a company is good. Zip steals agents commissions and this was a $ 26,000 lot in XXXXXX. This is a personal friend of mine that I did a 1 day listing agreement so I could get a commission. Zip did nothing for the money. No cost to anyone but me and the still they want to steal my money.
Also read the Nonsolicitation of Company Leads and Clients for 12 months after leaving. Zip can fire you for any reason under the AT -Will Nature of Employment.
Stop wasting your time and money. It is time to act and move on to other ventures.
This is the email I got from the Broker;
Good Afternoon XXXXXXX
I tried leaving you a message on your cell phone but either your or my phone was not cooperating. Probably mine. John it has come to my attention that you have contacted some of the clients from your platform and I just wanted to remind you that per your contract you cannot contact these people as they are Zip Clients. I am enclosing the paragraph from the contract you signed explaining that. Also the title company for the lot in XXXXXXX says that you wanted to move the deal to your company. Unfortunately that is not possible as that deal also belongs to Zip.
Please understand that I wish you only the best and am trying to keep things as uncomplicated as possible. Below is the paragraph from your contract. Good luck to you.
May 7, 2007 — 1:59 pm
Zippy says:
I will get ZERO commission that Zip had nothing to do with.
This is the reason why having a union in a company is good. Zip steals agents commissions and this was a $ 26,000 lot in XXXXXXXX. This is a personal friend of mine that I did a 1 day listing agreement so I could get a commission. Zip did nothing for the money. No cost to anyone but me and the still they want to steal my money.
Also read the Nonsolicitation of Company Leads and Clients for 12 months after leaving. Zip can fire you for any reason under the AT -Will Nature of Employment.
Stop wasting your time and money. It is time to act and move on to other ventures.
This is the email I got from the Zip Broker;
Good Afternoon XXXXXXX,
I tried leaving you a message on your cell phone but either your or my phone was not cooperating. Probably mine. John it has come to my attention that you have contacted some of the clients from your platform and I just wanted to remind you that per your contract you cannot contact these people as they are Zip Clients. I am enclosing the paragraph from the contract you signed explaining that. Also the title company for the lot in XXXXXXX says that you wanted to move the deal to your company. Unfortunately that is not possible as that deal also belongs to Zip.
Please understand that I wish you only the best and am trying to keep things as uncomplicated as possible. Below is the paragraph from your contract. Good luck to you.
May 7, 2007 — 2:03 pm
Kathy says:
Hi Zippy: What state are you in?
May 7, 2007 — 8:56 pm
Zippy says:
Hi Kathy, I am in a state of happiness since I don’t work for Zip anymore. Why do you ask?
May 8, 2007 — 6:07 am
bb says:
Worked for zip, they are a group of crooks, they do not pay agents, management earns high wages and the rest die. Poor model, I lost money in the time I worked for them. Any one who is thinking of it go elsewhere.
May 8, 2007 — 7:47 am
Kathy says:
Hi Zippy: I ask what state you’re in because I hope you didn’t walk away from that commission. You are the procuring cause, I had a home in escrow when I resigned and I am getting paid for it!!
May 8, 2007 — 9:00 am
Zippy says:
Hi Kathy;
I am from Florida. I would be interested in the procuring cause. Please explain your success on getting paid your commission. Thanks
May 8, 2007 — 9:36 am
Kathy says:
My success was lot’s of emails to the right people (at Zip) ie: Richard Sommer, and my clients wouldn’t let zip take over the escrow. These were my friends, I had procurred the listing and signed them up myself on Zip. Take your case to the Department of Real Estate and then to the Better Business Bureau.
May 8, 2007 — 10:29 am
Mike Davin says:
Before this post turns into the ex-wife’s club, lets inject some reality here. Do you think stockbrokers for Charles Schwab can just move clients over to Merrill Lynch? When you signed up to work for Zip, you did so because they generate leads. You took a lower split to jumpstart your transaction flow. The other alternative would be to start on your own and work at a loss for a year before you closed your first deal.
As a broker myself, the salespeople under California law don’t own the transactions, the broker does. You can’t move a transaction over to a new firm because it belongs to the broker. The broker also maintains all the legal liability. Most firms let agents continue to close ongoing transactions as part of the termination process at their current split.
As far as the leads go, watch the movie GlennGary Glenn Ross for a good idea of how management probably views these leads. The good ones (the glengary leads) go to closers (not ass kissers). Fast forward to the Alec Baldwin sceen.
Zip serves a purpose for many new agents who would die on their own out there working as an IC sink or swim. My company, CataList Homes, pays our agents a salary and bonus with everyone making more than $75k per year. Different strokes for different folks.
May 8, 2007 — 11:19 am
Zippy says:
Mike Davin
Your own words “Most firms let agents continue to close ongoing transactions as part of the termination process at their current split.” Zip Does Not!!!!
If an agent wants good leads you better kiss up and keep up with the ZAP or your leads will get worse. It does not matter at Zip if you close. They are getting agents to do free database work.
Zip average pay is well below your firms $75K for every agent. The average Zip agent closes only 7 deals per year. Very few agents make more than 30k – expences = Dirt Pay for 3000 hours/year. That’s poverty.
Your movie is just a movie. No one would work for your firm if you treated people like Alec Baldwin. You would be sued for everything. So lets make sure you get off you high horse.
May 8, 2007 — 6:12 pm
Mike Davin says:
Zippy:
I feel your pain and don’t mean to pick on you specifically. My comments were meant to add balance to a runaway thread.
One final point, you state:
“If an agent wants good leads you better kiss up and keep up with the ZAP or your leads will get worse.”
If I were a Zip manager, I wouldn’t give leads to agents who don’t keep up with the ZAP either. When you pay millions in marketing, you have to allocate leads to those who can close them. Zip markets to primarily internet buyers, who are mostly flakes. I think it comes with the territory. The Zip agents who get that fact are more able to deal with them and make more money.
By the way, you did solve the Zip management problem when you said most agents do 7 deals a year. They will never make money and keep a happy salesforce until that number goes above 15. What they should do is cut out the bottom 50% of their entire salesforce.
May 9, 2007 — 9:44 am
successful Zip agent says:
Mike Darvin you are right on. Why waste leads on people who do not either have the drive or the nature to be in this business? The real estate business as a whole is a high turnover business because you actually have to work it. If you are a new agent in a traditional brokerage how long and at what cost will it be to you to run a successful self employeed business? It takes time and a LOT of HARD WORK! The current state of the real estate market has shifted. Agents are no longer order takers they need to be what we are – sales people. The complaint about the leads may have something to do with the shift in the mortgage industry. Two years ago everyone who wanted to could buy a home. Who wouldn’t with 0 down, interest only and 30% appreciation? Now people actually have to save and have good credit. You have to work smarter and know what you are doing. May 10th with already 5 opens on the books. How many traditional agents can say that? The system works for those who work. Thanks Zip!
May 10, 2007 — 7:59 pm
successful Zip agent says:
One more thing….I don’t kiss up!
May 10, 2007 — 8:02 pm
Kathy says:
Successful Zip Agent, I am happy that you are having a good experience with Zip and you don’t kiss up. But you really don’t know what goes on at Zip. Maybe they don’t play games with you, but it does go on. I am a sales person and a good one. I was an A status as far as leads go and then when I didn’t join in on the weekly phone calls my leads were cut off. The weekly phone calls are totally useless, the team all calls in and tells everybody what they are doing!! I don’t care what my team is doing, I have phone calls to make to clients and homes to show. Mgmt doesn’t call you and tell you anything, they just go behind your back and play stupid games. It’s very time consuming trying to get any anwers from Zip, they are so into denial. You know you have to sell to be an A status!!
Were you at the Zip monthly meeting where we had to applaude an agent for making the most phone calls? He didn’t sell a damm thing that month, but boy he made a lot of phone calls. Thats ridiculous. All sales companies, no matter what you’re selling, posts sales, dollar figures. All those bogus opens on the board when you go into your platform is stupid. One month the agent that had 6 opens, 5 fell thru and only one closed!! The system at Zip does not work for those who work!!
May 11, 2007 — 1:45 pm
Zippy says:
Kathy is right on the mark. Oh by the way, Zip is also stealing agents commissions. I am proof of it happening.
My request for my commission to my broker via email:
Broker;
I have been in constant contact with xxxxxxxxx Title this week and all funds have been dispersed to the seller (xxxxxxxx) , the referal agent (xxxxx Realty) and to You ( Zip Realty). I have done my part in making sure everyone gets what they earned and deserved. I deserve at least my commission split . I have integrity and high ethical standards.The question . Do you, Broker? Contract or no contract, Zip had nothing to do with this sale. I want my earned and deserved commission.
I also have requested the Zip legal department phone number twice by email and once by phone to the broker.
I still have not got a response or commission from Zip.
Just like Kathys says “It’s very time consuming trying to get any anwers from Zip, they are so into denial”
May 11, 2007 — 2:23 pm
\"Irony in Tyranny\" says:
A couple of questions for Zippy.
1. If the leads were so sucky, why are you still trying to contact them?
2. Those who don’t read get screwed and always feel like the martyr. Did you read your employment agreement where it said that if you are not employed at the time the transaction closes (because of your own will)you you didn’t earn the commission and won’t get paid? If you were terminated you can still earn 50%. Why didn’t you just stay til it closed? ( PS- Kathy- “procuring cause” is broker to broker- not salesperson to employing broker!)
A question for some others:
1. What does “what the top execs are doing” or their “non real estate background” have to do with your ability to turn a lead?
2. If your traditional lead generating methods are doing so well, what prevents you from doing that while working at Zip? You’d be making 75% splits in no time!
I am not an agent for zip but have the extraordinary ability to have the inside scoop and be very objective. True they could pay more, and they are very top heavy, but if I get 60 leads a month- even all “bad”…I know that I could turn at least 2. I consider myself a true sales person who could sell a blind person reading glasses. After all, these people are already looking at real estate and the only part that you have to do is call them, have good enough sales skills to convince them to buy with you, and have enough real estate experience to not waste your time with “the unqualified” and get the deal closed.
You would rather cold call from this year’s phone book than warm call from a list of perople who registered so that you could contact them?
Whelp been fun kids- glad I am not in your dilemma but if I were I surely wouldnt be here whining about it…
May 13, 2007 — 6:11 pm
Motley Fool says:
Zip It Good
By Rick Aristotle Munarriz
May 14, 2007
The residential real estate market is cold to the touch, but don’t go telling ZipRealty (Nasdaq: ZIPR). The realtor with a cyberspace bent saw revenue climb 22% to $23.4 million for the quarter ended in March. The growth spurt didn’t come cheap, with the company’s loss widening to $0.14 a share from $0.04 for the period. Backing out stock-based compensation and non-cash income taxes, the loss clocked in at $0.10 a share (a penny off last year’s showing).
ZipRealty’s performance was good enough by Wall Street standards. Analysts were looking for a $0.15 per-share deficit on only a 14% top-line boost. It’s easy to see why the pros were aiming so low. Even as ZipRealty expands into new territories, it’s like a salmon trying to go upstream. The flow is working against it. Don’t even get me started on the dangers of salmon-chomping bears. ZipRealty’s top line inched just 7% higher during the December quarter.
So this year’s first quarter may feel like a breakthrough. ZipRealty wound up closing 18% more realty transactions, generating an average of 3% more on each one.
The company isn’t letting it go to its head. Instead of raising guidance, it’s sticking to its original 2007 outlook. ZipRealty expects to post a loss of $0.45 a share to $0.60 a share, on $105 million to $110 million in revenue. The red ink isn’t pretty, but all four analysts following the company expect it to be soundly profitable next year. That is important because the company’s debt-free balance sheet is loaded with $3.89 a share in cash. The stock is attractively priced at less than twice its greenery.
ZipRealty is a disruptor in the residential real estate market. It charges as little as 4.5% to 5% of a home’s selling price in commissions, below the industry standard of 6%. It then treats eventual buyers to a 20% slice of the commission that it is set to receive. It has also ruffled feathers by allowing potential buyers to post reviews on individual listing pages.
May 15, 2007 — 1:07 pm
Zippy says:
Hey Rick;
You forgot something. Zip had a net loss of $3.1 million.
They LOST 20 MILLION DOLLARS in last three months 2006.
That is a total of over 23.1 million for the last 6 months.
Zip just slowed down the bleeding for now. Lets see what happens when the economy slows down into recession in the next 6 months.
Got popcorn?
May 19, 2007 — 6:03 pm
Zippy says:
Financial Guidance From Zip on March 2007:
Richard Sommer, CEO of ZipRealty, commented, “We are very pleased with our first quarter performance”
Zip is happy about losing losing $3.1 million .
— Based on this plan and management’s current outlook, the Company reiterates the following guidance from March 2007:
— Average agent productivity is expected to approximate 0.6 to 0.7 closed transactions per agent per month, with average net revenue per transaction of approximately $6,000 to $6,500.
Now take 28% commission to agent = $1680/mo x 12 months/yr = $20160/yr before agents expences and taxes( about $1000 per mo or $12000/yr) = $8000 yearly earnings.
That is a bogus model for agents.
Better like eating PBJ’s ( peanut butter and jelly sandwiches)
May 20, 2007 — 8:44 am
Out The Door says:
I started at Zip Realty because I had been in the business for only 3 years and saw the value not only in the leads but the closed clients as referrals. When I first started I had been working leads through housevalues.com and was paying $50 a lead for them. So I figured Zip was a find because of the 100+ leads a month I was promised. They showed me that another agent was doing 15 transactions a month. (Phoenix, AZ in 2005) I thought I would be ok if I did at least 3-5 transactions a month.
I was being fed a few deals here and there because I was on the leader board and the district was recognized. I received all the awards and finally my paychecks. 1 paycheck was for 5 transactions (5x250k+) and was 11k after all the deductions. It made me sick.. I stayed there until now because they made me a Team Leader and like the rest of the Corp. I made money off the agents on my team, a percent of every transaction on my team. It’s true, I have seen the way things are done. I went to Palm Springs in 2006 to the Team Leader meetings and saw what I was paying for. We have a monthly team leader meeting at a bar and get drunk and eat at the others agent’s expense. Everything that was said about the company managers is true, a lot of wasted money. Their “Model” wont last the way they are going, it’s impossible. I was even told that the only profit they have is from Eloan.com and title company kickbacks. The founder Scott Kucirek even left the company
I think every district is different though.. In CA an agent can do 1 deal a month and be happy in AZ or TX, an agent would have to do 5 to make the same money.. I think they made a mistake by opening the new markets. For an agent to be successful, they have to turn into a machine. Most agents have no idea what it takes to manage 10-20 escrows, show homes, and make 30-50 phone calls/emails. That’s what needs to be done to make any money in the new districts. Eventually you burn –out and they find another Top Producer to feed and rub in your face at every weekly meeting. What it boils down to is either starving so much for attention that you feed on recognition or moving to another company because you value money and paying your bills MORE! Believe me when I tell you that there are a lot of agents that would rather have the recognition instead and those employees are the perfect fit for this model…
The rebate is a huge downfall for this company… I have had customers call me to explain what they are not receiving by accepting the rebate. Well you most likely getting a new agent who knows absolutely nothing about Real Estate and will need me to write the offer because being a Team Leader I now get to be responsible for everyone on my team so the Broker is not overwhelmed with all the agents who are inexperienced. It’s pretty much a desperate attempt to buy your business, because we know that you will be talking to other agents and we hope that you will think of the 20% rebate and call us. Even though you don’t because you have no idea of how much 20% of the commission is or how to calculate it. But If you do call us when you’re ready you will have forgotten about the rebate and if you remember it, it will only be for a quick second when the title officer is explaining the $$$$ credit on your closing cost. Just another number amongst all the paperwork at escrow, but a world of difference for your Real Estate agent. What Zip Realty didn’t expect is that new companies would start offering even more of a rebate, I saw one today that is offering up to 33-50% of a rebate. Where does it stop? What are you loosing? Besides destroying an industry.. The Rebate was originated by Zip Realty’s attorneys through loopholes. You see a rebate is illegal … But somehow they spent a lot of money trying to figure out a way to buy a client. A concession is designed to help with a specific cost that a buyer cannot afford and will break the deal… Like contributing $1000 towards buyers closing cost. The association never intended it to be given as cash to a buyer at closing. In fact if the lenders knew about how they write a check after closing instead of contributing towards closing cost ( like a new home that already has incentives) they would not fund the transaction…. That in itself is a form of lending fraud. I had a client who was receiving 3% closing cost from the builder and that was the maximum amount allowed buy the lender. I asked the lender if we could give him a rebate, the lender said NO. I told the client and they called the district office. Zip sent them a rebate check in the mail after the closing… completely illegal.
This company thrives on hiring new inexperienced agents who have never worked in the Real Industry. Their ideal hire is an agent fresh out of real estate school that they can mold into their perfect worker bee. An agent who doesn’t ask questions, just follows orders. An agent that they can connect to ZAP Matrix and be sucked for every ounce of life and dignity. Behold the evil empire and their ruler…. “Darth Sommers”
Now you know how I really feel… I really need to find another job!
I heard Redfin.com, realestate.com, easystreet.com, Remax, GMAC, C21, and lots of others are offering leads to their employees now.. WITH NO REBATE!! So maybe now I can feed my kids and maybe save for their college.
All in all, there are plenty of companies that are starting to realize the power of the internet and giving leads to agents without the rebate. Even traditional companies are buying leads now… If you cant take the clients with you when you leave,, what is the GOAL? You will never make enough to brand yourself, just pay to market the company.
You get what you pay for people…an experienced can get you more for your house and save you thousands in closing cost. When I write an offer with another Zip agent, I get them to pay for the transfer tax, CCR transfer fees, prepay CCR fees, Appraisals, Home Warranty, prepay taxes, liens, assessments, and the list goes on… I earn my money, every penny. I know how to get a lender to speed up to process, I know how to call to get things done. My escrow company is the best in town and I am well oiled machine that loves this business. I do this FULL TIME. I’m not a soccer mom that does this on Tuesdays and Thursdays. This is my only source of income. My clients know that they are working with one of the best because I tell them.. I’m done with company…I’m ready to make what I deserve and finally hold my head up high!
May 29, 2007 — 3:50 pm
BLOG this says:
In addition, it’s pretty funny that they created their own “blog” site.. imagine that.
May 29, 2007 — 6:28 pm
B. Dunsworth says:
Out The Door,
Your assessment of the rebate is dead wrong. The rebate is protected by antitrust laws and is NOT considered part of seller concessions. It’s my understanding from RESPA that a check after settlement directly to the buyer from his/her broker is deemed a gift. If the rebate is used against settlement charges, then that requires lender approval and should be recorded on the HUD-1. Most of the underwriters don’t even know the real purpose of RESPA so they arbitrarily deem a rebate a violation.
Antitrust Division of the U.S. Department of Justice:
“Rebate” means a payment of monies or anything of value by, or on behalf of, a Licensee to a client or customer (or to a third party authorized by the client or customer to receive the payment) that is in connection with the provision of Real Estate Brokerage Services. Examples of Rebates directed to third parties include, but are not limited to, payments to charities, home inspectors, and moving services. A Rebate does not include compensation paid for Real Estate Brokerage Services to any third party who is not licensed in Kentucky to perform such services; this Amended Final Judgment does not authorize a client or customer to permit or direct such payments to an unlicensed third party for performing such services.”
May 31, 2007 — 9:44 am
Kathy says:
Out the door may be wrong about the rebate being illegal but she’s right about everything else. The rebate is a huge downfall. When you start with Zip they tell you “do not under any circumstances answer any questions about the rebate, all inquires are to be sent to California.” (hush hush hush)
In all the transactions I did for Zip in the two years I was there, not once and I mean not one client, thanked me for that F#@!!! rebate. And a lot of the clients I had I didn’t feel should get the rebate at all. Zip words that rebate like Zip is giving it. Clients don’t realize that it’s coming right from the agents pocket!!!
Out the door is right about management sucking the profits for stupid meetings for THEMSELVES to drink and get drunk. At a regular Christmas party Spouses were not even invited and agents got a happy hour with cheese and a ticket for two drinks. Now what company throws a Christmas party and doesn’t invite the spouses? I’ll tell you, a company that sucks all the money up for themselves and does not give a s%@! about their employees.
Out the door is right about the agents being inexperienced. Inexperience in an agent costs the clients money money money!! You have to talk to your team leader first (ha that’s a laugh trying to get a hold of them) before you can talk to the broker if you have any questions about a contract.
Bottom line Zip is not a good company to work for.
May 31, 2007 — 9:59 pm
Sheryl says:
I don’t think Mr. Dunsworth understands what was being said about the rebate.. with all the quotes from Anti-trust laws etc. If a lender does not allow a rebate to given to a buyer, giving them a check at closing is illegal… same as giving a check directly to a buyer who is in a 1031. I have had both happen at ZIP. Read the rebate agreement.. Furthermore, you can see how they spent a lot of money on attorneys to find loopholes to give the agents hard earned commission away… Who’s side are you on?? You wont defend your agents in any lawsuits regarding non-payment of commission, but you sure are knowledgeable on ways to give it away…
June 1, 2007 — 8:55 am
B. Dunsworth says:
Did the lender require in writing that the rebate be removed from the agreement? If not, then the loan was funded by the lender knowing full well that a rebate was being given in connection with the provisions of real estate brokerage services.
June 1, 2007 — 1:32 pm
B. Dunsworth says:
What’s more, I’m NOT with Zip. However, I’m sure Zip’s attorneys know the law. Zip would not have sent the buyer a check if it is not permissible under the letter of the law.
Final question: Did you report Zip’s suspicious behavior? After all, you were a party to the transaction.
June 1, 2007 — 1:48 pm
H. Kline says:
If I am not mistaken each state has a law about rebates. Dont know if this has been mentioned or not here. One reason Zip Realty cannot do business in PPortand, Oregon for example if they want to continue to offer their rebate.
We used Zip Realty to purchase a house in the Seattle area and were very pleased to have the rebate. Our agent was very professional with many years in the business and I will continue to recommend him and Zip Realty to my friends and associates. Whether or not a company is good enough I suppose depends on the agents they hire but we were very pleased with our responsive and knowledgeable agent that was assigned.
June 2, 2007 — 7:27 pm
The Saint says:
I can’t believe my eyes…***most of what I read on this site has nothing to do with the client’s well being*** NEWS FLASH…the 2001 – 2005 BOOM is OVER…. if you, as real estate agent enter this business without a list of clients (NOT FLIPPERS) you will not survive. My HERMANA, has been working for Zip Realty for about a year now, and she has no intention of leaving this company. Before she began her employment with ZIP she was spending hundreds of dollars FARMING herself and advertising listings that wouldn’t move. The commission split with her previous Real Estate Company was 90% and the remaining 10% Plus Desk and Other Fees was going to her broker… TOO BAD she did not find one buyer. Suddenly her 90% = $0 DOLLARS. I tell ya, the LEADS, LEADS, LEADS she is getting are REAL BUYERS not zipcode mailings/farming. So, when you all get a minute, please sit back and do the math when you sign up with any realestate brokerage. ($PostCards printing + $Stamps + $NewsPaper Adds + $Desk Fees + $Buying Leads + $Your taxes at the end of year then Subtract all this from the 1 to 3 deals you’ll do the whole year = Not so much profit) Then, only then, go on and critize one of the best RealEstate company in the US. Why shouldn’t the commission be lower?… you NOT are spending your pocket money to promote yourself… the company is doing this for you!!! Wake up, people.
June 4, 2007 — 11:57 am
Zippy says:
I was 1 of the first 6 new Zip agents hired in the Naples market in 2006. Currently there is only 1 left out of the 6. Zip only has a total of 7 agents in the SWFL market covering Lee and Collier county. That is a very poor retention rate for such a huge real estate market. There are more millionaires in SWFL per capita than anywhere in the USA. This is a huge problem that Zip has.
Zip will keep you busy but no closings is a result of COLD leads.
June 5, 2007 — 9:05 am
Kathy says:
Hey Richard Sommer resigned from Zip yesterday!!! I sure would like the inside scoop on that!!
June 5, 2007 — 9:31 am
I\\\\\\\\'mFree! says:
Leaving ZIP after spending two plus years in the only RE environment I have ever known was an extremely difficult step to take.
As one of their top agents I had exactly 2 days off in 2006. The stress of taking time off was worse than working round the clock. By the way…I closed 20+ transactions in California last year and made $95K and my average sale was above average for the median price of a home here in sunny Cal.
It was not just the threats from the company…which are sent to every agent on a daily basis just to keep us ‘ON line’, it was the idea that I was letting down the hundreds of clients I had accumulated, many of whom had questions and concerns and had come to expect immediate responses. It was also not just the terrible pay scale as, truth be told, if you add on all of the expenses that ZIP pays for, the average agent is really gettting closer to 50% but the ZIP agent does pay more in taxes as a W2 employee than an independent contractor, it was the fact that even though many of my clients became friends, as a ZIP agent I was/am unable to continue to represent them unless I stay with ZIP. The threatening letter I received from the company when I resigned really cemented my feeling that I had made the right decision.
Today I discovered that Richard Somner has resigned!
Richard actually called me when he heard I was thinking of leaving and tried to convince me to stay and give him the chance to make the required changes. I was so impressed with the man that I stayed an additional three months until I just couldn’t stand another day, and now he’s gone.
Richard is a fabulous person and something MUST be far wrong for him to have resigned so abruptly. It’s all very sad really.
For those who you who are still with ZIP…I do miss you and still feel that the model would have worked with some very basic changes . I told Richard that the company was insanely top heavy whilst we in the field were just becoming insane! Had Richard been able to instigate even half of his plan for change I would never have left but it’s just too broken to put back together again.
I am now with a company where, for the first time, I feel like a professional RE Agent and in control of my own business. It is mostly up to me now and that is scary…but exciting too…and I get tremendous training and support from the highly respected brokerage firm I joined.
I just received my first check from my new brokerage and was stunned at the amount…I would have had to work 2.5 transactions and put in a countless number of hours with ZIP to receive that same amount, and, I’m not yet at the top of the pay scale the brokerage has to offer.
So, for those of you I left behind, I wish you all the best. I have never met a harder working group of dedicated people. ZIP just does not deserve you.
June 5, 2007 — 9:56 am
B. Dunsworth says:
I’m Free,
Is or isn’t the rebate check legal? What’s your take regarding Zip’s approach to sending out rebate checks?
June 5, 2007 — 12:19 pm
John Kalinowski says:
Greg Swann- Curious how you handle your rebate checks for new construction at Bloodhound? Do you provide a check after closing, or is it somehow credited on the HUD? From what I understand in Ohio, a check or gift card after closing is considered a gift, and is legal.
On a side note, I can’t thank you enough for how much I’m learning since I stumbled across the BloodhoundBlog. I’m just about ready to jump in with my own WordPress idea, and I must say I probably wouldn’t have done it without you!
Keep up the great work!
June 5, 2007 — 12:57 pm
B. Dunsworth says:
John,
Here in GA, a check after closing from a Licensee to a client or customer is deemed a gift, too.
June 5, 2007 — 1:26 pm
I\\\\\\\\\\\\\\\\'mFree! says:
Re: Rebate Check ala ZIP.
Well B believe it or not I did not really have a problem re: the rebate check and due to the fact that all of ZIP’s agents are employees the general rule within the industry does not apply. As an independant contractor, now that I an no longer with ZIP, I can still pay the client a ‘rebate’ if I chose to help with their closing costs as long as it is done through escrow and included on the HUD. So far the courts here have sided with the rebaters on this subject. It’s good to have the choice. Some clients could not have managed the closing costs without the rebate.
June 5, 2007 — 7:59 pm
B. Dunsworth says:
Some states do restrict the rebate to be a credit against closing costs on the HUD.
Zip seems to do both — a credit or a payment after closing.
INEST sends a check to the buyer about 15 days after closing.
June 6, 2007 — 6:11 am
"Real" Real Estate agent says:
In NV, you can give a client a gift at closing… as long as it is under $200. If you are in another state you should check the amount. The maximum allowed as a contribution is 33.3%. If the builder or seller gives that amount, you cannot exceed even if you call it a “GIFT”
Why would you want to give a rebate? Are you trying to buy their business or make-up for an unprofessional agent. Answer me this… What % of the agents at Zip Realty has been in Real Estate for more than 1 year? For more than 2?
If you are a professional with local market knowledge, you don’t have to give a client money to work with you. You should have some self esteem and know that you deserve what you earn because you provided a client with the information they requested in a timely manner instead of waving a rebate in front of their face, hoping they call you when ready.
Zip Realty has an idea that you should be able to show 5 homes to a client and they should be able to chose from 1 of them and buy that day. Those days are over, you need to spend time with a client and build a relationship instead “an open”.
I will be very interested in watching their stock during this market transition…..I guess if they could just start giving a 50% rebate and paying their “employees” minimum wage.. Didn’t that just get increased? Good news for Zip agents.. I’m sure that will help with increasing gas prices.
June 6, 2007 — 10:24 am
B. Dunsworth says:
I think you are mistaken about your state law. A cash rebate, from my understanding, is not a seller concession unless it is used to pay for some of the buyer’s closing costs on the HUD-1.
If I’m wrong about NV, please site the law.
June 6, 2007 — 2:00 pm
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'mFree! says:
Re: “Real” Real Estate Agent Comments.
ZIP agents are certainly not inexperienced and unprofessional as your comments suggest.
Yes. As in all RE firms there are new agents….and yes, as in all firms there are good professional agents and many who are anything but, however, I come from a strong corporate background and I can tell you that these ZIP agents work extremely hard for their commissions and customer service is drummed in from day one.
After two years of transacting all their own escrows…in SD the company has not allowed agents to use TC’s……many of these agents know more about the mechanics of an escrow than seasoned long term agents in traditional RE.
Also, the online client is extremely sophisticated and expects to see a great many properties before deciding, and due to their access to the MLS they usually come to us armed with pages of properties. Rare is the client who is ready to buy after seeing only 5 homes as you suggest.
Finally, ZIP agents do not wave rebates in front of clients. The rebate is a corporate policy which most agents would gladly not have to pay.
I have many issues with ZIP corporate but I am proud to say that I made many friends there who I consider outstanding both as agents and as friends.
I am trully sorry that you have such a low opinion of ZIP agents. I wish that I could introduce you to those I know and admire and I am sure that you would have a change of heart. Meanwhile please do not continue to ‘bash’ these agents. Be my guest as far as corporate is concerned.
June 6, 2007 — 7:24 pm
CA Zip Agent says:
Where did Richard Sommers go?? Not another CEO. Is there something were missing that they know or eventually learn? Been here 2 years, lost 2 CEO’s and the founder…..Makes me worried.
June 8, 2007 — 9:32 am
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'mFree! says:
I don’t blame you for being concerned.
I will try to reach Richard, but from what I hear the new CEO is someone who has been there forever making the decisions which have not favored agents, ergo…I fear that he is part of the problem and not the solution.
June 8, 2007 — 12:11 pm
The REAL World says:
I havent even finished reading this, but it looks to be the “Kathy and Zippy sourpuss show” thus far. Let me shed some obvious light to the people making these statements.
1) Kathy said “I dont call in to the calls, because they are stupid and I DONT CARE how my team is doing”
Ok Kathy……and I am so sure your team is happy you are no longer there. Remember, Zip GIVES you those leads, and some things you need to do in order to continue getting them are 1) comply with policy (be on calls) 2) CARE ABOUT YOUR WORK
Zip is NOT the place to work if you are 1)self centered 2)completdly selfish 3) dont want to actually WORK
Zippy, you show so many signs of being that little whiney good for nothing “pseudo” salesman I have had the pleasure of managing in my many years of sales management (not with Zip, I am anot a Zip sales manager). You are the guy that brings the team moral down, doesnt want to actually do your job (i get this because of your multiple complaints about keeping your “ZAP” organized and up to date…..your LAZY) and you expect everything handed to you on a silver platter. This also explains your remark on “unions”, they have their place, like in truck driving, steel workers etc. But I am POSITIVE no self respecting Realtor would EVER want a union, unless they are lazy and do not want to work for a living. not to be brutally honest here, but this bitch session has many “flags” of people who chose RE because they couldnt handle a corporate type position, and thought they could “make it” with little effort, and when they were shown that RE IS HARD WORK they did the next EXPECTED thing those individuals would do, is blame someone else for their own shortcomings.
The truth is, not all Zip agents make 60k+, for that matter the avg. Traditional FIRST YEAR agent makes 13k! why??? because the market is flooded with people who think (like Zippy my man does) that you dont have to work hard in RE and you can spend your days watching 10 minute clips on youtube. But I digress, there are many Zip agents that make a great living, the separation is NOT favoritism because they agent is a “swell guy” but the best closers, the best people who can manage their business and clients, they KNOW how to work the system and if you work it, IT DOES WORK!!!
June 12, 2007 — 8:07 am
Zippy says:
Realtors with two years’ experience or less earned a median income of just $15,300 last year, according to the National Association of Realtors. After taxes, association fees and marketing costs, they pocketed a mere $9,400.
Hate to break it to you. It’s over. Find a new job. Really. Find a new job.
Housing slowdown smacks Realtors hard
STAFFORD, Va. — Chris Beach often works through lunch and seldom leaves the office before 9 p.m. So far this year, he’s taken 2&189; days off from work. And he hesitates now to take vacations, because he fears losing business: potential home buyers or sellers.
“My wife went out and bought two dogs because I’m never home,” says Beach, whose hands-free cellular earpiece seems permanently attached to his head.
This is the life of a real estate agent in a market in which in the past year home sales have tumbled 30%, prices have fallen 13% and there’s a one-year supply of homes for sale.
June 12, 2007 — 9:14 am
Anonymous says:
How can you work 60 hours a week and only sell .60 home a month? Also, the leads are being provided by the company so you do not have to market! You should be selling at least 6 homes a month or there is something wrong with the agent or the business model.
June 13, 2007 — 3:29 am
The REAL World says:
The truth is, 1/2 of Zip agents are producing 1-2 or better sales every month BUT the other 1/2 are not. This is not because of the model, its because they are the type of salespeople who do not care, work or sometimes just cant sell well. We have all been in sales here, and if you look at ANY sales orgonization, there are the Top producers (1-5%) the “goal hitters” (about 30-40%) the “college tryers” (about 10-20%) and then the under performers (about 30-40%). Out of the under performers, 60% of them usually are the “Zippy’s” of the orgonization, and feel like NOTHING is THEIR fault.These people are also about 80-90% of the churn “turn over” in any given orgonization. Usually the managers recognize this, and either 1) put the preassure on to perform or leave OR 2) just terminate them. I am not speaking primarily for or about Zip as far as the above examples are concerned, just my vast exp. in Sales Management. As for Zip, it is obvious that anyone could see, any RE Co. with an Avg. of .7 deals per agent per month for the entire company, is not only unheard of in any other RE agency of respectable size, but goes to show, there are many great agents, makeing very good money as well as the lower performers making much less….as well as contributing to the turn over….and guess who we always get to hear from…..never the good ones, only the “Zippy’s” of any orgonization make their voices heard loudly. Usually for above sited reasons, like “I blame YOU for ME not doing my job”
Truth is, 60% of ALL business’s fail in the first 3 years, and another 20% will fail within 5. this is a direct corelation with RE agents. Both fail usually because of themselves. Granted the “college tryers” do put fourth the effort, they are usually lacking the “Moxie”
June 13, 2007 — 8:37 am
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'mFree! says:
Well REAL WORLD I was one of the top agents with a closing ratio averaging 1.5 per mo…..and I acheived this whilst handling a platform of over 800 clients and doing all of my own TC work as ZIP in my area did not allow it’s agents to use TC’s until very recently when another ZIP agent was allowed to also do TC work for what amounted to an average of an additional 10% of the average 3K ZIP commission.
The trouble with ZIP is that it treats us as employess when it suits the company coffers and as independent contractors when it does not.
There are many good things about ZIP and a lot that I trully miss but Realtors are, for the best part, independent and euntrepenurial by nature, the most successful ones most certainly are, and THIS is where the ZIP model breaks down. Agents are threatened on a daily basis for everything from not responding fast enough to a new lead even though they are out in the field showing property when it comes in, to taking family time off…..as one district director recently wrote…”only loser RE agents do not work Memorial Day Weekend!”. The stress level amongst ZIP agents is tremendous and for many the reward of being deluged with ‘leads’ is just not worth it. To add insult to injury it can take as long as 30 days to get paid AFTER close of escrow and during that time the company makes tremendous profit on the agent commissions.
If ZIP worked then the top agents in the industry would be beating a path to it’s door. They’re just not. The path being beaten is heading in the other direction.
I know of many former ZIP agents who are prospering and performing above industry average since leaving ZIP, and many that are not. Those who are not, as you point out, will probably not succeed no matter where they are.
The culture of the company has to change. I cannot see any possibility of long term success unless it does. The last CEO was a brilliant man and he quickly realized what a mess the company is in. What’s the definition of insanity again??
June 13, 2007 — 4:00 pm
Kathy says:
Oh Mr. Real World: Since when did selling real estate become a “Team Sport”?? Kathy is not a sourpuss, she’s just sick of Zip Realty and the games they play with their employees. Do you think for one minute Zip or my team members were concerned about what I was doing on those weekly phone calls? I sold for Zip, the second year I paid them OVER $100,000 (their share) in my commissions!! The then District Mgr (who now is gone) was just pulling a power play, cutting off my leads when I didn’t call in. It had nothing to do with selling or not selling. If you know Zip, you have to sell to be a “A” status for leads, and I was every month. My team may not miss me, but my team manager surely misses me, since she got 1% of all my sales!!!!
June 13, 2007 — 8:52 pm
Erion Shehaj says:
Something just doesn’t seem to add up here. If ZipRealty’s lead generation system is the best in the world, why are their agents closing less than a deal per month? The question then becomes, is this system the best in terms of quality or quantity?
June 13, 2007 — 9:15 pm
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'mFree! says:
The reason Erion that even the most dedicated and hard working agents cannot close more than a few transactions a month is as I said previously, the extra workload expected from ZIP agents is extreme and takes many hours a week out of the time that they could be using to promote, prospect and sell. I actually had 5 escrows all closing one month and no TC allowed which was quite horrendous. I still had to attend meetings, send out hundreds of emails, make a minimum of ten new calls a day, respond to calls to show property all over the county, and follow up with clients I was already working with. Oh, and don’t let’s forget the open house weekend I was committed to.
Needless to say, without support staff this pace was impossible to maintain on a regular basis.
The ‘kicker’ was/is that Corporate always found the money to hire assistants to assistants. In a shameful display of mis management the company just becomes more and more top heavy at the corporate level whilst the agents in the field are denied even the most basic support.
It’s the model that does not work..NOT the agents.
June 13, 2007 — 11:08 pm
ThinkI\'mLeavingSoon says:
Richard Sommer worked as CEO four months last year and made just under $600,000 in salary, signing bonus and stock options.
After putting in a whole five months this year before resigning, he’s been given a seven-month paid vacation of some $235,000 to tide him over until next December, although he will be expected to put in no more than ten hours a months as a Director (at what pay, I wonder?)
According to Dow Jones, “ZipRealty will also accelerate vesting of Sommer’s stock options and pay his medical insurance premiums for six months and unreimbursed medical expenses in an amount not to exceed $100,000.
Mr. Sommer was fond of telling Zip agents how very important they were to the company. No doubt — turning in 60% of earned agent commissions has helped to make his brief visit in corporate (nine months work/six months holiday, not to mention an added $100,000 for those pesky medical copays…)a very lucrative one.
I’ve worked very long hours and I’m considered a successful Zip agent, but I’ve about had it…
June 14, 2007 — 12:56 am
H. Kline says:
Zip Realty may not be perfect….but at least the company offers an alternative to your traditional RE brokerages. Not for everyone.
This is how it was summed up by my excellent Zip Realty agent in Seattle.
June 14, 2007 — 6:21 am
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'mFree! says:
Re: Think I’m leaving soon.
You are singing the song I sang three months ago. There is just no excuse for the cost of corporate overheads. The entire Board should be ashamed. If every ZIP agent just said “time out” and went on strike for a week perhaps corporate would get the message. Seriously, it’s going to take something of this magnitude to shock them into doing right by their Salesforce.
June 14, 2007 — 8:32 am
CA Zip Agent says:
I was told that the agents in NY dont have to pay a rebate.. is that true? something to do with the Jersey law’s.
June 15, 2007 — 9:28 am
B. Dunsworth says:
Hey Zip Agents,
No rebate = no business for you. You people act as though there aren’t 12,000 other agents in your respective areas competing for the same business. What separates zip agents from other agents? The Rebate. Heck, it’s easy to put up a website and advertise it to draw in leads. These buyers are looking for homes and Zip’s rebate gives an edge to you. Zip gets a lot of press about this money-saving rebate and thus the buyers seek out Zip’s website. A Zip agent is just another agent without the rebate. Get over it.
June 15, 2007 — 9:41 am
Very Green Rookie who just passed the salesperson\'s license exam says:
Dear Kathy and Zippy,
Many thanks for your comments about Zip. I was thinking of applying there but had talked to an agent who was selling a house for a friend of mine and she totally reinforced your comments about sucking up and working 60 hours a week for almost zip!
Now I’m thinking of contacting:
John L. Scott
Windermere
Coldwell Banker Bain
and
Gerrard Beatty and Knapp
Do you guys have any inside info. on these companies?
Looking forward to hearing from you.
June 24, 2007 — 12:54 am
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'mFree! says:
To: A Very Green Rookie.
I left Zip Realty as one of their consistently Top Producers three months ago for all of the reasons previously blogged about…..and more.
I joined One Source GMAC where I have been very happy, prodeuctive, and ……. much wealthier! Most importantly, I have a life now.
Last week we awoke to find that we had been ‘acquired’ by Coldwell Banker and were now all CB Realtors. Let me tell you, there was a lot of panic. One Source was greatly respected by it’s hundreds of agents and the shock, to many of the ‘old timers’ was substantial….not to mention the fear of all the changes.
This weekend was my first working weekend as a CB Realtor. Here is my experience.
I work in the San Diego area and as luck would have it my clients wanted to view properties in Temecula, which is in a neighboring County.
Due to the fact that neither ZIP nor One Source had locations outside of the County…ZIP has one location in all of SD and it is not open on weekends, it’s mainly administrative, and although One Source has/had four locations spread throughout SD, none of them were in Temecula. CB has several offices in the Temecula area so I called on Friday to the one closest to the property I was going to initially visit.
The receptionist was terrific. She immediately took down the MLS numbers of the properties I was going to visit with San Diego clients and offered…I didn’t even ask….to print out the listings and leave them at the desk for me and also let me know that I would be welcome to use the conference room and any other services they could provide. Keep in mind that I am not a member of the Riverside Board of Realtors so have limited access to information there.
When I arrived on Saturday morning, not only had she printed the listings for me, but also client copies. All of the agents in the office came out to meet me and welcome me to the company…I felt like a prodical sister…and each one of them offered to help with directions, local area knowledge etc.
It got better.
An agent in SD had kindly offered to let me use their access key but when we got to the first property it was not registering. We had 9 properties to view, had driven all the way from SD and I was beginning to feel the onset of a panic attack!
I returned to the office with my clients who were offered refreshments by the receptionist whilst I huddled in the back with the 4 agents who were there trying to get the key to work. No joy…and unfortunately all of Realtors had appointments that day.
Everyone was trying to figure a solution when the reception mentioned that her daughter, also a CB agent was not working this weekend and she called her. Within 20 minuted the daughter had sent her son to the office with her key and her access code and my clients and I were back in the car. Clients impressed by all the effort and hospitality, me blown away by it, and by the end of the day, having met several more CB agents at open houses along the way, all equally falling over themselves to welcome me and help in any way they could….by the way, not one of them even hinted at a commission split, or a charge for any of the services.
I became a Coldwell Banker Realtor on Saturday June 23rd 2007.
Run, don’t walk, to join the company!
June 24, 2007 — 8:50 am
Kathy says:
Well any thing going on at Zip Realty? Any news, any changes for the better??
July 5, 2007 — 11:00 am
Sean Johnsen says:
Kathy,
Why dont you call the company and find out for yourself. You know anybody trying to post “positive” information about Zip Realty gets censored here lately anyways. Those of us with positive experiences and looking at the glass as half full seem to be doing very fine thank you.
SJ
July 7, 2007 — 11:49 am
Greg Swann says:
> anybody trying to post “positive” information about Zip Realty gets censored here lately anyways
This is false. Comments are moderated only for violations of our comments policy.
July 7, 2007 — 11:59 am
Kathy says:
Well I did call my one last friend at Zip (all the others have left), she has a side job doing comps for banks. She is still not making any money. Things are still the same. She is not making any money, just being used (abused) by the older agents, co-listing homes, but she does all the paperwork. Oh some things never change!!!
July 8, 2007 — 10:29 am
Sean Johnsen says:
Sounds like your last friend at Zip Realty probably wouldnt make it as a successful agent at any RE company. Why not call some agents, maybe a district director or two that you DO NOT know and find out how life with Zip is in a more likely non-partial way. I am sure most Zip Realty agents do not share your friend’s experiences. It is all what you put into the venture that is what you get out of the venture.
SJ
July 8, 2007 — 6:50 pm
Sean Johnsen says:
Hi Kathy,
One more thing…..If Zip Realty finds out your last friend there has a side job she will probably be terminated. This is a full time job and the status is “employee” not independent contractor. I can understand how she is not making any money with her time spent elsewhere and giving in to being the gopher for others. Like I said previously, to be successful you need to put the time and effort into the venture.
🙂
SJ
July 9, 2007 — 7:37 pm
Jim Friedner says:
Dear fellow Agents.
I was contacted by Zip Realty for an interview tomorrow. The comments from past Realtors working for Zip Realty are very disturbing. I was a top producing Agent for a large company here in Jacksonville, FL until the last two years rolled around. Went from 12.5 Mil in 2005 to 6 Mil in 2006, to a projected 3-4 Mil in 2007. We now have many Sellers, and hardly any Buyer activity. I am currently holding 11 listings that are priced in the market, but not being shown much. I am very proactive with my marketing plan and aggressive on website leads. I currently have 3 good websites. I have a hard time waiting for something to happen.
I need someone to talk me in or out of even attending the interview.
July 9, 2007 — 8:33 pm
Russell Shaw says:
I won’t attempt to talk you into or out of anything except this one thing: Regardless of how it seems, all 11 of your listings are overpriced. The way I know this is true is that they are all still for sale.
If you combine your past skills of getting seller clients and learn to really properly price any listing you take (proper price = someone will buy it at that price) you may have no need to change companies at all.
July 9, 2007 — 11:12 pm
Jim Friedner says:
Russell,
You may be correct, you may be incorrect because of this. In my city Buyers are very scarce this year. There are a few cases of my listings being the least expensive in a neighborhood, and in good condition. What if actually, no one is looking at our properties because no one is looking to move right now? I do not see anyone else’s listings selling before mine. Our inventory had increased by at least 4 times what it was in 2005, and Buyers have decreased by 60-70% (Estimate).
July 10, 2007 — 5:20 am
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'mFree! says:
Hi Jim,
If it is Buyers that you are looking for then it is true that ZIP has an abundance of leads. Only problem is that you will have to spend a great deal of time contacting and showing property to people who already have agents and fail to disclose. It is very common for other Realtors to tell their clients to use the ZIP site, along with a dozen other good sites, to search for properties, and then to let them know when they see something of interest.
During my time at ZIP I was consistently in the top 5 but even at that level struggled to make a viable income and cannot begin to tell you the number of hours I had to work to do so……and I did work smart. Top agents just do not stay with ZIP for more than a couple of years. It has been a huge factor in the price of their stock being suppressed. The turnover is horrendous, they cannot even hold onto their CEOs, and, if you are used to a modicum of independence, just forget it. Many agents in your position just turn to ZIP for the leads, but now Pru, Coldwell Banker, and Re-Max have great sites for Buyers and you could look at becoming an e-realtor with them, make more money and, most importantly, be allowed to build and keep your own clientelle, something that is contractually forbidden by ZIP.
Things will get better, the market will return, meanwhile, if you do decide to go over to ZIP just be prepared for very long hours and very low compensation, and, mostly, be prepared to become an employee again.
To sum up my experience with ZIP, it was like being in an abusive relationship and not knowing just how bad it was until you got out, looked back, and wondered how you took it for so long.
I wish you all the best.
July 10, 2007 — 8:45 am
Sean Johnsen says:
Wow….looks like there are alot of unhappy ex-Zip Realty agents here. Unbelieveable the comments I read. So and so was “in the top 5” and another was the “top agent in thier district” and so forth and so on.
All I have to say is Zip Realty is not for everyone and if you cant sell the warm leads you are provided then you should hone up on your sales training. Its a SALES position, not a popularity contest. Again, the effort you put into the job, the benefits you recieve. I was really enamored with “I’m free” who makes Coldwell Banker sound like the only RE company in the universe where everyone and their sister beckons at your inability to be organized as an agent. Sure you were a top agent at Zip Realty like you posted. Any body can post that behind their keyboard….LOL
SJ
July 10, 2007 — 10:21 am
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
Oh Dear SJ. It’s not a case of not being able to sell “warm leads” but as anyone who has been in the Corporate or Real Estate world for a while knows, the way that companies treat their employees very often outweighs the dollar amount they can earn.
My complaint was seldom about the money, it was about the corporate structure and its’ attitude towards Realtors. The Board of Directors are almost all from the hospitality industry which is notorious for long hours and low pay. I have a ‘library’ of emails from our DD which are nothing short of abusive and demeaning. Not that they were sent to me directly but the entire district would be sent these threatening unprofessional emails on a regular basis e.g. “Only loser agents refuse to work labor day weekend” !
The truth is, that the retention of ZIP agents is amongst the worst in the industry. Zip started out with over 1700 agents in 2006….hired almost 1800 new agents in 2006, and ended the year with just under 1800 agents! That’s nationwide! These are facts. Check for yourself. If ZIP is such a great deal then why are top agents not beating a path to their door, and why are so few staying beyond the two year period.
ZIP has a place in the industry, of course it does, their website is fabulous but their attitude towards their Realtors is disgraceful.
July 10, 2007 — 11:34 am
Sean Johnsen says:
I understand where you are coming from and I agree with most
of your points regarding Zip Realty.
I worked 3 1/2 years for Zip Realty and enjoyed the culture
and earned a nice income. I came from another RE company where
I worked 18+ years and just got tired of the traditional way
of selling. I left Zip Realty about 6 months ago and am now
owner of a small (boutique) RE company where I have control.
The main point I was making after reading the experiences of
working for Zip Realty online here is that each individual has
more or less control of their own fate and those who decide to take
advantage of Zip Realty’s tools and warm leads and have a positive attitude
can do very well. You have to apply yourself and be a salesman still.
The corporate stuff….one can choose to be swayed by this or remain focused
to do the best they can under the Zip Realty umbrella. Sure, some of the
corporate decisions I learned about didnt exactly make me feel great at the time
however I was focused on being successful and earning the income to support
my family.
Nonetheless, I decided to leave Zip Realty because I had always dreamed of owning
my own RE shop and today I could not be happier having experienced the Zip Realty
way of which I incorporate some of what I learned in my new practice.
🙂
SJ
July 10, 2007 — 3:36 pm
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
SJ
There are indeed some great lessons to be learned from being a ZIP Realtor, and as I have said in all of my blogs, I worked with some of the finest Realtors I have ever met, and even today, when someone attacks a ZIP Realtor I get extremely defensive, as I know too well, as do you, how hard a Realtor has to work to be successful there.
I WOULD recommend ZIP for anyone starting out who has no experience and little in the way of a center of influence, I would just warn them to, as you say, “remain focussed” and try to ignore the negative strongarm tactics which, in my district, were/are commonplace, and overlooked by top management, even though the complaints from agents were numerous.
I’m sad that Richard chose to leave so quickly as I truly believe he would have brought a whole new management style to the organization.
I believe that ZIP is at a kind of crossroads. It cannot continue to function as it does and grow into a major player. I want it to survive, but evolve into a more employee friendly organization. We’ll just have to wait and see.
Congrats on your accomplishments.
July 10, 2007 — 5:35 pm
Sean Johnsen says:
Thank You and best of luck to you in your endeavours. Your advice is strong
and especially for a new or newer agent. I stress remaining focus and having
strong time management.
Cheers,
SJ
July 10, 2007 — 7:32 pm
Jim Friedner says:
Thank you all for your honest comments. I had to see what Zip Realty is about today, so I went to the interview. They just started in Jacksonville this year and have 17-19 Agents right now. Not totally sold on the idea, but very impressed with Buyer lead generation. Right now, just a start up office, but I can see the business model to work for Agents that are extremely career driven, and follow their plan. I could see that the rebate could work to sway a financial driven customer to one of the Agents at Zip Realty.
July 10, 2007 — 7:37 pm
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
Absolutely Jim,
The rebate will certainly influence a certain type of client, in particular, FTB’s who are counting their dollars, and you will certainly not lack for clients if you work the system.
If you do chose to work with ZIP for a while I am sure that you will be grateful for the experience, as truth be told, those agencies that do not recognise the power of e-realty will find themselves behind the times. The traditional methods of RE sales are giving way to the power of the internet.
I am now making considerably more money in the business than I ever could have with ZIP, but like SJ, I have taken the best of the ZIP model and incorporated it into my own business plan.
I wish you all the best and hope to hear from you as to your decision and future progress.
July 10, 2007 — 11:13 pm
newtozip says:
I am new to the business and am interested in possibly joining Zip. My main concern right now is down the road if I am successful will the comp be as good at Zip or would I do better someplace else? It sounds like you have to be a real scrapper and work really hard at Zip but I want to know that if I do that will I get fairly compensated?
Zip seems like a good place to start with the training and the leads and everything, but do people stay there once they’ve done well and built up a book of business? For instance it sounds like a lot of you who were successful at Zip decided to leave. Any advice that you have would be appreciated!
July 11, 2007 — 7:30 am
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You have to read the contract very carefully and crunch the numbers…also extremely carefully. Those agents that leave within the first few months do so mostly due to the shock they get upon receiving their first paycheck combined with the extremely long hours you will have to put in if you want to be successful. Successful agents stay an average of 2 years but there is very little room at the top. Few agents with Zip earn more than an average wage. However, if you are prepared to work very hard, and very smart, become a W2 employee, and understand that you cannot take any of the business you built whilst with Zip with you…. Zip will sue you…. then you will learn a lot about e-real estate which will hold you in good stead in the future, and hopefully make some great friends. The friendships I made there are still strong, in fact four of them have now joined me at my new company and I still speak regularly with many more.
It is a great place for a new agent to start. I repeat, just go into the organization with your eyes wide open.
July 11, 2007 — 8:32 am
Slave to the MAN says:
Wow… this blog is still going strong, a true testament to repression… just leave and get another job. This market is hard enough to survive in right now to make peanuts for your services. The hook will be when you have been there for a year or two and have clients but cant take them with you because of your entrapping brokerage agreement. Don’t even think about contacting any of your clients for at least one year after termination or you will get the corporate ransom note for your first-born. One last thing, make sure all of your escrows are closed, otherwise they go to the broker, District directors and your area recruiter as a bonus… come on over to ZIP realty, it really is HOTEL CALIFORNIA.. You can come in but you can never leave. NEW AGENTS BEWARE!!! Of the Devils Lair……. THOSE LEADS ARE NOT YOURS!! THEY ARE COMPANY PROPERTY!!!
July 11, 2007 — 8:41 am
Cindy Gordon says:
To Bloodhound Readers:
I have found this blog very interesting and useful, and wanted to take a moment to share with you my perspective as a large shareholder of ZipRealty. My point in posting on this blog is that I am hoping I might be able to provoke a constructive conversation about Zip. My firm’s position in Zip gives us a certain level of access to company management and I could therefore pass along any constructive criticism or good ideas that you might share with me.
My firm believes that Zip is a learning organization and very open to positive constructive feedback. For a whole host of management issues, Zip has had difficulty actually responding to feedback up until now. It is my belief that the current CEO is both motivated and capable of listening and learning.
Anyone that is interested in truly helping Zip to improve and realize the opportunity in front of it, I welcome you to email me at cindygordon@gmail.com. All interactions will clearly be confidential. Again, please only contact me if you are serious about making this company better instead of simply complaining about it.
Thanks,
Cindy
July 11, 2007 — 8:46 am
Cindy Gordon says:
Regarding my previous email…. Embarrassingly, I mistyped my email address. Feel free to send me an email at cindygordon18@gmail.com.
Thanks and I look forward to hearing from you!
July 11, 2007 — 10:56 am
Dave Marron says:
Hi Cindy:
When I originally started this thread in February, I really didn’t think the dialogue would still be active five months later. My intention was to provide constructive criticism. While the thread has diverged at various points in the past five months, it is good to hear from those who have worked in the trenches over the years. I’m happy to see your involvement and I’m glad you are putting the conversation back on track.
My original recommendations for the company are still relevant today. Good luck with your investment!
July 11, 2007 — 5:46 pm
Happy Camper says:
It’s amazing to see these blogs from those who were once Zippers, and from those who still are. I was once an agent with this company, and am elated that I’m no longer “employeed” at this place. What I’ve learned during my time there is that those who are successful at this company are agents who actually have a broker’s license or have a relative who is a broker and use their lead system to make those other firms successful by feeding the leads to them. Smart thinking and way to go for those who are in that position. Other wise, it’s an okay company for those coming out of real estate school just to gain experience. I beg to differ on those who commented that Zip offers great training, b/c they really don’t. You not only have to drive nearly 60 miles for taining, but they merely give you the materials (ie., copies of contracts which you can obtain yourself) which you can read by yourself on your own time, in your own home office. They don’t show you how to apply it to your work so that you can be successful over your competetors in winning the offer. Not what I call training. My current broker is sensational in not only showing you how to, for instance, complete a HUD application, but shows you where to obtain the information, how to win the bid, what to look for, the rule and regulations that apply to the specific transaction, etc. Very detail and intense training that bring you success, rather than show and tell approach offered by this company. Furthermore, new agents can forget about making money!!! In this company, as an agent you’re only as good as your last transaction. To add to those who blogged about the commission split offered at this company, I have to add that it’s not enought the amount of work involved in handling a transaction witha traditional broker, but you have three times the amount of work at Zip. So, the pay does not compensate for the actual hours of work spent in handling one deal. I can go on and on about the this company as well, but choose to have a positive light b/c I am so happy I made the choice of moving on. Not only have I moved on, but found a company with residual income, so I get paid even if I don’t have a transaction. If anyone is interested, let me know.
July 15, 2007 — 12:18 pm
Thinking about joining says:
Hi Everyone,
I need some MAJOR advice because I’m about to start next week on getting my license. What does someone new to the market do to get started succesfully? I’ve looked into Zip, and thought it would be a good start, but I don’t want to work 60 hours and be micromanaged. Do you really work that much? I’m looking to close 1-2 houses a month, and also have a life as a mom and wife. What would be the best route for me for my beginnings? Also, at other firms, do other Agents REALLY steal your customers? If so, then how do you handle that situation? I would love any info that can help me and my family for our future adventures. Thank you
July 20, 2007 — 12:08 am
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Re: Thinking about joining:
What area are you in?
If I were starting again I would look for a company that combined the internet savy of ZIP and the training of one of the big 5.
The training at ZIP is very poor in certain areas, hence my question to you.
Would I do it all over again with ZIP as my first experience?? Well, it was the first company I ever worked for in the industry, and unless you are planning to put your life on hold for the next two years, in particular your family life, I would think long and hard about ZIP. The first two years of RE are hard enough. You need to be in a supportive learning environment, which ZIP, in my experience, was not.
If you were single and without obligations I would go for it, as you will get lots of leads, but very little help to manage them, but as you are not, it could be too high a price to pay for the start they give you.
I do believe that Zip is trying to change their culture. Whether they will succeed or not will be down to how much pressure for change comes from the agents. As long as there are new agents willing to join, the progress of change will be slow, only when their work force ‘dries up’ will they make the real changes that have to be made.
K.
July 20, 2007 — 8:16 am
Kathy says:
Hi Thinking about joining! Have you read ALL the comments on this blog? You couldn’t have, and still be think about joining Zip. If you’re going into real
estate join a company where you can build your own business, that’s what real estate is all about.
You can’t do that at Zip. Read the comments on this blog and then ask me specific questions that you
still have about Zip and I will answer them for you.
July 22, 2007 — 2:23 pm
Visionary says:
Hey you all. I have just read the 5 months of postings about Zip because I am due to begin their technology training next week. I am in a newer market in the midwest and although it would be easy for me to back pedal and go elsewhere I am not going to. I have been a top producing agent in my area for 7 years now and resent those of you who state only new and/or incompetent agents would work for a discount broker. I also resent those who indicate discount brokerage equals discount service – not true!! The level of service your clients receive is for the most part up to you. It seems as though most of the complaining has come from past Zip agents who did not want to put in the time. In today’s market, there is an average of 10 homes on the market for every buyer. The lead system at Zip is a wonderful thing!! Ok, so the company is topheavy…ummm…do you know of many successful corporations that are not topheavy?? Let’s get real. And the splits. After you reach a certain level of transactions you can earn up to 75%. PLUS many of your expenses are covered.
I understand it is a very different business model, and maybe there are still some bugs to be worked out. I have looked over the business plan with great scrutiny and the commission plan. I have made spreadsheets as to what I was spending on average on prospecting, signage and other marketing that will now be paid for by Zip. I am confident and excited about joining Zip and will be happy to share my successes with you all.
July 24, 2007 — 4:18 pm
Sean Johnsen says:
Thank You Visionary…..you are a breath of fresh air. Good luck with your employment with Zip!
July 25, 2007 — 5:28 am
newtozip says:
Visionary, I have also been following this site for some time, and it is refreshing to see your post after all of the negative comments that I have seen go back and forth! I posted an inquiry a few weeks ago, hoping to gain advice from agents about whether it made sense for me to begin working with Zip or with a more traditional brokerage for my first experience in the industry (thank you to those who responded!). I definitely think that the company provides a great opportunity to someone who is willing to work hard to succeed, and I am still considering a position with Zip.
Would you mind sharing the spreadsheets you mentioned? Since I’m new to the business it would be a great help to better understand the differences between Zip and others. I’ve got a sense for it already but it sounds like you have put in a lot of homework!
Looking forward to hearing more about your successes at the company 😉
July 25, 2007 — 8:14 am
All's well with Zip says:
I just came upon this website and read the comments made by former employee Dave Marron about Zip Realty and its management team. I am prompted to write and clarify some misunderstandings and misconceptions about Zip and its employees. I am a current agent with Zip Realty and would like to address some of Dave’s remarks concerning the operational aspect of Zip and the recent financial losses.
I have been with the company for almost five years and did not have the pleasure to meet David who was a Zip employee before my time when the company was in its infancy and a different organization. Therefore, his views might be somehow outdated and lacking perspective from the operational point of view
Nevertheless, David makes some good points and some statements which when taken out of the total operational context sound like company failures. Here are some points that need to be clarified
1. Zip Realty does not operate as your typical and traditional real estate company. There is an added emphasis on client service and timely responsiveness on the part of the employees representing the company. Therefore, the training is geared towards creating and maintaining positive relationships with the clients in addition to educating the agent on how to discern the clients’ requirements and match them with the housing market, requiring a specific type of trainer versed in customer relations and service.
Furthermore, there is an initial training on real estate rules, regulations and procedures followed by ongoing field trainings under the tutelage of experienced team leaders. This is a good structural basis to build upon, rather than just go there and sell houses without any idea of what it takes. Zip Realty really fosters the team concept to high levels of cooperation and consequently no rookie agent is left behind.
2. The average transaction per agent per year might be 0.6 and the average net revenue per transaction might be $7,400, if we ignore the fact that this is a growing company with an actively expanding work force. Therefore, many new agents are added constantly and are at various stages of tenure, making up about 35% of the sales force and skewing the data. The realty is that for most districts the average transaction per agent per year is 1.0 or higher and the average net revenue per transaction is about $9,500 or higher, depending on the district and after eliminating new agents in training. Agents receive a split of between 40% and 75% depending on productivity and on various incentives. However, for the purpose of this discussion I will use Dave’s averages:
Average transaction per agent per year: $7,400
Average Zip Agent Commission: 50%
Average Agent Commission/Transaction: $3,700
Transactions per agent per year: 12 to 36+
Earnings: $44.400 gross income to $133,200+ gross income
In addition agents with at least a 1.0 average receive expenses reimbursement for cell phone, MLS fees, Board Fees, Supplies, Mileage, etc. Additionally, there are bonuses offered for productivity, client satisfaction and being a team leader, adding another $12,000 to $36,000 per year. Furthermore, Zip agents do not have to pay out of pocket expenses for advertising, prospecting, customer acquisitions or referral fees. These pluses are before adding all other fringe benefits such as a 401K plan (to which the company contributes), education assistance, health, dental and life insurance. Not bad for a real estate agent. Why would an agent work for anyone else?
3. Agent turnover at Zip is the lowest in the business as compared to the nationwide industry rate with some agents returning after having tested the waters somewhere else. Agents leave because it is the nature of the industry or are let go because of poor performance. To quote Dave “unsuccessful agents leave because they’re not making any money””. I must assume that they go to other agencies to continue to “be unsuccessful and not make money”. Good for Zip.
4. It is true that the company might have been top heavy with redundant positions at the corporate and district level. However, this is being balanced by the fact that the company is expanding and adding new agents while opening new markets almost every month. Some positions have been consolidated to achieve savings on payroll expenses. Some positions have performance bonuses attached to them to insure higher productivity.
It is also true that too many individuals in management positions did not have a real estate background or experience. However, the new CEO is addressing both of these situations by reviewing the compensation system and by gradually replacing some management positions with new real estate professionals.
5. The rebate offered by Zip is the most successful innovation introduced to the real estate industry and one of the best things that happened to buyers at all levels. There are many agencies across the country unsuccessfully trying to imitate this model, which is not compatible with the traditional agency and independent contactor business relationship. The rebate started buyers flocking to Zip Realty’s website and it is an intrinsic part of the successful growth. It would be self-destructive to eliminate it when it works so well for Zip, clients and agents.
6. The cash reserves available to Zip Realty are just a reflection of sound financial management. They haven’t had to draw from this resource except for expansion purposes, as it should be. Spending cash just for the sake of spending is a poor business practice. These funds are there for future worthwhile undertakings.
Most negative responses seem to come from a few (4 or 5) former employees of Zip Realty who couldn’t or wouldn’t make a go of it. To be successful in any profession one must be dedicated to the task and willing to put the necessary amount of work to benefit from the opportunities offered. Zip Realty offers this opportunity to any agent looking for a rewarding career with chances for professional advancement and financial gains.
I have been averaging a salary of six figures a year for most of my time with Zip and have a great District Director a regular life with vacations and days off and an awesome team of colleagues. My question remains: With so many benefits offered, why will any agent work for any other agency than Zip Realty?
July 25, 2007 — 11:59 am
Visionary says:
Dear NewtoZip-
I would be happy to share spreadsheets with you but just not necessary. It is just a spreadsheet of my expenses/time etc while working for a traditional brokerage vs the expenses that will be covered at Zip. Although the initial split at Zip is lower than previous firms, the bottom line is the Zip model is fantastic. After all – even 40% of something is better than 90% of nothing minus expenses! I think the model Zip offers is not for someone who is not open to new, innovative ideas. Those who choose traditional models will be left behind in my humble opinion.
July 25, 2007 — 12:46 pm
Visionary says:
Dear AllswellwithZip-
Cudo’s to you for telling the REAL story.
July 25, 2007 — 12:47 pm
newtozip says:
Visionary,
Thanks so much for your response. I wonder maybe if you wouldn’t mind sharing the big bucket items that make a difference in that analysis? I am very curious to understand the detail as I am a detail-oriented person and this is a big decision!
Thanks again,
NewtoZip
July 25, 2007 — 1:16 pm
Sean Johnsen says:
To Allswellwith Zip….AWESOME post!! You are absolutley right on and not prejudiced as I read comments from Kathy and the like here.
SJ
July 25, 2007 — 3:29 pm
Visionary says:
Dear NewtoZip –
The biggest items are in just running the business. You will not need (as I am told) to spend money on prospecting anymore. So gone are the days of paying for flyers, postcards and other prospecting or keeping in touch items. Not only is there a cost here for materials but postage as well. This is all provided for you from Zip. Then the reimbursement of cell phone, dsl and mileage. Then the advertising cost of print ads in newspapers. Those are really the big bucket items – and when you are carrying many listings this can get pretty expensive. In 2005 and 2006 my average monthly cost for these items was $1200. That’s a nice chunk of payables to get rid of. As a new agent, you probably wouldn’t be quite that high but that gives you an idea. Once you actually fill out the application online for Zip the staffing manager should be willing to send you a copy of the contract that will spell alot of this out for you, and you should most certainly look it over carefully. I hope this helps! 🙂
July 25, 2007 — 3:49 pm
newtozip says:
Visionary,
Thank you so much for the great info! How did you think about the commission you would earn at Zip vs. at another firm? How many transactions is it reasonable to assume I could close per month as a new agent? How about for someone with a few years of experience? I know it’ll take some time to get good at this.
Thanks again for all the help!
NewtoZip
July 26, 2007 — 7:28 am
Kathy says:
Visionary: I don’t believe a word you wrote.
Why don’t you show your latest pay stub. I think you are a Zip
executive, they are the only people that are making money at Zip.
There is no way that you can be making six figures working
as an agent. I worked at Zip for two years. I’m no slouch.
Your details of costs that Zip pays is wrong. They
don’t send out postcards for agents for one thing!! I don’t have time
to dispute all the other wrong information. Post latest paystub if you dare!!
July 26, 2007 — 12:27 pm
Sean Johnsen says:
Kathy….I have to believe Visionary and others more than what I have read coming from you obviosuly with some kind of agenda towards Zip Realty. By the way, the marketing dept at Zip WILL send out postcards to promote the Zip agent if requested. That is a fact.
SJ
July 26, 2007 — 1:15 pm
Kathy says:
SJ: When I joined Zip (two years ago) they said they would send out postcards for the agents. A few months later
when I asked them to send out postcards for me they said they discontinued doing this. Listen
I’m just telling you what MY experience with Zip is. Maybe Zip is a company that tells different
agents different things. I’m not saying things that are not true!! Maybe each state is different.
When you work for a company you find out what it’s like. I don’t like Zip, I don’t like the
management at Zip, I don’t like how the company is run and if people knew the real story about
some of the top management resiginations at Zip a lot of the females wouldn’t like it either. This
is the UNITED STATES OF AMERICA do what you want to do, do what makes you happy, healthy and wise.
Experience Zip if you want. If I can help anybody that wants my knowledge and what I experienced
and what I know, then ask. I just don’t believe that Visionary is an agent, I think he’s management.
Let him prove otherwise.
July 26, 2007 — 3:18 pm
Sean Johnsen says:
Kathy….you just said “I dont like Zip.” In a forum like this it is not helpful to those who ask fair questions to recieve the wrong information based on someones “not liking Zip” which makes you prejudice that caneasily be seen in your postings. I worked for Zip Realty for three years and while I did not make triple digits I made a very good income and most of all enjoyed and experienced from the time I spent at Zip Realty. I dont know what district you worked in but one call to George or Kim in marketing got me postcards sent out around my listings or postcards delivered to me. I dont doubt you had some “indifferent” experiences while you were employed at Zip but please there are many success stories and it is always best that the information and opinions expressed in forums like this be done so in a non-prejudiced way.
SJ
July 26, 2007 — 5:01 pm
All's well with Zip says:
Kathy, I think that you are confusing Visionary with me, although somehow I don’t think he’ll mind. No, I am not an executive, and as far as making six figures, you can do the calculations yourself. Take your best year (I assume you made at least 12 deals) multiply it by the average commission per agent ($3700), which equals $44,000 then add all the bonuses and you have about $52,000 or more, now double this number to reflect the 24 deals per year that any good agent will close and suddenly you have at least $104,000 or more and this is actual salary not independent contractor revenue where you have to pay your self-employed taxes and expenses.
In some areas the average might be lower while in others it might be higher. It is higher in my area and not difficult to achieve if one takes the job seriously and works diligently to succeed. Whatever opinion you had of management it should not have interfered with your ability to accomplish your set goals, which are solely dependent on your drive and level of energy.
I whish you Good Luck wherever you go to work and sorry that Zip was not a good match for you.
July 26, 2007 — 5:21 pm
All's well with Zip says:
Kathy, I think that you are confusing Visionary with me, although somehow I don’t think he’ll mind. No, I am not an executive, and as far as making six figures, you can do the calculations yourself. Take your best year (I assume you made at least 12 deals) multiply it by the average commission per agent ($3700), which equals $44,000 then add all the bonuses and you have about $52,000, now double this number to reflect the 24 deals per year that any good agent will close and suddenly you have at least $104,000 and this is actual salary not independent contractor revenue where you have to pay your self-employed taxes and expenses.
In some areas the average might be lower while in others it might be higher. It is higher in my area and not difficult to achieve if one takes the job seriously and works diligently to succeed. Whatever opinion you had of management it should not have interfered with your ability to accomplish your set goals, which are solely dependent on your drive and level of energy.
I whish you Good Luck wherever you go to work and sorry that Zip was not agood match for you for you.
July 26, 2007 — 5:28 pm
All's well with Zip says:
Kathy, I think that you are confusing Visionary with me, although somehow I don’t think he’ll mind. No, I am not an executive, and as far as making six figures, you can do the calculations yourself. Take your best year (I assume you made at least 12 deals) multiply it by the average commission per agent ($3700), which equals $44,000 then add all the bonuses and you have about $52,000, now double this number to reflect the 24 deals per year that any good agent will close and suddenly you have at least $104,000 and this is actual salary not independent contractor revenue where you have to pay your self-employed taxes and expenses.
In some areas the average might be lower while in others it might be higher. It is higher in my area and not difficult to achieve if one takes the job seriously and works diligently to succeed. Whatever opinion you had of management it should not have interfered with your ability to accomplish your set goals, which are solely dependent on your drive and level of energy.
I whish you Good Luck wherever you go to work and sorry that Zip was not a good match for you.
July 26, 2007 — 5:30 pm
Visionary says:
Kathy,
For whatever reason you are very bitter and I am sorry for you. I cannot produce a paystub because I do not even begin with Zip until mid August. I believe your questions were answered by AllsWellWithZip and this party, as you have learned, is not an executive. A couple deals per month plus many bonuses can easily equal 6 figures. I appreciate fully all of this dialogue – good and bad – but if your only agenda is to talk agents out of going with Zip you may want to watch your step – can you spell slander? As SJ pointed out and as I have been told after much consideration, the marketing department does send out postcards for agents. Has it ever occured to you that you just didn’t take full advantage of all that was available to you because you were too busy complaining about the program? I do not mean to be confrontational but you need to back off a bit. We are all entitled to post our experiences and opinions, good and bad.
July 26, 2007 — 9:56 pm
Visionary says:
newtozip:
You may want to work your numbers this way: figure out what you need to make, then sit down and figure a few different scenarios based on the commission structures at the different brokerages you are considering to determine how many deals you need to close to make that happen. You could get estimates from current agents at those firms on expenses. I am sure once you begin you will be a star if you just treat customers like gold and work smart 🙂 Good luck to you!
July 26, 2007 — 10:09 pm
Visionary says:
Kathy –
p.s.
I am not a him
July 26, 2007 — 10:13 pm
Sean Johnsen says:
Visonary: Good luck working at Zip Realty! I enjoyed my time there and I knowyou know that the key is to make the best of the opportunity. You still have human interaction and the salesmanship is similar at Zip as if you were at any other Brokerage.
SJ
July 27, 2007 — 5:58 am
Zip Agent Seattle, LA, Boston, Florida, maybe Austin says:
I’ve been with Zip for a few years now.
Here is the issues:
1. Zip not willing to be flexible with any commission splits. NONE. What’s written is written in stone.
2. Can’t retain agents. High attrition rate. Wall Street knows this and thats why the stock hasn’t moved.
3. Zip Realty used to give annual options. No more. No memo about this = upset agents.
4. The company isn’t flexible in any way. Agents are clones, its not worth it for agents to do their own marketing.
Why should they when Zip will not give them anything more for bringing their own business.
5. Two of the top 5 agents left in the last year. These guys were doing very well for themselves. Why do you think they would leave? They are still in RE with other companies and are still top producers.
6. Promises of compensation plan changes. NONE. Its been over 2 years.
7. They don’t listen to their agents. If there’s been an issue with compensation and you have outspoken agents, What would you fix? Compensation plan maybe. Its been 2 years.
8. No leadership – 3 CEOs in 3 years. Not good.
9. 25% of the sales force makes good to decent money 50k+, 75% make $10-$40K. Quite an imbalance.
10. Zip, I know you are listening….you are going to have a serious problem if you piss someone off enough.
You continue to call agents “full-time” employees, but they do not get treated the same as administrative employees.
By this I mean – they are borderline when it comes to classifying agents as exempt or non-exempt employees.
11. This is how stupid corporate is: they have an annual Zip Contest to Hawaii -They announce it, but they back date it, so agents who are way ahead, are almost untouchable. Just hand them the prize already. Oh yeah, this year, I think the trip is to Gary Indiana or somewhere as warm in February 2008.
12. Zimbra is for the dogs. Why wouldn’t they use a proven contact management software like Outlook, Notes, or ACT?
People in technology are arrogant and have no clue about Real estate. Waste of money.
13. Continually spending money on consulting companies to figure out the compensation plan. Real smart, why don’t they ask the agents.
14. Why don’t they just get an ex Coldwell Banker/Century 21 Exec and ask them: What made your agents happy and successful? Its pretty simple.
15. Me, I’m the biggest chump for waiting to see if they are going to make any favorable changes.
16. Zip is so high on being 95% Customer Satisfied, but will not do their own survey on their own agents. Agent satisfaction is probably 25% or Completely dis-satisfied.
PS, HAWK This!
July 27, 2007 — 8:07 am
Sean Johnsen says:
To Zip Agent Seattle: I have to agree with the majority of your rants or items. Youre writing style sounds like a certain Zip agent I know about:-)
SJ
July 30, 2007 — 7:38 am
1 Foot Out The Door says:
Wow! You either love Zip or hate it.
July 31, 2007 — 2:25 pm
Anonymous says:
Semms to me that only under-capitalized agents would work for Zip. Otherwise, you’d just pay for your own advertising and do you own deals. Is this a fair assessment?
August 6, 2007 — 2:27 pm
Kathy says:
Zip Agent Seattle,Sean Johnsen,1 Foot out The Door,and Anonymous: You are all correct about Zip.
For some UnGodly reason Zip will not listen to the agents that work for them. They really just don’t
care is what this boils down to.
Phoenix just hired a District Manager and what a laugh she is.
She has worked for Zip under two years and I really don’t think she has had a satisfied customer
survey yet. Zip used to send out to all the agents the results of all the agents clients surveys.
She had six surveys returned and 5 of her surveys were unsatisfied. She has lost her clients
earnest money in a couple of deals, so Zip thought she would make a great District Manager. What a
laugh. In Phoenix this is a $90,000+ position with all the perks, gas, cell phone, sales incentives
and more, leading to possibly $140,000+ year. When you ask “What is wrong with Zip”, this is so
wrong with Zip. I don’t know what she did to get this position but it wasn’t her sales ability!! Or her
ability to get along with others, because alot of the agents can’t stand her. She’s been compared
to Cruella De Vil many times and the resemblance is scary!!!
August 6, 2007 — 6:25 pm
Sean Johnsen says:
Hi Kathy: Sounds like you used to work in Phoenix market for Zip. Cant remember his name but they had a great DD there in the beginning for a few years I believe. Do you know what happened to him? I agree with you that it seems the DD position in most districts is a revolving door. The Seattle guy I believe seems very nice and he has been there almost since the beginning of the company.
SJ
August 6, 2007 — 8:33 pm
Zip Agent Seattle, LA, Boston, Florida, maybe Austin says:
Wow…that’s horrible! It really makes me sick to my stomach – the incompetence the management has.
If that’s true of the Phoenix DD, that’s shameless.
August 7, 2007 — 5:51 am
Ernie says:
Sounds like we have some very disgruntled ex Zipsters in this room. The new DD in Phoenix has been a top agent and very well respected by her peers for 2.5 years and prior to that was a top agent with another company. She has more than earned this position and from what I gather, the agents and office staff are all thrilled with the choice. The new Broker in Phoenix is also doing a fantastic job, which apparently is a 180 degree difference from the Broker who preceeded him. Everything that is happening with the Phoenix office is very positive.
August 8, 2007 — 11:17 am
Sean Johnsen says:
Hi Ernie…on the agent page on Zip Realty’s website it shows the Phoenix DD as a SHE, not a him. I also believe (correct me if I am mistaken) that the Phoenix market has taken quite a downswing compared to other districts in sales volume which might lead to your thoughts and might be an unfair comparison.
I do know one thing. In this changing market, buyers and sellers need more hand holding and more information other than what they read or hear in the media so I hope that Zip Realty’s training is adjusting to more of a “hand on” approach than leading agents to believe that the Internet is the majority of the tools you need to facilitate sales….and it IS all about salesmanship by the way. I think the traditional brokerages that employ agents who have been in the business for awhile and have experienced different types of markets will adjust better than newer agents brought up or introduced to RE through technology.
My opinon only….
SJ
August 8, 2007 — 1:53 pm
Ex-Zipper says:
Kathy,
Please email me at langston1@cox.net. I was at Zip from July 04-Oct 04. Where are you now? Please email me.
August 9, 2007 — 12:31 pm
Just The Facts says:
ZipRealty announces $1 million Q2 loss
Company expects net loss of $10 million-$13 million for ’07
Wednesday, August 08, 2007
More blood. The Zip orange is turning Zip RED.
August 11, 2007 — 12:17 pm
Just The Facts says:
ZipRealty announces $1 million Q2 loss
Company expects net loss of $10 million-$13 million for ’07
Wednesday, August 08, 2007
Zip orange is turning Blood RED
August 11, 2007 — 12:59 pm
Just The Facts says:
The company offered some financial guidance for the full year in the latest earnings announcement. The company expects a full-year net loss of $10 million to $13 million, and revenues are expected to range from $105 million to $110 million.
ZipRealty average agent productivity is expected to be approximately 0.6 to 0.7 transactions per agent per month, with average net revenue per transaction of about $6,500 to $7,000. The actual commission split is 40/60. The agent also pays 8% for the wonderful technology they receive. Effectively, making the commissions 28%! So, ex. $7000 commission, minus the “20%” to the buyer=$5600 minus the 60% + 8% (technology) to the company (68%)=$3808. To the agent=$1792 at .7 transactions per month totals $1254 per month. So, effectively the commission is a failure.
August 11, 2007 — 5:58 pm
Sean Johnsen says:
Just The Fact: Is THAT “fuzzy math?”
By my calculations on $7000 commission to Zip Realty, take out 20% to buyer ($1400), take out TIF to Zip Realty ($448) then multiply 40% remainder on remaining and I come up with $2060.80 to Zip Realty agent.
🙂
SJ
August 12, 2007 — 9:24 am
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Actually SJ, it works out to around $2500.00 on a 7K commission once you factor in the expenses reimbursed by ZIP, keeping in mind that as a W2 employee you will pay a greater portion of that income in taxes and will not be entitled to the deductions allowed a ‘self employed’ Realtor.
It was, as I have said previously, never about the money with me, it was about the company ethos, and I am sure that an overwhelming number of the successful agents who left ZIP will say the same.
It would appear that there is great disparity between the Districts and the Managers who run them which probably accounts for the wide range of feelings expressed on this blog.
At the end of the day, most companies are run from the top down and the top of ZIP is most certainly balancing on a very shakey foundation.
It still makes me sad to see a company that could be so great, behave so shortsightedly.
I was just speaking with one of ZIP’s long term administrative employees who has shown incredible loyalty and dedication to ZIP and she has just had enough. This is certainly not an employee that ZIP can afford to lose, but will.
Such a shame.
August 12, 2007 — 3:45 pm
Sean Johnsen says:
\\\\\\\\\\\\\\\\: You are not automatically reimbursed expenses though unless you average at least one closing per month for last 12 months if I am not mistaken.
Back to the commission….you think “Just The Facts” didnt have his facts right or is he pulling the rug over our eyes or however the ole expression goes.
Of course, no mention if you exceed 15K in RAR for a month either:-)
SJ
August 12, 2007 — 5:55 pm
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When I left just over 4 months ago everyone received the reimbursement. I think that in California they have to pay it in order for the company to validate the employee status of its’ agents. There was a lawsuit against ZIP in California last year and the reimbursement check each month was the result of that lawsuit.
From what I understand, Management is now cutting off the leads of agents who do not have a minimum of one deal a month but unless they fire them the expense reimbursement must be paid.
California Labor Law is really tough and I would not be surprised to see another suit in the not too distant future.
Also, ZIP commission goes up from 40% to 60% on the third close within the same month. Downside is that due to lack of administrative support if you do close 3 or more transactions in the same month there is little time to work on anything but transacting, ergo that pace is very difficult to maintain and the result is ‘sketchy’ production, even amongst top producers.
If we had been allowed to hire our own T/C those of us who were producing would have seen our production sore.
Just another example of the shortsitedness of Management.
August 12, 2007 — 11:39 pm
Anonymous says:
While there are very few states that disallow rebates, there is no lender that I know of that will allow cash to go back to the buyer. If there is real disclosure to the lender, they would condition a credit toward closing costs or a price reduction of the home.
How is everyone getting around the lender — you know the real investor of the loan?
August 16, 2007 — 3:16 pm
Anonymous says:
California Board of Realtors tried to prevent this in the courts and failed to do so. Realtors do not make the ‘Rebate’ directly to the client, all Zip Realtors are W2 employees and it is the company that makes the rebate.
There are some states that Zip cannot operate in due to this so perhaps your state is one of them.
August 16, 2007 — 10:42 pm
Anonymous says:
Zip Realty is the broker that is earning a commission from the sale. Zip gives the rebate back to buyer (cash back). The lender that gives the money for the transaction will not allow that unless they don’t know about it. This is the problem — no lender disclosure. Disclosing to a LO is not disclosure to the real lender. This seems illegal. A rebate, per se, is not illegal, but if a lender is involved — they will object.
August 17, 2007 — 6:28 am
Anonymous says:
In California, what is Zip’s method of disclosure to the investor of the loan? Or, is disclosure even required?
August 17, 2007 — 9:45 am
I'm Free says:
I have never come across a Mortgage Co. or an Escrow/Title Co. that was not aware of Zip’s rebate. It’s Zip’s #1 marketing tool.
The Buyer has a choice as to whether they want the rebate used towards closing costs or in the form of a check issued by Zip within 10 days of closing escrow.
I always informed the Lender that the client would be rebated and unless the monies were required to close escrow there was never any problem. If they were required then Zip paid the monies direct to escrow .
As I said, this has been in court quite a few times and the courts have always ruled in Zip’s favor in California.
August 17, 2007 — 2:23 pm
J. Ferris says:
ZipRealty is opening up in two major New York markets by the end of 2007 but rebates are illegal in New York. Any idea how they are pulling this off?
August 17, 2007 — 3:15 pm
Sean Johnsen says:
J. Ferris: I read somewhere (maybe in a press release from Zip Realty) that in New York and any other states where rebates are illegal, Zip Realty will donate a like amount to a charity of the buyer’s choosing.
SJ
August 17, 2007 — 6:00 pm
Anonymous says:
Loan guidelines disallow cash back to buyers. Can you name one loan product that allows cash back? I can’t.
Or, does the rebate even have to comply with loan guidelines? Is the rebate in connection with real estate brokerage services which is its own transaction that a lender has no say in the matter?
August 18, 2007 — 6:19 am
Anonymous says:
I am not sure as to the answer to your question but I can assure you that there are many loan products that allow, sometimes as much as 6% cash back. Countrywide in California also allows cash back.
I think, as I said before that it has more to do with State than Federal Law.
Zip worked with E-Loan as it’s preferred lender, which as you know is a very large company.
Bottom line is that as long as it is disclosed there is no problem.
K.
August 18, 2007 — 7:23 am
Anonymous says:
Fannie Mae guidelines say no cash back. Pretty much every lender complies with those guidelines. Countrywide, E-loan, banks or whoever.
Are there any attorneys out there that can answer this? The DOJ says most rebates are cash payments after settlement. Maybe my assessment is correct: Lenders cannot interfere with a buyer brokerage agreement or they would be violating anti-trust laws. If the brokerage agreement says there will be a rebate from the broker’s legitimate agency commissions, do the lenders have any say in that agreement? It is a separate agreement that is NOT in connection with the purchase between the buyer & seller — unless used for settlement costs.
August 18, 2007 — 9:15 am
mike davin says:
You folks are confusing the issue. Lenders can’t give cash bank to a buyer. The real estate agent CAN rebate commissions either in cash, a reduction in purchase price, or credit for repairs to a seller or a buyer. It is fully legal in all but 13 states.
We rebate cash back at CataList Homes and we put the rebate amount on the HUD 1 closing statement which is sent to the bank and fully disclosed. We have never had a lender disapprove. Generally speaking, credits for non-recurring closing costs or commission rebates are fine with most every bank up to 3% of the purchase price…above that they start to get concered.
Rebates are fully legal and have been going on for decades. Believe me, Zip Realty has a big legal team and would not be rebating if it weren’t legal!!…and neither would we!
August 18, 2007 — 10:13 am
Anonymous says:
So you or your brokerage writes a check to the buyer after closing? If so, the lender allows you to POC that amount on line 704 of the HUD-1?
August 18, 2007 — 12:10 pm
djrobsd says:
This is all too sad to read… I was one of those annoying customers who used Zip’s web site to browse listings, and not really having any intention to buy. After 2 years of browsing and several calls and emails from about 8 different Zip Agents (oh, I’m sorry I’m just calling to introduce myself, your other agent has left the company)…. I finally decided to buy a house… And after the agent took me out and showed me about 10 homes, every single one of which she tried to pressure me into buying which should have been my first signal to run for the exits, I finally wrote an offer… And what do you know, the agent completely SCREWED up the transaction… And I didn’t get the house… So, after that, I dropped her as my agent, and went to another more reputable firm, and got outstanding service from an experienced agent who negotiated a great price for me during a time when it was a sellers market!
You know the best part about Zip, is they don’t even let their agents give you THEIR real email address, it’s always @ZIPREALTY.COM… That way when the agent leaves the company, you can’t stay in contact with them as a customer… Even if they invested several months of their time and gas and whatever else on you…
Pretty good stuff, I know the two agents I’ve worked with since Zip have their OWN email addresses on all their cards and marketing materials, even though they work for Coldwell Banker. 😉
August 20, 2007 — 6:17 pm
Eric says:
djrobsd: It was either Greg or Jeff that mentioned “tripping over the dollars to grab the nickels” – I think that’s what we’re seeing here.
You can grab clients with money back strategies, but I think it’s kind of backwards.
I’d much prefer an agent showed me WHY they’re worth their commission, rather than work with one that tries to show me how they’re NOT worth a full commission.
August 25, 2007 — 9:08 am
former californiazipagent says:
I was one of ziprealtys top agents back in the early days. The technology was fantastic and the benefits were also very good. I would have been a happy “employee” but things started to go very wrong. I made 60% of 2 %..they were giving back 1% back then. When I sold almost 10 homes in one month, it threw my tax bracket out of whacka nd I ended up making barely anything. The model was also built on an inherent disgust of real estate people.Noone there knew anything about rea estate.The “employee” compensation wasnt set up for success.They had useless meetings 2 hours away and would not bend and would have them Fridays when traffic was the worst. They told us we would have transaction coordination but it was hopeless. Noone had ANY real estate experience, they were all in the hotel industry and noone would LISTEN. Then they gave the top performers cars (remember the blue ziprealty jeeps?), I sold my family far and just before the holidays they were cutting back and took the cars back! I was left losing on my new car and scrambling for another.I kept hearing that things were going to get better and I tried to believe but after the car incident and other frustrations I decided to leave. Before I decided to leave I was given a bonus for performance. When I decided to leave they took back my bonus! Out of my account! Then the threatening letters and bullying started Past clients were told that they were not my clients but ziprealtys. I was told that if I ever worked with anyone who was a ziprealty client, I would be sued.
As far as I know none of the people I worked with back then are still there. I always thought it was a shame it didnt work out… it needed less rebate, less corporate, better pay structure,and REAL ESTATE PEOPLE. The technology and romantic idea is good and with people that knew what they were doing, the customers really had it good.Certainly there are tmes when I think a good prospecting machine and good benefits would be temptign but the bad outweighs the good drastically with the model at ziprealty..unless its changed and judging from the amount of signs in my area..I dont think it has.
August 29, 2007 — 5:19 pm
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What do you know! I just left, and it still needs, exactly the same things to happen now as it did then, if it is ever going to be a real ‘Player’ in the industry.
I still miss what ‘might have been’and know many agents who would return tomorrow if ZIP trully valued them.
I’ve said it before, I say it again, “Sad”.
August 29, 2007 — 5:53 pm
Hieronymous says:
I see a multitude of people here who either don’t understand ZIP, worked there and didn’t fit, or are fearful of the competition. I particularly enjoy the grass/greener scenarios. I wonder how those agents fit where they landed, or if they are still in the business in these volatile times?
Anyone who doubts the value of leads is just not a player. There’s any number of ways to generate them on your own, and for those who don’t understand the value of the ZIP proposition, hey, knock yourselves out generating /protecting those leads within a conventional firm.
A problem with the agents who’ve sour graped here is they didn’t realize what they had, and now that they’ve left it they feel compelled to diss it. ZIP is certainly not for everyone and those that have posted here have made that eminently clear. After 15 successful years everywhere else, I can tell you this is the most up-to-date , 21st century business model going. Part of the reason is that lack of “Real Estate Experienced” guys in the corporate office insures we won’t be falling into the same ruts and pitfalls traditional models do. Sometimes, if you want to keep something fresh, a different approach is necessary. Not having those cookie cutter dimwit industry clones in the corporate office will probably be our saving grace in this next turn of the cycle. So yeah, it’s different- it’s supposed to be!
September 4, 2007 — 10:30 pm
pastzipagent says:
Well Im successfully self employed and yes I was impressed with the TECHNOLOGY but yes if one knows how one can generate leads and work those leads.
The last post said:”Part of the reason is that lack of “Real Estate Experienced” guys in the corporate office insures we won’t be falling into the same ruts and pitfalls traditional models do. Sometimes, if you want to keep something fresh, a different approach is necessary. Not having those cookie cutter dimwit industry clones in the corporate office will probably be our saving grace in this next turn of the cycle. So yeah, it’s different- it’s supposed to be! ”
ummmmm this is the exact attitude. Traditional models too are changing but experience is essential, and yes in real estate.Time will tell but in my opinion Zip had great technology but in the wrong hands .
The value of a realtor is widely debated but a real estate company needs to value realtors.
September 5, 2007 — 12:34 am
I\m Free says:
I left ZIP six months ago and I still miss my colleagues terribly, but the strain and stress of the seemingly endless hours were really starting to take their toll. I could probably have adapted my schedule to make it less harrowing, but the DD in my area was the main reason for my departure. Had his attitude been less bullying and more professional I expect that I would still be there.
I truly was one of the top producers in my district, consistently in the top five, and since I have left, although my volume of production has gone down, I have earned, net, almost 50% more than I earned with Zip, and that’s allowing for all of the benefits provided by Zip. Most importantly, I’m my ‘own person’ again and have a family and social life which I just could not acheive with Zip.
For those Realtors who don’t have many outside demands I think that Zip will provide a great launching pad for their careers.
When I left, ZIp certainly placed more value on management than Realtors, hopefully that will change and Zip will someday reach it’s full potential as an inovative, employee driven player in our industry. Small changes are already being made so let’s watch this space.
September 5, 2007 — 7:33 am
I'm Free says:
I agree with both of the previous two blogs, in part.
I left ZIP six months ago and I still miss it terribly but the strain and stress of the seemingly endless hours were really starting to take their toll. I could probably have adapted my schedule to make it less harrowing, but the DD in my area was the main reason for my departure. Had his attitude been less bullying and more professional I expect that I would still be there.
I truly was one of the top producers in my district, consistently in the top 5, and since I have left, although my volume of production has gone down, I have earned, net, almost 50% more than I earned with Zip, and that’s allowing for all of the benefits provided my Zip. More importantly, I’m my ‘own person’ again and have a family and social life which I just could not acheive with Zip.
For those Realtors who don’t have many outside demands I think that Zip will provide a great launching pad for their careers.
When I left, ZIp certainly placed more value on management that Realtors, hopefully that will change and Zip will someday reach it’s full potential as an inovative, employee driven player in our industry. Small changes are already being made so let’s watch this space.
September 5, 2007 — 7:36 am
jim bob says:
Zip is excellent for those starting in the biz and continues for those of us who have been with it for several years. I do very well with zip. Most zippies are helpful, the conference calls are informative but the management stinks to high heaven. I am in Northern california and I tell you the District Director is a miserable wretch who favors some agents over others. She has no idea what it means to be a sales manager and should be run out of the company on a rail. Anna, needs to go back to working for a title company and leave the sales to the big guys. The fear of reprisal for stating ones opinion keeps the company down. I for one would never have a face to face with anna or the other miserable higher ups because my leads are so important…..Maybe it is time to move on as I have been with zip for a couple of years…Maybe it is time for Anna and her do nothing regime to move on so I can enjoy my work and prosper!
September 11, 2007 — 6:42 pm
Kathy says:
jim bob: This is the problem with Zip all over. Management stinks.
They get managers that do not know the real estate industry.
My manager was a call center supervisor, he said he knows real estate
because some of his family members were realtors. I think he was lying! LOL
One time our group had to meet at a phone center and make phone calls to our
clients and the manager didn’t even have any prizes for us!! LOL. You know like
for the agent who sold the most homes over the phone. LOL Anyway I would love to
know from I’m Free, what small changes Zip has made that benefits the agent? So
happy I moved on, jim bob you need to move on also. If you were here you would have
to applaud the agent that made the most phones calls in a month, didn’t sell a damm
thing but he sure made phone calls!!!
September 11, 2007 — 9:30 pm
Kathy says:
Oh and Ms or Mr. REAL WORLD June 12, 2007
I want to correct you, Zip does not GIVE anybody leads. I paid over $100,000 in commissions
for those leads!!! I know my team misses me they still call me and I know Zip misses me because
Mrs. Zip is not getting a jaguar and fur coat for Christmas this year!!! LOL
September 11, 2007 — 9:41 pm
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Hi Kathy
The changes are, as I said, small.
The main change that would definitely have impacted me had I stayed is that after 3 years agents are now vested. I think that the amount after 3 years is $400.00 per mo. increasing each year, again, not sure by how much, up to the fifth year of employment.
The other change has to do with performance bonuses which are now paid the payrole following the date the survey is received by HQ instead of the way they used to be paid, which was quarterly.
Not giant leaps I admit, but baby steps towards retaining agents.
Between expense reimbursement, performance bonuses and vested monies an agent will average $1000.00 per month additional income over and above the basic pay scale, which, unfortunately has not yet increased and obviously until it does the $1000 does not make up for the increase in commission a good agent can attain with a traditional company, even allowing for some increase in personal expenditure, keeping in mind that the tax write-offs are substantially greater as an independent contractor than as a W2 employee at Zip.
Obviously, Jim Bob is experiencing similar problems as I did with our manager who has been the main catalyst for many good agents leaving the company and yet remains ‘in power’. It’s a complaint heard time and time again but one that is rarely ever listened to. I’ve said it before. SAD!
September 11, 2007 — 10:20 pm
Laughable says:
One year ago, the CEO Richard Sommers said there would be a new Comp Plan by November 2007. Now management is stating that they hired another consulting company and will take another 1 year to figure out an equitable commission structure. At a team meeting, the Area VP’s response when someone asked about this was “its a Marathon”. Another agent asked him a similar question regarding Comp Plan changes and the manager said, its a Marathon”. Are you kidding me?? Its not a marathon, its employees’ livelihood! Its straight out lies. That promise one year ago was the carrot that kept me wide eyed and hopeful. Let me just tell you, the agents are wonderful here at Zip as well as the supporting cast, but its corporate that is letting these people down. I really feel for those folks who are struggling. For those ANALYSTS out there, its not getting better which will continue to hurt this company. The sales model/commission structure is Zip’s big downfall which is directly impacted by agent retention.
September 12, 2007 — 9:01 am
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Hi Laughable…Oh that it were!
Every time I give ZIP the benefit of the doubt they pull something like this and once again demonstrate how little their agents are truly valued.
So glad to hear you praise the wonderful group of agents and support staff at ZIP. Unless you have worked there for any length of time you cannot appreciate the dedication shown by the workforce. Too bad that ZIP cannot retain their brightest and best.
The last group of consultants hired two years ago cost the company, well, actually the agents, millions. Obviously they did not like what they had to say and are now searching for someone who will suggest another ‘smoke and mirrors’ strategy.
Leave….and don’t look back.
I’m Free!.
September 12, 2007 — 12:08 pm
jim bob says:
Let us not forget the crummy recruiting team that makes money by recruiting and keeping alive agents that no one else will take. All they need to do is stay afloat for 6 months and the the big fat checks role in for guys like Thomas Smythe who won’t give you the time of day or even look at you when talk to him. Give him a crummy agent though and he will make sure the last at least 6 months. vermin.
September 12, 2007 — 12:16 pm
Sean Johnsen says:
Interesting commentary from obviously those that still hold a grudge againest Zip Realty. Like I have said previously, there are many successful agents at Zip Realty earning a living and probably part of the reason for their success is they are focused on salesmanship and customer representation and not so worried about this person and that person in management. Again, its all what YOU put into the business that will foretell what you get OUT of the business whether you work at Zip Realty, Coldwell Banker, Keller Williams, etc.
Best to all. If you were really working smart and accomplishing your own goals then the management style and other stuff you would not even make such a big deal of.
🙂
SJ
September 12, 2007 — 4:27 pm
All’s well with Zip says:
Hi Laughable,
I was at the meeting that you attended and I was angry at their lies and disappointed at the announcement by the VP (who is a joke) and at his response. I have always been a big supporter of ZIp and I am doing well. However, I do understand when agents leave the company. Corporate cannot keep on lying and expect good agents to remain loyal or content with the way things are. They have been telling agents for over 2 years that they are working at improving the compensation system and that it is too complicated to fix overnight, (I guess that over 730 nights is not enough).
Corporate must be really incompetent or unwilling to do anything about the commission split. I believe that it is a mixture of both, with incompetence playing a big role. It doesn’t take a genius to see what must be done to properly compensate the agents and retain them for the long haul.
There is a need to cut about 20% to 30% of corporate positions and reduce the number of administrators at the district level. Ever wonder, why we need so many coordinators? Every position comes with a good base salary and bonuses that we agents pay. Even the trainers and the recruiters get bonuses and yet they have no effect on what we do or how well we do it, in fact most agents come to the field poorly prepared. Of course, by the time all these bonuses are paid there is nothing left for the agents. All these expenses make it difficult to increase the agents’ compensation.
Don’t expect too many changes from the new CEO, he is a very nice person but focused mostly in technology and not the right person to do what needs to be done.
Having said all that, I still like it here and take advantage of the opportunities available at Zip. However, we are not al equal and whenever I get the chance I continue to advocate for the betterment of all agents.
Hang in there
September 12, 2007 — 6:27 pm
Hieronymous says:
Well , there’s still a lot of carping going on, and still you have to wonder what it is that these folks don’t get. People that pretend they don’t pay for leads are just hilarious. As I said before, I’ve worked at boutique firms and I’ve worked at the Big guys and no one complaining has bothered to do the math about what they spend to get leads or retain them. Or the constant expenses of desk fees phone fees, paper and copier fees, transaction fees, and splits to keep the top producers there- who do you think subsidizes (LA CB top producer)Judy Cycon’s 95% split? What about your gas? FedEx? What about your insurance, E& O and health? Are you saving for your taxes because if you’re comparing your gross to your net at ZIP you’d better knock about 45% off to cover those expenses that ZIP covers for their agents. Do the math. Zip’s splits are competitive when you view them through this window. If you take away from ZIP that you have no value to the company, it may be a reflection of what you put into it. I haven’t seen a company yet that doesn’t have suck ups and kiss asses, and upper management from another planet. Now excuse me, I just got a message that another buyer signed up on my site. That’s five today. Wednesday. How many up calls did YOU get?
September 12, 2007 — 7:50 pm
Sean Johnsen says:
Hieronymous: Great message. Dont forget the “monetary extras” that Zip agents can qualify for like the Star Award, completed buyer surveys, Presidents Club. Thats several more hundred dollars in your wallet each month.
You either see the glass half full or half empty. A positive attitude does wonders.
SJ
September 12, 2007 — 9:19 pm
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Author: I’m Free.
To: All’s Well & Laughable et.al.
I am pleased that you are happy and successful at ZIP. There is no doubt that some agents are. In many ways I was also. All I know is that my wasted time and unreimbursed expenses are reduced substantially since leaving ZIP.
I was putting a horrendous amount of wear and tear on my car and spending countless hours away from my family whilst escorting and contacting and emailing and researching and calling countless numbers of ‘leads’ which yes, amounted to an average of 20 sales per annum, however, I now make the same money in 7 sales and have a life. Most importantly, I have a business which I can take with me anywhere, and, enough referrals that I rarely have to prospect at all, and when I do market a listing I do so with free eblasts and lots of opens. My last listing sold in three weeks and with barely any expenditure but my commission check was 3 times what I would have gotten from ZIP , and because I have a great T/C I was able to concentrate in getting another transaction into escrow instead of spending countless hours doing the aforementioned tasks that are mandatory for ZIP agents. My office did not have T/C’s at all.
I just returned from having dinner with my husband at a great little Italian restaurant, something I would have been too stressed to take the time out to do whilst with ZIP unless I had my laptop on my lap!
To ‘Alls Well With ZIP’, they are so lucky to have you, and so are your team members. I fought your fight for several years, speaking up at annual meetiungs, fighting for agents who were to intimidated or ‘broken’ to fight for themselves, and too afraid to leave behind the platforms they had worked so hard on, but there just came a point when enough was enough.
I just hope that ZIP realizes how much of an asset you are before it’s too late.
September 12, 2007 — 9:43 pm
jim bob says:
Lets face it “alls well” is most likely a management dupe or a recruiter who masquerades as an agent. One of the mangement that never worked as an agent
September 13, 2007 — 8:16 am
Sean Johnsen says:
To: I’m Free
I am glad you have the time to have a nice Italian dinner out with your husband without your laptop. I enjoyed a nice Italian dinner out a coule nights ago with my wife without my blackberry. When I worked for Zip Realty (almost three years total) I had many nice dinners out as well as attending baseball and football games, vacations, parties etc without worry for my business. I was able to have another competent agent watch my business and in general if you are well organized and can remove the stress you too can have a nice life outside Zip Realty. I realize people are different with different body types and different minds however those of us who have been in the business awhile know that time managment is paramount.
I hope you enjoy many more Italian dinners out without your laptop. I am sure many Zip Realty agents do likewise.
🙂
SJ
September 13, 2007 — 11:43 am
All’s well with Zip says:
We do SJ and we also take vacations and days off. As you say, time management and good relations with your fellow agents allow for very pleasant working conditions, corporate management not withstanding.
To I’m Free, thank you for your comments. Luckily, I am not the only one questioning, in person, some of the shortcomings of present corporate management.
September 13, 2007 — 12:54 pm
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Author: I’m Free
To: Sean Johnson.
I must agree with you about time management and organization being paramount to success. Being 100% responsible for my own schedule and customer platform has made me an even better manager of my life than I could ever have been whilst working under the dictates of management at ZIP.
Sure I may spend up to $6K per annum on benefits and expenses not paid for by my current brokerage, but I can make that back in a single transaction given my current commission split.
I learned a great deal during my 2.5 years at ZIP but they greatly benefited from having me also. I want ZIP to take a place as a top brokerage. The only thing holding it back from doing so is it’s pathetic management and their attitude towards the people who would be most instrumental in getting it their. Its’ Realtors! They lost you didn’t they?
September 13, 2007 — 1:06 pm
Sean Johnsen says:
To: All’s well with Zip
Actually since I started my own RE company earlier this year I have had less time for outside activities however always make the time. I miss Zip Realty for the interaction with other agents and our DD was actually very responsive and helpful.
I have always wanted to be a Broker/Owner of my own RE company and now I am. We are one of those “boutique” businesses and I am employing up to 20 agents maximum and catering to a clientele in a moderately influential area about five to ten miles outside of a major metropolitan area.
Good luck with your RE affairs!
SJ
September 13, 2007 — 1:23 pm
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Author: I’m Free
To: SJ
I miss exactly the same interaction as you do. Our DD was/is unfortunately completely unsuited, hence many of the problems in our district.
I’ll bet you have a great brokerage. In some ways this blog is something of a surrogate for the loss of interaction with the agents I used to be in contact with on a daily basis whilst with ZIP. We still communicate regularly but not many of them are left.
Best wishes to you also.
September 13, 2007 — 1:42 pm
R.Soto says:
I personally love Zip Realty. Our residential company usually recieves several calls every month from agents wanting to transfer over. Its amazing that they can even recruit anyone.
September 13, 2007 — 2:08 pm
Hieronymous says:
Well in conclusion, I wish all of you well. I’ve seen this stage of the cycle before, unlike a majority of you. Twelve months from now, many of you won’t be in the business. That is just the cold fact. Someone will always think something is better somewhere or worse somewhere and many of the complainers who posted here honestly have no business being in the industry. Their whole view is skewed by having worked through one of the most unusual markets in recent memory. To survive, they must develop an outlook and viewpoint that can deal in up markets and down. I never got to the original post. The guy is way off base. It’s the concept and business model at ZIP that makes it ideal for the 21st century market which is developing before our eyes. There’s more to the ZIP platform than just the leads. The whole business model is miles ahead of the old dinosaurs , and yet the original poster claims that they should stop that and try to emulate the aforementioned model which was developed in the 1930’s and refined in the 1950s. That’s just flat wrong, and the sooner that is recognized, the more firms will step into the 21st century and compete in the new world. The answer to the original question is “nothing. because ZIP realty is NOT the same as the business model of the firms you’re using as a touchstone. It’s the difference between Toyota and GM”. Ask the right question. That’s something every new salesperson can learn. Good luck, everybody.
September 14, 2007 — 8:32 pm
Sean Johnsen says:
Hieronymous: Excellent post….that is all that needs to be said.
SJ
September 14, 2007 — 10:10 pm
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Author: I’m Free
To: Hieronymous & SJ
You are exactly right about the business model of ZIP. It is truly 21st century. As soon as the mentality of the hospitality industry, held by the current Board of Directors, changes from 19th. to 21st. century, it will certainly leave much of the competition scratching its’ heads.
It’s stuck where it is because of this mentality but I do, call me nieve, think that change is coming, and ZIP will survive. I hope for the sake of the friends I have there that it does.
September 15, 2007 — 8:28 am
Agent Advocate says:
WHAT HAPPENS IF…..
AGENTS WHO HAVE LEFT ZIP ….WHAT HAPPENS, if anything, when clients who want to work with them follow them to their new office?
Doesn’t the client have the right to choose who they want to work with? Zip is a very “Orwellian” environment. Agents are “spied on”, snitched
on by wanna-be-managenment “team leaders”, are afraid to take a day off lest they be punished by lead diminishment,
forced to go to boring. pointless meetings where the only purpose seems to be the ego-inflation of the managers
and the BS about what a great company it is and the LIE that they care about their agents. HAH!
Just one of many examples ….It seems to be the only company that doesn’t pay their agents in a decent and timely manner because
the agents are “company employees”, (without salary, of course). By law, agents have to be paid their commissions within three days of closing.
But Zip can make you wait as long as a month, obviously creating an enormous “float” of agents hard-earned funds,
and making huger profits on the agent’s earnings. THIS IS WRONG!
And reading comments on the blog about the how great the company is, blah blah blah….it’s so obvious that these are written by management.
I don’t think Zip will, nor should survive, and there are lots of excellent web sites out there other than Zip.
September 17, 2007 — 9:02 am
Sean Johnsen says:
To Agent Advocate: That’s a mouthful. Good luck to you in your endeavours. I hope the next RE company you work for or are working for presently offers every thing you are looking for! I had some of the same concerns however I finally realized I was an employee, not an independent contractor when I was working at Zip and I always had the choice to stay or leave.
I understand the clients are property of Zip Realty’s however if they choose to work for you I am sure they still can by their own choice. I was given the okay by my DD to send out cards to my past clients letting them know I was leaving Zip Realty for XXX Realty and by JOe some of them have even transacted with my Brokerage since (I no longer list or sell as I am the Broker/Owner).
SJ
September 17, 2007 — 1:22 pm
JO realtor says:
I am amazed at reading some of the posts in this blog. After 1 year at Zip I have not seen any of the crazy things that are posted here. I understand that the market is in a downturn and that it’s tough everywhere although I really believe that Zip has done some great things. I didn’t have to pay desk fees or really put my money out there like 2 of my friends who work for Keller Williams. They ended up spending about 20k each in marketing over the past year and only did 4 deals each. At the end of the day they netter about 10 for the year. I guess that is the true issue with Real Estate there aren’t many good models out there for people to be successful. Zip in my opinion has done it right and many of the agents are happy. I guess if you can’t make it at Zip you simply cannot make it in Real Estate in general. Funny how the bad agents always post hateful stuff.. This company is run well and does a ton right.. Thanks to Zip I made 90K my 1st year in Real Estate while my other 2 buddies made 10k each… What a great year.. Thanks Zip..
September 21, 2007 — 2:34 pm
Is that all?? says:
Ok…..does anyone have any feedback on my area? I work in the Baltimore County area of MD and was thinking of joining ZIP. Has anyone had any experience with this district?
September 27, 2007 — 11:12 am
former zip employee says:
I just recently left ZIP after a short 5 month stay. I will absolutely concede that I didn’t give it my all, but the reason is because I was creeped out from very early on. About 2 wks after I started, I just got the willies – I could feel my activity on my platform being watched and my instincts told me it was way too “Big Brother” for me. Every meeting I attended felt Orwellian – the focus was on how great ZIP is and it was a gigantic cheerleading session – rah rah rah – very “drink the Kool-aid”. I totally agree about the management staff…with two exceptions they all seemed like folks who had a stroke of luck to land as high on the ladder as they have. Truthfully, I think ZIP probably does work for some hard-working agents, but I sure wish I’d read these blogs before I spent months of my life chained to that dang platform – in ever-present fear of getting a nasty-gram that I wasn’t measuring up. All in all – proceed with caution, be informed, be aware and may the force be with you. I’d try your hand elsewhere first. It was an expensive lesson for me.
September 28, 2007 — 6:24 pm
Mickey says:
I checked out Zip’s business model before joining a broker after college.
Zip has some math genius in their formula which most Zip agents I’ve talked to
can’t even begin to explain or understand. They just kind of a blank face
and are clueless about what % they really take home. But when you demystify
the “shell game” and CPA mumbo-jumbo double-talk, here’s the breakdown.
.0300 % buyers commission (3% commission)
– .0060 % customer rebate (20% rebate)
– .0025 % Zip Technology fee (.0833%)
= .0215 % Total commission
– .0129 % Zip’s 60% broker cut
= .0086 % agent commission
– .0015 % Uncle Sam Taxes .1744 rate
= .0071 % GRAND TOTAL AGENT TAKE HOME % OF SALE (for the non-math geniuses, that’s
three-quarters of a percent)
Example:
$100,000 home sold
$ 3,000.00 3% total buyer commission
– 600.00 20% customer rebate (.006%)
– 249.50 Zip Technology Fee (.0833%)
= 2,150.50 remaining before broker/agent 60/40 split
– 1,290.30 Zip 60% cut (.0129%)
= 860.20 Agents 40% cut (.0086%)
– 150.01 Uncle Sam Taxes (.1744%)
= 710.19 GRAND TOTAL AGENT TAKE HOME!!!!!
Zip’s real cut? Add the .0129% + .0015 tech fee = .0144% goes in Zip’s pocket.
Yep, that’s roughly half the 3% commission, with the customer and Zip agent each
getting three-quarters % each. (1.5 + .75 + .75 = 3). Thanks for all you Zippers
out there busting butt 24/7 chained to your laptop scared shipless if they jerk
your leads ‘case you ain’t bowing low ’nuff to the massa. WHAT A BUSINESS PLAN!!!
Somebody bring me some software now that we got the business plan. I’ll take the
agents up to 1.5% and cut out the schmuckity schmucks yachts.
October 3, 2007 — 12:28 pm
Sean Johnsen says:
To Mickey: That is the clearest explanation I have seen yet on this site regarding Zip agent take home. Love the lingo too!
SJ
October 3, 2007 — 1:58 pm
DB says:
To Mickey: Very clear!
October 8, 2007 — 8:59 am
jojosfamily says:
Anybody have feedback on the ZipRealty in Atlanta? I’m not sure why everyone is complaining. When you sign up for Zip, you know the split, and you know you are basically paying for leads! What would make you think otherwise? If you have a large sphere of influence are able to get business without paying for leads, than I would think Zip isn’t for you. If you are dependent on the leads, than that’s what you pay for!
October 11, 2007 — 4:57 pm
All’s well with Zip says:
To Mickey:
You went to a lot of trouble to analyze a Zip’s agent compensation, while omitting some factors that are relevant to the total picture. By conveniently discounting all the other benefits that make working for Zip worthwhile, you come up with numbers that seem to support your contention that we (Zip agents) are being paid way below the average of any agent. In addition, you don’t compare it with the pay of a regular agent working as a subcontractor.
I will try to clarify the facts for you and others who might be considering working for Zip and compare the numbers with a subcontracted agent in the same situation. I will use your numbers plus the benefits that you forgot to add.
Zip Agent
Sale 100000
Commission 3% 3000
Rebate 600
TIF 250
Gross Commission 2150
Agent Split 40% 860
401K Plan 10% 86
Health Insurance 86
Net Earnings 688
Employee Taxes 120
After Tax Earnings 568
Expenses:
Lead Generation 0
Mail Prospecting 0
General Expenses 0
Life Insurance 0
Web Presence 0
Advertising 0
Total Expenses 0
Add Reimbursed Expenses 475
Total Earnings 1043
Actual Zip Percent Split 35%
Subcontracted Agent
Sale 100000
Commission 3% 3000
Rebate 0
TIF 0
Gross Commission 3000
Agent Split 70% 2100
Self Employed IRA 86
Health Self Insured 285
Net Earnings 1729
Self Employed Taxes 475
After Tax Earnings 1255
Expenses:
Lead Generation 105
Mail Prospecting 460
General Expenses 475 (Same as Zip Agent)
Life Insurance 18
Web Presence 63
Advertising 125
Total Expenses 1247
Reimbursed Expenses 0
Total Earnings 8
Actual Subcontractor Percent Split 0.26%
I used a 70% split for the subcontracted Agent, which is higher than average for a regular agent. Usually the split is lower and a few times higher for established agents. Some expenses might be lower others might be higher, but you get the picture. I hope that this helps with your perspective.
October 11, 2007 — 5:07 pm
Mickey says:
Aw shucks, it was no trouble at all with my handy-dandy financial calculator. I didn’t add expense reimbursement because NOT ALL Zip regions pay expenses. They pay in cycles……when I interviewed them they had stopped paying any gas money (Texas market). Recently I spoke to a Zipper and they’ve brought it back, but not everybody qualifies right? And I believe the figure you rolled out was for a certain number of sales or a period of time. Not per sale as you illustrated. Do correct if I’m wrong, but please don’t mislead.
Interesting to note the news in Inman today that Zip announced they are going to CUT jobs at executive level and regional management ranks. Maybe the stockholders have been reading this blog! Problem with the business model?……most people of means and education don’t want to sign legal contracts for the biggest expense of their life sitting at a Denny’s restaurant. Having no physical presence in the community severely limits market share to certain income levels in the socio-economic soup (or was that pancake syrup). Don’t get me wrong – the Zipster has THE BEST real estate software in the biz hands down. As a techie, I just love it – cute, precious, and adorable.
October 11, 2007 — 7:57 pm
Ex-Zipper says:
I agree with Mickey. Who writes contracts at McDonalds or Denny’s? I was embarrassed that I didn’t have a physical office to take clients. ZIP works for some, but, not for me. I make more money now and have much more time and don’t have some corporate goon looking over my shoulder to see how many times and how long I’ve been on the platform. I got into real estate to be self-employed, not a corporate slave.
October 11, 2007 — 8:03 pm
Mickey says:
To “Alls Well with Zip” – I don’t have “Total Expenses $1247” as you said on every $100,000 sale ….does anybody else out there? You said that all Zip agents are getting reimbursed $475 in gas expense on every $100,000 sale. Are you sure it’s correct to add the $475 expenses to boot your stated earnings picture PER SALE? Maybe some other Zippers will confirm if they also are receiving $475 in gas expenses on every $100,000 sale.
My broker pays the following:
– free postage for mailouts,
– free web page,
– free fax & phone,
– unlimited long distance,
– office admin assistance,
– listing office staff to enter listings in MLS,
– free advertising in multiple local newspapers for listings,
– free marketing materials,
– free stationery/cards,
– free use of computers/copy machines/office equipment
– free lovely office,
– professional atmosphere,
– mentorship program,
– active presence in community and social circles
October 12, 2007 — 7:08 am
I\\\\\\\\’m Free! says:
I agree 100% with Mickey. It was nice not having to pay $100.00 per transaction for E&O Insurance, and for the reimbursement approximately $600.00 per month in total expenses they paid in mileage and misc. but since going to work for a large brokerage with offices all over my state…oh the sheer bliss of no more Starbucks/Dennys etc….I have never paid out more than 10% of my 85% gross 78% net commission split which averages $12K gross. I pay no desk fees or office expenses to my brokerage as I maintain a home office and I use my knowledge of the internet to promote and sell my listings in record time without paying a cent in advertising fees, but, our incredible advertising department is very inexpensive should I require their services, and, having experienced coaches, managers, brokers, and best of all, on site FREE legal council should I have a question requiring immediate attention. I am also a designated e-realtor and can opt to accept e-leads at a cost of 30% of the commission, but it is my choice and I only have to pay the fee should I accept the lead.
Again, ZIP has a place in the market for those agents who are new to the business or who do not have an established sphere of influence, but to try to insinuate that ZIP agents net anything close to the monies net by a good agent in an established brokerage house, is just not accurate. If this were so, as I have said before, top agents would be beating a path to ZIP’s door, instead of in the other direction. Had this been the case I would never have left as I truly enjoyed much of my experience there and the site was second to none, but others are now snapping at their heels.
Great news about the company finally cutting the outrageous corporate structure down to size. It was an insult to the agents who were working so hard in the field and yet had to sometimes wait up to thirty days to get paid as the smallest department in ZIP was their payrole department! Hmmm!?
October 12, 2007 — 9:57 am
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
P.S. from I’m Free:
I just looked at my paystub for my last transaction. My share of the commission, after paying my brokerage fees left me with a 78% share of the gross amounting to $14,200. No other monies were paid to my brokerage. My MLS fees of $139 for the quarter were due, I paid my excellent TC $300.00, I paid my E&O of $1200 for the FULL year, no other office expenses were due. From my next commission I will not have to pay E&O for another 12 months, or my MLS dues for another quarter. As to the 401K and health insurance contribution we do that through my husband’s employer,but if I did not they would not amount to more than $500.00 per mo. so throw in the $100 I paid in gas expenses whilst showing this client property ( by the way I have already received a referral from them who will remain my client, not the companys’), and I think you can see that there is no possible way I could have made these same monies with ZIP. I also checked my calendar and I spent approximately 16 hours in the field showing them properties. I was not a slave to my computer, and, as I chose to work with no more than three clients at a time I gave them my undevided attention. With ZIP I was having to monitor hundreds, even though I could not possibly see more than a few at a time anyhow! As to the tax situation there is no possible way that I personally am better off being a W2 employee but each individuals situation is different.
Of course there are ‘other’ expenses that are involved but those are optional such as advertising etc. which I rarely ever do, but my company spends millions on television and internet promotions, much more than ZIP has the ability to do. Our bottom lines will all vary depending on our circumstances and modes of doing business. All I know is that mine is netting at least double the amount it did when I was a ZIP agent and I am not working half as many hours.
October 12, 2007 — 11:13 am
Ex-Zipper says:
$1200 for E & O??? You are kidding me or did I misunderstand? I paid around $450 for a full year with my company.
October 12, 2007 — 12:09 pm
I\\\\\\\\’m Free! says:
Reply to Ex-Zipper:
Really $450!!! Wow. Must depend on the state. I’m in California and that is pretty standard for a good policy with no deductable. Where are you?
October 12, 2007 — 7:55 pm
Mickey says:
Texas
E and O: $420/year
CSS showing service: $264/year
MLS Dues: $426/year
Supra Key (GE Interlogix) $170/year
XXX Association of Realtors $366/year
October 13, 2007 — 8:41 am
Ex-Zipper says:
I am in Arizona.
October 13, 2007 — 11:18 am
Margo says:
I am an ex Zip person. I sat down and figured out the monies on paper. I am now making 3 times the amount I made at Zip and working less. and much happier. They don’t want you to be in office–that is where you learn — so how are newbies supposed to learn. oh yes the training so they can be chained to your computer 24/7. they are not keeping their agents happy.
October 24, 2007 — 7:34 am
Will says:
The real problem with Zip is that they take money for what is essentially nothing. Twentyback.com is a service which will rebate 20% of the commission back to the Buyer, Seller, or both if they do so, AND they get to use an agent the whole time. That’s huge! I mean, any agent, anywhere. It’s a referral service that takes the referral fees collected and rebates back the 20% of the 25% collected. An agent with you the whole time, advising, showing, writing contracts, doing everything a proper agent should do. Twentyback.com takes away any reason for Zip to exist. Happy Realtors. Happy Clients. No muss, no fuss.
October 30, 2007 — 1:54 pm
color me confused says:
Will, Zip agents ARE with their clients the whole time, showing, advising, writing contracts, managing escrow, etc…..what are you talking about? 20% of 25% is way less than the 20% of the entire commission rebated to Zip clients. Do you even know what Zip is or does?
October 30, 2007 — 10:38 pm
Followed this blog for a while says:
I was skeptical at first but decided to give ZIP a try.
I was wrong to do so. ZIP doesn’t seem to have
have changed at all from the beggining to the end of this post.
To bad ZIP you won’t last much longer as hard as you are
trying it could of been a great thing but your all just Snakes in the grass!
November 14, 2007 — 4:27 pm
David says:
Hi,
I met with the zip recruiter here in NY and I was told the average agent closes 2.8 deals per month. As a salesperson I would like to believe that all leads are garbage and it is up to us to make the sale happen. I can’t imagine how anyone can get 50+ leads per month to close on .8 deals. The average home in NYC is probably around $400,000. How do you “Zippers” think zip will do in the NY market? A lot of leads would be coming from different states once they add NY to the web-site. With the amount of people that move in and out of NY I’d expect to sell more than .8 homes per month.
November 14, 2007 — 5:23 pm
J. Ferris says:
David,
Sure it’s possible but it depends on the lead quality. 50+ leads are useless if only 10 will answer their phone or even include their phone number in the inquiry. Then maybe 2 or 3 are willing to meet with you and then no one buys because they heard the market sucks. Working with online leads is quite different from walk-in leads and you should expect at least a 10-12 month turnaround minimum. You might also find yourself doing a lot of full service work and taking home discount pay. There’s a reason for everything but I do wish you luck with it. Let us know how it works out!
November 14, 2007 — 10:51 pm
Will says:
Colour me Confused: You misunderstood the math. Zip gives 20% back. So does twentyback.com. That’s 20% of the commission, not 20% of 25% (5%). In
Through twentyback.com you can have an agent with you the whole time. A very well qualified agent, I might add. They could be the big dog in your neighbrhood or a discounter. Twentyback.com gets the client 20% back easily.
The big difference between the two services is a) Any agent from any company, and B) anywhere in North America.
November 15, 2007 — 3:34 pm
Sean Johnsen says:
Will: You said Twentyback.com get the client 20% back easily….then you said anywhere in North America. My understanding is there are several States in the USA that do not allow this by law. Also, there is a HUGE difference in level of technologies and service between Zip Realty and my observation of Twentyback.com.
🙂
SJ
November 15, 2007 — 4:37 pm
Will says:
SJ: Twentyback doesn’t operate as the representative for the client. They refer the client to an agent in the area they wish to buy or sell in. This could be a Remax, C21, Prudential, Windermere, any company agent qualified to serve their needs. We collect the 25% and give back 20%. Same number. Zip represents directly and offers back 20%. The trouble is that that is with only Zip Realty. And I haven’t heard of any truly respectable agents leaving their brokerages to go work with Zip.
Are you saying that there are states where commission rebates are not allowed or where referral fees are not allowed? As I understand RESPA there is nothing illegal about reltor-realtor referral fees (just to settlement company referral fees collected). If I am wrong, please educate me (and anyone else who may misunderstand this law).
November 15, 2007 — 11:28 pm
Will says:
Oh, and I should clarify that Twentyback is owned and operated by a licensed representative (which is stated three times on the one page which makes the site). Yes, it’s a simple site for simple service 🙂
My further research into your concerns have so far turned up no states which have made broker-broker referal fees illegal.
November 15, 2007 — 11:37 pm
Sean Johnsen says:
Will: I apologize, you are correct. Dont know what I was thinking yesterday however this Twentyback.com is different than Zip Realty and IMHO it is comparing apples with oranges. Sounds to me this is what Housevalues.com is like with a twist. Good luck.
November 16, 2007 — 6:44 am
Dingo says:
From a buyers point of view, we could not care less about the running of the organization.
Most people don’t really care why you can get something at Target or Wallmart for a low price.
Things have changed change with the internet, and realtors don’t have to put in that much time for buyers.
I screen what’s available, I call her up, she shows it to me. We are in in the midst of making a purchase.
Cumulative amount of time that she has put out has been probably no more than 6 hours thus far.
Even with 20% back to me, shes still making out pretty well the way I see it.
December 1, 2007 — 10:56 pm
Ex-Zipper says:
Dingo, you have obviously never been a real estate agent. I have never only worked 6 hours to sell a home. Even if I only spend 6 hours in the car with a buyer, which never happens, especially in the current market, there are countless hours of work until the home closes escrow. Let’s also talk about the hours and hours sometimes spent showing homes and they decide at the last minute to RENT! Dingo, go get your license and try it.
December 2, 2007 — 7:49 am
DB says:
Dingo, you need a reality check. Your agent doesn’t get to keep what’s left of the commission
after you get your 20%. far from it.
And, that comes out of her commission, not the companies. Then the company takes another
huge chunk, and that agent will be lucky to end up with only about 3/4 of a percent,
before taxes. That agent may have to wait as long as a month to get paid after closing,
while everyone else involved in the transaction is paid within three days of closing.
Depending on how long she has worked with you, the time from MA to closing is probably a month
or longer. So, she has easily spent two to three months with you, before she gets a very meager
paycheck.
Does that sound like she is “making out pretty well?”
How would you like to wait three months to get paid, and then be given about 1/4 % of what
others that do the same job get paid?
Please become an educated consumer, and do your agent a favor.
December 2, 2007 — 8:34 am
been there done that says:
For the most part I agree with Dingo and Ex-Zipper, however…The reason that most buyers don’t know what the agent is doing behind the scenes is that the agent simply doesn’t take time to explain their job to their clients. The “typical” Realtor is too busy “selling” and not representing the best interest of their clients. The smart agents that properly represent their clients will eventually generate enough referral business and leave lead generating companies like Zip. Zip Realty is so focused on the front end of the sale that they really don’t provide any training that relates to the escrow period and representation. When you look at their management you will notice that most of them have never actually sold a home so they have no idea what it takes to properly represent and retain clients. They have to keep buying their business with the rebate. This gets expensive so they have to take a huge chunk of the agent’s commission in order to continue to stay afloat. Dingo, keep this in mind, you will get a rebate of 20% but you were bought and probably stuck with a rookie agent who has no support, therefore you are/were not well represented. My district just hired a director who has a decent sales record but had a horrendous client satisfaction rate and has lost thousands in earnest money for her clients. That is where Zip Realty’s focus is….car lot style selling. Scroll up and read the following entries, [Kathy August 6th and Sept 11], [Past Zip Agent Sept 5th], [Zip agent Seattle,LA,Boston,Florida maybe Austin July 27], also read the first one by Dave Marron. They are all pretty accurate. Be very selective and ask lots of questions before you choose an agent. There are many good ones but some are simply forgotten if they don’t post huge numbers or kiss up to mgmt.
December 6, 2007 — 9:55 pm
Wylie says:
To been there done that: as an ex-Zipper myself I could not have said it any better. You are spot on, they say. I was with Zip for over 3 years and our district went through 4 different directors. Unbelieveable turnover.
December 7, 2007 — 7:04 am
Agent Advocate says:
In all fairness, good agents with experience are “recruited” into Zip with lots of dangling carrots. The reality is, it is nearly impossible to reach the goals they say you can, and you get into a trap. Really good agents, who give full service, end up leaving once they realize they have been basically conned.
Zip does not respect or reward good agents as most of those are free thinkers and don’t become good little worker bees who kiss up to management.
The client is given whatever agent comes up on the “carnival wheel of fortune”, and it could be a rookie, or a veteran.
Agent Advocate
December 7, 2007 — 8:33 am
Selena says:
Wow! I had no idea, even though I had a gut feeling that Zip was too good to be true when I met with them the other day. I am new to Real Estate (professionally) and I am looking for a company in Austin, TX that will provide GREAT new agent training to assist with the initial success of my business. If I had not read this blog, I more than likely would have been sucked into Zip’s trap…since I’ve heard their training is great and they provide steady lead generation (the area lacking for most new agents trying to ramp up). I want to hit the ground running, but I centainly don’t want my pockets to be raped or feel like I’m stuck in the corporate kiss-ass routine and schedule rigidity that I’m trying so desperately to get out of (my reason for going into Real Estate).
If you have had good experiences with any Brokerages, that information would be greatly appreciated!
December 7, 2007 — 4:22 pm
Ex-Zipper says:
Try Prudential. Big name, great training, leads, relocation services.
December 7, 2007 — 5:57 pm
Selena Burke says:
Thanks for the info Ed-Zipper! I’ll definitely look them up in my area and schedule a visit.
December 10, 2007 — 11:17 am
Boring Oregon Real Estate Guy says:
I wouldn’t really consider zip a discount company. I think with prices doubling in recent years
there is more money for agents for the same work. 4.5% for a listing is average I think this day.
December 24, 2007 — 11:36 pm
Salt Lake Real Estate Guy says:
I want to thank all the tireless, often angry, and persistent souls for contributing to this
Blog about Zip Realty. I have just spent the better part of a New Years Day reading all the
posts. I, too, have been in discussion with Zip Realty and have wondered whether or not I was
getting all the info. I have learned many things not revealed to me in an initial interview,
and feel a little better prepared to meet with them again to do my due diligence. The abundance
of leads provided was the carrot that got me interested, but I have some concerns about how
well their model works with the Real Estate business, and I definitely don’t like what I have
read about the corporate structure and influence of management. You can be sure I will get and
read a contract prior to signing anything.
January 1, 2008 — 5:50 pm
Agent says:
Salt Lake Real Estate Guy,
If you have some time you could stop by the monthly sales meeting tomorrow from 10-12 at First American Title’s
downtown office. They will be discussing leads tomorrow. You might be able to overhear some things from the
hall. I am currently with SL Zip and wondering if I made the right call in switching. Using their #’s I should
have had 6 closings already. I have had exactly one.
January 2, 2008 — 3:51 pm
Zip Fan says:
To “Agent” and “Salt Lake Real Estate Guy”…..Please say hello to that cutie DD there named Rachelle!!
January 2, 2008 — 4:43 pm
Maria says:
I have been a licensed Realtor for 2-1/2 years, and with Zip Realty for 2 years this month.
In 2007, my gross pay was $50,000+ with @20 closed transactions. Where else would a new agent have that many closed transactions and earn that much?
The $50,000 didn’t include my full medical/dental benefit package, matching 401K and stock options.
Zip offered me the opportunity to earn bonuses thru the following: @$475/month expense reimbursement, $250/month Team Lead compensation, $250/month President’s Club, $125/client who registered as “Completely Satisfied” on the client survey, and the free leads.
As an overall package, it offered me the chance to earn while I grow my client base so that I’m not “out in the cold” trying to figure out how to obtain leads with no other means of generating income. Now, this year, I’m working with referral business.
I’ve had extraordinary support from management, both in business and friendships and can’t think of a better place to work!
January 3, 2008 — 7:25 pm
Zip Fan says:
Um Maria….the leads are not exactly “free.” Dont forget the TIF and the whopping 40% split (which actually is less after fees).
Not to harp on this but 50K GROSS on 20 transactions? Your market you work in must not be San Francisco or LA or San Diego!!
Good Luck!
January 3, 2008 — 10:05 pm
been there done that says:
Maria, congratulations on your success. Very few agents are posting those kinds of numbers at Zip. I believe that the Salt Lake Real Estate guy is referring to the numbers given by the recruiters at Zip when they are trying to sell the Zip System to potential agents. I think the recruiting script goes…”we only hire full time agents because we are going to give you sooooo many leads that you are going to be too busy working with clients to do anything else”. The recruiters are very deceptive when presenting the success of the agents. It gives a false sense of how hot the leads really are. Log on to youtube and look at their recruiting video. It has two agents and the CEO (who has never sold a home) telling you how great the system works. What it doesn’t mention is that one of the agents speaking was doing soooo well selling under the system that she decided to take a salary position at the corporate office. The director in my district did the same. Sounds like deception to me….Again Maria, congratulations on your success.
January 4, 2008 — 1:53 am
Maria says:
I don’t live in California – and $50K/year pays my bills, while I’m building my career. I put money in reserves when I decided to switch careers until I was earning my potential, which I recommend for any new agent. It takes some of the stress off the first few months of trying to get your first few deals to close!
Regarding listing a home. My team members and I provide full service, along with the discounted commission. That full service includes, pricing with comps which we attempt to deliver in person to check out the individual amenities of the home, referrals to professional Home Stager, listing on MLS, Zip & other websites, sign, flyers, lockbox, open houses for public and agents, and regular communications with the Seller.
In return Zip pays for expenses, such as: sign, flyers, listing, open house news ad, discount on ads in local newspapers of my choice, Agent feedback email template. So far, my listings have cost little out of pocket and have closed succesfully with happy Sellers and referrals!
January 4, 2008 — 12:50 pm
Maria says:
Last week we reached a new high rank — #6 in web traffic for all real estate sites. Zip even beat out Yahoo Real Estate for the first time! And remember that we cover just 33 markets, while all of the other top sites are nationwide. Among real estate brand sites we have ranked #2 for more than a year. This spike has given us two record breaking days of registrations on the website, beating our previous daily high by about 400 new registrants.
January 4, 2008 — 4:38 pm
Zip Fan says:
Thats great news Maria and I am glad you are doing so well at Zip. What really matters though is the lead conversions. I did only 9 deals in 2006 at Zip yet my average transaction price was just under 1.2 million in the SF Bay area. I was not even one of the top producers for that district that year!
January 4, 2008 — 6:54 pm
Maria says:
Zip Fan ~ That is fantastic. 9 deals in 2006, but quite a challenge to handle high end clients and deal with the market changes that were beginning to sneak up on us. Why compare yourself to others?? You learned a lot which could’ve multipled in 2007. It may sound simplistic, but I review every deal – closed or not to see what I learned and how I can add that to my knowledge base to close the next one. P.S. In 2006, I closed 17 deals with Zip – but the average was @1/4 of your avg transaction price.
January 5, 2008 — 12:37 am
Suzie says:
I am a Zip agent and can agree with most things presented here. The commission paid is lower than traditional re companies, however, leads and advertising is provided. Everything comes at a cost. The district director does have the power to turn leads on/off without the agent knowing. There is politics that goes on but where doesn’t it?
I could use some advice regarding our district director. He is a convicted felon, having served time in federal prison, has been shut out of doing business with several title companies due to his past dealings (he owned a re company, however didn’t have a re license) and was found guilty in a public case where he scammed money from a woman he met on Match.com. My issue is that because he is not stealing money from Zip (as no money goes through the office-it all goes directly to corporate) they do not care about his past. He has brought in questionable mortgage brokers, whom we have since severed ties with. He is not held to the same standards as a real estate agent as he is NOT one. He will never get his re license due to his felony record. This is just a sampling of the things that have gone on since he joined Zip. It’s very hard to believe anything he says (very used car salesman type personality). Any suggestions on how to deal with this?
January 7, 2008 — 11:19 am
Zip Fan says:
To Suzie: Contact HR at Zip. Good Luck.
January 7, 2008 — 12:11 pm
Agent Advocate says:
Suzie,
Are you kidding??? How can you continue to work for a company with such low standards??? Don’t you get it?
THEY DON’T CARE about him, OR you. You’re just an order taker. You will never be anything but an underpaid slave if you stay there.
You can generate your own leads, if you’re willing to work. Find a company with reputable people and keep A LOT MORE of your commision.
Are you happy to only end up with less than 3/4 of a percent?
Even with a split, you’d have more money.
This is like the Enron of Real Estate. There are some good companies out there. Do yourself a favor and find one.
Agent Advocate
January 7, 2008 — 1:04 pm
angie says:
Suzie,
Are you an agent in the South West Florida District?
January 7, 2008 — 1:27 pm
Suzie says:
Angie, yes I am. Why do you ask?
January 7, 2008 — 2:35 pm
Angie says:
Suzie,
because I worked in the Tampa district and the person you were describing sounded very familiar to me.
January 7, 2008 — 3:03 pm
Laughable says:
Hey Maria,
I got that email too….
“I wanted to share the exciting growth in traffic on our website during the past couple of weeks. Last week we reach a new high rank — #6 in web traffic for all real estate sites. Zip even beat out Yahoo Real Estate for the first time! And remember that we cover just 33 markets, while all of the other top sites are nationwide. Among just real estate brand sites (like ReMax, C21, Prudential, etc.), we have ranked #2 for more than a year. This spike has given us two record breaking days of registrations on the website, beating our previous daily high by about 400 new registrants.”
I’m good at cutting and pasting too…mine came from the Vice President of Marketing, how ’bout you?
January 7, 2008 — 3:55 pm
Zip Fan says:
Angie/Suzie: Guess that would be one Mr. Chris Schlitz looking at the Zip website. He looks like a nice guy…..hope this doesnt get around. Good luck!
January 7, 2008 — 3:59 pm
All’s well with Zip says:
Hi Suzie,
I have been with Zip for 5 years and the company does care about who works here, regardless of what “Agent Advocate” says. He has no real concept of how Zip operates or the benefits that we receive. I did look up Google for info on CS and although it shows a law suit, it does not show the outcome. In any case I have contacted someone at Zip to do a search on this individual and the allegations and take proper action, if warranted.
Stick with Zip, things are getting better and better.
January 7, 2008 — 4:04 pm
Zip Fan says:
To All’s Well With Zip: Your google search on Chris Schlitz interested me so I followed you on google and found this website that names Chris Schlitz as principal….http://www.e-buyahome.com and it does list Florida as doing business in.
IF this is the same Chris Schlitz then I believe it is a violation of the SOP for Zip Realty. As an employee (if I recall) you cannot operate another business (I may be mistaken but dont think so) besides this would be unethical in my opinion anyways.
January 7, 2008 — 4:35 pm
Joslynn says:
Suzie, HR will eat you alive. Don’t go there. I recently met with my soon to be ex DD and found out some not so comforting info. I asked my DD for guidance and requested a meeting with her boss to inquire about how he was so successful. After her “I’m telling you in confidence” and “I’ll deny saying this” disclaimer she let me know that he had no RE experience and in fact was only in RE because he lost his CPA license. He is in charge of the entire western US!?!?!? She was also quick to stress that he just rode the wave of a good market and now he’s lost. He’s seems to be a nice guy, great speaker but this news was the straw. Where do they find these people!!! I’m not sure what Corp. is thinking but it seems to me that it is simply a good ol boy type environment. Our district is very clique-ee and there seems to be alot of backstabbing and favoritism. Sometimes it’s not even driven by production. We have a top producer who has been treated like trash because she didn’t “buy in”. I’ve seen clients transferred to the director’s drinking buddies even though they didn’t really work. We’ve been through three Brokers in the past two years. Get in good with your mgmt and don’t cross them unless you are looking for a quick out. Our district had the opportunity to hire a proven leader from Prudential who was applying for the DD position but he didn’t play the game as well as our current DD. He obviously upset someone in mgmt. Most of the agents that know him feel this way. Corp would rather hire someone that flashes her agents while partying at beer joints. As far as politics, you will find that everywhere. Hiring upper mgmt who have been kicked out of other industries due to unethical and criminal activities is just plain negligent. At least it isn’t only happenning on the East Coast. Are the leads really worth it?
January 7, 2008 — 5:08 pm
Zip Fan says:
Joslynn: WoW! I hadnt heard of all this stuff at Zip in my three plus years. I guess that focusing on selling homes and making money I must have missed some juicy gossip.
Thanks for opening my eyes….I guess. Next time I come across a DD or upper management I will have to give them the eyebrow test.
January 7, 2008 — 5:55 pm
Suzie says:
Thanks for the responses and support. Everyone in our office knows about this, it’s certainly no secret as this information is easly found on the internet. I really do hope that Zip cares as the business model has worked out me. However, this issue has put a question mark in my mind about whether they also care about their employees or just the clients. It also makes me question the company’s integrity.
The following is from the bop.gov (bureau of prisons) website:
CHRISTOPHER ARTHUR SCHLITZ 48360-053 42 White M 07-15-1997 RELEASED
From the Palm Beach County Clerk & Comptroller website (Civil, Criminal & Traffic Records Search):
all of the 13 cases against him, (some not important) including the outcome of the Match.com case (where his wages were garninshed) and his dealings with his “other” companies.
And in looking into the http://www.e-buyahome.com, that “Zip Fan” found, there is no proof YET that it is the one and same person, however, the phone number is a Palm Beach one and that is where he lives. If this is him, it is definately a violation of company policy. Many agents have been fired for having a part-time job, let alone one that could be a conflict of interest.
January 8, 2008 — 10:47 am
Suzie says:
Joslynn, You are right about this being a good ole boy network and you are SO right about the previous experience upper management needs(or doesn’t need) in order to get a job with Zip. A senior manager at corp. told me that only one person in upper management had ever sold a home. Granted, if you can sell a widget you can sell most anything. But to have such a large percentage of “non realtors” running the company is concerning. This is a specialized industry.
There is the favoritism and backstabbing at our office too. I stay as far away from that office as I can. We have the party group and the non-party group in our office and rest assured, the party group is the favorite! Some of us have better things to do (like work) than hang out and drink at the bar in the middle of the day. I just have to believe that as long as I am doing what is right, things will work out.
January 8, 2008 — 10:56 am
Zip Fan says:
I wonder if posting this information (granted it is public information) will bring this to the attention of senior management at Zip Realty and ultimately lead to a
possible termination of this DD. Please keep us informed. Blogs can be a powerful medium.
January 9, 2008 — 5:09 pm
Zip Fan says:
I wonder if posting this information (granted it is public information) will bring this to the attention of senior management at Zip Realty and ultimately lead to a
possible termination of this DD. Please keep us informed. Blogs can be a powerful medium.
I find it interesting that whoever hired this DD did not do a background check if indeed this info is correct.
January 9, 2008 — 5:10 pm
Looking for I'm/////Free says:
Hey I’m free, in one of you comments you wrote:
The threatening letter I received from the company when
I resigned really cemented my feeling that I had made the right decision.
I recently resigned and got a letter that may be similar.
I was just wondering what the outcome was for you?
January 10, 2008 — 5:21 pm
Looking for I\'m/////Free says:
I’m Free, can you comment on the letter you received?
The threatening letter I received from the company when
I resigned really cemented my feeling that I had made the right decision.
And advice would be greatly appreciated.
January 10, 2008 — 5:23 pm
Zip Fan says:
What did the letter say “Looking for I\’m/////Free??” Why would Zip send out a threatening letter?
January 10, 2008 — 6:18 pm
Agent Advocate says:
I also resigned several months ago, got the same “veiled threat” letter. What a joy to be free!
Where is the blog entry that you are referring to? Please comment on the letter you received for clarity.
Oh, and in response to “All’s well with Zip” (obviously management trying to disquise as an agent),
I know a lot about Zip. I was one of the bambuzzled.
Agent Advocate
January 10, 2008 — 8:36 pm
Dear Agent Advocate says:
The blog entry is here and its by I’m Free///.
The letter I received was just insinuating that I retained
clients but I didn’t. Though I was happy to hear
that buyers were still thinking of me.
January 11, 2008 — 9:21 am
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
HI There…I really am FREE!
I was so upset by the letter that I tore it up and put it in the trash as soon as I read it! I suppose I should have kept it but after two and a half years of working like an indentured servant, and trying to do all that I could to not just recruit, but train, new agents, I was furious at receiving a letter that said that should I try to contact any of ZIP’s clients I could be sued for not just breech of contract, but THEFT !!
Whilst I do understand that the clients I left behind did ‘belong’ to ZIP, a small “Thank You” for my service and for being one of their top 5 agents consistently, would have been most appreciated. The level of aggressiveness was unbeleivable.
I now work for one of the largest Realtors in the US, have my own successful website for which I pay a pittance by comparison to what I gave ZIP, work much fewer hours and make a great deal more money. Sure, I have none of the gaurantees that I had with ZIP, but I could never return to the lifestyle I was obligated to maintain as a ZIP employee. I now make twice the money for working a third as hard and know, without a shadow of a doubt, that I am a better Realtor than I ever was with ZIP.
January 11, 2008 — 12:12 pm
Agent Advocate says:
Well said “I’m Free”. There are lots of agents in your position. Having worked for Zip in California as an indentured slave and given it all, it’s very intimidating to get a letter like that. And that’s what they count on.
However, several lawyers have reviewed the Zip contract, and find it to be nothing other than a bullying tactic. If a client contacts you, and you didn’t solicit them, they can’t tell clients what agent they have to use! It’s ridiculous! This is a free country!
Any lawywers out there want to jump in on this?
SFBay
January 11, 2008 — 2:07 pm
Zip Fan says:
I guess my question would be how in the heck would Zip Realty find out that a Zip client contacted you anyways after you left the company??
Even more bothersome to some is that if I am not mistaken if you leave Zip Realty with open escrows Zip Realty will assign those escrows to other agents and you do not benefit from your own sales?? No income, no referral, no nada from what I understand.
January 11, 2008 — 2:53 pm
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
You do get a portion of the commission, I think it is 25% of the basic 40% of 80%, but honestly, their structure appears to change from area to area and agent to agent. The DD has much to do with it.
ZIP has been known to actually contact clients that their agents worked with and also, they check the MLS to make sure that the client has not bought from the agents’ new firm. They also rely on their agents to let them know if they find out an ex-agent is ‘stealing’ (huh) and the culture appears to encourage this kind of nasty behavior. You have to ingratiate yourself with your DD or you’re ‘toast’. It’s just too sad!
January 11, 2008 — 3:30 pm
Zip Fan says:
Zip checks the MLS?? So they must have a person or department on staff being paid to do this??
What if as a Zip agent YOU brought in the customer yourself? Like a relative, friend, or whomever that did not come by way of Zip’s advertising?
Unbelieveable!
January 11, 2008 — 4:17 pm
here's your answer says:
If you get the commission or not depends solely on a decision made by the DD or someone above him/her. It has went both ways in my district.
For example, an agent who was in good with the powers that be received an 85% split on a listing she had from a personal friend/referral.
Another agent who didn’t have the best relationship with her DD and “other almighty powers that be” didn’t get squat for her sons deal. They also threatened to take the commission from her personal transaction (not sure if they can do that).
Also, if they like the agent and think they can get them back in the future they will not take any action for “stealing” leads. It will be overlooked. I’m sure the recipients of those reassigned leads aren’t very happy after taking the time to contact the client etc.LOL
And yes, they do check the MLS, Tax records and other sources. Bottom line is that you can’t force a client to work with anyone they don’t want to work with.
January 11, 2008 — 5:25 pm
re; here's your answer says:
I like what you say in your last paragraph about
forcing a client. So my question is what is the
definition of a client? My best guess is that once
the client signs the buyer/agent agreement then he/she
is an official zip client. However until then is a
person using the website a zip client?
January 13, 2008 — 3:34 pm
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
The problem here is that when Agents join ZIP they sign a contract in essence agreeing that all contacts through the site ‘belong’ to ZIP and if an agent leaves they agree not in instigate any form of contact. However, if a client contacts an agent and decides that this is the person they wish representing them there is nothing in the law, from what I understand, that prevents that agent from working with the client. The contact must come from the client NOT the ex-agent and “therein lies the rub”.
January 13, 2008 — 7:53 pm
here\'s your answer says:
from what I understand, a person using the website is not a Zip client. There are certain boxes that you check when registering on the site. They ask that you certify that you are not committed to an agent from another brokerage.
I hate to get technical but….even if a buyer signs a Buyer Broker agreement the client may purchase a home from another Broker. The agreement simply gives the Broker with the agreement a right to a commission paid by the client. The commission would have to be pursued legally.
A client simply does not become a client until professional services are rendered (i.e. representation).
This is how it works in my state. Other states may be different.
January 13, 2008 — 10:41 pm
re: I\\\\\\\\\\\\\\\\\\\\\ says:
Do you think that zip would really want to bring/take a suppossed client to court to testify against an x-agent? Wouldn’t that bring up alot of negative publicity??
January 14, 2008 — 11:23 am
here's your answer says:
Zip would not do it. They use the letters as a scare tactic. As for the buyer agreements…
I know for a fact that agents have had valid buyer broker agreements that the company has chosen not to pursue. The problem was that the legal department didn’t feel it was worth the time to go after the commission. I know the agent didn’t feel this way after spending months of time and money showing the buyer homes.
Zip is very Corporate and is not the agent centric company that it claims to be. The negative publicity excuse is the reason they give internally but they will never tell an agent that.
Most traditional companies do go after the commission if the Broker thinks there is a good shot at winning. Traditional companies will dig deep into the issue in order to support the agent. This is the difference between having management who have been in the agent’s shoes and management who have no idea what the agents are going through.
January 14, 2008 — 12:10 pm
here\'s your answer says:
To Suzie Jan 8th. I’ve been reading this string and have found both accurate and inaccurate comments.
Did you ever consider the fact that it wouldn’t benefit senior management to admit that Real Estate experience is necessary to be an effective manager in a Real estate Company? Especially if most of the upper management team had no Real Estate experience. That wouldn’t be a very smart thing to say would it?
Selling Real Estate and selling “widgets” are two COMPLETELY different scenerios. You have to be a great all around player to stay alive in this business (i.e. sales, customer service, representation etc). It’s not always about sales.
If Zip ever decides to bring on mgmt that have RE experience that can change a some of their philosophies you may actually see some mega agents develop within the company. Right now there are none. Don’t get me wrong…there are some good earners (six figures) but no really big players.
January 14, 2008 — 12:33 pm
Kathy says:
I got a very interesting email today. It is a Notice of Proposed Class Action Settlement,
it was To: All individuals (A) who are current or former real estate sales agents working
for ZipRealty outside of the state of California and from whom ZipRealty deducted a customer acquisition
offset (“CAO”) from May 4, 2003 through September 30,2005; and (B) who are former ZipRealty
Real Estate Sales Agents whose employment terminated in the period between May 4, 2003 and
August 31, 2007 and who had a pending transaction at the time their employment terminated that
subsequently closed, but who were not paid the same commission on that pending transaction as they
would have received had they remained employed at the time the pending transaction closed. The
notice goes onto say: This notice summarizes the proposed settlement and advises you of:
1. A Description of the lawsuit
2. The benefits you are entitled to under the settlement and your right to file a claim form in order to
participate in the settlement;
3. Your right to opt out of the settlement; and
4. Your right to file an objection to the terms of the settlement with the court.
And then it goes on to describe the lawsuit
David Lubocki, Monika Setyan, Ameen Sbitani and Gilbert Bolden (“Representative Plaintiffs”) have file
a putative class action lawsuit againt ZipRealty. Lubocki, et al. v. ZipRealty, Inc.,
Case No. CV 07 2959 SJO (JCX) (C.D. Cal.)
It goes on to say Zip shall pay three million five hundred fifty thousand dollars but they are
not admitting guilt and has denied and continues to deny liablity for the claims asserted by the
representative plaintiffs. Yada Yada Yada
Let me know if anybody wants the name of the lawyers. It seems I’ll be getting some of my
money back from Zip. Yea Yea Yea!!!!!
January 17, 2008 — 8:28 pm
Kathy says:
Let me know if anybody wants the names of the plaintiff’s attorneys as they will
be sending me a claim form to fill out to get my share of the money that Zip owes me.
They also list a website, but I have not been able to access the website yet. This is really great!!!
January 17, 2008 — 8:39 pm
Zip Fan says:
To Kathy: Could you please explain what you are talking about. Why does Zip owe you money?
Thanks.
January 17, 2008 — 9:16 pm
Kathy says:
Because I’m (A) and (B)
January 17, 2008 — 9:58 pm
Zip Fan says:
To Kathy: Ha Ha….good for you! Thanks.
January 17, 2008 — 10:07 pm
Nori says:
Kathy: Please list the Website and Attorney contact.
January 18, 2008 — 10:03 am
Gone says:
Josslyn,
I know of which DD you speak, and while I don’t know her well, I believe she is no prize.
She has always had an air of superiority about her, and it seems unwarranted. And, I wonder why did
she give up the “lucrative” agent position for a salaried job as DD? Regarding the former DD who
was formerly a CPA, I knew him for a few years, and he is a solid guy – perhaps with mistakes in
his past – but I don’t know all the details. Do you have detailed, verified information from a
reliable source? Perhaps you should investigate and learn the
real story before you slander him in a public forum?
January 19, 2008 — 2:18 am
Sam says:
I’m confused, as I read through your thread it sounds like an agent can’t be “lucrative”???
January 19, 2008 — 10:51 pm
Agent Advocate says:
I think it was meant as a joke. All you can do at Zip is scrape by, if you’re lucky. It’s one of the worst if not the worst place for an agent to make decent income, let alone have a “lucrative” career. You can only achieve a very mediocre career as a Zip agent. But, I guess some people will settle for less and are happy with that??
Jeff in San Jose
January 20, 2008 — 9:33 am
Zip Fan says:
Jeff: I actually did very well working at Zip three full years. Made triple digit income all three years and of course it helps I sell RE in a higher income and thriving locale.
There are others I know of that did the same. It is all what you put into it. Different strokes for different folks but now I am with a brand name RE firm I worked at before coming to Zip. I wanted to go back to concentrate more on listings.
January 20, 2008 — 10:59 am
Suzie says:
Corporate is doing a great job covering up the fact that they hired a DD without doing a background check. They are now claiming that they did a “second” background check and they found there is another real estate agent in FL with the same name and people are confusing the two. Corporate did make the DD take down the website he had “e-buyahome.com”, funny how that was the same person yet none of the other court issues are him. Even though there is no other such named person in FL with or without a realtor license and all home addresses found are the same of the DD. This is a big disappointment to me. I now understand the company I work for.
January 28, 2008 — 12:28 pm
newbee says:
Zip just arrived in Westchester N.Y. and they have been in Long Island for a little while.
How are they doing in New York and are they worth my time. I am new to Real Estate and need some support and training. They want me to start right away. But tell me, are they worth my time in the New York market?
Does anyone know any thing about George Votino? The DD in New York.
January 28, 2008 — 4:40 pm
All\\\\\\\'s well with Zip says:
Hi Suzie
I am sorry that this is still an issue. The information was presented to the right people and apparently, things haven’t been properly addressed. I will continue to address this issue until clarified. Hang in there.
January 29, 2008 — 8:37 am
been there done that says:
All’s well, they handle every issue like that. They have to. The individuals who are responsible for hiring will never hold themselves accountable for an obvious hiring blunder. They need to keep their jobs and so they can’t alert the shareholders and Board of Directors of their carelessness. Chances are that they knew about this person’s history and decided to overlook/hide it (not the first time this has been done). Read this entire string and pay attention to what you are reading. Many of the entries are just ex zippers letting off some steam but there are some entries that are right on target. In looking into some of the mgmt I assure you that this guy in Tampa is not the only one with a shady past. I do believe that most people deserve the benefit of the doubt but in the masses, that philosophy will cause some great people to be flushed out. This is why I decided to leave. Believe it or not, I used to “bleed orange” as they say. The company has such a great model but it is surely in the wrong hands.
And yes, I was and still am making a good living selling Real Estate. No sour grapes here.
January 29, 2008 — 3:13 pm
Zapped Out says:
I am also a agent in Tampa and thought this place was the greatest. But the morale has gone down the crapper, no one has any respect for the DD-he never does anything he says he is going to do, he is very arrogant and puts people down all the time in front of others. This is after our first DD was drunk every time I saw him and then disappeared for a couple of months before mgmt sent in a interim DD who didn’t do anything! And then they bring in the “crook” to correct everything. As if he wasn’t ruining one district, they assigned him to ruin, I mean, run two districts. So, now, two distrcts have a parttime DD. Really great logic.
January 31, 2008 — 6:38 am
Agent Advocate says:
Dear Zapped Out,
How many red flags do you need? Why are you still there?
Edgar
January 31, 2008 — 7:33 am
DD's says:
Anyone heard of or have any info on
Realtor.com? They say they have a
live warm handoff process where you
actually get a live lead that has
called in. Any Feedback or info would be great.
Thanks….
January 31, 2008 — 11:19 am
re: realtor.com says:
Does anyone know about realtor.com?
Any info?
Thanks….
January 31, 2008 — 11:20 am
realtor.com? says:
I’m thinking of joining Realtor.com
they told me they hand off live persons
who call in and are ready to purchase.
Has anyone here heard of them?
Thank you, and sorry for the double post
January 31, 2008 — 11:27 am
Happy Boston Zip Agent says:
I do not doubt some of the Former ZipAgents posting in here had bad experiences. I guess I don’t get it. From Day 1 I did what they asked and there were no problems.
Maybe becuase I work in one of the larger offices they don’t have time to be “Orwellian”.
Maybe it’s becase my worst year of the last three was my first year when I only sold 12 homes? It’s gone up every year after even in this market.
I don’t hang out at the Bar with my DD, I attend the meeting when I am able to, I have skipped the Christmas party and most meetings held in the evening that appear to me to be more Social than work related. I can honestly say except when I have a question I don’t talk to my DD or Broker.
I pay nothing for the leads and just spend time every morning working through them. It gets hectic at times but that would happen wherever I worked.
All I know is without the leads I was working for an agency that would give me 80% of the comission. I had no leads and made very little money. At Zip I have leads and I’m making money. What else do you need?
Will I eventually leave ZipRealty? Probably, I’ve left or been laid off every other job I’ve had. When I’m established, saved a little nestegg I will probably strike out on my own or work for a company where you keep most of your comission but need to pay your own expenses. Until then I’ll get my experience here, save some cash in my 401k and learn the real estate business.
February 2, 2008 — 5:08 pm
Zip Fan says:
To Happy Boston Zip Agent: Good job. I hear Boston is one of the more stable districts in Zip Realty. One correction….you actually DO pay for your leads in the reduced commission and the TIF. If not for that TIF, I may have stayed longer at Zip than three years however in the district I worked in the sale prices were close to and well over a million which meant the TIF was considerable.
February 2, 2008 — 7:27 pm
Gone @ C.O.E. says:
Boston is known as one of the top districts in the company. Someone there is doing something right. I’m on the opposite end of the country and I can say that we don’t have many happy zippers in my district. It seems like you have to play some type of political game to be treated with respect. Just doing your job isn’t enough. Our director is very untrustworthy. We have to be very careful about who we speak to. We can’t even say anything POSITIVE about the wrong person!!!! No agent in their right mind is willing to be honest about her actions. Our team leaders are very careful about her as well. I think that the market mixed with the unfair mgmt tactics has worn us down. The general concensus about her is…”get over yourself”.
There have been some top secret exceptions made for some and not for others. We have a couple that were operating in two seperate districts which I believe is against company policy. My teammates would suddenly find themselves as co-listers on properties or have to split deals when the um…out of state agent would set up the showing. This caused alot of confusion and a few departures. My team leader tried to address it but it was taboo to bring it up in their meetings because the arrangement was supposed to be hush hush. Agents who have left had their commissions taken away while others were paid in full depending on her mood. I don’t know why this is allowed but I have a feeling she won’t last long.
Also…TO GONE: JAN 19th…
Re: your reply to Josslyn. That “solid guy” you wrote about supervises my DD and I now know that he has a hand in many of these decisions. You may also want to look up the definition of slander which is the communication of FALSE statements to damage someone’s reputation. Those statements were not false. The detailed verified information can be found in the Arizona Dept of Real Estate website, license number SA572710000. The Security and Exchange Commission doesn’t order an individual to pay a $30,000. fine for an um…”mistake”. The order also says he can’t act as a supervisor in a Real Estate Company. The order reads that he “neither admitted nor denied the allegations”. Sounds alot like the lawsuit Zip just paid 3.5 million on doesn’t it. I wonder what kind of loophole Zip is using in order to allow his employment as a supervisor. Smooth talking and managing out the people who speak up will not work forever. The truth ALWAYS comes out.
Remember…You can fool some of the people some of the time but not all of the people all of the time.
February 3, 2008 — 12:49 am
REallybadrealtors says:
What is wrong with Zip Realty? They have the worse Real State agents
in the marked.
She didn’t show me the right comparables, and consequently I payed more
than the house was worth. Besides, the house had many problems,
I had to fix them, and lost thousands of dollars.
I lost my life savings because of the most incompetent
realtor I have ever met. As far as I am concerned, Zip realty deserves to
go bankrupt.
February 3, 2008 — 1:26 pm
Zip Fan says:
To REallybadrealtors: Wow…sorry to hear about your misfortune. Luckily, all Realtors are not the same. Did you have an opportunity to maybe request a different Zip agent or talk to this agent’s Broker before your displeasure took over the purchase?
Well, anyways….one bad apple (in your mind) does not spoil a company. And learn to spell while you are at it!
February 3, 2008 — 2:19 pm
To zip or not to zip... says:
To whom it may concern..
If even 1 percent of this is true with regard to the fixes, I’ve neither the time or the money to pursue zip in any real estate endeavors – ever.
In other words, I’ll ‘fast pass’ to the next nearest agency who (and countless do), demonstrates personal and professional integrity with who they do Business with, and how they interact.
The one bad apple saying does apply here, and affects the average guy trying to get by (I’m not referring to the ‘weed out’ process). In simpler terms, whether your an acclaimed ‘star’ posting in at 6 figures, or in the ‘system’ for food stamps, it’s clear that the processing of employess is the result of bad relations from one end to the other, and in all directions. So ask yourself, where does that help and when?
Sure I’m successful, but being able to say that it saddens me to hear all those who claim success, yet have little comment to simply come to the aid of their fellow employee.
Is the problem employee, contract, employer, or union here? I don’t think so. I think it’s all inter-related, and is important in any working society.
I appreciate the opportunity to read the posts, and to post. Make your mark beyond your personal contributions, and always alongside your fellow man. The Industry is huge and it applies to everyone. It’s important.
February 4, 2008 — 5:24 pm
All\'s well with Zip says:
To: Zip or not to zip
I have no idea what you are talking about and probably neither do you.
In every company there are good and bad performers. The good ones will do well, be productive and grow professionally, without regard for what goes on in the company, whether these happenings are real or perceived. The bad ones will probably never do well in any environment. The same applies to any management team.
Yes, I agree that the Boston District is the best managed and most productive. Maybe the company should try to duplicate what is being done there and apply it to the other Districts; it will make for a better Zip.
February 5, 2008 — 8:04 am
Zapped Out says:
I checked the AZ Dept of RE regarding the regional director of the west coast and all I can say is “Are you kidding me, Zip?” This was very serious and Zip hired him during these proceedings???? There are so many good, honest, hardworking agents and employees out there…why are they hiring all these people to be in charge? There is so much hard evidence out there about these in management, how is it that NO ONE at Zip (maybe the board of directors?) cares and will stand up and take charge. There really needs to be alot of housecleaning here. As far as Boston, I have alwys heard that it was the best district in the coompany too. Very productive. It would only be in the best interst of the company and its stockholders to try and duplicate that distrcit every where else!
February 6, 2008 — 7:12 am
Kathy says:
Zip hires people like that because that’s the way they are. Corporate in California is worse.
Read some of this blog. Why is it that Jeff Wagoner left Zip!!! Ask corporate some questions.
As I said before if all the WOMAN agents at Zip knew what was going on at corporate
in California they would quit today. No way in this day and age would woman work at this
company if they knew. Zip should be ashamed of themselves. As somebody said earlier, “you can
fool some of the people some of the time but not all of the people all of the time”. Girls
there’s strenght in numbers. Start asking some questions and get your head out of the sand. Zip
can’t pay all these loser men that have to leave, all this money if you don’t work your asses
off to give it to them.
February 6, 2008 — 10:34 am
Zip Fan says:
So Kathy: Lets hear some specifics since you seem to be “in the know” about what goes on in corporate. Back up your claims.
February 6, 2008 — 1:00 pm
Kathy says:
Zip Fan I wish I could back up the claims but when employees are PAID off a gag order is a condition of the payoff. I heard it thru the gapevine that there was some sexual harrasment suits going on at corporate, it’s a pretty reliable grape vine. People that are paid off are not going to come forward and violate that gag order. Read between the lines. Brad has a conditional license, CEO’s have left with big payoffs, brokers come and go fast, come on what’s wrong with this picture? Figure it out.
February 6, 2008 — 1:13 pm
Zip Fan says:
To Kathy: I have figured it out. This is the RE business and a corporate environment. I have been in both and I can share with you through over 30 years of continuous employement in the business world and Real Estate world that turnover happens. Thanks for the specifics but it sounds to me that some folks that worked at Zip Realty made it their “quest” to go beyond their sales jobs to dig up any dirt. Some folks feed off this, most dont. I worked there over 3 years and didnt hear hardly a thing because my focus was on my sales job. Hard to believe after having met and sat down with Eric Danziger that these issues happened with the frequency you imply. I was shocked about the abrupt departure of Somers without an explanation but thats life and that didnt affect my sales job. Please keep us informed of “happenings” in the corporate chain.
February 6, 2008 — 2:24 pm
Agent Advocate says:
ZIP FAN is obviously management keeping an eye on this blog. It’s corporate spiel, cookie-cutter responses every time someone reveals some ugly truth about this company and their sleazy tactics.
Most of corporate has never sold real estate, don’t have a clue about anything except the web site, have no respect for agents, and originally wanted to eliminate the agent all together. However, they found that you can’t get rid of the agent, people want service, but the attitude is still there. Once again, THEY HAVE NO RESPECT FOR AGENTS!
A few were in RE, but couldn’t make it as agents, so they found a nice cushy little job in management where they are always kissing their way up the corporate ladder. Because the only place you make money at Zip is at the top.
Take it from one who was climbing that ladder until I saw the light.
R in San Francisco
February 6, 2008 — 3:57 pm
Kathy says:
Agent Advocate I agree. Zip has no respect for agents. Zip Fan would do a much better job of keeping us informed about “corporate” happenings. Zip Fan, Brad is that you?
February 6, 2008 — 4:37 pm
Ex-Zipper says:
Are we speaking about the Brad that use to be the DD in Phoenix?
February 6, 2008 — 4:54 pm
confused no more :) says:
Im so glad i read this blog before signing up with Zip tomorrow morning…..am going with RE/MAX
February 6, 2008 — 5:06 pm
Zip Fan says:
LOL!! I was an agent with Zip but no longer. I just didnt have any “thing” with or about corporate so I am quite amused of all the acusations I read on this blog. Sounds like these acusations come from those agents who like soap operas and probably didnt do much as an agent with Zip. I am not blind but like I said before I focused on sales and making money….not friends or enemies and I am thankful I apparently worked in a district where there was no hanky panky going on in comparison to what I read about other districts in this blog.
I am most sure that someone from Zip corporate must read this blog and is probably as amused as I am.
February 6, 2008 — 6:10 pm
Zip Fan says:
Also, those that made the money at Zip besides upper management are those agents who started early with the company like I did and were awarded options for being hired and for achievements while at Zip. Glad I was able to cash in most my options when the company did go public and the share price was in the teens.
To those of you whiners, sleuths, poor performers, and jealous types that were or still are with Zip Realty please get over it. There are much better tv shows you can watch like Desperate Housewives to feed your inner being. Sheesh!
February 6, 2008 — 6:40 pm
Zip Fan says:
Okay Kathy, I shall back off “defending” corporate even though I knew and know nothing of the sexists activities running rampant there. Please keep us updated and I will make sure to have plenty of popcorn on hand.
Regards,
February 7, 2008 — 6:39 am
Darla says:
Hi I just got my RE license in Washington St and I am thinking about talking to Zip Realty here in Seattle. Can anybody give me some thoughts and opinions about this office? I have been in pharma sales the past several years however will probably need some decent RE training. Is the broker in the Seattle office good with agents?
Thanks In Advance
February 7, 2008 — 2:19 pm
Chris in Seattle says:
As an new agent, you should join one of the big guys where you will get the very best of training. Windermere is excellent for this. Zip only provides training on their system, and it’s too dangerous out there with all of the legal issues even for experienced agents, let alone someone new. You will get no real training or help at Zip, will just become a worker drone and will be giving away most of your commission. You will flounder and may even get sued if you don’t know what you’re doing.
Read all the blog entries here from the beginning. It should enlighten you.
Chris
February 7, 2008 — 2:35 pm
Darla says:
Thanks Chris. I called and talked to an agent in Seattle who sounded pretty upbeat. She told me there is a new training manager who is very good. The district director has been there for years and they stress teamwork very highly. I will at the least make an appointment and go in and talk with them. I am also considering John L Scott where a friend currently works and Windermere.
February 7, 2008 — 6:18 pm
Been there done that says:
FYI: Most of the training managers have never sold Real Estate either. SOME are licensed but from what I hear the V.P. of training at corporate isn’t even licensed which doesn’t make much sense. The Training Managers are there to teach you ZAP, that’s all.
February 8, 2008 — 12:03 am
Tasha says:
Oops they did it again!!! They just fired another DD yesterday without giving her a reason.
February 8, 2008 — 12:05 pm
Chris says:
Which DD just got fired?!
February 8, 2008 — 12:23 pm
Tasha says:
In the Dallas East district. She was the DD for about 15 months and was the only DD with real estate background.
February 8, 2008 — 12:50 pm
Deb says:
Actually the Seattle DD has RE sales experience.
February 8, 2008 — 1:18 pm
Greg Swann says:
A reminder from BloodhoundBlog management:
February 8, 2008 — 2:18 pm
Been there done that says:
Zip looks for a certain type of person to manage in the company. I know this sounds strange but in my experience with Zip…whether the person does a good or bad job really isn’t the issue. The folks at corporate want DD’s/Brokers/Training Managers to continue to SELL them into thinking they are doing their job. Just doing a good job and being humble is not enough. You have to let them know you are doing “something” and it really doesn’t matter what. This has to do with pushing the responsibility of failure down the ladder. A corporate VP can easily say that someone is putting forth a reasonable effort even if there is no credibility to the effort. People who tell you over and over that they are doing SOMETHING is not as easy of a target as someone who simply puts forth the same efforts and says nothing. My old DD sent out soooooooooooo many rah rah pep talk e-mails that we just deleted them. We knew it was fluff. Simply a way to say “HEY BOSS, I’M WORKING!”.
February 9, 2008 — 12:24 am
sylvia says:
I know somebody who is working as a real estate agent. Her broker recently closed a deal and escrow closed. The broker closed his office and skipped with her commission. what does she do…California. Can she look for an E and O policy to pay her?
February 10, 2008 — 6:00 am
Working Agent Denver says:
Hello all and I really appreciate the insight on Zip.
I was a team lead of 12 and one of the top producers in the Denver office (5 closings in Jan) and I was also just fired for giving a lock box code to a client so their FHA 203k certified inspector could get into the house. We were under contract. The house was bank owned, trashed and vacant. Granted this is an MLS violation, there was no slap on the wrist, no previous infractions, straight to termination. This is the problem with being an employee and having managers (DD and Managing Broker) that are control freaks and in this case, non-thinking control freaks. Things got personal real quick not to mention the managing broker went out of her way to inactivate my license. Almost 3 weeks later and I just got it worked out with my new brokerage. Very unnecessary and yet local but corporate supported management. Also, another team lead the day after I was fired stated on a conference call that she has done the same thing. She is still employed and yes I am looking for an attorney to take this on a contingency basis.
As team lead I was very cognoscente to the turn over and how experienced agents would see through the system quickly. One of the current team leads even stated in her interview that “Zip is more work with less money….”. She is very successful with Zip but she, like myself, hates marketing but that is a true indication of how those that know, know that Zip is somewhat of a scam but our response has always been, “we knew what we were signing up for”.
There is no better model for individuals that are just starting in the industry and have no client base or marketing money. For those of us with experience that work really hard and smart and despise marketing, this model can be very successful. One must close 4 or more deals a month to get the commission split that makes sense or close 9 deals in a fiscal quarter. To be successful, is a minimum of 60-75 hours a week which is relentless not to mention the meetings and constantly playing the corporate trumpet. Trust me, I worked it for everything that it is worth and tracked my time and when all was said and done, at best. I made/grossed about $32 and hour minus expenses. This is not why I got into real estate and that is not a good living.
So I was fired for something rather innocuous and a practice that is done by the majority of agents. When I was fired, I was told by the DD that I was not going to get paid for the deals I had under contract, my referral bonuses or my bump up to 60% commission split per my employment agreement. Being the corporate attorneys have a better sense of the value of a dollar to avoid law suits, I was paid in full but the point remains. From my first deal and from comforting new agents (often in tears) on my team when they received their first commission check, I realized that their system is set up to have agents scrub leads free of charge and pay them as little as possible with the premise that these people will leave since they are broke but the database stays with the company. Scrubbed and ready for a better capitalized agent to follow up and close.
Bottom line and my point, is that Zip is a crap model unless you have no life and you are a team lead. I went full bore for the last 3 months (been with Zip 10 months) and did reap the rewards but I compromised my personal life and some values dealing with local management. In the two weeks that I have been with my new company (with internet leads) I have written 3 deals and have 2 more in the pipeline. From those 5 deals, I will make more in 2 months than I did in 10 months at Zip. NET!! That should sum up the Zip model right there. There is also the issue of free labor to scrub the leads. At Zip you are a W2 employee but there is no minimum wage (except in Las Vegas). I see a future class action law suite right there.
All comments welcome.
February 11, 2008 — 5:40 pm
Ex-Zipper says:
Working agent: What brokerage are you with now. Just curious. It sounds like you are much better off now.
February 11, 2008 — 6:23 pm
Deb says:
Working agent….would you have left Zip if you were not fired for violating a MLS rule? In our MLS if you have this infraction it could cost you or your broker money and/or suspension. Our MLS is very strict about this. Zip is a publicly traded company and I guess I can see why they are upholding the rules but by the sounds of it from your post they may have been quick to show you the door.
February 11, 2008 — 6:37 pm
Been there done that says:
Denver Agent, I can’t believe they fired you for that. True, giving a client your lockbox code is an MLS violation but Zip has welcomed individuals that have far worse criminal histories with open arms. Did you have any problems with the DD or Broker prior to this incident? I agree with you that it can get real personal.
A few months ago the Team Leads in Phoenix had a “confidential” meeting with the DD to make a list of who needs to be “let go” or as the DD called it “trim the fat”, it was supposed to be a confidential meeting that was ordered by Bob Yak at Corp. From what I know it became a who do you like list instead. There were comments about my old Team Leader getting the ax which was quite surprising to me because she was one of the top producers in the district. For reasons that no one can figure out, the DD simply doesn’t like her. It gets really personal and the most disturbing part is that it is allowed.
There have been a few surprise firings in the past few months. Something sounds fishy about Denver Agent’s termination. There have been individuals with far worse infractions which occurred while employed by Zip and while employed elsewhere, yet they was no action taken.
Deb, there was something else going on with Denver Agent. Zip would not fire someone over this. They would definately use it as a reason if they wanted get rid of him but no one gets “shown the door” for something as petty as giving a lockbox code to their client. Please read “Suzie Jan 7th”, “Joslynn Jan 7th”, and “Gone @ COE Feb 3rd”, there is alot of truth to those entries.
ANYONE ELSE HAVE SOME INFO ON THE MYSTERIOUS FIRINGS THAT HAVE TAKEN PLACE LATELY?
February 11, 2008 — 11:51 pm
Deb says:
Yes and they allow a certain DD we all know about to keep his job despite a criminal background brought up on this very forum.
February 12, 2008 — 6:45 am
Ex-Zipper says:
Been there done that: I worked at Zip in Phoenix for a short time in 2004.
When were you there?
February 12, 2008 — 7:42 am
Newbie here says:
I have just spent the past 3 hours reading about Zip since I am new to the Real Estate Industry and I do have an interview with Zip next week in Sacramento,CA. How is the DD out in this area? I am checking them out as well as some other Real Estate Agencies in this area. Just hearing about the 60 hour weeks sounds daughnting. This is supposed to be my exciting and challenging “hobby”. I don’t want to end up hating it. I want to be happy with what I am doing. I want to be able to help someone find their home! If someone could please give me some insight from this area I would greatly appreciate it. Thank you!
February 13, 2008 — 11:44 pm
Another newbie... says:
anyone know anything about MLS Realty, a sister company of BuyOwner?
February 15, 2008 — 8:44 am
Working Agent Denver says:
Deb/Been there Done that,
Did not expect such a response and more information.
Deb, yes I would still be working at Zip for the sole reason that I had so much invested and had a great deal in the pipeline. The Zip model is based on the 90/10 principle. 10 % of the agents do 90% of the work. Have 90% of the agents only closing 3 or less deals a month and they keep as much $$ as possible.
To ZipFan, I committed to the system and was very successful and that is what it takes, complete dedication. But the time commitment is not balanced. When in FL in October I met and talked with many Team leads and the mantra was, once you get it going and you keep working it, it gets easy. I was well on my way. BUT, as team lead I definitely had an upper hand and the agents are not supported as you would be led to believe. Just a bunch of ra ra crap that I thought was local but obviously, it is a corporate standard. This company does not give a flying fornication about the agents unless you produce AND march lock step with management. I was a leading producer and well on my way to being the first Presidents Club member in Denver and I got canned for what again……. Granted, local issue but supported by corporate.
As far as all the stuff Zip “gives” you. It is true to a point but mostly hype. You are paying and paying a lot in the form of split and the absolute crap 8.33% TIF (which is nothing but a tax). I attempted for months to get a targeted marketing campaign towards those with ARM’s together from corp. down to the district level. All I was asking for was a post card to be designed Zip pretty and all I got was negative feed back and nothing. NOTHING. I was going to pay for the printing and the mailing. It was somewhat degrading dealing with the corp. stooges but it did show if you are not in management, you are not listened to or matter.
As far as the Denver management, I did not concern myself with anything outside of my team and my business. I had no, so I thought, issue with management but I can say I got many complaints from team members about the broker not responding to their questions, being borderline abusive/unprofessional and how nobody really trusted the DD or the broker. I took this as typical whining but now I know different. I guess some other agents not on my team complained about how I was not as helpful as I should be etc…. Would I really get fired over that? Just remove me from TL for God’s sake and let me to my business. The fact that Zip is attempting to not pay me for what I am owed is what I found shocking and is a telling indicator of what the company is truly about. I did get paid for the deals that I closed but I have yet to be compensated for the deals I completed but did not close.
The bottom line, in this current market I highly suggest all new licensees and those with a small inactive client books to go with Zip to get experience talking with potential clients, build the database, make those personal relationships then bail to somewhere that is honest, straightforward and has better splits. It is about $$ and cents and God knows Zip will screw any employee for a buck so do not think you owe Zip a thing. That last thing to consider, is why does not Zip have a higher commission split for your own business? Does not cost Zip anything. Constantly, the exec’s state this is something they are working on but people that have been with Zip for years state, “they have been saying that for years” More food for thought.
February 16, 2008 — 4:25 pm
Tampa agent says:
Our district director (who has been discussed here) has now organized a “get together” (drink fest) with one of our preferred lenders and didn’t invite all of the Tampa agents. I don’t believe the lender knows, it was the DD’s decision not to invite everyone.
He also had a Zip picnic in Naples for the agents there and he invited several Tampa agents.
This is very divisive to any team let alone one that is hanging on by a thread. I just don’t understand how one person can tear apart such a great place.
February 20, 2008 — 4:19 pm
Deb says:
Sounds like the Tampa DD has issues. Does he have any former managerial experience? I heard something similar from another Zip agent. Cant believe he is still there.
February 21, 2008 — 12:54 pm
Still In Denver says:
Wow – are there 2 offices in Denver? You must be in the other one!!! Thanks to the DD/DB – they kept 2 of my deals from falling apart – they personally spoke to the lender and other agent – damn control freaks – kept my deals together! I have never witnessed them being abusive or acting not professional to anyone. They have helped me over and over again.
Yes, Zip splits suck!!!! Yes, I have to actually work to make money!!! But previously I was working to find a lead. At least I am doing deals – yes the splits SUCK!! Your new 3 deals — your leads? Zips?
P.S. its 80/20.
February 21, 2008 — 4:43 pm
I'd personally like to thank ZIP says:
I learned alot from ZIP due to their
demands. There were so many leads and
so many calls to make that I became comfortable
calling people and making contact. The
leads aren’t always that good and take forever
to close and then you make ZIP on the deal.
Regardless, since leaving ZR I’ve had much more
success from my own SOI and my new broker provided
leads. I found that the leads my new broker provides me
are from people who are calling in and actually want to
talk to someone and are ready to purchase.
So thank you ZIP for teaching me to be comfortable in calling.
February 22, 2008 — 10:07 am
chuck_zip says:
I can not believe the hate. If it works for you stay..if not go..why would you stay if do not like it. Zip’s model is based on agent production, as is the agent’s paycheck. Zip agents make more than non Zip agents. Bottom line!!
February 27, 2008 — 8:13 pm
Steve says:
Hey chuck_zip, Bottom line Zip agents make more than non Zip agents?? I was with Zip for 1 3/4 year and have been with Keller Williams now for almost 2 1/2 years and the last two years here have net triple digit income. Never even came close at Zip and that is why I left. Oh, and I have been a Realtor for 14 years now:-) Good luck to you!
February 28, 2008 — 10:45 am
Agent Advocate says:
Chuck, you are living on “planet dellusional” if you think Zip agents make more than other agents!
I worked for them for more than 3 years and left because, even though I was a top producer, in a very high end market, the commissions were the worst of any other agency. You are paying through the nose for those leads, mostly junk, you’re working 24/7 or else you’re punished, and you pay a huge tech charge on top of it for their “great web site”.
I have been working for the past year at a great company where I pay a small desk fee, and keep 100% of my commission. I have my own web site that does everything and more that the Zip site does, and it cost me $49.00 a month.
Chuck, do the math.
I would never go back nor reccommend Zip to anyone.
I like having a life, building my business with my own branding, and being able to pay my bills. Go figure!
Oh, I have been an agent for 10 years, and a really good one at that!
Mathew in SF
February 28, 2008 — 11:07 am
Agent says:
Agent Advocate/ Matthew in SF
Would you be willing to email me info on where to get a site like your that’s 49.00/month?
utreagent@gmail.com
February 28, 2008 — 2:45 pm
leave a link says:
Better yet Matthew can you leave a link to your website vendor? I think this is ok with BH.
Thanks !
February 29, 2008 — 10:38 am
Tampa Agent says:
Does anyone know what the law is regarding the “madatory meetings” Zip requires us to attend? Since we are not getting paid for them, I don’t understand how they can require us to be there. Even if it means blowing off an out of town buyer, our attendace is expected. I believe that the buyer comes first, after all our goal is to sell homes. I would appreciate any opinions. Thanks.
March 3, 2008 — 9:37 am
Steve says:
Since you are an employee of the company and not an independent contractor I believe the company is within their right to require your attendance at meeting(s). Hey be okay with this as if you were with any other company like Coldwell Banker or C-21 you would still be required to attend meetings (possibly weekly) and tour office listings as well.
March 3, 2008 — 10:21 am
Russell Shaw says:
I do understand that all meetings are not non-stop fun for each and every person. However, everyone who works on my team attends a weekly meeting. I do allow exceptions from time to time, but normally each and everyone of them is required to be there.
March 3, 2008 — 10:35 am
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
Really? I’ve been with CB ever since I left ZIP and have never been required to attend an office meeting or a tour! How odd! Also, my experience with ZIP and my experience since leaving ZIP has actually mirrored that of Agent Advocate……and, I might add, hundreds of others who were top producers at ZIP and left for the same reasons that almost all of us do. I now make almost three times the income and have once again the time to spend with my family.
March 3, 2008 — 10:44 am
Tampa Agent says:
I can understand the importance of having periodic meetings, however, if a buyer wants to look and is ready to buy, how can I justify telling them “no, I have an office meeting” (especially when they are flying in from out of state). After all Zip is not paying my mileage, gas or parking. Seems to defeat the purpose of my job.
March 3, 2008 — 3:01 pm
Zippy day in denver says:
To workig agent in Denver…..I heard this story very differently. There are many things that you are leaving out that you did. You probably just need to take a chill pill and move on. I love the Denver office staff. They have been nothing but helpfull in my real estate career. I knew what Zip was all about when I came here and I am cool with that. I love all the opportunities that I have here.
March 6, 2008 — 8:54 am
You work to hard says:
I am a century Club member and have been with the company several year and there may be a week every now and then that I have to work 40-45 hours but most of the time I work about 30-35 hours a week and I have plenty of time with my family. I don’t let Zip rule my life. If you are working that many hours you need to look at how you are handeling your business. Get more organized and proficient in your job….
March 6, 2008 — 10:26 am
Jean says:
Does anyone have an opinion on the MPLS Zip office? Sounds like a good deal? Is it really?
March 9, 2008 — 12:54 am
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
What is the MPLS Zip Office?
March 9, 2008 — 10:50 am
Steve says:
Is that purported felon still the director there at the Tampa office? Whatever happened to the companies investigation into that matter?
March 19, 2008 — 6:30 am
Suzie says:
Yes, he is still in Tampa and he has convinced corporate that it isn’t him-it’s another person with the same name (and birthday and home address) that is being confused with him.
March 19, 2008 — 1:09 pm
Suzie says:
Steve, Yes and nothing.
March 19, 2008 — 1:10 pm
J.J. says:
What’s worse – Sticking a needle in your eye or not having your ZIP real estate agent follow your instructions? In this case give me a box of needles!
We told our agent on a Sunday that we don’t want to proceed with the process any longer because of incorrect loan agreements from a lender she recommended. The next day we sent an email reminding her that we do not want to proceed. A couple of days later, she tells us that she has submitted our paperwork to these lenders and they are working hard on getting us a loan. Which part of “we don’t want to proceed” didn’t she understand? Now she tells me that my deposit is in jeopardy because we have breached the contract. If she had submitted the cancellation request on the day we told her, I wouldn’t be in this situation.
Any advise?
March 29, 2008 — 6:17 pm
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
I don’t know what State you are in but I can tell you that, no loan, no agreement. I would call her District Director immediately and let him/her know what is going on. I can assure you, you will just have to mention “Corporate” and all will be remedied.
As an ex-Zip Agent I hate to hear of this behaviour. Let me know how you get on. I can give you some names at corporate if you need them.
March 29, 2008 — 11:27 pm
Been there done that says:
I’n not sure what state you’re in but don’t call the District Director, call the Broker. The Directors at Zip will try to talk you in to staying in the transaction. They actually receive bonuses for close ratios. The Brokers are more likely to protect you as it’s their license that is on the line and in this case will most likely be responsible for their agent’s actions. The problem you’ll find is that the Brokers report to the Director so you might be stuck.
Also….File a complaint with your Department of Real Estate. One of the standards of practice for a Realtor is to OBEY INSTRUCTIONS. The minute you told them to cancel the transaction the agent should have explained your position contractually whether you were within your timeframe to cancel or not and allowed you to decide from there. Good Luck!
March 31, 2008 — 8:37 am
It's bad enough says:
It’s bad enough that this is a dumping ground for agents who
have had a bad experience with ZIP but now Buyers too?
Come on ZIP wake up !!! And ZIP Agent you too!!
April 1, 2008 — 3:01 pm
Steve says:
LOL! I dont put much stock on an internet forum. I bet some of these posters are actually agents with competing RE companies.
April 1, 2008 — 8:18 pm
J.J. says:
I’m in California and a real buyer, at least I was a buyer. After sending an “official” letter to escrow and to Zip (agent, broker, and manager) to cancel the process, I received the Consent to Release Deposit form, which I happily signed and I believe the seller also signed. However now the seller is stating he will not release any of the deposit money. I’m thinking of taking legal action (arbitration) to get my deposit back. I even offered to pay 1 month mortage for the sellers loss of time. During this time, Zip has not been helpful in any way to get my deposit back. If they were in any way compasionate to the situation, they should at least inform me of how to get my deposit back. Aside from that, should I be expecting to receive some sort of doumentation stating, the home-buying process has been cancelled?
April 14, 2008 — 10:16 am
Kendra b. says:
I am a former employee of Zip and I received a letter
about three months ago asking if I had worked with Zip during the years 2004-2005
and if so that I was owed back pay of xxxx amount. I signed the paper and sent it
back. The paper had said this was a class action law suit. Does any one know anything
about this? I have not received a “check” from any one. You can also respond or
have any questions please email me at missskendra@gmail.com Thank you Kendra
April 20, 2008 — 7:55 pm
Peter K says:
Here you go Miss Kendra:-)
http://www.lubockiclassaction.com
April 21, 2008 — 10:07 am
LA Agent says:
Are you Kendra Chui??
April 21, 2008 — 10:10 am
Kendra b. says:
No sorry. Thank you for the information.
April 21, 2008 — 10:27 am
Zapped Out says:
I’m new here.Any Zip agents from California? I can relate to all these posts and I am so glad to be rid of Zip. My District Director was totally unprofessional she used to go to work with her hair all wet and never even said hi to us when we were training for Zap. It is true that you need to suck up to the boss or you do not get any leads. She talks about being presentable and she wears all these boxy suits that looks like she got it from Goodwill. I heard a story that she was in a meeting with an agent and she went on and on about her trip in Jamaica with a girl friend and how people were asking them if they swing.She always talks like she is drunk and have spotted during luch hour drinking. Where do they get these people? WTF? I do not understand where they pick the DD’s. This DD also picks her favorites. All the succesful agents in the district had multiple zap platforms by recruiting their spouses, relatives and you never see these people in the meetings so you know that they do not really work at Zip and it’s unfair for agents that are getting cut off the leads because it goes to the agents that are realted to her favorites and nobody else can say anything because the DD is in control. She has a favorite pet who I heard she just made into team leader and this team leader has not really proven anything at zip except for the fact that she and the DD are best friends. Now they’re having this pet start teaching agents along with her brother who the DD called a top agent when the brother has not even closed anything since he started. Zip sucks you dry with your hard earned money and they hire DD’s that pick who their favorites are so instead of you getting leads, it goes to the biggest as% kisser. For those of you who have left had you had success in bringing your clients from zip in your new company if you do not solicit them and the client chooses to stay with you? I’d be curious to know.
April 22, 2008 — 11:50 pm
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
HI there….welcome to club. I too was a California ZIP agent and although, I must confess to having made a decent living with ZIP, the cost to my lifestyle and family was enormous. I now work for a top name realtor and am extremely happy and, even in this difficult market, successful. It really doesn’t matter who you are with, what matters, in my opinion, is working hard, and being able to adapt to the changing market. The greatest difference is that when I work hard now, I get rewarded, and actually have the time to enjoy the rewards, something that was impossible whilst on the treadmill at ZIP.
A note of caution. I would not even consider taking any of your ZIP clients with you. If one of them contacts you direct and expresses their desire to continue to work with you be sure to have them send you an email clarifiying their position and the fact that they were not solicited by you. This should cover you in the event of any trouble from ZIP HQ. At the end of the day, clients are free to chose their Realtor. I would not solicit. It’s just not worth it.
Best of luck.
April 23, 2008 — 10:01 am
David says:
I just joined zip the 20% back is gone it’s been lowered to 15%, and I don’t pay for leads i do get an hourly (thats I do pay back when I sell something) + a monthly stipened, + gas,phone,mls,internet reimbursment. most here are writing out of the gate 3 contracts a month with most closing and the more experienced agents are writing upwards of 10 contracts a month with an avg of 7-9 of those closing. Granted your not going to get rich with this company and I doubt I’d want to work with zip clients after I leave in a few years as they’d expect discounts etc. so its a job. As for the Ra Ra kool aid meetings, it’s like that everywhere. it’s aform of mass hystria used by the loosers in the pay us 1000 for a weekend seminar that consists of nothing more than your good I’m good and we’re worth it. So just curious I too worked with a KW co. before liked the people but they had no leads and no advertising so there was nothing but fees to be paid and in house education of the kw way. Which was great but already knew most of it since I was 18 starting my own business. So what company out there gives you leads 40-60 a month and reimburses you for your expenses pays for cards mailings web page phone internet and gas mileage?
April 24, 2008 — 3:58 pm
Butch says:
David…You have completely lost me. 15% now? Not in my district. Hourly? Not here. No agents writing THAT amount of contracts here either. Good luck finding a RE company that is going to pay your way and give you 40-60 leads. Btw….it is spelled ‘stipend.’
April 24, 2008 — 5:01 pm
nonbeliever says:
NEWSFLASH!!!!If you need to join a company to get leads because you can’t generate any on your own….get out of the business. All companies like Zip do is saturate the industry with inept agents who couldn’t survive in the REAL Real Estate world. Why is it that every time I deal with a Zip Agent I have to explain how to do the deal? I don’t understand why I have issues every time I conduct business with someone from Zip. Your leadership is the worst I’ve come across in my market. I spoke to the director in Phoenix today and it was like talking to a drugged out Brittany Spears. She was so lost. Is this the same lady that lost $11,000 in earnest money for her clients last year? Also, I want to know what Broker in their right mind would sign that Consent Order for Brad Schmidt? It specifically states that he can’t act as a manager or supervisor in the company. Good Luck if the ADRE calls you on it. I know I wouldn’t sign it. He is MANAGING and SUPERVISING for the company against the ADRE’s instruction. I will be drafting a letter and sending it to ADRE to get an explanation of what loophole (if any) Zip is using. I do an enormous amount of business in Phx and I cringe every time I get a contract from a Zip Agent. I worked with a couple of good ones but the majority really should find another day job. Sorry, just needed to vent because I can’t get anyone in the main office to call me back. So unprofessional!
April 24, 2008 — 11:08 pm
Steve says:
Hey nonbeliever…..good points! Your views are clearly demonstrated by the incoherent postings of Zippies and some ex-Zippies on this forum recently who cant spell for a plate of beans!
April 25, 2008 — 5:25 am
happy to be gone says:
I worked at Zip for 4 months several years ago and at the time, I didn’t know everything there was to know about Brad Schmidt. I DID know at the time that he was one of the most arrogant people I had ever met. I’m actually happy that he was the Director at the time so that I didn’t waste too much time there.
April 25, 2008 — 7:17 am
ex-Zipper says:
Sounds like the DD’s and some Brokers at Zip are quite a bunch!! From the ex-con in Tampa….to the cheating heart in Chicago (think she might be gone)….to the inept Phoenix dark hair raven…..now to the arrogant Brad Schmidt. Always a soap opera!!
April 25, 2008 — 8:07 am
David says:
They have to pay an hourly or a salary (a draw against future earnings) becasue they are a corp. and are on the stock market as a publicly traded company.
Here in the west, we don’t have a static population where I live large numbers coming in weekly. Our housing issues should be wrapping up here in the next 12-14 months if not sooner, we’ve already hit bottom here and are now on the clean up side. So either you don’t understand the way your paid or something as it’s federal law and you are not an independent contractor when you work with zip realty. It also maybe that you’ve not been with them since well before the stock release to the public and you don’t know what you are talking about. Is that a possibility?
April 25, 2008 — 8:52 am
Agent says:
David,
Not every district pays an hourly rate. I know in Utah they don’t.
April 25, 2008 — 9:21 am
david says:
They should be paying a salary or hourly stipend. Do agents pay their own taxes? they have to pay something to get around the federal law the concerns corp’s listed on the stock market. We get hourly here that is then paid back when a contract closes. Is this the current way it’s happening or is this something from the past?
I would be interested to know about current policies in other areas.
To the person who bought a house with problems and blames the agent, did you have your home inspected or did you skip it? If you had it inspected i would go to the inspector and blame that person. If you refused then you need a mirror.
As for others who said people should get out of the biz If you can’t find your own client’s I would say that in conjunction with what I get from zip I will be doing my own marketing to promote a specific area (farm) of interest. Reason being that if I don’t work with some but they decide to sell after I leave zip in the future will still think of me because my cards newsletters and personal contact with them will make them hopefully think of me first. I just would like to make some money now, better to make some now while that developes than sit back with money going out and none coming in for the next 2 years (typical length of time a farm takes to pay off). Additionally I have over the last year making contacts in other markets with similar homes that I want to specialize in all over the country. So personally for me this makes since. Why go absolutely broke and use my savings till that pays off when I can make some money while the plans of action are developing.
My reason for starting my career in RE was to prepare for retirement above and beyond what I have put in place starting at 20 and make extra money by investing in rentals and rehabs. My area now is ripe for rental purchasing and rehabing and holding for a few years or long term. My area is on schedule to at the end of this year have the start of 200,000 new jobs in direct emploment and for every job created have 4 more to service those people in stores, shops, services, etc. My area will double in size again in 10-15 yrs. So this is a long term great place to be investment wise. My area was hit hard and early by the slow down, but it’s on track to recover before most of the rest of the country.
April 25, 2008 — 10:44 am
Rich says:
David:
What City and State are you living in? 200,000 new jobs by year end, WOW!!! I want to move where you are. What a fantastic job market. In California according to the State Dept of Employment and Development EDD, California lost 84,000 jobs in March, 62,000+ in southern California and 12,000+ in northern, 10,000 in central California. Only the SF Bay area had a small gain of 4,700 new jobs but the Bay area is set for future job losses from the tech and internet areas. What skills will make up these new jobs, engineers, tech, manufacturing, agricultural, energy? What source of water and energy supports these new jobs? It sounds like the wind farms in Texas that T. Boone Pickens proposed; or is it biomed or drugs (pharma)? Or may be Zip is in China. They still have a double digit growth rate. By the way, California has 11% of all US jobs. So I am ready to move to your City of fantastic growth.
Also what does a company’s stock listing status (NASDAQ for Zip) have to do with how the agents are paid? Have you been paid by Zip? Reimbursed? I think you are so new you just don’t understand the program but the idea is interesting and if you are paid hourly then may be other Zip agents who are not would like to be. I know Zip recently lost and $3.5 million suit regarding the pay of agents so things may have changed.
And 10 contracts a month, with a conversion rate of 2%, that is 200 leads per month. Either some agents are very good at knowing positively at a glance which leads are good and which are fluff, because it is impossible to work 200 leads per month. What is your conversion rate? And how many of those offers become contracts? About now it is 10 to 1 given 38% of the sales are foreclosed and the bank asset managers are mired in rules creating slow responses and excuses for non-performance. Then how many of those contracts close? The MLS statistic is almost 33% TFT (transaction fell through). So 10 offers results in 1 contract which might close in 3 months. I don’t think you are going to get rich or retire in this industry today unless you are a very good listing agent. Statistically Zip agents carry the lowest number of listings per agent in the MLS of any national firm. The deck is stacked against you.
April 25, 2008 — 1:11 pm
EX ZIPPEE..... says:
WOW……..lots of information on this site. I was with Zip in the Pacific NW for more than 3 years. I was consistently closing 2-4 deals per month, working 15 hour days and driving tons of miles. I joined Zip because I wanted to learn FAST! Whatever we might say about Zip – I was showing houses within the first week of becoming an Agent. That’s impressive. I arote over 150 transactions during my time with Zip and closed everything from a mobile to vacant land. The experience was phenomenal, the pay sucked!
As the time with Zip passed, I LOST benefits – I did not gain them. SInce I didn’t kiss my DD’s ass – I had to work hard on my own to make things happen. Once I built my business and had repeat customers — I sprung from Zip JAIL and things are fabulous! Our DD liked to put the “fear” of “trasditional” real estate in his agents — to keep them from spreading their wings and soaring to bigger and better things!!! A real dumb ass, in my opinion. From the retreats the team leaders take (THAT NO ONE TALKS ABOUT) to the absolute favortism shown by DD’s — there are lots of Skeletons in the ZIP closet! THANKS to the courage of a few individuals in CA and WA that took Zip to task over alleged illegal wage issues had people stop and take notice. KUDOS to you few who took a stand against corporate bullshit. The P and VP periodically make trips to spout the company line and claim they care about our pay — blah — blah — blah!! It’s also an illusion FOLKS. Management cares about management. That’s the bottom line. They like Agents they can manipulate into company mouth pieces who spout the company line. Use the company liek they use you. Learn the business, uild a base, get educated and then MOVE ON to bigger and better things! Zip use to be the only kid on the block that provided leags to their Agents. NOT ANY MORE! KW – Pru – Coldwell – they all those types of lead programs and you don’t have to put up with DD’s who haven’t closed a deal in years, if ever! Start where you need to — finish with the PROFESSIONAL REALTORS IN GREAT COMPANIES AROUND THE GLOBE!!
April 27, 2008 — 8:02 am
David says:
Wow thanks for the info. I just left a KW here so it must just be a broker specific thing of providing leads. How long were you
with Zip? I’m doing it to get my feet wet and hopefully pay down some debt. Did you find it hard after you left with the 12 months of
no previous customers? I would think that just reffering them to another agent would be an easy way
of getting around that rule or someone said something about having them sign something that they contacted you.
I’m not stupid all RE co’s are in it for them to make money whether by charging various fees or by doing zip’s way. Nothing is free
I would imagine it all balances out at somepoint if you close enough contracts.
Is anyone on here in the north bay area, I am looking to move up there in 2 years or less. I want to have a place there set up before I
retire to over seas. Thanks again for your input it was helpful.
April 27, 2008 — 6:50 pm
EX ZIPPEE..... says:
Hi David —
You’re right it varies from office to office. Interview around and ask lots of questions. I interviewed EVERYWHERE – big companies, small companies. Solid customers follow good solid Realtors wherever they may go! I made sure my current customers knew I was leaving — so they wouldn’t think I was a flake — because we all know the company will assign a new Agent to the customer and never mention that you’ve moved to another company!! I haven’t even bothered to contact the people I worked with from Zip – because I’ve been so busy at the new office!!! Zip definitely has a purpose — get in there — learn the business – close some deals – GET ECUCATED because Zip’s educational training is laughable — and then when you’re ready to fly — FLY! The management at Zip cares about ZIP management — don’t ever think they care about YOU the Agent — it just aint so! Zip likes to keep its Agents broke and scared about traditional real estate – because even the big boys at Zip — are rolling in the dough. From trips to travel to meals — they’re riding high while you the Agents are busting your bumm working 7 days a week working through lots of crappy leads!
It’s a place to start —– NOT a place to finish!!!! Good luck in your journey!!
April 28, 2008 — 10:07 am
future zippy says:
I am new as well and have been with KW for a few months. They do not offer leads at all. I have gone through 300 business cards and have spent more on marketing myself than on anything else. I am considering a move to Zip because 40% of something is better than 90% of nothing. I am in the Seattle area too. Windermere, JLS and Remax are the primary players here.
The draw to Zip for me are the leads and marketing.
Any thoughts?
April 30, 2008 — 10:22 am
EX-ZIPPEE says:
In my opinion, KW is certainly NOT your best option for lead sources! They’re great if you have your own Circle of Influence as the cut is less! They are incredibly strong in training — but you have to have clients to put the training to work!! I hear from the Zip Veterans that I am in touch with that business sucks!! The leads are crappy and nothing’s happening! Why don’t you try realestate.com — they have a lead distribution program — although you must answer your phone when it rings to ensure you receive the leads — but it’s a place to start. They pay ALL the start up costs too!!! Might be worth checking into so you can get your feet wet and close some transactions! At least interview with them and see what you think…….talk to their Agents see if they are closing transactions. Rumor has it they are still moving and shaking…….
GOOD LUCK — let me know what happens!
April 30, 2008 — 12:11 pm
PF says:
EX-ZIPPEE there are currently 2 Zip agents with 11 transactions for April and several over 8 transactions and their districts are spread out around the country. Perhaps the veteran agents you talked with at Zip are busy at their other jobs:-)
April 30, 2008 — 1:29 pm
david says:
Well just found out that zip here in my area does the hourly thing because of state law. just and fyi.
April 30, 2008 — 2:01 pm
future zippy says:
ex zippee– a fellow KW went over to zip and has completed 3 transactions since March 1 and has 7 buyer contracts. He said KW was great at training but unless you have the circle, forget it. I am going to the Zip orientation next week to ask more questions. I have a lot of training, just need more clients to use it on. i have hosted numerous open houses, placed ads in the Herald, etc. and still not getting the action I want.
What other Seattle area brokers do you know of that give leads? I am building my business so whoever posted above that unless you can generate your own leads get out. How did YOU do when you first began?
April 30, 2008 — 2:12 pm
PF says:
future zippy you wrote “I am building my business.” The problem with joining Zip is when you leave you cannot take the customers you transacted with while at Zip since you sign an agreement with Zip based on thisand you are an employee of Zip, not an independent contractor. Thus, if you are building your business Zip isnot the best choice of RE companies to work for. You from Everett/Snohomish
area?
April 30, 2008 — 2:23 pm
Marie says:
I have an appointment with Zip tomorrow. I was interested in the company because of the free leads. I already have a connection with Century 21 Proteam because that’s where I took my pre-license courses but I’m nervous about trying to get all my own clients. Any advice for a “new kid on the block”?
April 30, 2008 — 3:01 pm
future zippy says:
yes Sno county. zip cannot force a former client to work with them. If I handle a transaction and the client loves me and in 3 years, moves, why can’t they contact me? My cell # won’t change. Someone posted above I cannot contact them if I leave. So then I would simply tell them I am leaving and where I am going, and if they choose to work with me again to give me a call.
I understand it to mean I cannot market to them.
April 30, 2008 — 3:48 pm
EX ZIPPEE..... says:
Okay — I’m certainly not a newbie to this business NOW, but everyone is at some point. If you don’t have a circle of influence to begin with — you’re right working for a company that provides leads – helps you build your circle. You still MUST network outside of ANY company that provides leads in order to build your base. The problem with Zip is that the split sucks — so you’re not making much cash. Know that at Zip, after all deductions you’re actually making closer to 30%!!
To the Agent above who wrote about the 2 agents doing deals — with all due respect — I was a top producing Agent at Zip so I know the ins and outs of the Zip lifestyle -beyond a shadow of a doubt!! In addition the Veteran Agents I were referencing are in ZIP’s top 5% of Agents nationwide. Stating that 2 Agents have numerous deals out of the 100’s of Zip Agents CLEARLY HELPS ILLUSTRATE that in order to really produce, you’ve got to be a DD favorite or company kiss ass. In any event, if those Agents were as successful as you say, they would have left Zip a long time ago. SOLID producing Agents don’t stick with Zip!! I know I was one of them!! Thought I’d be a lifer until I got out there and interviewed around! Zip’s no longer the only kid on the block with leads — AMEN!!!
Yes, clearly I built a fabulous circle while at Zip. I am at at least 2 referrals or repeat customers every month from the time I put in. You’re also right that it is your customer’s choice. Zip just does not make it easy for you — but they why would they? They are not in the business of building Agents — that’s why you can’t have your own website, yad- yada – yada! Zip promotes ZIP – it does NOTHING to promote Agents!!!
I also know a KW Agent that recently left Zip — but lets be clear he HAS A HUGE customer base and was a top producer at ZIP prior to his departure! Ask him why he left — he’ll tell you — and he’s right – if you want to make good CASH – ZIP IS NOT the place to be. Again, maybe a place to start — NOT a place to finish!!!
April 30, 2008 — 4:41 pm
PF says:
Marie, the leads are not free at Zip Realty. You actually pay for them in much reduced commissions (40% to start) and what they call a technologie fee or “TIF.” This is what most dont understand. 40% commission is well below the norm.
April 30, 2008 — 4:51 pm
EX ZIPPEE..... says:
THANKS for that clarification!! The leads are definitely NOT FREE! You may dearly for them!! Clients get 15% right off the top — then you pay an almost 10% Techology Fee and then you split 60-40 – then you pay taxes etc. Less than 30% by the time everything is said and done!
Definitely NOT FREE – you are paying for everything! Business cards, advertising, customer rebate, internet — once you leave the company and begin to pick up your own tab — you REALLY realize how much you were paying for things at ZIP!
May 1, 2008 — 8:51 am
future zippy says:
I understand everything ex zippie and PF are stating. My point is 30% of something is better than 100% of nothing. I need more transactions under my belt, more time with customers demonstrating how amazing I am :). I will continue to build my database and continue to market. The cut from zip is higher if I bring the lead in too. I am not aruging that other brokers have a better split and you’ll make more money. I intend on leaving zip after I have enough of a client base built up.
My question: How would zip know that after 4yrs an old client called me where I was working at Remax? who would tell them?
May 1, 2008 — 9:02 am
EX ZIPPEE..... says:
I agree 30% of something is better than nothing – which is why I chose to start at Zip, too! You DO NOT GET a bigger split on EVERY CLIENT you bring in……KEEP watch on that! BUILD your business and market yourself. You’ll have to be very careful with the marketing as Zip does not allow Agents to run ads, maintain their own website or anything of that sort!!
When you leave the company — ZIP will keep tabs on your listings. They also send EVERY LEAD on your database (EVEN YOUR OWN CLIENTS THAT YOU BROUGHT IN) to a top Agent once you leave the company and they work on contacting all of your leads to keep them tited to Zip. If the client contacts you — the client contact you :):)
That’s why you must continue to market yourself — if you don’t you’ll get TRAPPED like the hundred of Zip Agents who can’t afford to leave the company and start somewhere else because they’re broke and when you’re broke — your options are limited!
GOOD LUCK — I hope it works for you!
May 1, 2008 — 8:29 pm
been there done that says:
Ex Zippie, you are wrong about not being allowed to promote yourself. In Phoenix there was an exception made for an agent who is in good with mgmt. The website is still active and chances are that the agent will not be instructed to close the site. Kiss a little ass and you’ll get to do whatever you want as long as it’s on the hush hush. Heck, the western VP allowed two agents to work in two seperate districts (Phx and Austin) and then lied to everyone about it. That’s against company policy and he was still willing to allow it. The bottom line is that you really need to figure what you want to do with your RE career. Do you want to be an employee who is married to the system or do you want to grow your own business. Zip does not teach you how to fish so you will be stuck in that big orange hole called ZipRealty. It’s a corporate environment filled with leadership who have never sold houses. In my opinion it is better to find a top producer and see what the REAL hitters are doing. You won’t find any at Zip. Good producers….yes. Mega agents….HELL NO!
May 1, 2008 — 9:35 pm
EX ZIPPEE..... says:
That might have happened in Phoenix – but its not happending on the West Coast!!!!!! Zip’s TOP producing Agent JUST recently left after being forced to shut down the site. Hands down – this was a primary reason in the move to another company. If you’ve been in the Zip lifestyle for any length of time — there’s no such thing as HUSH HUSH! Since the loss of the lawsuit in California – Zip’s definitely tightened the management belt. Team Leaders are under tighter wraps – and yes, we all know about the Agent doing double duty in Phoenix — she’s ALWAYS had special treatment and MANY have wondered why. Bottom line though – EVEN that very busy Agent had to leave the Agent ranks and move into a management position to pay the bills! Pathetic, true and sad!
It’s true the training at Zip is Agents training Agents – they don’t spend money on professional training because they like putting newbies to work. They don’t question the system – they don’t have to pay the stipend/expense allotment and they don’t cause problems. Once you start closing LOTS of transactions though — those UGLY split numbers smack you right in the FACE –
It’s a place where you will go to work immediately –but you’ll pay for that in the short and long run!
May 2, 2008 — 5:29 am
future zippy says:
ex zippie, what brokers in the seattle area do you recommend for newbies? I would have mentor at zip since a seasoned friend went there. Again, I doubt I would stay more than a few years. I need to handle more transactions and learn the business. I have had great training at KW but when I am not closing deals the training is useless.
Would you suggest a discount broker? What do you think the average payout to the agent is at Zip per closing?
also, does zip do property management? I’d like to get into that as well.
thanks for all of your help too.
May 2, 2008 — 9:35 am
REMadman says:
Does anyone know anything about the Atlanta office?
May 3, 2008 — 8:32 am
david says:
you can have your own website, blogs etc, you just can’t have the Zip logo’s etc on there you can however have a link to the zip realty website.
but when you do a website it is about you not who your working for. It’s about you whats you offer and your areas of interest.
All this favortism thing seems a bit over the top and smacks of someone not willing to work their system. You have to be accountable to yourself and your team.
Why give leads to those who don’t work or worse you got the leads and didn’t take them seriously or put effort into them.
I just got 45 leads on thurs/fri. alway look in a mirror before saying or blaming someone else. 9 times out of 10 that’s where the blame lies.
May 3, 2008 — 11:17 am
PF says:
david that is interesting. I got busted for having a website and I know of others who were told to dissolve their websites immediately. The new contract between you and Zip Realty addresses this. I suppose you could have your own website if nobody from Zip finds out but then what good would that do since you could have your license pulled if you did not disclose to the public you are a licensed agent with Zip. As for blogs, I presume it is the same.
May 3, 2008 — 5:56 pm
Is anyone Paying attention? says:
Does anyone that reads this blog
even pay attention to what is being written here?
I don’t know about anyone else but I got
got into the business so I could work for
myself and my clients and and not have to answer to
corporate officers. Take time off as I please, work as
much or littla as I want. Promote my brand within the
guidelines of advertising for Realtors and help people
get into and sell homes. Everything I see here makes this look
like a regual job working for someone else. I might as well get
a day job and get paid every two weeks, invest in a 401k
and take 2 weeks vacation and some sick days. Best of luck to all!
May 5, 2008 — 8:36 am
PF says:
Hey ‘Is anyone Paying attention?’ the big difference is as a RE agent you can control your own business and do little or as much work to increase your income as you want. You really only have yourself to blame whether you make 5K a year or 100K a year. Try asking your boss for a huge raise some day. Now, with Zip there are obviously some conditions that will make it tougher to reach 100K than if you were an independent contractor at some other RE firm but the point is it still can be done. Just ask the top producers at Zip who do make triple figures.
May 5, 2008 — 9:13 am
MD New Agent says:
I was wondering if anyone knew anything about the MD Office. I am reading here and became very weary. I think the top producers here are Remax and Long and Foster. Please give me some info in reference to the leads and freedom, because I definitely am not interested in working in another 9 to environment.
May 6, 2008 — 4:45 pm
twincities says:
Does anyone have information about the minneapolis office and it’s management?
May 8, 2008 — 8:36 am
future zippy says:
I just attended the orientation at the Seattle office and spoke to the DD for an hour after. To clear things up here’s what he told me:
1. leads are autmatically sent to each agent by the software that randomly selects. No one is physically sending them. You can get up to 60 per month, more or less. There cannot be favorites.
2. The only time the DD send leads is if he’s transferring someone else’s database. He said he chooses people that want to work, are performing and new agents. If an agent hasn’t closed a deal in a few months he expects the agent to talk to him about what’s going on. If you can’t close at least one deal per month with all of those leads, something is wrong and he would expect a sit down with you.
3. the Seattle DD is an ex agent with JLS and has 10+ years in the business. Perhaps some other offices hire DD without a real estate background, but not in Seattle.
4. You can promote yourself but cannot have a separate website. No photos on cards, but you can keep a blog.
5. the database is Zip’s once you leave. If the lead was brought in by you, but used through Zip, the DD will not bother with you after you leave. if the client was a Zip lead, and it’s not one or 2 it’s the whole database he will call you. Per the contract you are not allowed to take the leads with you. That doesn’t mean the client cannot contact you after you’ve left for say, ReMax. Just tell your client not to tell the new zip agent that will contact them that they are working with you. If they are Zip’s leads, leave it at that. you can keep a separate database if you wish, but you may not have time. Zip will have you making calls imediately.
6. the split is 60/40 and changes as you do more business. if you close 4+ transactions per month it’s 50/50. It increases the more you do business. The buyer’s credit comes out of SOC. Zip is considering changing the split for leads you bring in so it may change in the future. Agents that come to zip with a large database are complaining about not getting a better split since the client was and is theirs. There is no monthly fee.
7. You do not have to work 24×7. You work when you want to work. If you do not contact a lead within 24 hrs it will be reassigned. If you have a PDA you can easily contact any lead you get via email or phone.
8. the ZAP is quite nice. I liked the tracking and how it’s all in one place. your emails are tracked and on;y the manager and DD can read them. I had an issue with it, but it is corporate. They don’t have time to read your emails, but it would come in handy if you needed to confirm something or a deal went sour and the DD and you can read your emails and figure out what went wrong.
9. Some agents have had to take on part time jobs, so it’s up to the DD. Seattle allows part time jobs to supplement.
10. All A boards, signs, business cards, etc are paid for by zip. You won’t need to do mailings but if you want to you can. Zip utilizes the internet so they don’t do mailings a lot.
11. they assign a mentor to help new agents. You will have access to an entire team to help you. I have one at KW but I also pay 25% to have that.
12. You will be a W2 employee.
13. Zip reimburses for gas
14. There is turnover and some leave and go to traditional brokers. some leave the business altogether and some leave and come back.
It’s really up to you. If you have a great database, tons of clients and plenty of work, there’s no need for you to move and I wouldn’t if it were me. It is great for new agents to learn to make the calls and close the deals.
I will be going over there because I personally need more experience. I wanted to give you all an honest opinion on what I experienced at the orientation. It has its pros and cons just like everywhere else.
May 8, 2008 — 10:43 am
Dave Marron says:
@future zippy. I rarely comment here b/c the discussion has strayed so far from my original post. However, I do know the DD in Seattle. He’s a decent and honorable person. He’s a straight shooter and very well regarded. He’s been at zip for a very long time, probably longer than any other DD. Good luck to you.
May 8, 2008 — 4:34 pm
future zippy says:
thanks Dave. I hope Zip takes your comments and changes the way it does business. Happy agents mean more revenue for everyone. I do like their philosphy of It’s about the client not about the agent. Very true when you’re in the service industry.
Thanks for the thoughtful insight into Zip which made me want to research it more.
To any new agent out there, please research the broker you want to work for. It will save you a lot of heartache!
May 9, 2008 — 9:58 am
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
Hi future Zippy, super information but just a couple of points. the 60/40 split begins at 80% not 100% as the 20% paid to the client comes off the top, and, don’t forget about the TIF (Technology fee) of just under 9%, so your actual starting commission is actually 31% of 80%.
Good luck to you. I learned a lot during my time there about the internet market and made some good friends but ultimately the system failed to reward the effort necessary to maintain my status as a top producer.
No regrets though.
May 9, 2008 — 12:36 pm
PF says:
So….how are all the Realtors doing in this market? I am sure most will answer they are making money hand over fist (LOL). Did any of you newbies that posted here lately thinking about joining Zip ever join Zip? If so, how are doing?
May 20, 2008 — 1:51 pm
sold says:
zip agents are now each selling less than a house every other month. They announced that productivity had fallen to .4 homes per agent per month. It’s got to be tough to make a buck with that commission structure and such low volume.
May 20, 2008 — 2:05 pm
Robin says:
Avg zipAgent Commission 50%..no way that says it all no way I would work for that
May 23, 2008 — 3:18 pm
Florida says:
Just as previous posters said, zip realtors production has gone way down. There production rate have ben declining for a while, but now it’s starting to get real bad. Plus the commission rates are low as well.
May 26, 2008 — 3:44 am
Unhappy ExZipster says:
I left Zip a month ago for most of the reasons mentioned on this site. I was wondering if any of you ExZipsters had any problem with Zip not paying any outstanding commissions? If so, what action did you take and did you succeed in eventually getting what was owed you? I registered a client with a new build company. They signed their contract on 1/31/08 to buy a spec home. They will not actually close until 5/30/08. Zip claims because they didnot close before I left, I will not get my commisson for that transaction according to contract. They claim they may still have work to do on the transaction. The builder said Zip has nothing to do with their contract with the client I brought to the them other than to collect their 5% commission at closing. If anyone has any course of action suggestions, I’d greatly appreciate it.
Thank you, Unhappy
May 29, 2008 — 11:37 am
Tasha says:
Soudns very familiar. Happens all the time. You would think they would have learned after the recent lawsuit that they settled for 1.3 mil. http://www.lubockiclassaction.com
Technically yes the buyer belongs to the broker in any situation at zip or elsewhere. It’s a matter of doing the right thing but for them that’s a foreign concept. Only their bottom line counts, not the client or the agent.
May 29, 2008 — 11:51 am
Unhappy ExZipster says:
Thank you, Tasha. The Lubocki website is an eye opener. In my case, it’s a referral fee from the builder Zip is refusing to pay. By the way, I now work with a brokerage that states in the contract, “If you leave the company, your clients go with you. You worked for them. They’re yours.”
May 30, 2008 — 4:40 pm
Kathy says:
Unhappy ExZipster: I also had a deal in escrow when I left Zip and this is what I did.
I had no choice but to leave so I talked to my clients (these were my friends and I had signed
them up for Zip)I told them the situation that I was being forced out (my leads were turned off).
They said they still wanted me to represent them, we were five days from closing. I called broker
and said I was quitting. He said he would call me right back (I assume he called headquarters)
and when he called me back he said “cease and desist all contact with these clients in esrow”.
I told him they still wanted me to represent them. He then said he would call me back (hey I’m
not kidding). He then called my clients and they insisted on me representing them and wouldn’t
take no for an answer. So broker called me back and said I can represent them. After much
going back and forth with headquarters (california people) I walked away with 90% of the commission about $5,000 more
than if I had stayed with Zip. So it worked out for me. But it was alot of cooperation from
my clients (they threatned to cancell the deal if I couldn’t represent them) and alot of talking to (hey can I mention names).
I am also involved in the Lubocki class action lawsuit. Checks will be cut in June!!! Yea Yea
May 30, 2008 — 11:43 pm
PF says:
Uh Kathy….why didnt you just wait the five days before quitting?? You would not have had the hassle.
May 31, 2008 — 6:00 am
Kathy says:
PF: I couldn’t, I had three buyers that wanted to write offers and I didn’t want to write
them under Zip.
May 31, 2008 — 8:31 am
Unhappy ExZipster says:
Kathy,
How did the class action against Zip get started? Do you know what steps need to be taken? Thanks for your input.
May 31, 2008 — 1:32 pm
PF says:
Kathy…you are doing really awesome with 3 buyers wanting to write!! A poster by the name of “sold” above says that the company average per month is .4 so you must be one of the best Zip agents!! Congrats if so.
The class action suit got started by an agent who used to work at Zip in Seattle by the name of David Lubocki. He was/is also an attorney and left Zip for Re/Max claiming Zip owed him the commissions he procured while at Zip that were still in escrow when he left. Among his claims was that HE procured the business (customers he transacted with he brought to Zip) and that Zip was unfairly keeping the commissions HE earned.
May 31, 2008 — 3:33 pm
Kathy says:
PF: I left Zip in 4/07. I think those .4 stats are for present employees ExZipster: In this class action lawsuit the attorney contacted me, I did not contact them. They probably had access to Zip employment records. They sent me a letter asking if I wanted to opt out, if not, sign the papers enclosed and send back to them. I decided to stay in because Zip did take advantage of their employees.
May 31, 2008 — 3:41 pm
Unhappy ExZipster says:
Kathy: Was the class action offered to all Zip agents across the country?
June 2, 2008 — 7:38 pm
future zippie says:
Not sure why everyone thinks Zip agents don’t perform. There’s top producers in Seattle:
ZipRealty Top Producer – Seattle 2004 Q3
$75 million in real estate sold
ZipRealty Top Listing Agent – Seattle, Q2 2004
ZipRealty President’s Club – 2004 Q4; 2005 Q2, Q3; 2006 Q1 (Gold), Q2 (Platinum), Q3; 2007 Q2, Q4; 2008 Q1, Q2
ZipRealty’s Century Club
There’s also a new agent who did 17 transactions in her first quarter at Zip. If you work the leads, you’ll have no problems.
The website alone is unsurpassed.
Good luck to all!
June 3, 2008 — 12:43 pm
PF says:
future zippie:
That’s Cathy Jackson!! She was with Re/Max for 13 Years!!
She’s a HOOT!
June 3, 2008 — 2:30 pm
Anonymous says:
UnHappy ExZipster: it was to All individuals (a) who are current or former real estate agents working for ZipRealty outside of the state of California and from whom ZipRealty deducted a customer acquisition offset (“CAQ”) from May 4, 2003 throught September 30, 2005; and (b) who are former ZipRealty real estate sales agents whose employment terminated in the period between May 4, 2003 and August 31, 2007 and who had a pending transaction the time their employment terminated that subsequently closed, but who were not paid the same commission on that pending transaction as they would have receied had they remained employed at the time the pending transaction closed. That is the opening statement on the Notice of Proposed Class Action Settlement statement that I received.
The attorney’s are in California if you want I can send you the addresses and phone numbers.
As I stated before, these attorney’s must have had access to ZipRealty’s employee records because I did not know anything about this until I got an email and then a copy of the lawsuit in the mail.
June 3, 2008 — 7:58 pm
Zip agent says:
There was ONE new agent in Seattle that did 17 transactions in her first quarter? That’s great, but what about all the other agents in Seattle???? In my district, lead distribution is based on who is the dd’s favorite. I know, I have been on both sides. The leads should be distributed equally, based on all the metrics that we agreed to when we started, but when it becomes personal and effects the agents financially, then its an issue.
There are a few top producers in every district and many more agents that do work very hard. Agents only make money when they sell, I have a hard time believing that the majority of agents don’t want to work and make money.
June 4, 2008 — 7:58 am
considering zip says:
Anyone have any info on the Dallas ZIP office? I have a meeting with the staffing manager next week. I read the entire career section on the ZIP website and thought it almost sounded too good to be true! Then I’ve been reading all these comments for the last hour or so and am very skeptical now. But I still think that it sounds like it might be a good place to start for a “newbie” as an agent. I have a lot of drive to succeed at real estate and want to work hard, but I don’t want to be stuck back in a corporate-type environment again working my butt off but not seeing it in the pay. I worked in the legal field for 7 years and want a more exciting, rewarding career. I’ve only met with one other brokerage firm so far but plan to meet with others as well, such as KW. I have a friend who is also new to real estate and works for KW. But I’m not sure that she is making much money. I’m just concerned about all the costs and marketing myself with the traditional brokerage firm. Any advice?
June 5, 2008 — 12:11 pm
future zippie says:
yes PF it’s her. She’s legendary. There’s others who are top performers too.
There’s more agents with high transactions I just don’t know who they are. to even assume it’s just one
is ridiculous.
Lead distribution is automatic. You must be referring to reassigned leads. In Seattle new agents get
reassigned leads.
Yes leads should be equal, but if the DD notices you are not contacting the leads they give you,
why give you more? It’s not free–I pay for those leads with my split, so I don’t see why anyone
wouldn’t be on top of it. It’s not a gift, it’s not free.
Personally, I could care less how others are doing. I am concerned with myself and myself only
and what works for me. If I don’t perform I don’t expect the DD to pass me reassigned leads.
There’s good and bad about Zip being tied to corporate America. The amazing website and leads sent
are being paid by me as an agent since my split is low. But 100% of nothing is still nothing.
If an agent is busy at JLS or KW why leave? No need to.
Everyone should make their own decisions about what works best for them. The same model does not work
for everyone. For each job I take, I learn what I can and when I’ve learned enough I leave.
best of luck to everyone. I’ll be back in a few months to tell you all about my progress!
June 5, 2008 — 12:38 pm
PF says:
future zippie?? In your last post here (above) you write like you are ALREADY with Zip. Nontheless, you are absolutley correct in your writings.
June 5, 2008 — 1:00 pm
Unhappy ExZipster says:
Considering Zip,
KW is a great company, but too expensive. I worked for them and Windemere before I joined ZipRealty. I left Zip this past April. I wouldn’t recommend them. I would highly recommend Windemere for a newbee. They give you really good training, similar to KW, but they pay for most of your marketing materials. They give you your first 500 business cards, 4 Open House signs and name riders and a website. They have very good presence in most states. I speak with them before making a decision on ZipRealty. I believe their website is http://www.windemererealestate.com. It will tell you which states they’re in. I believe they’re in Texas.
June 5, 2008 — 3:34 pm
spouse of xzippy says:
Well, if you like drama, you will fit in the Dallas office. Most agents have a side job (nobody will fuss up to it because they’ll be terminated) but the local district director and broker know but turn the other cheek. They have 110 agents between the Dallas east and Dallas west district and they have only had 85 closings in May (one of the highest months for them). Do the math, after 28% split where the average house is 170K that’s not much of a living.
If you’re brand new, it might be a good place to park your license and take advantage of any training. By the way, none of the training offered is eligible for MCE or SAE because it’s not approved by TREC and won’t be. They’ll teach you how to make phone calls… duh… and mostly just the internal software. Expect to sit in front of your computer over 12 hours a day and drive all over the metroplex to show homes to people that may or may not be qualified or may have an agreement with another agency. You cannot turn down a showing if it’s too far. Oh and you cannot sell your own listing because they want to count it as 2 transactions (listing and selling side). It looks better on the books to the shareholders.
Many of the agents have spouses that are also selling real estate but they are with other brokerage firms. That’s another thing that they choose to ignore. Apparently even their own broker (previous one) opened a real estate office while he was with ziprealty. He recruited many agents from zip after they fired him at a 70/30 split.
The only people that are making some money and I mean hiting about 60K a year are agents that have been around for over 3 years and keep in mind that most them do have income from the spouse or have a side job.
Good luck in whatever you decide to do.
June 5, 2008 — 3:40 pm
considering zip says:
Thanks Unhappy ExZipster for the info, but I can’t seem to find any info that Windemere is in Texas. I’m guessing not because it is not a familiar company that I have heard of either. The main brokerage firms that I am currently considering are KW, Ebby Halliday, Remax, and have been told to check out Prudential. Does anyone have any personal experience with any of these companies in the Dallas area and/or have advice on who to go with?
Also, thanks to spouse of xzippy for your advice. It helps a lot to hear from someone who has personal knowledge and experience in the Dallas office. I will still meet with ZIP next to see what they have to say…especially now that I have lots of info and questions to ask. But I’m definitely starting to lean towards starting out with another company. 60K a year is not exactly what I’m looking to make in real estate. I realize that it’s going to be a learing and growing process, but I can go back to working as a paralegal for that kind of money. Also, do you seem to put more hours in and are expected to follow strict guidelines with ZIP that are not expected with other companies? I want to work and grow on my own without someone watching over me at all times. But at the same time, as a new agent, I also want to be able to get the training and support necessary to get started and become a successful agent. Am I expecting too much out of real estate?
June 5, 2008 — 4:04 pm
Unhappy ExZpister says:
Hi Considering Zip,
I’m sorry. I checked it out for you. Windemere is not in Texas. I knew they were in the whole west coast, but not as far east as Texas.
June 9, 2008 — 1:35 pm
Jay Sunderland says:
For those who think the DD’s have control of leads at Zip Realty – Pay CLOSE attention! There are two types of leads: new registrants and reassigned leads. The first type, New Registrants, is automatically allocated by the Zip software system, the DD’s do not have any way to effect these leads. The second type; Reassigned leads are at the discretion of the DD’s. These leads become available when the agent that was originally assigned to them has not contacted them in 60 days or more. The DD then reassigns these leads first to our “A” category, and next to our “B” category agents, on a “one for you, one for you” basis. Now I’m not going to say that a specific DD has never violated this process, but when the DD is following the system, there is no way to play favorites. It’s done that way on purpose, to avoid claims of favoritism. I suspect that Zip agents who claim a game of playing favorites are not doing the things we are asked to do to be successful in the first place.
June 9, 2008 — 3:46 pm
Jones says:
Jay Sunderland, you might want to consider if you are going to post on this or any blog regarding representing Zip Realty who you are currently employed with to at least post not using your real name so you wont get reprimanded by the company. It has happened several times I am aware and apparently is againest company policy. I used to work at Zip and know first hand.
Just a suggestion.
June 9, 2008 — 5:07 pm
david stewart says:
Does anyone have any experience working for Ready Real Estate? How about apartment locating?
June 10, 2008 — 8:40 pm
Zip Valuation says:
On June 4, 2007 Patrick Lashinsky was appointed President, CEO . Zip stock closed at $7.47 ,
22 million shares outstanding, Zip’s market capitalization: $164,340,000.00
On June 12, 2008, Patrick Lashinsky 1st year as President, Zip stock closed at $4.36
18.5 million shares outstanding, Zip’s market capitalization : $80,475,000.00
Zip company market loss in one year: $83,865,000 or $226,662 per day.
Zip stock bid on the evening of June 12, 2008 is $3.86 for a valuation of
$71,410,000 or a potential loss of $9,000,000 or 10%.
Where are the Directors? Stock is at an all time low. (6/10/08)
June 12, 2008 — 3:15 pm
Bruce says:
Re Zip Valuation.,
Before you draw any hasty conclusions, I suggest you track some of the other real estate brokerage
co’s, builders and financial institutions during the same time period. Let’s face it the entire
spectrum of real estate/financial/builders have been pummeled market wise. Zip still has a book
value greater than it’s market value…I don’t know of many that can make that claim
June 12, 2008 — 4:06 pm
Smart says:
Hey Zip Valuation….the stock closed at 4.35 and the BID is at 3.86 and it is only a bid. Heck, the ask is 4.99! The bid has nothing to do with valuation and thinly traded stocks show a large spread most every day after close and before the open.
June 12, 2008 — 4:28 pm
Susan Zanzonico says:
This post has generated an astounding amount of comments. I admit I have not read all of them
but enough. Its probably a good idea to steer clear of Zip. The agents that left are making
much more money with better quality of life.
June 23, 2008 — 9:20 am
Jay Sunderland says:
I am making much more money working with Zip than I ever did before! Take into account the fact that I used to spend $300 on average to market a listing and now I spend $0, the fact that I used to spend an average of $225 to obtain a buyer with mailings, ads, phone calls and door knocking time, now I spend $0 out of pocket.
I will say that Zip, like any other business model, isn’t right for everyone, but if you hate prospecting as much as I did, it’s the best system around! If you compare 1 to 1 transactions, in a traditional brokerage, if you bring home $5,000, and you, like me spent $225 to get the lead, pay your own self-employement taxes, E&O Insurance, Realtor dues, MLS Dues, Associatiation fees, desk fees, copy fees, phone charges, ad infitium… Let’s say you Net $3,500. I net $3,000 and don’t pay any of those fees directly out of my pocket. So for this one deal, you net an extra $500 and spend your time doing all of the thigs required. Now in a traditional brokerage, according to WA DOL, you’ll do 7 deals a year as an average agent. That means you’ll clear $24,500. By June 30, you should have made $12,250. I started working for Zip in February and have 4 closed deals, 4 listings and 3 pre-qualified buyers looking for homes. I’ve averaged the $3,000 we discussed in the above example, so I’ve cleared $12,000. That’s $250 less than you should have made by now, and I still have 4 listings and 3 pre-qualified buyers, for an expected $21,000 in future commissions, assuming they all close, and that’s after 5 months at Zip. And I never spent a dime or even a minute prospecting. My taxes are paid, I contribute to a 401(k) and all of my insurance and dues are reimbursed, as is my mileage. So what’s so bad about working at Zip? I think those who left preferred a different model, but as for me, I expect to close more this year than I ever have, and all I need to do is service my clients without prospecting. I love working for Zip!
June 23, 2008 — 10:53 am
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
Hi Jay,
I certainly agree that the ZIP model can work very well for some and I certainly made a good living whilst I was there, however, your figures are a bit off. At ZIP you will alway make a percentage of 80% whereas I make a percentage of 100%. In the first four transactions I closed this year I made close to $30K and none of them were large transactions so even allowing for the expenses I have to pay, and can write off against taxes, I am still way ahead of you in income for the year. ZIP gave me a great start but I earned it, and then some, as I can honestly say that I have never felt so much pressure to perform as Idid during the time I spent with them. I guess at the end of the day it all comes down to lifestyle and I would never trade what I have now to what I had then.
Good luck to you, it sonds as though you have found an environment that suits your circumstances well.
June 23, 2008 — 12:29 pm
Tigress says:
Jay Sunderland: A recent poster suggested not posting in your real name. You might want to follow that advice. 4 whole deals since Feb?? Wow. Good luck in RE! Btw, some of those above mentioned costs you claim Zip pays….they dont. Please do not “fluff” the stuff and tell the truth.
June 23, 2008 — 12:35 pm
It\'s just a matter of time for Zip says:
The downhill spiral started when the IPO party was over and the real CEO’s disappeared
A ‘seasoned’ CEO or any smart turnaround executive would not touch this post
This is not Lashinsky’s fault….Zip, a real estate sales company, is now run by ‘not one’
executive with real estate sales experience.
Lashinsky was a lower level manager who found a chair when the music stopped in the boardroom
NO reason to cry for him, he is dumping loads of shares that were given to him to be the
sacrificial lamb
The venture capitalist are dumping shares and Zip has to buy it back up (with IPO) money to
keep Wall Street in the dark
The company is losing money everyday and they are hiring more agents to make it look like
they are growing……it also makes since since they make more money off the rookies…
Most agents make only 28.66% of the commission……most agents sell less than 5 homes a year
Most agents work part-time but can’t tell management that……or that they are starving
Wake up Wall Street……it’s just a matter of time……
June 27, 2008 — 1:32 pm
Agent Advocate says:
Finally! The truth comes out! Break out the champagne for the sinking of this Ship full of Monstors!
Agents get enough abuse without their own company doing it. This is a real AGENT WAKE UP CALL.
June 27, 2008 — 3:55 pm
Tigress says:
Yeah but Jay Sunderland is making beaucoup dollars from his FOUR whopping closes this year. Jay is drinking the kool-aid but getting the sediment from the bottom of the glass. ZIPR’s cash stash is drip drip drip.
June 27, 2008 — 10:27 pm
It\\\\\\\'s just a matter of time for Zip says:
I forgot to mention that the agents also now are ‘mandated’ to push ‘Insurance Products’
on the unexpecting customers. How low can they beat the agent down? Zip, you should be ashamed
of your self!
June 28, 2008 — 1:00 pm
It\\\\\\\\\\\\\\\'s just a matter of time for Zip says:
Be nice Tigress……..Jay is now making 28.66% of something versus his previous 100% of 0. Once
Jay realizes his potential he will move to a broker that appreciates WHERE the money is coming
from………………the agent!
June 28, 2008 — 1:07 pm
It\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'s just a matter of time for Zip says:
The Zip model has seen it’s day…..it is using a ‘pre-dot-com’ idea that is no longer
a ‘new’ idea. They are being overtaken on the web already by ‘mom & pop’ Real Estate Brokers
all over the US.
With all the web competition, the only way they can get new web customers is to give away
agent commissions……..agents are working harder for less money…
Hey Zip, great way to motivate and keep your top producers!
June 28, 2008 — 5:39 pm
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
Poor Jay,
I have closed four very average deals this year and made, after brokerage fees, close to $30K. It’s just too bad that ZIP cannot give it’s agents, who put in a tremendous amount of work hours, some respect.
Do as I did Jay, learn all that you can, especially about juggling fifty things at once, and how to stay sane whilst running around in circles, and move on into the real world of Real Estate.
Best of luck.
June 28, 2008 — 8:15 pm
Tigress says:
Maybe Jay does not want to be a busy Realtor. Maybe he is happy with is little commissions and all the love from the company. I see that Jay’s listings are not exactly selling and seeing that they are spread out geographically north of Seattle I am sure he is really spending more time, effort, and insanity wondering why they have not sold.
June 29, 2008 — 1:40 pm
aNeWExZiPPer says:
Hey folks…I just wanted to add my 2 cents…I left Zip to go back to traditional real estate.
I can honestly say my time at Zip made me a better agent – and made me realize I was averaging
less than 1.5% of the purchase price..once you take all into consideration, including the hours
and hours of uncompensated time “not prospecting” with luke warm leads via telephone and email.
Logging every call just to keep your numbers up (gotta be green on the dashboard, y’know!!).
Then if you show any promise as an agent, they ask you take on more! (uncompensated of course)
…Head up this committee — You should be a team leader (you were our first (only) choice) —
Train your peers, Share your insight – Conduct webinars – Draft emails – (God! I felt like I
was back at Keller Williams – the only difference was I wasn’t flipping pancakes in the parking
lot at 6:00 am on a Tuesday for affiliates and vendors.) Need I go on? Zip is a great training
ground for agents who hate to make calls and can’t craft emails. You hone these skills – then
you move on..it is unfortunate – because the technology is “nice” and “helpful” to clients. From
the registered user perspective I think the technology is what it is…the “over the shoulder”
view of user activity is what is most compelling and I am sure that Zip does not have the
corner on this technology…it is just a matter of time –with many exZippers out there that
some entity will begin to catapult from where Zip left off. Finally, it’s one thing to have a
model that “breaks new ground” but when you tout THE REBATE and any savvy (not necessarily)
seasoned agent can tell you the clients don’t care about the rebate. They want an agent that
they can depend on, that communicates with them, that is available, that always has their back,
that is up to date on all things real estate — most of all they want honesty and to be treated
with kindness and respect. If you are doing a stellar job (with soul) why would you feel
like you needed to give $$$ back? Doesn’t that in some way imply an apology to the client?
Just a thought (and my 2 cents)…
June 30, 2008 — 6:57 am
It\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'s just a matter of time for Zip says:
The ship is sinking, the venture capital experts see it coming:
First, the ‘smart’ CEO took his money and ran…..
Second, the second CEO didn’t even get his desk setup before he ran……
Third, PYRAMID TECHNOLOGY VENTURES dumped “ALL’ their shares……
Now, as of Friday…..BENCHMARK CAPITAL MANAGEMENT is starting to dump…….
Do I hear ‘Gordon Gecko’…..
July 1, 2008 — 10:32 am
Tigress says:
Maybe Jay Sunderland is buying the shares that Benchmark is dumping.
July 1, 2008 — 2:02 pm
It\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'s just a matter of time for Zip says:
BenchMark has about 3 mill more shares to sell, J.S. can’t afford to buy new underwear, much less a ‘soon-to-be-penny stock’ like Zip.
Wow, take a look at Insidertrading.com, Bill Sinclair, a senior VP is dumping as of Friday as well.
July 1, 2008 — 6:54 pm
Jay Sunderland says:
Someone once said that credible opinions require the courage to own them. To me, that means using my real name when I post to a blog. Having the courage of my convictions, I will continue to use my name and to voice the truth as I see it. The reason I joined this blog was to refute what I saw as untrue and misguided opinions. I admit, most of what I’ve seen here isn’t so much untrue or misguided as it is unsuccessful experiences. I believe that’s normal. I’ve often said that with the five real estate models available, none of them will suit everyone. What I take issue with is having an unsuccessful experience with a company and then blaming the company. Unless there are specific examples of where the company’s personnel acted differently than the norm, the problem was in the fit between the agent and the company. I loved KW, but I was not successful prospecting for business. That doesn’t mean I’m going to bad mouth KW. I have worked for a company I didn’t like, but I know it wasn’t the right fit, not a bad company.
For me, trading a piece of my commission for leads and reimbursement of expenses (which you get when you close a deal per month minimu for 3 months in a row), is better than spending time and money mailing cards and letters, buying leads from places like HomeGain or paying for a web site that nobody visits. I don’t think Zip is the end-all-be-all in real estate, it is just one of the models available. For me though, it’s the best model, and if it works for me, it will work for others. Not all, but many.
July 6, 2008 — 9:04 am
Tigress says:
If you do not want to make money that is your business.
Problem is, you cannot build your own business working for Zip where some day you would be able to rely mainly on past customers and referrals going forward as Zip does not allow you to take your customers that come through Zip with you when you leave. This is how real estate agents become wealthy….building a business.
Nice post and good luck but do watch your back. Also, beware you probably will get a call from your company asking you not to post on any public blog or forum in the future. It HAS happened….I know first hand when I worked for Zip.
Btw….KW is not really a well known RE broker in the Seattle/NW area. I switched to JLS and am very happy I did.
July 6, 2008 — 10:07 am
Jay Sunderland says:
I’d just like to take a minute to address the Dashboard monitoring and a few other issues. I’m an MBA, and even when I was a traditional agent, I tracked and recorded how many phone calls, emails, cards and letters I sent and what the ROI was on them. I used to use Excel and Top Producer to do this. I understand the need to know your numbers, and if you don’t do that, you’re practicing a hobby, not running a business. Having a tool like the Zap Dashboard makes the process easy. And, being human, there are times when I just don’t feel like making calls, so knowing that my leads can be taken from me if I don’t keep in touch with them keeps me motivated. I knew up front that Zip would monitor my activities and my emails. Big Deal. Before going into real estate, I was A Human Resources Professional with a Computer Programming degree. I already knew that corporate IT systems monitor email and in corporate sales departments, activities are monitored too. If you don’t talk to a prospect for 60 days, why should the company let you continue not working with that client? Of course they should reallocate the lead. DUH! So for those of you crying about “Spyware” and the dashboard, I say Zip is exactly right. I couldn’t have come up with a better system. Now, would I like to earn more money per transaction? Of course! So I’m working on higher cost homes. I’ll gladly take 29% per transaction for more transactions and without the hassle of cold prospecting activities. Finally, I LIKE listings, so I go after them regularly. I have a database of buyers, and so do my fellow Zip agents who may be buyers for my listings. As long as I’m closing more than ever before, and not stressing about where my business will come from, I’m happier and more satisfied than ever. I’ll make more money over time, so I’m very happy to take less per transaction! In 5 months I’ve met last year’s take home pay.
As for the stock price, I’m not an expert. Our CEO says the loss we took had more to do with expansion into new markets than with the market performance. I see we are in more markets, so I have no reason to doubt what he says. And Finally,as to sucking up to managers, I can only speak for my office. Not only don’t I feel the need to “suck up”, but I’ve recently discovered how far my Broker and DD are willing to go to help me when a transaction goes sideways. I can’t say enough to express my gratitude toward our management team. Having worked with corporate CEO’s and Boards for years, I don’t feel intimidated by management, maybe that’s why some feel the need to “Suck Up”
July 6, 2008 — 10:15 am
Anonymous says:
What do you expect him to tell you…..You have a MBA, you know how to analyze companies and review
market numbers……do the math yourself. Your CEO was a district director who was given 250K
shares to take the bullet.
July 14, 2008 — 3:17 pm
Tigress says:
Actually Pat Lashinsky was not a DD but was in corporate the whole time. I dont expect any DD with Zip to get that kind of promotion since they are basically “yes” men and women.
July 15, 2008 — 11:00 am
Anonymous says:
Tigress, he WAS the FIRST DD for the Washington DC office…..he moved to roving manager then
he was in marketing until everyone around him dissapeared….VOILA, your a CEO!
July 15, 2008 — 4:35 pm
Tigress says:
Then he must have been the DD there before May 2002 when I started. That time, the Wash office was alot smaller. Most of his Zip Realty years though was in corporate.
July 15, 2008 — 5:41 pm
Free says:
Pat’s position in 2001 and 2002 was in corporate. In the fall of 2002 he became the DC
DD.
At that time there were about 30 agents. He was not the first DD in DC. He kept that role flying
in weekly to hold meetings etc until the spring of 2003. He returned back to corporate and the new DD took his role. Pat has filled many roles
in his career with Zip which includes his current role of CEO.
July 22, 2008 — 7:06 pm
future zippy says:
I’m back. it’s been 2 months and while I have a few acvtive clients I spend my time F-ing around with the ZAP and database. It’s a waste of time really. I can keep track of clients with my own database and I thought I’d like this one but if I don’t keep my numbers up it’s a big deal.
Suffice it to say I will probably end up back at KW at some point.
If anyone is interested in learning how to buy subject to, wholesale and investing just send me an email at rmfru96@yahoo.com. I will be buying up properties soon
and will be working for myself eventually. Investing in real estate is how to make money. Buying and selling for other people can be but it’s more work than doing it for yourself.
July 23, 2008 — 9:57 am
former zip agent says:
Does anybody have any updates about the class action payments? My understanding is that the lawsuit is finalized, but that payments have not yet been made. The website (www.lubockiclassaction.com) previously stated that payments would be mailed out by June 21, but at that time the notice was changed to sayt that payments are being “calculated” and will be mailed out thereafter. Does anybody have any scoop? Or has anyone received a check yet? Thnaks.
July 23, 2008 — 10:04 am
stillatzip says:
Class action payments have not been made yet; they are still trying
to divy up the money.
Great management team at zip: they spend money like sailors on their first
liberty call (no disrespect to any Navy persons): while the stock price drops like a stone
and the losses pile up; what does “management” (most of whom have ever sold a house)do? Open
up new offices and spend money to create the “Real Estate Game” (an interactive game from the
game maker Realius in which the player tries to guess the price of a home-that will surely
help sell more homes-pardon the sarcasm)).
Here’s a novel thought-cut back on the useless spending (unless they are actively trying
to deplete the cash reserves), cut back the bloated bueracracy in California, start acting like
a real estate company (and not a hotel or a call center or wherever else management came from)
and then maybe the stock would actually have some value.
By the way, I am not one of the cast of thousands who is a disgruntled former employee.
July 23, 2008 — 11:10 am
Tigress says:
NOTHING is going to help the stock price in this environment.
Hey Jay Sunderland…..how many homes are you selling in the last 30 days?? Have you gone through your cash and wits end driving everywhere to do deals what with the price of gas up?? Yeah Yeah….you are a happy Zippy even though you aint doing anything.
July 23, 2008 — 2:46 pm
Anonymous says:
Well, reading these posts has been interesting to say the least. I’m considering leaving a small
broker, where leads are scarce, to join a Twin Cities, MN, Zip office. Since I don’t believe
that the grass is greener somewhere else, I’m doing research to find out more about Zip.
Other than the training, is there anything else that might be good about the company??
Are there any TC agents out there who can give me a clue as to what’s happening locally?
Thanks!
July 24, 2008 — 8:30 am
Maggie says:
Does anybody have any info or blog sites on RealEstate.com?
July 24, 2008 — 12:30 pm
Dear Anonymous says:
Dear TC agent, go with your
gut feeling. Good leads come from friends and
family and your soi not your broker or his/her
web site..wishing you all well
July 24, 2008 — 12:43 pm
Tigress says:
Dear MBA Jay: How are your 5 listings doing?? Using your Excel and spreadsheets to keep track of market times on those pups? Zip announces earnings this Tuesday and we all expect the same ole same ole but hopefully forward guidance will be alittle positive this go around. Hopefully they aint bleeding money.
August 3, 2008 — 10:43 am
Jay Sunderland says:
I now have 6 listings and will have a 7th tomorrow. I’m also taking a client to write up an offer on a home today and have another interested in one of my litings, and I expect an offer on that one soon too.
Say what you will about Zip, but the most listings I ever had simutaneously was 2 or 3. As far as I can say, This model is a great one for me.
August 3, 2008 — 11:03 am
Tigress says:
Go MBA Jay! Just remember, listings dont make you $$$$$. Listings that sell make you $$$$. Save the gas, time, effort, and mental anguish by deleting the listings that are not priced right or in bad locales. Give them to the newbies to waste away with. How many CLOSES did you have last month and quarter? I had 3 last month and only two in June yet I get to keep 100% minus expenses for the one listing I had that sold and a few dollars for my gas and time dealing with the trivial stuff. Zip might be the perfect model for you but ReMax is where it is at for me after three plus years toiling at Zip. Oh, and still be careful about posting under your real name here. You do know you are an employee and I know of Zip agent in the recent past that got terminated once they were found out posting here:-)
August 4, 2008 — 8:39 am
stillatzip says:
Love the anger of the alumni. If all of the former zippers devoted as much time to their trade
as they do their postings, they’d all be rich. Tigress: what’s your desk fee per month? Do you
pay whether you make a deal or not?
Zip is not perfect; management is a bunch of incompetents, and the splits are bad;
but it is a good place to make money and learn the business in a soft real estate market. I’ve been
at zip long enough to be expense eligible (over $6,000.00 year); plus longevity bonus ($300.00/
month); plus I make a nice living.
August 4, 2008 — 10:40 am
Kudanerky says:
anyone know when those Zip vs. Lubocki payments are going out?
August 5, 2008 — 7:37 am
stillatzip says:
Just emailed the lawyers involved in the class action. I will put up a posting if they ever get
ever respond.
August 5, 2008 — 8:59 am
Anonymous says:
As of June 30, ZipRealty had approximately $55.1 million in cash, cash
equivalents and short-term investments and no long-term debt
(Down from $72M.in March 08)
The company reported in April it had repurchased all shares of its common
stock held by Pyramid Technology Ventures in a $17.4 million,
privately negotiated transaction.
IN THIS KIND OF MARKET,WHAT IN THE WORLD COMPELLED THE COMPANY TO TAKE
$17M+ OUT OF THEIR CASH RESERVES TO BAIL OUT ONE OF THE ORIGINAL VENTURE
CAPITAL COMPANIES.
SIMPLY MAKES NO SENSE AT ALL!
ANYONE KNOW THE INSIDE STORY?
August 8, 2008 — 8:03 am
Godzilla Pete says:
As of June 30, ZipRealty had approximately $55.1 million in cash, cash
equivalents and short-term investments and no long-term debt
(Down from $72M.in March 08)
The company reported in April it had repurchased all shares of its common
stock held by Pyramid Technology Ventures in a $17.4 million,
privately negotiated transaction.
IN THIS KIND OF MARKET,WHAT IN THE WORLD COMPELLED THE COMPANY TO TAKE
$17M+ OUT OF THEIR CASH RESERVES TO BAIL OUT ONE OF THE ORIGINAL VENTURE
CAPITAL COMPANIES.
SIMPLY MAKES NO SENSE AT ALL!
August 8, 2008 — 8:07 am
Tigress says:
Anonymous/Godzilla: Totally agree. No sense at all. Sure aint helping the stock price. Looks like Zip may be bought out someday. How are they not going to lose money this coming quarter?? Or the quarter after that?? Maybe Zip and the venture company had a previous arrangement but makes no sense at all.
August 8, 2008 — 10:23 am
Tigress says:
To Jay Sunderland MBA Seattle District: There is a buyer for every house. To find that buyer, incentives like 4% SOC, cars i nthe garage, trips, and $5000 Nordstrom Certificates arent the key. It has always been and will always be…..PRICE. In this market, to have any advantage over the competition, you must price your listing most aggressively bottom line no matter what anybody else tells you.
August 8, 2008 — 5:33 pm
John says:
This company absolutely sucks! What infuruates me is that all upper management are not even Realtors
They have never stepped foot into a home, made an offer, signed an P&S, Home Inspect. attended
a closing etc. Then I see the President, Fat Pat talking expert on Fox News. This guy has
the least experience of the entire management team!
They have getapo like tactice in dealing with their employees. They muzzle them not allowing them
not allowing them to talk to the press at anytime. You cannot have a website to advertise your-
self.
Yes they give you benefits but at what cost? The other bloggers were WRONG. They pay 40% comm/
They are cheap bastards while Fat Pat makes close to $400k salary plus bonus & stock. Since
the agents are employees, they should uninize and F88k them over.
The VP, Jim Beard came from a Hotel background and he is VP of Sales in the South East? No RE
experience. Invest in zip? Not in your life. This company is run by a bunch of monkeys. They
have their lackey managers running around in circles, jumping through hoops. And they just
regurgitate the pablum fed to them, NONE of them have the guts to stand up.
Trust me I know what I am talking about as I worked for them for 5 years.
August 14, 2008 — 6:50 am
frankfrank says:
Can’t argue with what John says. But, to clarify, as has been posted before, the 40% split is
more like 28%, once you factor in the rebate and the “technology fee”.
August 14, 2008 — 8:26 am
Jay Sunderland says:
It is true, that the 40% split is more like 28% after deductions for fees, 401(k)and taxes. Nonetheless, I’ve made more money since February than I made last year working for Keller Williams – another great company.
August 14, 2008 — 10:10 am
frankfrank says:
Jay:
That 28% split is before 401K and taxes. If you take the 40% split, subtract the 20% rebate and then
the technology fee, the agent receives 28% of the actual commission. So, client receives 20%,
company receives 52%, and the agent receives 28% of the actual commission.
That’s not to say that many agents (including myself) are doing far better than the average agent;
in a traditional firm.
August 14, 2008 — 11:15 am
Tigress says:
Well now Jay….IF you have made more money at Zip than you did at KW…..it must mean you didnt make much money when you were at Zip. And, that is hard to believe since over the past several years wasanabsolute BOOM period for Realtors in most if not all areas of the US. So Jay, enjoy yourself at Zip while they rob you blind. Drink the kool-aid and hope you dont end up in the gutter. How are those listings doing??
August 14, 2008 — 11:46 am
Feeling Better Now says:
While its hard not to harbor ill feelings toward
zip with the way they treated me while I was there and
how they treated me afterwards. I’ve found much more
success by letting go and directing my energies elsewhere.
Freeing myself up from the ties of zip was a blessing
for me and my family. However, I must admit I still read
this blog just for fun 😉
August 14, 2008 — 2:25 pm
frankfrank says:
Just heard from one of the lawyers on the class action. Supposedly payments will be sent out
in September.
August 19, 2008 — 3:17 am
Curious says:
I am a licensed realtor, and my girlfriend just told me about how great Zip sounded after she went to the Chicago office and talked to the recruiter. Any info on this area???
August 25, 2008 — 9:26 am
Anonymous says:
RUN!!!!!!!!!!
August 27, 2008 — 10:26 am
Curious says:
Thanks!!! Any particulars?
August 28, 2008 — 10:54 am
Sue says:
>>It is true, that the 40% split is more like 28% after deductions for fees, 401(k)and taxes. Nonetheless, I’ve made more money since February than I made last year working for Keller Williams – another great company.
If this model works for some its great. Thats why we have so many different choices in life…everyone is different, thank goodness!
August 28, 2008 — 6:06 pm
D says:
I don’t know about the rest of you but we are not in a boom now and I’m at zip while friends are borrowing
thousands one is borrowing 10K a month to stay afloat. I have had 3 deals in my first month, 5 last and
I’m taking my 6th to escrow this month. 70-100% commission of nothing is still nothing.
I’ve got my bills paid, an 60+ new clients a month and a pipeline of buyers and sellers for when the market turns
around. Working @ zip while not the most stylish of companies it is very inovative, and progrssive.
I’m working on getting the executive/highend million + properties and buyers started in my market.
It’s about high sales price, or volume. I work a lot and it does take a lot but if you follow the
platform and add your personal touch to it you get a great response. Investors like it because they
can have up to date access as opposed to out of date and stale listings found on many real estate co
websites. We get updated 3 times a day while Pru, rm, and others are out of date and sometimes weeks
old. I was with a KW but just went 20K in debt, in a year and a half. Now within a year I will have that paid off.
Not saying that I’ll stay for ever but zip has it’s place and most other co’s are starting to
copy some of the models in their businesses as well. By the way we were the number 1 real estate website
for july over remax which has been the top for years and we aren’t in every town all over the place like they are.
August 28, 2008 — 10:16 pm
smileyface says:
zip is unreal here in the va area, lies lies lies, nothing that was said in training/orientation is true, they lie and then commit you to there beliefs, bad company to be with
August 29, 2008 — 9:09 am
frankfrank says:
Hey smileyface:
What did the orientation tell you that was not true?
August 29, 2008 — 2:40 pm
Sue says:
>>What did the orientation tell you that was not true?
I would be interested in knowing this information as well if you are comfortable writing about it on this post.
August 30, 2008 — 12:19 pm
dcj says:
I would also like to know about the lies, as I am starting there in a week from Monday.
August 30, 2008 — 12:29 pm
Agent Advocate says:
Why don’t you just take the time to read all of the previous postings on this blog? You will learn everything you need to know about Zip. Zip, is a Rip.
Let’s hope that ZIP will RIP soon.
August 30, 2008 — 6:57 pm
happy zip agent says:
Best of luck to you Curious and dcj. Zip is a great company to work for. It is not perfect, but no company is. There are a lot of opportunites to be had, it is all in what you choose to do with it.
August 30, 2008 — 7:42 pm
d says:
Is it possible that most don’t take into account that with office fees, spending your own money on advertising
letters flyers,signs, website design and fees to keep it posted, paying your own insurance, roth IRA,
followed up by paying your own taxes that if you account for everything you’d discover that 50-100%
commision is actually smaller than you thought? I have the feeling that too many here are just down on
zip because of it’s competitive edge, are disgruntled ex bad employee’s. Besides the clients I scout on
my own, I have 80+ given to me a month, generally convert 5-10 into deals that month or later.
I get gas reimbursment, a 400. expense check a month + a stipened in case I don’t move a house. Out of every sale
I pay a tech fee, almost every co has them transaction fee etc are the names used. I get 1% of the
purchase price on average after that and then they take out for taxes, and if I signed up for it
insurance and 401K. Personally I put my own money into investments and retirement accounts as I like to have control and
not have to switch them in the future. So exactly what is so wrong with Zip? Been there for most of this
downturn and still made a lot of money while other comapnies are closing doors, arrested, and the agents
are strugling to maintain the borrowing capacity every month to stay afloat. hmm make money or go into
debt easy choice to me. Is it me or are there too many whining loosers who didn’t have the know how
or the backbone to get themselves to work hard!
August 31, 2008 — 1:14 pm
Agent Advocate says:
Oh please! Sounds like management trying to hide as Zip employee again.
I earned 100k in commissions, and at Zip, got to keep only about 25k, plus they take a CENTURY to pay you,while they are earning interest on YOUR money. You, as a Zip agent, are the very last one to get paid.
Even with a 50% (which is only on the first 26K at Windermere, for example, then you get 100%), and paying your own ads etc, you are THOUSANDS ahead, plus you get paid when everyone else does. ON TIME!
It’s a tiresome mantra that only bad, ex Zip agents are unhappy with Zip. Good agents who get BS’ed into joining, leave quickly as soon as they see how it really is.
WAKE UP OUT THERE PEOPLE!
August 31, 2008 — 4:27 pm
Tigress says:
“d” is probably one of the Zip Realty DD’s. Or maybe Jay Sunderland, Associate broker & Investor with a whopping 3 or 4 sales since he joined Zip!
August 31, 2008 — 9:48 pm
d says:
not a dd just an employee. I’d be interested in how much you’ve earned over the same period at Wind
since all you said was the pay plan,do you spend what it takes in my area mailings are 3-4000 consistantly
every month, do you advertise in print every month? I’m in the SW area btw so we have a bad down turn that
is starting to recover. I know from experience that brokers take 45-60 days to pay @ KW, while we get it by the end of the month
and in some areas they get the commission check the following week. I am only saying that from my experience the agents
who sell don’t leave for a few years while agents who don’t sell move out the door. My avg pay per month since joining is 5K and going up
every month. I’m looking at over a 100K this year all of it earned since June.
I don’t get into the whole RA RA thing there nor did I get into it @ KW when I was there.
I just do my job. Do it well, and have very happy clients. I’m @ zip because of the market and how it goes.
I will be going to another company in a year and a half or so. But I will be going with experience,
an almost two yr independantly developed farm in key areas of my interest so when I switch I can concentrate in
a reduced area around where I live. If the onl defense of your disgrunted whining is some arbitrary number
of commission structure give me dollars and span of time you made them, 25K in how long, while @ wind
your new co how much have you made? I can only hope you honestly answer. And Sorry, I know jay is someone
up in the company but really don’t know who or what position. Not my concern I just do my job and goto the required meetings
other than that I do my job and avoid most others. Went to a party in an area yesterday, I gave out 50
cards, have appointments with 4 buyers and 1 seller, avg price range for buyers is 400K and the sellers
home is worth 2-3 million. If I sell all these people I will be well over the 100K for the year.
How much are you doing “agent advocate”
September 1, 2008 — 3:54 pm
Unhappy ExZipster says:
Hi D,
We can only hope that you’re telling us the truth, also. Just remember, you can’t leave Zip if you have any pending transactions. They will not pay you one penny of any commission you would have received. They don’t care how much or how little you worked on the transactions. When you leave you get “Zip”. That,s why so many agent can’t leave. Let’s say you only have one transaction a month. You don’t want to leave until it closes and now you’ve picked up another transaction, you still can’t leave.
The time span of transactions is not relevant to how much anyone earns. I did 4 transactions with Zip in 6 months and only earns a little under $8,000 for 3 of them and left before the 4th one closed so they didn’t pay me for that one. Since I left I sold a new build for $1.5 million. My commission will be approximately $45,000. I get 100% commission and pay a $260.00 transaction fee. I also get my commission check paid directly to me at COE.
I don’t spend my life in front of my computer any more. I have a life with no one looking over my shoulder demanding I work 365 days a year. My goodness, we go into this business to have our own business with some say as to how it will be run.
I’d rather possibly sell a few nicely priced home a year to make my $100,000.
I had to give up commission on a transaction to get out from under ZipRealty.
But, if you’re happy, don’t let anyone dissuade you. We all have our own paths. Some work hard along theirs and others figure out how to accomplish the same goal with less work.
Stay happy.
September 1, 2008 — 6:43 pm
I\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ says:
I’ve been reading this blog with interest over the last few months. It’s been a while since I was on but I actually agree with both sides of this argument. I left ZIP due to a disagreement with an incompetent DD and must admit to missing the organization. I did make very good money whilst there but boy did I work hard for it! I have been very lucky that I have been doing well since joining CB and have not had to put in the gruelling hours required at ZIP. ZIP is most certainly not for everyone but for those who can stay out of the politics and keep their nose to the grindstone making $70-$100K a year is attainable. I did it in my second year and had had no previous experience in RE at all. I could never go back unless major changes were to take place at HQ which I suspect is most unlikely, but I wish all those who are taking advantage of what the company has to offer, well. I am still, and always will be, an e-realtor and still beleive that ZIP had this concept right from the start. They just forgot that without us Realtors, they have nothing, hence the short term stay of their most successful and productive assets.
September 1, 2008 — 7:35 pm
Unhappy ExZipster says:
I agree. The 2 Berkeley students came up with a great idea. The problem is, it should never have gotten into corporate hands. They should have kept the agents as independent contractors and not employees. But, the corporate mind wants total control over every aspect of the business. Other real estate companies are already popping up out there incorporating Zip’s idea into their companies. It’s just a matter of time before Zip will be knocked off that pedestal. Zip should pay a decent commission and forget all that multilevel type of structure to compensate the employees. Zip needs to rethink, rethink, rethink. They need to concern themselves with the agent’s happiness first and then the Board’s. When the bottom of that pyramid crumbles, the top has to follow.
September 1, 2008 — 8:32 pm
been there done that says:
The ONLY value proposition Zip has to offer is the leads. This is Real Estate sales and the only thing that keeps money rolling in is closings. Are the leads worth it? It depends who you ask and what district you are in. The best decision I made was to leave Zip and learn from a true lead generating producer.
My problem/s with Zip stem from the good ole boy political atmosphere created by my first DD. Nice guy when he was in front of you but don’t cross him or you’re “managed out”. Another problem was that I couldn’t figure out who/what to listen to while I was there. I couldn’t ask my DD as he never even closed a transaction. All he would do is give us regurgitated punchlines….dig deep, get the client engaged, etc. My Team Leader (the current DD) didn’t have a clue (lost tons of Earnest Money for her clients as an agent, thanks but no thanks, I’ll ask someone else) Too much BS for me. I wanted to learn and I don’t like Kool-Aid so it simply wasn’t a good fit.
Zipsters, you pay an unfair split because the company has no Real Estate experience at the top. The CEO/Western/Eastern/Training VPS have no sales under their belts at all.. VPs with no experience who are simply RA RA, drink the Kool Aid cheerleaders ,they sell you on the company the way you sell your clients but the difference is that you are on commission and they are not. A VP of training who thought he was working at a mortgage company for the first couple of months he was with the company(seriously, he did, it was halarious).
Fact is that the district I was in (Phoenix) has not grown a bit and has went up and down with the market. And please don’t give me that crap about Zip out performing the market! Real Estate is a numbers game and the more leads you generate the more business you will do. Zipsters simply pay dearly for them.
September 2, 2008 — 4:57 pm
Ex-Zipper says:
Been there done that….who are you with now? I was also at ZIP in Phoenix for a short time in 2004.
September 2, 2008 — 5:03 pm
not liking the kool aid says:
Been there done that,
I laughed out loud when I read your comment. You’re right on the money. I work in Phoenix now and weve been talking about that for months. Weve been through three Brokers in the past two years. Maybe they need to look at the DD and Western VP and see how much they’ve negatively impacted the morale of the district. We are thankful for the leads and the benefits Zip provides but get rid of the political structure at the management level. It’s unnecessary and obvious. We are afraid to speak up.
September 2, 2008 — 8:18 pm
frankfrank says:
Lawsuit update. This is taken directly from the web site for the lawsuit (as of 8-22). The distribution amounts should be finalized in the next 2-3 weeks. Once that process is completed, checks will mailed out to the addresses that class members stated on their claim forms. Because the status of a number of claims were pending, that delayed the entire process. The settlement is structured so that claimants receive a pro-rata share in the unclaimed funds instead of that money reverting to Zip Realty. This non-reversion settlement serves to benefit class members who submitted claims, so the distributions will be made once the final number of claimants is determined. Interest earned on the settlement fund, excluding legal fees and costs, will be added to the settlement fund for the benefit of the class. The distributions are expected to be made during the month of September.
September 9, 2008 — 4:48 pm
The Real Buyers Agent says:
I am the new ex-zipster! This company is unreal. When I first was hired, I had asked the management if Zip had an Exclusive Buyers Agreement. The DD informed me that they do, which he never read. I told him that’s the only way I will work as a Buyers Agent. All of my buyers must sign my buyers agreement for one year, or else I wont work with you. Every buyer I had through Zip signed my agreement, or should we say their agreement for one year. Today I took out of one of the buyers and gave her a copy of it because she told me that she didn’t understand it fully. By the way she needs to buy because she is selling her current home, and those buyers want to close soon. After we looked at 4 houses today ( 10 in all), she called the DD & DB behind my back to cancel the agreement. They cancelled it with no questions asked. Then they asked me if I was going to still work with her,and they needed an answer in 10 mins. They said they don’t want to lose the buyer. Oh please, the buyer is lost! Obviously she wanted to cancel because she has another agency she is working with too. The DB told me that the buyer sounded excited about the rebate.Does the DB think Im stuck on stupid? I have two college degrees. I don’t think so. If the buyer was excited about the rebate, then she wouldn’t care to cancel the agreement.She still wants to work with her other agent (the agent who is also selling her house). I can’t work this way. I wonder if the DD has the authority to cancel the agreement because he said it couldnt be alter (it belongs to ZIP)
September 11, 2008 — 4:25 pm
KW says:
Hmmmm…..Sounds like people go to ZIP because they don’t, or can’t prospect. Well, then maybe sales isn’t for you. Sales is all about prospecting, no matter what kind of sales you are in. And to say that at tradidional agencies you need a “Sphere or Circle” of infuence or some kind of database to get started….ahhhh, don’t you have any friends? or family? or neighbors? or past co-workers? Where do you think databases come from?
From what I’m reading, I think most agents at ZIP would be better off working as a Barista at Starbucks. The pay would actually be better, you get 401k, insurance, stock options and paid vacation. Do you get paid vacation at ZIP? Sounds like ZIP is a corporate job with out all the benefits and more of the headaches.
Some one posted that it takes 2 to 3 months to get a commision check at a traditional agency. Where did you work? I’ve worked at 2 traditional agencies and they have ALWAYS paid within 1 to 2 DAYS.
The arguments for ZIP that I have read in this blog state that if you work hard you will be successful and the top ZIP agents are working hard to get to be Top Producers. Isn’t that true no matter where you work? If you worked 12 to 15 hours days (like it sounds like you do at ZIP) at a traditional agency, you would be putting an insane amount of cash in your pocket. At KW, they charge an MLS fee (which you need as an agent, of course) and a tech fee (which includes your own, costomized web site, email, on-line training, intranet, buyer/listing forms, etc.) all for a whopping $53 per month. Ouch, huh? You aren’t required to rent a desk or an office. I’m assuming you have a cell phone already, right? If you can’t afford post cards, how about email marketing, or calling your friends, neighbors, past co-workers, family? If you did that even 5 hours a day, 5 days a week, you’d be rolling in the dough.
Think about it….really.
September 12, 2008 — 11:36 am
Elky says:
Been there over a year now, apx 13 closings, total yrly income, apx $25k… RUN
September 12, 2008 — 4:32 pm
10 More Days says:
I have 10 days to go with this “company”, and have to be careful about what I post at this time. I have one deal that closed recently, but I want to make sure that money is safely in the bank. before I blast Zip Realty. I will say that the BS you are told at orientation is just that, BS.
Sadly, I did come to this blog before I signed up, but I did it anyway and now I strongly regret it.
September 13, 2008 — 12:45 pm
Tigress says:
So judging by the last few posts only Jay Sunderland, Broker & MBA is making any money with Zip??
September 13, 2008 — 8:42 pm
d says:
I’ve worked for KW in different cities, did you know that it’s up to the specific office as to when you get
paid for your transaction. One office was 30 +1 days (never explained), another was 90 days, and the last was
45 days. Office fees were 85 a month, and once a year you got to pay extra so you could be a part of yet another
kool aid company full of ra ra gary this and that must purchase these books for the camp (koolaid), must buy your own
cards,letter head,signs,transaction fees, 50 copies free(woo hoo), postage and so much more. While @ zip you get
401K, a draw, insurance health, dental,eye. You also get mileage .50, cell, internet, office supplies, and more
that is re-imbursed to you. So while I’m not sure what the guy above is talking about it seems he may have had seconds
@ the kool-aid counter. At KW they want you to attened some great events, if say a death in the family happens you will not be
refunded for anything. I was out 20K the first year with KW closed on 9 homes and made 31K before taxes which are 50%.
While no company is the be all end all they all have their place. Paid off the 20 in the first 6months with zip, along with actually
having money to pay my other bills.
At KW we’re pushed to buy the merchandise tshirts, sweat shirts, hats, polo’s, it was never ending. At Zip we get a web page, the #1 real estate
web-site, 50+ clients a month to farm, MLS dues are part of monthly expenses re-imbursed. So please get your facts straight and I’d like to know
what KW your at that charges so little? Are you CO, KS, or IA? Hated the website I hd from KW I had to pay to have another designed that was
better more effective at getting client info. That + my own Blog which I still have are great, + now that I have money I have been able
to afford to develope my own farm in areas I actually want to work! Been getting calls from people who were clients
of other agents for years due to the cash back to buyers and the discount commission.
September 14, 2008 — 6:25 pm
Agent Advocate says:
What a load of BS! Must be management panicking again as the truth seeps out to the public.
Agent Advocate.
September 14, 2008 — 6:47 pm
frankfrank says:
Anyone ever look at the compensation packages for the fine leadership at Zip (the ones who
have shepherded the company to a loss of mere 1.7 million for Q2, the ones who has been on the
helm while the stock has dropped from $6.61 per share in 10/07 to the current close at $4.40
per share. Go to
http://www.reuters.com/finance/stocks/companyOfficers?symbol=ZIPR.O&viewId=comp
and check out what they earn. Good thing they remember who earns the money for the company
toungue planted firmly in cheek). If any of us had such productivity ratings, we would be out on the
street.
Yet I remain at Zip-why you ask. Because unlike the vast majority of realtors in my area, I
am making a living, paying my bills. So, it is worth it to put up with some of the BS that one
has to deal with.
This blog is fascinating reading. I find that much of what is said is true, BUT, some of the
complaints of the alumni is simply sour grapes. No job or company is ever perfect. Welcome
to the real world
September 15, 2008 — 4:32 pm
Zip agent says:
Is anyone else aware that Zip is getting all of Countrywide’s foreclosures? In our area, the broker has all of them as his/her listings. What happened to the noncompeting broker thing?
September 21, 2008 — 5:35 am
Tigress says:
I hear from a friend who still works at Zip that management and the DD’s are practically shoving Countrywide down agents throats to use them. She says at every single meeting they are reminded to use Countrywide. Personally speaking I would not recommend Countrywide nor do I at the Brokerage I am currently at.
September 21, 2008 — 3:44 pm
frankfrank says:
Zipagent:
Your broker is keeping all of the countrywide listings as her own?? Didn’t think broker of record could also sell.
September 21, 2008 — 4:45 pm
Zip agent says:
Yes, the broker is keeping them all. Our broker does whatever he/she wants, period. Makes up new Zip policies, has sales, listings. We didn’t think we were working for a competing broker at Zip. But I guess what they don’t know….or they just don’t care. Very inconsistent from city to city (as should some things be) but not the basic fundamentals of the policies and procedures.
September 22, 2008 — 4:29 am
frankfrank says:
Not that it matters, because corporate is too “busy” with other things, but what about ratting the broker out to corporate?
September 22, 2008 — 7:31 am
Been There Done That says:
From what I understand, Office staff are allowed a few transactions per year. Corp. announced it a couple of years ago but asked the office staff to keep it hush hush so it wouldn’t anger the agents.
September 22, 2008 — 9:06 am
Agent Advocate says:
That’s correct. They (staff) can have transactions. It’s one of their “perks”. You’d better believe they pick the best ones for themselves. Hmmm, wondering why they aren’t available when you really need them? Why they have so many days off during the week?
Agents United
September 22, 2008 — 9:24 am
frankfrank says:
Staff hoarding listings? Glad I am not in your district. Thought we were all a big team.
PS: The class action money is to be sent out next week.
September 25, 2008 — 5:43 pm
Been There Done That says:
frankfrank….A team? Seriously?
Not sure about your district but Phoenix had a cliquee feel to it, not a team environment. Better believe the Western VP and Current DD’s pals got some extra perks.
The Western VP took a reassigned 7 Million Dollar Buyer away from an agent because the buyer was originally assigned to his buddy working in both the Austin and Phoenix Districts (against company policy, approved by Western VP). The buyer was being led to believe that the Austin Agent was really in Phoenix. The second agent had already began working the client sending pictures, scheduling showings etc. The Western VP stepped in and made sure the Austin agent got “his” buyer back. That’s the crap we had to put up with. Similar things have happened with the current DD also. Most of the reassigned listings went to her Hiking and Drinking buddies when I was there.
I work hard and hard working agents on commission should not have to deal with such politics from salaried inexperienced leadership. I GUARANTEE that if the Western VP had EVER experienced what it took to develop a relationship with a buyer, qualify the buyer, research property for the buyer, drive the buyer around to several properties, negotiate the deal, manage the escrow through closing. Crap like what I mentioned above would not happen as often.
It even happens when they are hiring for the office positions. The current DD was basically guaranteed the job. The Western VP coached her during the entire hiring process, (many 2 hour lunches covering what interview questions she would be asked, who’s who at Corp etc, he was pretty slick about it too.) They shouldn’t have even posted the job, just give it to her.
To KW Sept 12th,
Zip doesn’t teach prospecting 101. The leadership needs to sell houses to gain that experience. Not gonna happen. Well trained agents (or agents with common sense) can venture into the traditional world of Real Estate and be successful no matter what market. I agree 100% with your post.
I miss the leads but not the politics.
To Corp,
Promote people like the Seattle DD, Experience at the top would make a world of difference.
September 26, 2008 — 10:37 am
frankfrank says:
My comment about team was somewhat sarcastic. I do agree that it would be nice if anyone above the
rank of agent had some experience actually trying to sell real estate.
September 26, 2008 — 1:25 pm
frankfrank says:
Stock is down another 10% today, yet management is flying all of the team leaders to a
conference next week. Guess they never heard of the video conference.
October 10, 2008 — 9:11 am
kudanersky says:
Has anyone received their settlement checks yet and if so, how much were they for?
Also, how much money are the “top producers” making each year in each of the districts?
October 10, 2008 — 6:18 pm
Zip agent says:
In our district, the DD said to the team leaders…”What happens in PHX, stays in PHX.” They scheduled a meeting Wednesday morning and gave everyone the afternoon off then the Farewell Banquet is on Wed. evening with departures on Thursday morning. Everyone was told if they want to golf, to send a check made out to Zip Realty and if they wanted any spa service that they could get 20% off. OH, BOY how generous. Zip schedules a free afternoon and then expects them to pay for their own free time activity? If they can’t pay for that then why in the hell, waste money on the rest of it. I agree about doing it by conference call. People don’t want to go to those things-except people like our DD and the other agents that will be sucking face with the president and vps like they did last year.
October 11, 2008 — 4:26 am
Glad to be gone says:
Zip Agent – what Farewell Banquet? I guess I missed a prior post.
October 11, 2008 — 8:52 am
frankfrank says:
settlement $ arrived today: roughly 78 cents on the dollar.
October 11, 2008 — 4:58 pm
done with this company says:
In DFW top agents and I mean those 2 in century club (after 6 years with the company) and their split is the highest that can be achieved. Their top yearly income is between 50K-60K. The price of homes is not as high as in other parts of the country. They still work as hard. I also know that some of them have some newer agents in their team work the platform for them and make the phone calls for them in exchange for some cash.
Ohh and they are both team leaders so they make a bit more by getting a piece of the pie from the team’s commission.
October 12, 2008 — 12:22 am
Zip agent says:
Sorry, I was referring to the Team Leader Conference in Phoenix this week. Forgot to include that piece of the story!
October 12, 2008 — 5:43 am
kudanersky says:
78 cents on what dollar?
October 12, 2008 — 4:00 pm
kudanersky says:
50-60k total annual income for top producers? Even in Dallas/Fort Worth I find that hard to believe.
October 12, 2008 — 4:02 pm
Zip agent says:
As suspected, married male DD’s are ALL over the female agents at the Team Leader Conference this week. What a waste of time and money for the agents that are trying to sell homes to make a living.
October 15, 2008 — 2:34 pm
kudanersky says:
Judging by the photos from the various districts, there aren’t too many agents one would want to get all over. Anyone receive the settlement check yet and if so, what was the amount?
October 15, 2008 — 3:05 pm
Zip agent says:
I don’t think these guys really care about looks.
October 17, 2008 — 8:30 am
Maggie says:
To FrankFrank: Oct 13th you posted you got your check for the class action lawsuit. What state are you in? How are the checks being mailed out? Did you really get your check?
October 22, 2008 — 1:01 pm
frankfrank says:
I did get my check. It was sent to me via regular mail. For obvious reasons (as in I still work
for zip) I am not going to say where I live. My suggestion is that you get in touch with the lawyers
who did the lawsuit to see what your status is.
October 23, 2008 — 2:25 am
kudanersky says:
What was the amount of the check?
October 23, 2008 — 1:03 pm
SacZipAgent says:
Zip is now hiring new agents at a 50% Split!!! While keeping the rest of us at 40%, does this sound fair??? Yes it is true another agent at a team meeting said that a new agent admitted that he was getting a 50% split and that there were others with the same arrangement. I am very angry at this, I am a top producer who has been in Presidents Club and given this company alot but when I brought up the fact that I could not make a living at the current split I was told that there was nothing that they could do, well I guess that was just another lie of many that has come out of our great DD is Sacramento(does anyone believe a word this guys says).
Oh and it gets better there is actually a team leader that is trying to get all older people in the company fired, I have not seen the email but I have it from a pretty good source that this definitely is happening. So now we cant even trust our team leaders anymore, what is happening to this company is really a shame.
To me this starts with the leadership and the leadership in Sacramento is about as bad as I have ever seen, recently an email was sent out that was titled “Re: you are losing credibility because of this and I can’t stop it” this was referring to the fact that corporate is losing faith in the DD, how could anyone have faith in someone you dont trust. He should seriously run for president because there is no one better at telling you one thing and then doing another. Most of the agents I know lost faith in him a long time ago, SAD!
October 30, 2008 — 1:40 pm
sacTL says:
In response to the post from SacZipAgent reagrding ” So now we cant even trust our team leaders anymore,” I am a sac TL and I do not feel that comment was fair. I have done alot to earn the trust of my team so please do not lump all of us together because of the unfortunate views of one narrow minded person.
October 30, 2008 — 7:07 pm
Kudanersky says:
Can the hirings at 50% split be substantiated? I would think that would have to be touched upon at the Nove. 5 earnings call
October 31, 2008 — 8:54 am
Been There Done That says:
Kudanersky,
They’ve done it before. It’s up to the DD and regional director to make the exception.
November 1, 2008 — 11:47 pm
Former Zipster says:
Well, I finally quit. I feel like a weight has been lifted off my shoulders. I think the company has a great concept but unfortunately in the district I was in, it was backstabbing, favoritisim, mean spirited, unethical and down right nasty-all by the dd and broker. Since several attempts were made to discuss the issues with the higher ups at corporate and our concerns fell on deaf ears and nothing was done, I have to believe that they (Pat & his cronies) condones this behavior. Or they all have something over on each other. So sad. I know all districts were not like this but what a horrible work environment for the agents here.
November 2, 2008 — 5:38 am
Glad to be gone says:
Former Zipster -I felt the same way 4 years ago when I had finally had enough of the same thing. Can I ask what district you left?
November 2, 2008 — 8:55 am
frankfrank says:
Does any one have any real proof that some agents are receiving a 50% split?
November 2, 2008 — 4:57 pm
NewSacAgent says:
To SacTL, Saczipagent, and anyone else in the Sacramento area,
I’m currently starting to study for my real estate examin and license and was strongly considering
a career with Zip. It seems like this board is largely negative towards Zip. Can ayone give me any
insight on working for Zip in Sacramento. Positives and negatives from both sides would be greatly
appreciated? Is now a good time to get into this market? Any help from Northern California Zip agents
or past agents would be much appreciated as I’m trying to decide if this is the direction I would like
to go in. Thanks.
November 2, 2008 — 8:58 pm
SacZipAgent says:
It was substantiated, the DD admitted to it and from what I heard was very upset that it got out because now he has to answer for why agents doing 7 delas in a quarter are getting 40% while another brand new agent that has not done any deals is getting 50% again very unfair but that is ZIP for you.
November 3, 2008 — 10:41 am
Skeptical says:
Question. What do you think the future holds for ZIP realty?
Trading at $2.65 today and hearing the “we have no debt, everything’s fine, nothing to see here” line.
Is this a company that has the ability to adapt and increase market share to be around for the other side of the bubble?
Your thoughts please.
November 3, 2008 — 10:41 am
Kudanersky says:
Former Zipster, what district were you in?
November 3, 2008 — 10:56 am
Kudanersky says:
Zip has been steadily increasing market share, and continues to expand (albeit more slowly) even
in a down market (indeed the worst in years). The website is the best and consistently in the
top 5 most trafficked real estate sites despite being in only 35-40 markets. Management and
compensation kinks are being worked out and need to continue to evolve. It seems the right person
is finally at the helm.
If this 50% deal is true, my guess is that they have rolled that out in a few test markets in an
attempt to attract more (or those with the potential to be) top producers. A big drain is the
steep learning curve for new agents. It often takes weeks or months for agents to hit their stride
and some never do. So, as a business decision, it does make sense to start those agents with
proven track records with other companies off at a higher split. A bit unfair to those who have been there,
but it is a business after all and in the end anything that strengthens the company will be good
for all.
November 3, 2008 — 11:59 am
EX-Zipper and glad to be! says:
Here we go. Was wondering when management would log in with it’s “Carl Rove” style Spin. People, hopefully you’re not buying this stinky bag of poo they’re trying to sell you.
Zip is CORPORATE like “Enron” and “Haliburton” and “Walmart” and the wall street thieves that just brought our economy down.
You, the agent, are just a worker bee and they don’t give a damn about you or your little problems as you are easily replaced.
However, they might be freaking out right now about their “bottom line” as keeping the CEO and top mamagement fat and happy and the stockholders is their only real goal … wait, doesn’t that sound eerily familiar?
Don’t get fooled again.
November 3, 2008 — 3:05 pm
kudanersky says:
I’m not in CA, not management, not even close. There are plenty of valid complaints about the company, but it is still young and a work in progress.
November 3, 2008 — 6:49 pm
Skeptical says:
Since when has “Corporate” been a bad thing? Last time I checked a commission employee got paid based
on his / her output? The only job you could give yourself a raise?
Quit crying about the split and maximize it or go somewhere else. By staying on you are only
hurting yourself and coworkers. Without “Corporate” you would have no bonus checks to cash.
Are you really that naive?
November 4, 2008 — 9:45 am
frankfrank says:
As employees of a publicly traded corporation, you expect
some level of even handedness in the compensation structure. If new agents are being paid
50% split in some districts at the get go, while existing agents in the same district need
to make Presidents Club to attain that level, then the corporation needs to be up front and
honest about it. Maybe they did not learn the lesson of the Lubocki class action.
I agree with “Skeptical” that being corporate is not a bad thing.
But, this corporate is running the ship aground, and is not transparent in its
dealings with employees.
I wonder if he/she is a current or former employee of zip?
November 4, 2008 — 11:19 am
kudanersky says:
Zip gives out bonuses?
November 4, 2008 — 11:22 am
Been There Done That says:
Frankfrank,
It is actually common for such exceptions to be made. There were and most likely still are “special” deals made for specific agents in my former district. There were lots of them made. It really depends on who runs the district.
Kudanersky,
Your post on Nov 3rd sounds like the “economy is fundamentally sound” speech given by Senator McCain.
1. the compensation kinks have been talked about by the same people for a few years now. They say that over and over to keep performing agents on the hook. The split for long term agents with a certain level of production have been established but they have not changed anything for newer agents. OH YEAH I FORGOT! they started paying agents faster and acted like it was some enormous task. How hard is it to figure out a decent split?
2. Agents with proven track records don’t come running to Ziprealty. They laugh at the compensation package. Most lead generating companies/teams give larger splits for personal deals. Unfortunately you need Real Estate Sales experience to fully understand that concept.
3. Right person at the helm???? Whom are you referring to? Hopefully you are referring to someone who has actually closed an escrow for a client in the last ten years. There are not too many of those in mgmt.
Ex-Zipper,
Your are right on the money, It does sound eerily familiar.
In the spirit of election day….
The company has always been run like a bad Bush Administration. Very political and arrogant. Who in the hell hires convicted felons to manage in a publicly traded company then says “we didn’t know.” (I’m referring the the auditor/Western VP in AZ) He was hired because he was a family friend of the former CEO Eric D. The Florida DD that had been convicted of fraud. Corp claimed it wasn’t him but everyone was able to find the record on the web. Go ahead and shrug your shoulders Corp.
The amount of money Zip has lost due to employment issues. How does the Legal Department and HR miss this stuff. The answer is that they most likely don’t. you simply can’t cross the powers that be so if they say overlook an issue….you overlook the issue. We’ll deal with it when it comes to a head, then we’ll blame you for following our instructions.
November 4, 2008 — 12:21 pm
mindy says:
Any idea if these new 50% hires have their commission permanently at 50% or are at 50% for a
set period and then revert back to 40%
November 4, 2008 — 2:45 pm
Kudanersky says:
Frankfrank:
1. Agreed. As I said, they need to continue to work on it. There is no other RE company out
there like Zip, so they are blazing the trail and it continues to be a work in progress. Overall,
a pretty successful one but much still to be done. Btw, what ever happened with the high-powered
and expert compensation consultants they hired many months ago? Is that review ongoing?
2. No doubt. Which may be why they are testing this special 50% (wow) split to see if they can
recruit some more talent? The personal deal issue is a large one in my opinion. The website and
resulting leads are what is most attractive to ZipAgents. However, while a nice bonus, those are not needed for an
agent to entice their friends and family. These deals should have a much higher split.
3. Referring to Lashinsky. Seems to be smart, genuine, and trying to do the right and best things
for agents/shareholders/company. Lacks the ego of the previous 2, which is refreshing. Long way to
go, but no one else could step in and do a better job.
Mindy, good question.
November 4, 2008 — 5:15 pm
notbuyingit says:
“they are blazing the trail and it continues to be a work in progress”?! The company was founded in 1999! If they’re still using that line at corporate, you should all call them on it. My goodness, how long does it take to figure out the model? This company is almost 10 years old.
November 4, 2008 — 5:29 pm
not liking the kool aid says:
Kudanersky,
1. we were told about the consultants over 2 years ago. They just told us that so the we would stop asking. The only thing they got right is the lead generating system which more and more companies are duplicating. The internet is no longer a secret.
2. the 50% thing is just an exception that was made for some special someone. They can’t test higher splits until they figure out how to pay mgmt less. The company is top heavy with inexperienced leadership. How can any of them really help me sell a house? They can’t, they’ve never done it.
3. Lashinsky????? Nope.
Mindy,
The split depends on the leadership in the district. I’ve seen it done both ways.
November 4, 2008 — 7:54 pm
kudanersky says:
Ok, well you seem to have all the answers.
November 4, 2008 — 8:27 pm
mindy says:
“not liking the cool aid”
So, you have heard of any newer hires put on this 50% plan for more than say 6 months??
November 5, 2008 — 7:04 am
was hopeful says:
Zip just lost ANOTHER $1.7 million this third quarter…..this company and it’s stock has no
value at this point on Wall Street.
As long as they have 50 million cash in the bank, the fat cats, and yes, they are eating just
fine, (look at insider news on the net)can continue to run agents ragged to the bone.
It’s a very thin cloud at this point and they will be consumed for the cash very soon. All
employees will be walking away with the nice parachute…..oops, sorry, agents get nothing.
Agents…..move on to a “Real” Real Estate Broker that will be there for YOU! Build your
business and YOUR brand! You will in this industry long after the Zip fat cats are done with
this Zip buffet and they have gone back to their mundane management jobs that they came from.
November 5, 2008 — 2:42 pm
Kudanersky says:
Compared with a 4.8 million loss last year… isn’t that a pretty good improvement given the market
conditions?
November 5, 2008 — 5:03 pm
frankfrank says:
Lost 1.7 million dollars, yet how much did they spend flying, feeding and lodging the team leaders
district directors at the team leader conference in Arizona?
November 6, 2008 — 6:43 am
Kudanersky says:
Growth helps ZipRealty trim losses
Brokerage adds 551 agents, boosts sales
By Inman News, Thursday, November 6, 2008.
Inman News
http://www.inman.com/news/2008/11/6/growth-helps-ziprealty-trim-losses
November 6, 2008 — 8:57 am
3rd Q 08 Numbers says:
Lets look at the numbers from the Zip 3rd Q report.
First an Analyst made an estimate in late August was that Zip would report $.01 positive Earnings Per Share (EPS). On that fiction the stock price was projected at $5.25.
The actual number – $.08 EPS, inline with previous quarters. This is a miss of minus – 900% and the stock $2.60 or half the estimate – a 50% miss.
Let see: Loss from operations $2.241 million – might have been $4.1 million. Net revenue per transaction down 16%. Loss per transaction $447 or – 11% net margin. Numbers of agents up (that must be the growth) but this could be because Zip failed to clear departed agents from their ledger as this is a way to fake the numbers. Transactions up, but value per transaction down. Cost to acquire a transaction, internet ad costs divided by transactions closed about $600 each.
Lets look at Agent performance. Transactions by number of agents equals .6 transaction per agent per month. Average agent income per transaction $2,452 or the average agent was paid $1,471 per month or $17,654 per year. Agents can you live on that? If all Agents were paid 50% per transaction (per the previous blogs) then the average agent would earn $22,000 per year. May be that is why Agents leave Zip?
Management reaction to 40 Q of losses and 80% loss of stock value since IPO? “We are doing great, our burn rate is right on target.” Any one mention reduction of expenses? Changes to the business model? Any resignations from the Board? Do Zip agents trust the company? May be liquidation of the company or a plan to make a profit? Real companies manage.
Kudanersky = Lashinsky?
November 6, 2008 — 11:00 am
frankfrank says:
numbers would be better if company was a) not so top heavy; and b) run by people who had actually
sold a house (besides their own).
November 6, 2008 — 11:37 am
FreddyGotFingered says:
I’ve been here long enough to make a fair assessment of how things are run. ZipRealty management is a joke. I’ve surpassed 2 CEOs. Nothing has changed, in fact things only got worse and horrible decisions are constantly made by management. They could care less about the agent or they would have addressed many lingering issues that have not gone away. And I would like an apology since they were found at fault based on the Lubokci case settlement. Basically, the judge/arbitrator said ZipRealty was using funny accounting/management practices at the expense of their employees. In other words, they got caught cheating. Who would want to work for a company that acts in such a way. They are borderline on a slippery slope in the handling of the At-will employment relationship they have with their agents – specifically holidays, vacation, discrimination, benefits, agents having to pay their own board fees, etc. Be careful Management, you piss off the wrong employee again, you will have another class action suit on your hands. Oh yeah, terrible corporate culture…
November 6, 2008 — 12:03 pm
Potential Zipper says:
Looking into possibly working for Zip in the Philadelphia/New Jersey area. Any advise out there?
November 6, 2008 — 5:29 pm
kudanersky says:
I’m on the east coast so maybe I’m not privy to as much info on corporate as those out west. It’s good to read different opinions and perspectives. There will always be agents who don’t succeed and who drag the per averages down. As the company continues to grow, producing agents will outnumber those by more and more and the averages will go up. I think we’ll continue to see growth. As I’ve written before, there are many things that can and should change – hopefully they will. I don’t really see this as buying into the kool aid but do choose to take an optimistic yet realistic and logical long view of the company and where it’s heading. I’ve made the decision to stick with it because I do believe there is a very good chance that it will take off.
November 9, 2008 — 4:03 pm
Frank Nitti says:
Zip is a hustle. The are going to be just like Foxtons out of business.
The agents are being hustled and don’t even see it.
Zip offers its agents a 35% split to start even if
you have 20 years in the biz and are a broker
Zip makes 100% of the deal. ill explain. A company payroll is a write off.
You are an employee so you commission are taxed
The rebate is tax deductible for the firm.
If the state you live in doesn’t honor the rebate they “Donate” it to a charity in the
Client name but the client IS NOT allowed to use it as a deduction because zip takes it
According to the IRS for ZIP to pay you only commission and still call you an employee you
cant have another job. If you have another job they would lose the right to write off everything.
I know an agent in Zip that was given a check for $ 11, 070
after the client got their rebate off the top of 2,200 and the 8.33% tech fee.LEAD ARE NOT FREE
after taxes and any thing else Zip wanted to take out this agent
after 5 months of work only earned 1,100 dollars. This is an outrage
Even if the company paid you 100% commission they would still turn a profit ..
because everything is Tax deductible to them.
Zip is not run by real estate professional.
The Distract broker is just there because the state
requires it the Distract Director is the Boss.
A Broker worth anything wont work on a set salary
Zip managers are only allowed four deals a year
The concept of Zip is great the
payout in ZIP sucks you will make money working in a retail store
i was told I could make 250,000 my first year in Zip…in sales anything is possible ..
I know you can make that in this biz…but not in ZIP…if the Avg. payout in Zip is 1,500
I would have to do 166.66 deals to earn 250,000 dollars….But if it was a Real Pay out
like in other firm 11,070 at 70% payout would be
over 7,000 dollars which mean it would take me only 32 deals to reach 250,000
ZIP is a scam for its agents
November 9, 2008 — 11:43 pm
Kudanersky says:
I don’t know about the tax situation, but on the compensation issue your numbers fail to factor in customer satisfaction
bonuses, monthly expense reimbursement, Zip “Star” awards which are an additional $300/mo after 3
years and $500 after 5 years, and the biggest ones which are the performance escalaters built into
the 3 tiers of Presidents Club: higher monthly payments (stipend, expense reimbursement, whatever
you want to call it) and, of course, the much higher commission splits. So, your 166.666666 deal
theory is incorrect and not by just a little. I am aware of several agents who top 200k/year.
November 10, 2008 — 7:58 am
Sell the technology says:
ZIP should simply sell the technology and get
out while the getting is good. Keep pissing off
the agents and another law suit is bound to happen.
If ZIP is in violation of the Sarbanes-Oxley Act
they they will be the next ENRON for sure. Sale the
technology because others are catching up quick.
November 10, 2008 — 9:27 am
Skeptical says:
Why do they hire “managers” without RE experience and do you feel this is the biggest issue regarding leadership?
Can’t someone with 20+ yrs of sales experience come in and give you fresh percpective and direction?
November 10, 2008 — 9:53 am
EX-Zipper and glad to be! says:
What a load! Managemnet again trying to do the Carl Rove boogie.
Most agents will starve to death before they ever get into President’s Club and all that other “golden carrot” stuff they keep the sheep motivated with.
Bottom line, you’d be better off working at Starbucks as you will no doubt have more money at the end of the day, plus you wouldn’t have to work “leads” 24/7, most of them useless, and never have any time off or risk being “hawked” and punished if you don’t have your laptop attached to your hip.
If you are so desperate that you are seriously considering becoming a Zip agent, at least take the time to read all of the comments going back to the beginning of this blog. It’s all true. Google the facts, the lawsuits etc.
Use your God-given brain and common sense before you step into the bear trap.
There ARE good companies out there that DO have integrity, where you CAN make a living, where you can build a base of clients (Can’t do that at ZIP), and where you can be respected in the industry.
WAKE UP out there, Zip is the Titanic about to hit the iceburg!
November 10, 2008 — 10:11 am
frankfrank says:
His name is spelled Karl Rove and btw I doubt Zip management has his Haliburton
hurricane machine and the like (that’s called sarcasm). To compare Zip to Enron is also
uninformed. Management is not stealing money (if they are-I’d love to see some
proof)
Yes, management is inept, you have to spend time on many stupid
administrative tasks set up by people who have never sold a house in their lives, but the fact
is, for all of my issues with the company that I have communicated over the past few months,
there are a number of agents who are making pretty good money (including myself)
in this challenging market
November 10, 2008 — 5:10 pm
been there done that says:
To Skeptical,
they hire managers w/o real estate experience because they don’t know any better. Also, it wouldn’t be a good thing for anyone at Corp. to admit that real estate sales experience is necessary. Most of them don’t have it and they would be talking themselves out of a job.
20 years of sales experience is good but selling houses isn’t like selling widgets. Most of the top dogs in the industry will tell you that. For the most part it’s an emotional transaction for buyers and sellers. There is high exposure in terms of liability that is almost never addressed by sales managers (DDs, VPs etc) You have use extreme caution and be thorough when representing a client.
I say this because of the hires my old district (Phoenix Brokers and DDs) made in the past couple of years. They were willing to stick anyone with a Broker License and a pulse in the Broker’s office (although I liked and respected the ones I worked with). The current and past DD’s were clearly hired by people who never sold houses. They are the exact opposite of who should be running a Real Estate office. That’s why the district has not grown by one agent since 2006.
Frankfrank,
There is not a large “number” of agents making good money. There are a few. Before the down payment assistance programs were outlawed, there was an artificial mini boom which helped a few agents get into presidents club for the first time. If the company is such a great one then please explain why the Phoenix office hasn’t the grown since 2006? I ask about this particular district because it is located in one of the fastest growing cities in America. There should be a ton of “leads” in that area. I don’t know about other districts but the growth stopped in 06 because Zip developed a stigma in the area. Most of my business was my own so I moved to a better company. I really became ashamed to tell fellow agents (especially in the luxury market) that I worked for Zip. That’s when I decided to leave.
November 12, 2008 — 10:24 am
Happily EX-Zipster! says:
It’s not that they don’t know any better. They CHOOSE to hire these non-agents for management because the company, from the very beginning, has had, and still has NO RESPECT for agents.
The founders wanted a company with NO agents, but begrudgingly had to accept that the agent is still somewhat necessary. However, they only want order-takers. You might as well be a telemarketer. And, all management is interested in is individually clawing their way to the top of the food chain.
If they’re “growing”, why do they have such a huge turnover?? Why do they have to devote two weeks a month to training newbies, when there’s no biz??? Because, people leave in droves, and not because they are not competent, which is the LIE that management tries to sell to everyone, but because they wake up and realize what a tacky and unethical company they are working for, and that they will never really have any respect in the industry, or be able to make a decent living.
This company is on it’s way down because they don’t really care about agents, or clients. It’s all Zip propaganda, smoking mirrors.
WAKE UP!
November 12, 2008 — 3:30 pm
kudanersky says:
Smoking mirrors are awesome.
November 12, 2008 — 7:44 pm
Happily EX-Zipster! says:
Yes, they are! They obscure the truth rather well, a good carnival distraction.
November 12, 2008 — 9:59 pm
FreddyGotFingered says:
Horrible Network Marketing Scam. That’s the best analogy I could use to sum up ZipRealty. Lies and deceit.
Don’t work here at any level. It truly is a scam. If it was a real sales organization, they would post individual sales results of every agent. They don’t do this because only a select few are making money at ZipRealty. Anyone not producing should be fired and their leads redistributed. The bottom 3/4 are just taking away from the middle of the pack who are the core of this business. But instead they continue to hire unexperienced agents that take away 2 to 3 deals from agents who have put in their time with this company. Management doesn’t see the big picture because they are so concerned with growth that won’t happen when there is such a high attrition rate. Hiring is the worst thing they can do (freeze hiring) and work with agents who can close deals. Of course, management doesn’t see it this way. Fire the trainers…contract them to come in on weekends (cutting more fat). PS, I love how they added a client satisfaction rating for the agent. Imagine if the agents were allowed to rank/assess management satisfaction. 2 out of 10. DON’T WORK HERE. THERE IS NO CORPORATE PROTOCOL. I have to get all my information from this BLOG.
November 18, 2008 — 12:47 pm
been there done that says:
Freddy,
Be very careful that corp don’t find out who you are. A true top producer from Phoenix gave similar feedback a few months ago after meeting with several producing agents and putting their feedback on paper. Less than a week after that the DD and Western VP fabricated a reason to terminate the agents employment. Our DD told us that the techies at corp track who is blogging (not sure if they have access).
They had a meeting last October to “trim the fat” but they didn’t want to scare the shareholders. It is well known that shareholders often count pictures on the website to see how much potential the company has to produce. The trimming event went horribly wrong in Phoenix as it was apparent that it was a political “who do you like” meeting instead.
I agree about the trainers. It’s a waste of money to pay them. Especially when their fearless leader took three months to figure out that he was working for a real estate company and not a mortgage company. The training and staffing ideas they have come up with are great in fantasy land but in the real world they are laughable. All they do is hold on to dead weight to fool the shareholders into thinking they have more “working agents”. Fudge the close of escrow dates in the system to reduce their “push” ratios thus increasing their bonuses. Sounds like they won’t get it together until they clean house in Emeryville.
November 19, 2008 — 2:28 pm
Former Zipster says:
So how do we get to the shareholders to make them understand what a flim flam operation they have their money in?
November 20, 2008 — 1:32 pm
Kudanersky says:
contact the whistleblower hotline: http://www.ethicspoint.com/en/default.asp
Hey what ever happened to Jay Sunderland, did management muzzle him?
Also, I’ve heard those settlement checks have been delayed until end of December at the earliest.
November 20, 2008 — 2:29 pm
mindy says:
My sources tell me that Jay Sunderland is no longer at zip. Jay, what happened??
November 20, 2008 — 4:57 pm
two bits for metal says:
Jay Sunderland got wayyy too big for his britches. He was pining to be the next DD in Seattle but THAT aint gonna happen. Jay can now be seen in the bread line since his 7 listings or whatever didnt sell….LOL!!
November 20, 2008 — 8:10 pm
Former Zipster says:
I tried the ethicspoint already and was told there wasn’t “Stock Fraud” and they were not concerned about anything else that had to do with the company. Only trading issues.
November 21, 2008 — 6:34 am
mindy says:
Any of you still at zip notice that they named a new C.F.O. today? To no one’s surprise, the
new guy has no real estate experience
November 21, 2008 — 6:49 pm
Frank Nitti says:
In the office I was at the district director came from one of those other discount houses that failed.
The District Broker is about in touch with Real Estate as a Newbie. 90% of the agents are brand new
The team leaders suck. They picked the team leaders in this office not because they were good …but because they were there the longest
oh by the way they all are blonde and hang in the D plus range(Hmmm). Yes you may have people in Zip making 200, 000 grand
but how hard are they working. You arent allowed an assistant and an associate broker’s experience holds no weight here. Zip is perfect for a person with a brand new license…but if you have 3 days of expericnce or more dont join zip. ZERO TRAINING IN THE BUSINESS…you are trianed on the website ONLY.
November 23, 2008 — 5:02 pm
Frank Nitti says:
Giving a rebate to people who buy houses that are just a few dollars short of what the sales agent earns
is stupid. I seen a buyer receive a rebate check for 2650 the agent was pay after taxes 2890. Oh by the way
the rebate is TAX deductible to them. Your commission is TAX deductible so at the
end of the year ZIP get all the money and you get the short end. You could start at 90% commission and they would still make a profit.
Payroll is a Tax deduction
Rebates are a tax deduction
Reimbursements are Tax deduction
This only works if you only have one job. Because the IRS wont give you all this back if your employees
“moonlight”. http://www.irs.com look up employees who work on commission only.
November 23, 2008 — 5:18 pm
Dingo says:
Ok, here goes…I AM a current zipster….u tracking me boys? O a, not at y computer ha ha. This company would make the Nazis proud! Most what everyone said here is true. Management drins the Kool Aid and regurgetates it to the agents…The agents fearing their jobs suck it up. I have been with Zip over 5 years and have seen alot of changes NONR for the better.
True the website is awesome..we are paying for it, true they provide benefits, here in Massachusetts, it is a state law so they are mandated to…again, we pay for it…we get leads. wow, guess what? we pay for it. Zip sends you a lead via email..so? This is cutting edge? You can do that on your own. What I hate most about Zip is their rulr NOT allowing you to brand yourself. I wanted my own website and you thought I said something sacrolirious.. My DD was incensed. Read any Real Estate Trainer, Proctor, Forte, they all mention it has to be about YOU. Zip does not want you to build a relatiionship because they fear when not if the client will be loyal to you and not the almighty Zip!
Also, another point about Zip…it fry’s my ass when I see that fat, middle aged CEO PatL on TV talking as the so called expert. I wish one of these news guys calls him on it…Het Pat, how many homes have you sold? How many have you listed? What? You are not even a licensed Realtor? What? Only ONE person in upper management has a Real Estate license?
This company sucks so bad..it is not a question of if but when it will come tumbling down. Agent yurnover far exceeds industry standards. Apparently the share holders are either to pre occupied or to friggin dumb. I had sto st first and dumped it rather quickly. I want out.
Oh, and I was from the New England district…”all that glitters is not gold!” Favoritism is rampant..3-5 agents are the pets…Fn joke
November 25, 2008 — 2:43 pm
Dingo Fan says:
oh, I LOVE YOU!!! Can we talk somehow? You are so right on.
November 25, 2008 — 3:53 pm
mindy says:
Dingo:
If it is so bad; why are you still there after 5 years??
November 25, 2008 — 5:18 pm
Happily EX-Zipster! says:
What do you think? Zip traps you by not paying you your commisions for sometimes as long as a month, while EVERYONE ELSE gets paid when the deal closes.
So, there you are, having to keep working the leads or they fire you, and you won’t get paid your commissions if that happens. They are counting on you picking up another deal, then you are in the Hampster cage running on the wheel. You have to pay your bills, feed your family, and they keep you poor so that it’s really hard to get out. They hold you hostage. You know, like the abused wife who isn’t allowed to handle any of the finances and gets beat up all the time?
November 25, 2008 — 6:02 pm
Dingo says:
Mindy,
If you read my post, you will see I said the company had changed and NOT for the better. The only reson why I stayed was because of the health benefit…just like a majority of the others. I have since secured another health insurance company and am leaving this God forsaken company. I will say if you are new to real estate, this is a good company to learn the fundamentals then get the hell out and earn REAL money because you will never make it here. Trust mee Mindy I know this place better than you.
As for my fan..thanks! I get very emotional about this because I feel I was totally mislead. When I first joined, we were a privately held company, things were great! Then we went public and everything changed over night. Agents are treated like s**T. Where I am they do not fire you, they just make your life miserable. They cut your leads off, and let you twist. There is no support from your DD or broker. They are to busy watching their asses. Corporate puts a lot of pressure on them too. Funny, the website is down a lot internally but no one seems to get “hawked” (zipsters will know what that is)
No sorry…like I said previously, awesome website sucky management good people for the most part. Want to make it at Zip? Just go along to get along, kiss ass, laugh when appropriate, show your face at meetings and tout theline of BS the spew and you will be fine., well, until the next regime comes in…lol
November 25, 2008 — 9:42 pm
Dingo says:
You know I was just thinking sitting here, we are a company right? Employees right? Why don’ we unionize? that will really f**k them over1 They wiu
November 28, 2008 — 10:12 pm
UnZippered says:
WOW!!! There sure are a lot of unhappy zip employees or x-employees out there blogging. I’ve been with Zip 2 years now and most of what I read above is spot on correct..
December 1, 2008 — 5:50 am
two bits for metal says:
IF market continues or stays down for next couple or few years no way will Zip survive on its own.
December 1, 2008 — 6:43 am
FreddyGotFingered says:
Dingo,
I can already hear your Mass accent in your voice. Not too hard to figure out who you are, so I’ll give you one of these 😉 at the unsanctioned “Christmas” party this year…if I decide to go. Boy, I remember those days of real awards, drink tickets and real food at the annual team meetings – not like these things mattered to me – but my, how things have changed. Question, did we even have a summer BBQ this year…Or whatever happened to the Hawaii trip? I would tell you to tone down on your rhetoric, but these clowns deserve every backhand slap they deserve (cheating their employees – Lubocki case). We’ll keep the stooges guessing, they probably think you are me anyway.
Well, ManDingo really tells it like it is – this company is just awful. There is no advancement in this company whatsoever. If anything, the way corporate has designed the commission structure, it holds good agents down and rewards the top agent month-in and month-out. And what kills me, is they continually give new agents who last a month or two new clients. New inexperienced agents who have the “I’ll give this real estate thing a shot” attitude, take away client distribution to agents (like ManDingo) who are more deserving agents. Our DD needs to cut this dead weight, and redistribute these leads to qualified agents (2+ years and tenured). From my point of view, the bottom half agents (those who give it 6 months after they realize Zip is a sham) and Corporate will retain senior agents who have put their time in and personally invested their sweat, blood and tears in this company. Personally, we have a wonderful district (so it appears), what I realized is that we are supporting corporate and districts that are doing poorly. That said, they should let Boston NW, be self-sufficient. As agents, we’ll pay these fees to corporate, but we should be able to retain what we have earned and have our own managers and agents decide how leads and commissions are distributed. Our own budget per se, hmm, sounds like what a real company would do. Hmm, sounds like a franchise. Hmm, sounds like what all our local counterparts are doing.
And for Pete’s sake, will they stop shoving this Countrywide partnership in our face – its no partnership that’s favorable to me if I get nothing out of it.
We need a leader who has a ball sack – someone who is going to take charge and stand up for the agent (having a real estate background would be nice). Yes Dingo, I’m not sure how the unionize process works, but it should be considered. Or we should really expose how the working environment is detrimental to the livelihood of the agents.
There is no open dialogue with Corporate. That’s why we have this Blog. I feel bad for our DD, because corporate will be breathing their stinky breathe on the poor guys neck after they read this. I thought I was quite polite throughout this public service announcement, but take it from me, drastic measures are needed in drastic times. I rarely flip the bird, but man…maybe corporate will drink some sour eggnog at their holiday party and have real bad diarrhea or something.
PS, Dingo, is it just me, but every time I meet agents from other companies like Coldwell, Hammond, etc., they are like “I heard about ZipRealty(or previously worked with a Zip Agent), you have a lot of buyers but your commission plan stinks.”
December 1, 2008 — 8:49 am
dingo says:
AHHH Freddy, you are a man after my own heart! 🙂
First, you are right about Countrywide…they suck..they are being rammed down our throat. When I suggested them to my clients, they thought I was crazy…Do not forget in the begining, the catch Loan company was E Loan. At least we got compensated for using them, they went bankrupt. Now CW and they are going under…do you see a trend? Great decision making Fat Pat.
Freddy, Zip DOES read this blog.
They don’t get it or are to stupid do change anything.
I was an “A” agent…One month I had no opens, I dropped to B..Briefly I dropped to C
Now I am back to B..I had offers but my buyers either did not qualify for their loan (they were pre approved) or it collapsed after the home inspection. Now I have to pay for that? That is fair? Bullsh*t!
Also, you are right again about the DD. They are pencil pushers…rah rah..zip, zip. Wasn’t this like Jonestowwn?
As for unzipped..you have been here 2 years. According to zip stat, you will be leaving soon…You learned what you needed to know now it is time to ove on to greener pastures. Remember Unzipped….Real Estate is about YOU! Brand your name,F88k the copany…the client wants a person to call, not someimpersonal company that is not even local.
There are many disgruntled employees out there throughout the country…I agree the model was great when it was started and privately held…since becoming public?, Wow how quickly it has gone down the sh**tter.
I am gone now so I will not see you my friend at the “Holiday” party…remember at zip you cannot say Christmas!…lol
Merry Christmas to all my zipsters. I will continue to read this blog cuz I want to keep informed…God help you all
December 1, 2008 — 8:29 pm
Florida agent says:
Christmas/Holiday Party? Are you kidding? The first year we a nice gathering with an open bar but when the DD got the bill, he told the restaurant that there was not suppose to be an open bar and stiffed the restaurant. Who did he think was paying for all those drinks he was sucking down? The agents????? There hasn’t been a holiday party since. We were told, no money. The only time we get even a bread crumb and water at a meeting or a mandatory “fun” rally is when one of the “preferred” lenders shell out for it.
As far as Countrywide, ONLY our broker lists those properties. She tells the agents in the area of the home to take the pictures and if they want to hold an open house they will get the buyers but she is not splitting any commission with them. But then, all policies and procedures are different at our office, because the broker changes them daily to benefit her.
The Hawaii trip? The only thing to reward top agents but there is no money for that. But they certainly have money to drag all the team leaders and dds to an annual meeting…for what? It’s a great tax writeoff but its not beneficial for the agents. Take them away from their family and business to room with another person and spend 24 hrs a day listening to rah-rah about how great Zip is? It’s nothing more than an excuse for the dds, vps and other higher ups (you too, Pat) to drink, party, skinny dip and make out with agents and act like fools.
Zip doesn’t do anything unless its to benefit Zip.
December 2, 2008 — 7:41 am
Mindy says:
I don;t work for Zip (I am a realtor, though), but I happen to know 2 team leaders who went
to the team leader conference. Is the comment
about skinny dipping and making out hyperbole or based upon some actual facts?
It seems to me that while many of the posters have valid points; there is still a lot of sour grapes being thrown about.
If zip stinks as bad as these employees state, it begs the following: a) are they actually current
employees?; and b) If they are current employees, why are still working at zip and not some other
outfit?
December 3, 2008 — 4:20 pm
been there done that says:
Mindy,
The leads are why people stay with the company. It is the politics and bad management that cause all the sour grapes to be thrown about. The problem is that if you begin to produce at Zip you are digging yourself in a hole. They don’t allow you to brand yourself so there is no building a pipeline and moving on to traditional companies (that takes years with Zip). I understand why Zip does this but wouldn’t it be better for the recruiters to be honest with potential agents.
Don’t paint a false picture of the “successful” high rolling agent with clients knocking down your door. Don’t tell us that you have the best training around when it’s truly subpar to the rest of the industry. Please tell us that we are entering a call center environment and hold the agents accountable equally! Don’t tell me that I can’t have a second job when you know about and allow the “sacred cows” to supplement their income with a part time job. Don’t pick and choose who you want to badger based on who you go to happy hour with or hang out with on the weekends. Get rid of the sacred cow philosophy and sales pitches (PHOENIX MGMT I’M TALKING TO YOU). The facts are often hidden from corporate and twisted when addressed. There are many examples of unfair mgmt tactics on this string. I have witnessed a few myself.
The most frustrating part is that Zip has one of the best lead generating systems around. The leads are why I stayed so long. I am lucky to be making a living in this market but I do miss the leads. Three things have to happen before I go back. The mgmt in Phx has to change (Western VP and DD, please find a broker that will stay longer than a year), split on personal leads needs to be reasonable, at least 70/30. Treat everyone equally! I was thinking of moving out of state and asked to work in two districts during my transition and was told no. Then I found out that BS had allowed a husband and wife team to do it during that same time period. Yes, I’m a little bitter about that. Why them and not me when our production numbers were close to the same. Politics, perhaps I hadn’t scored enough brownie points?
December 4, 2008 — 11:32 am
Florida agent says:
No hyberbole, saw it with my own eyes. I had great respect for Pat and the others until I saw their antics. Take off your orange colored glasses people. There are many things that go on that some are not willing to acknowledge. If you are one of the “pets”, life is great, if you’re not, then the dd or broker will MAKE you quit as you will be treated so poorly. I’ve seen both and its really unforgiveable and unprofessional .
December 4, 2008 — 3:13 pm
dingo says:
Hey Been there….You are right on. as I said previously, it is the branding issue that really bothers me the most. Zip wants client loyalty to Zip NOT the agent. There is no way you can build your nusiness without branding yourself. You survive living off the next lead they give you. New zipsters, take heed. Nurture your relationships with your clients so if/when you leave, they will follow. When I left, many of my clients came with me. Believe me only a very small percentage are even looking for the rebate. They just want exemplary service.Give it to them and they are yours for life. Also,after the sale, keep in contact with them…write their address downand dropthem a card/line monthly…you will get referrals from it.
Since I left zippy, I am once again enjoying Real Estate the way it should be practiced.
December 4, 2008 — 9:27 pm
Happily EX-Zipster! says:
WARNING! Dingo, everything you said is spot on. However,the contract you sign with Zip says you can’t contact clients after you leave, IN ANY WAY. And, FOR A YEAR! You’re not supposed to have any contact, even if they call you because they consider leads their property.
They have gone after a few agents based on this issue.
Several lawywers have been consulted, and they say it un-enforcable if the client contacts you,after all, this is America,isn’t it? Clients can chose who they want to work with. BE CAREFUL! ZIP is in desperate mode right now as the ship goes down and they will throw you to the sharks to save themselves! So agents, be careful and don’t contact anyone through the web site. Remember, BIG BROTHER IS WATCHING YOU!
December 5, 2008 — 9:08 am
dingo says:
Ex Zipster….I now about that…I am not stupid. I told my clients I was leaving before I left. They asked me where I was going and I told them…end of story. Then I received calls from them saying they wanted to work with me…I am not going to refuse business right? F88k them. Sue me…I If I have to take on this paper tiger then so be it…love to have this David vs Goliath played out in the newspapers…wouldn’t that fry their ass…lol
December 5, 2008 — 9:11 pm
Happily EX-Zipster! says:
Dingo, didn’t think you were. Had to say it for the benefit of those who don’t realize what a trap they are getting into. Would love to see this brought out into the open! I would be on the frontlines cheering you on!
Me and a few thousand others!
December 5, 2008 — 10:04 pm
Anonymous says:
Bottom line Zipsters……
Zip serves a purpose in that it provides leads. It provides a livable existence….barely. Truth be told, a lot of Zip Agents are too scared, too lazy or too poor to leave! Sad, because the big bad real estate world isn’t so big, so bad or so scary. Corporate just wants you to think that. True, this business isn’t for everyone, zip’s model works for some (but they’ll never get rich) and some just suck at real estate no matter where they work! BUT there are OTHER companies with fabulous lead generation capabilities. Who do you think helped LOTS of those big bad top notch Agents get to the top in other companies. Lead generation within their own companies that’s who!!! Yes, you’ll probably have to kiss a** somewhere, just do it someplace where you’re paid what you’re worth! And from an Ex-Zipster who was always on the scoreboard — for me I’m richer, I decide when I work, and life’s better — OUTSIDE Zip!
December 6, 2008 — 3:16 pm
dingo says:
Ex Zipster and Bottom line zipster…
you guys are so right on!! Bottom line, they make you complacent, lazy and depending on them…
They want you to be like this. YES other companies do provide leads…when you her about top producing agents,
do you EVER hear of a Zipster? No it is the same people, ReMax, Coldwell Banker, Kellher Williams Ect.
Believe me these people pay more in taxes than any zipster makes….Hey Ex zipster…my buddy still works there
He invited me to their Christmas party ..oh er, I mean Holiday party…think I should go…lol
December 6, 2008 — 5:31 pm
mindy says:
Dingo: Now that you left zip, where did you go?
December 7, 2008 — 12:54 pm
dingo says:
lol, wouldn’t you like to know…sorry Mindy…me thinks you are “connected” to the Company
maybe I am wrong but your posts are very zip oriented…let’s just say I am now happy and leave
it at that, fair enough?
December 7, 2008 — 8:49 pm
Mindy says:
I am not connected to the company; unless you count the fact that I do know a couple of team
leaders. I guess I was interested in you particularly because once I figured out where you
went, I could figure out who you were and then figure out if in fact you were a 5 year zip
employee as you claimed in this blog. Call it curiosity
December 8, 2008 — 3:33 am
re:Mindy/dingo says:
Yea, that doesn’t sound like your affiliated
with zip at all…ie…I just want to figure
out who you are where you went.
December 8, 2008 — 10:25 am
been there done that says:
Mindy,
I was thinking the same thing that Dingo was. Your posts are very much like “ex-zipper” who always seems to ask who people are, when did they work for Zip and where they went.
December 8, 2008 — 2:33 pm
Mindy says:
If I was with zip, I think I would have a pretty good idea who quit, don;t you think?
December 8, 2008 — 5:41 pm
dingo says:
Mindy,Mindy Mindy…
I guess you just pretty much confirmed it huh?lol SOOOOOOO, you want to figure out who I am?
The mystery killing you? Why don’t you tell corporate to hire a Private Detective..lol
Without seeming rude Mindy but Bug off,ok? You need to get a life and do not worry about me. Stay with Zip and be happy (miserable)?
Or let me turn the tables on you Ms Mindy…where are you and for whom do you work for? Care to
elaborate????
December 8, 2008 — 6:04 pm
zipzip says:
Hey Mindy,
Dingo did not work at Zip district that he mentions for 5 years, not even 3 years. But he must have worked for Zip because he knows what he is talking about.
December 8, 2008 — 6:43 pm
Skeptical says:
Why is the stock trading sooooo low?
December 9, 2008 — 12:48 pm
c says:
The stock is trading low because the company is junk. Actually, I think it is trading kind of high. There is only two values at play here…the website and the cash. Right now the website is illiquid because none of the big players would like to invest what it would take to buy it until the market shakes out a little. The cash is diluted by massive contingent liabilities. Imagine, if you will, that you have just won the lottery and you would like to purchase a nice company to build for the future. You see an attractive model (in theory) but one that has never played out as profitable. Then you see all the dead weight and lack of expertise at management level.
No investor likes to see this. It is flat out ugly.
That is why I expect Zip to go the way of E-loan….just selling leads….because there is no profit in paying district directors, vice presidents, and other deadweight. Selling the leads outright is the only logical way of saving this business. The current agents are not prospect to purchase the leads, as most are attracted to the company in the first place because they couldn’t attract leads or rub two nickels together.
December 9, 2008 — 4:41 pm
been there done that says:
C,
Do you think it would help if the company completely got rid of the district director positions and reduced the number of VPs (particularly ones with checkered pasts)?
I think they should cut non-producing agents within a few months. There are so many tools in ZAP that can gauge whether one will produce in the future.
I know headcount is a way to fool shareholders but do you think that concept hurts more than it helps?
I think the website is strong enough to hold its own in terms of lead generation so get rid of the rebate and pay higher splits for personal deals (leads brought in by the agent). The company would attract more talent and experience that way.
What do you think?
December 11, 2008 — 11:16 am
Dingo says:
Been There,
I think that is an excellent suggestion! DD’s can be eliminated..they have district brokers
who can do their jobs. As for the VP’s,yes cut most out. Maake them all become Realtors. Make
them work ZAP for a few months with actual leads (give them marketing leads) so not to waste them.
Agreed, do away with the rebate. Increase the splits. Also intriduce a agent satisfaction survey
of the individual district and company.
These things will never happen…that’s why I left. they will NOT change.
December 11, 2008 — 5:44 pm
been there done that says:
Dingo,
you would need a really good Broker to do both jobs. I’m not sure that the ones I’ve dealt with at Zip would be qualified to do both. Without RE experience at the top, they have no idea how to hire a good Broker. We went through three in two years.
The first one I worked with was….
Lazy Broker – he never answered his phone and was NEVER in the office. He was a buddy of BS’s and the boom was on so they just rode the wave and relaxed. Obviously no one was concerned with his work ethic because he barely worked. Then we got ….
Psycho Broker – She was a hoot, and a little crazy too. Talked in circles and never gave good answers. Not sure what meds she was on but she needed more. The current DD told us she freaked out at corporate so they had to get rid of her. What a piece of work she was. Then came…
Baby Broker – This guy was our DC!He was a transaction coordinator for the district so they thought he would make a good Broker…NOT! He was in the right place at the right time. They claimed he worked for some big fish so he supposedly had alot of experience. He may have been of drinking age but who knows. He was just a puppet. Then came….
Zombie Broker – Nice guy but where was he?He lived in Tucson and tried to commute back and forth. Check this guys Pulse, Please!
All this inside of two years?!?!?!?!?!?!
Now, there really isn’t a permanent Broker. Just Subs and Team leaders. I’m sure they are trying to save some money so they’ll string the current/interim brokers along as long as they could.
So Dingo, With that track record do you think that they really could make a sound decision that could benefit the company? They couldn’t even do it for one position at ONE district.
December 11, 2008 — 9:27 pm
Mindy says:
Dingo:
I have a life. Was just wondering who you were since there were not that many 5 year people in
Boston region; oh yeah, I guess you were not one of them, or even a 3 year person.
December 14, 2008 — 7:53 am
Dingo says:
Ok Mindy, where are you at? Who do you work for? Asked you once before, c’mon girl,,,talk to me
December 14, 2008 — 6:31 pm
Needing help ... says:
I am not sure if this is the right place to ask, but it seems there are a lot of zip insiders here … I’ll just give it a try.
I’m a home buyer and currently having serious problem with my zip agent. Who do I contact to complaint?
Is there any way to fire my agent (so he won’t get paid) and still continue the transaction with other zip agents? Or worst case scenario I’ll just back out the transactoin and kiss good by my deposit.
December 18, 2008 — 4:16 am
Happily EX-Zipster! says:
Contact the state RE commissioner. They will be able to guide you. Forget about trying to get help from a zip manager, most of them aren’t even qualified realtors. Or, contact a lawyer.
December 18, 2008 — 9:57 am
frankfrank says:
From the zip website, there is a place to ask for a new agent
December 18, 2008 — 10:20 am
two bits for metal says:
So you would leave your em deposit because you dont like the realtor you are working with?? Sounds kind of bogus to me.
December 18, 2008 — 11:00 am
been there done that says:
Needing Help,
The Real Estate Commissioner isn’t there to handle these type of problems. If your agent did something unethical or negligent then you can go through the lengthy process of filing a complaint with the Department of Real Estate.
If you decided to switch realtors prior to writing a contract then it would be OK but you had this agent do work to the point of you reaching an agreement to buy/sell a home. Contact the District Director and ask for the Broker to handle the transaction. Regarding trying to keep the agent from getting paid…….Imagine walking into work and working most of the day then being told that someone feels that you didn’t do a good enough job, so you will not be paid for your work. That’s essentially what you are saying to this agent. The commission always goes to the Broker so you will not be able to dictate who gets $$$$$ for your transaction.
Focus on making yourself more comfortable with the deal by,
1. reading the contract and UNDERSTANDING WHAT YOU ARE SIGNING.
2. Ensure that the agent you have hired is the one you want to close escrow with.
3. focus on your due diligence and don’t spend precious energy trying to keep the agent from getting paid. Let the Broker handle the agent. (which rarely happens at ANY company)
I don’t know the details of your situation and what state you are in. Can you be more specific about what the agent did or didn’t do to upset you?
December 18, 2008 — 11:40 am
Needing help ... says:
/Happily EX-Zipster!/
Thanks. I’ll contact them as well as filing a complaint with Department of Real Estate in California.
/frankfrank/
Tried to switch new agent but they said I can’t switch agent since I’m already in escrow … seller won’t deal with me if I switch agent.
/two bits/
Yes, I’m willing to lose my depsoit (over 5k). It is not bogus.
December 18, 2008 — 11:49 am
I\'m Free says:
I am not sure what state you are in but if you are in California there is very little chance of you not having your deposit returned. Particularly if you have an ethics complaint. However, if you really want this house, don’t let a dislike for your Realtor get in the way. It’s rather like cutting off your nose to spite your face!
December 18, 2008 — 12:03 pm
Needing help ... says:
/been there done that/
Several complaint
#1. Unprofessional – Would not send any addendum to address issues I wanted to be addressed. Everytime I had to force him to write up an addendum after very long arguement. There are gotta be a lot of undertable stuff going on between buyer/seller agents … every time seller wants something, seller’s agent would verbally tell my agent to tell me; Every time I want something, I have to fight with my agent before I get a chance to hand it over to the seller agent. He acted like Seller’s agent’s agent.
#2. Lazy – Never once he go over any paperwork with me. He said “everything is now done online”. Is this standard to ZipRealty or is this for entire industry? I was facing countless pagers of all different kinds of offer/contract/reports/disclosures/etc all by myself. Once my internet was down and he wouldn’t even meet me in person to sign the paperworks.
#3. Lazy2 – I thought using an agent would make me work less in home buying process. WRONG!! I had to hire everybody msyelf. Home inspector, windows repair, roof inspector, other repair guy, etc. I had to make arrangement for them to accompany my agent’s schedule. My agent always ask me the status of such and such services being done. Isn’t this suppose agent’s job to deal with those service providers??
#4. Irresponsible – Would not follow up with anything we sent. When I send in an offer, I want to know what happened. When I fax in any paperwork, I want to know the response from the other side (seller). Why’s it so hard to follow up on that?
#5. Hard to reach – He simply won’t pick up the phone. We had to leave several messages and finally receive a call back from him after a day or two. This had happened so many times. If we need to see homes, it can’t be done the next 24 hours, he needs 48 hours notice.
I’m just regular buyer who has never dealt with real estate agents before. I don’t know if my “demands” above are too much ask. Maybe it is just me who is expecting too much.
December 18, 2008 — 12:20 pm
Needing help ... says:
/I\’m Free/
Unfortunately I’m in California. Ouch.
December 18, 2008 — 12:22 pm
Needing help ... says:
Wait, are you saying it’s easy to get my deposit back if I’m in California? What can I do?
December 18, 2008 — 12:30 pm
I\\\\\\\'m Free says:
I’ve been a Realtor in California for many years and I can tell you that it is only if you have a frivilous reason for backing out of a transaction that a court will not return your deposit. Your reasons do not sound frivilous. I would make it very clear to ZIP that you are taking this all the way and see if it will help. It is however, the Seller who has to return the deposit. I would start with calling escrow and explaining the situation and take it from there. Have you passed your 17 day contingency period? I would not just walk away without a fight. Have you signed the ‘Removal of Contingencies’ form?
December 18, 2008 — 12:52 pm
Needing help ... says:
\I\\\\\\\’m Free\
Yes, I have passed my 17 days contingency period, and I think the chance of getting my depsoit back is slim to none. That’s why I said I am so willing to lose my deposit if that’s the case. 🙁
I really hate the fact how I was treated by my agent. The list above was just few things I don’t like about my agent, but what pissed me of the most is how he laugh at my face and putting words in my mouth when he wouldn’t send requests that I want him to send.
December 18, 2008 — 1:34 pm
Dingo says:
Needing Help,
Listen Dude, take a step back and take a deep breath, Sounds like this agent is a piece of work!
I will say most agents there are NOT like that. BUT you will get revenge! When the transaction is complete
you will receive an email from the company asking about your satisfaction with the company, the web site
AND THE AGENT! Here you can kick the s**t out of the agent. Lay it all out.
Believe me if it is bad, not only will the District Director and Broker no but Corporate will too.
This guy, unless he has a sweetheart deal with his District Director is toast!
Stick it out..you are so close and will have your dream home soon.Donot let some dick head screw it up for you.
Here in New England we would wait till all is said and done, then proceed to beat the hell out of him
It is amazing how a physical threat/beating can change a person..plus you feel real good!
All the best my friend!
December 18, 2008 — 7:00 pm
I'm Free says:
I agree with Dingo. If you really want the house don’t let this Moron stop you. California Law is very consumer oriented and any complaint to the departments that regulate our industry will be taken seriously. What district in California is the agent from? Also, call ZIP HQ and request to speak to the CEO. This will get attention!
I wish you all the best. You sound completely stressed out over this and it saddens me as I know a lot of good agents who are with ZIP. They just don’t stay long.
December 18, 2008 — 8:01 pm
Needing help ... says:
Hi Guys, thx for the advises. I will do the following once I complete the transaction.
File complaint at
– Department of Real Estate
– ZipRealty complaint department
– ZipRalty CEO/Management
– And leave a truely honest review on ZipRealty website (they won’t get removed right?)
So I decided to sign the loan docs yesterday to close the house today. My agent won’t come with me to the title company. I had to there by myself. It took a while to finish all the paperworks because I don’t have any experience so the title company lady had to go over everything with me there one by one.
By the way, my agent not just won’t come with me to the title company, he won’t even do the final walk through before closing. He was “too busy” to do that (according to him) so it has to be arranged until after closing. What’s the point of final walk through if it’s AFTER closing? 🙁
December 19, 2008 — 10:28 am
Dingo says:
Needing Help..
Sounds like you got royally screwed. I would have postponed the closing until I did the final walkthrough.
Believe me this would have put a fire under his ass. Because if it don’t close, NO ONE gets paid!
December 19, 2008 — 4:47 pm
zipzip says:
To Needing Help,
Assuming that your story is true (I have my doubts), it doesn’t seem like you ever contacted anyone at Zip management; you just allowed for things to go from bad to worse without complaining. At some point, any reasonable person would have asked themselves: “What am I doing working with this jerk?” and complain to management. They would have provided you with their best agent right away, regardless of how long you had worked with the other agent, and made sure that you were completely satisfied. The client always holds the purse strings and Zip might not treat agents properly, but they absolutely care about their image, reputation and the clients’ satisfaction. They hate negative public relations.
As for who gets the commission? What difference does it make as long as you get the best service and the house you like.
December 19, 2008 — 5:52 pm
Needing help ... says:
It is true.
My original agent was bad. I called district manager and complaint, they assigned me another agent (team leader) who happens to be my agent’s friend. Somehow ZipRealty did not change my agent, instead, this new guy became the middle man between me and my agent. So every time I need to talk to my agent, I have to talk to him. And if my agent needs something, he’s the guy that passes the info to me.
I have no direct contact to my agent because this new guy is techinically my new agent, unfortunately he refuse to take over the transaction because he told me that ZipRealty cannot change agents in the middle of a transaction. since this new guy is my original agent’s friend, he was not nice to me at all. He was very rude and very mean. He even told me how I twist things about his buddy (original agent) and he wouldn’t believe a word I said.
Therefore, I feel hopeless and stopped complainning. I feel that the more I complain, the more these people would mess up with me. Now it came to a point where I wanted to get rid of these people, that’s why I come here and ask this question …
December 19, 2008 — 9:11 pm
concerned says:
call elisa pini in customer service: epini@ziprealty.com
she can help you out.
December 21, 2008 — 12:06 am
frankfrank says:
Needing help: were you able to resolve your problem?????
December 27, 2008 — 5:15 am
kudanersky says:
So….Sandeep Baweja personally invested and lost almost all of the $3.55 million settlement on
the stock market instead of putting it into an interest bearing account. Only 54k remains,
he has hired legal counsel, and nobody else is getting their settlement checks. Apparently those
who did received it from his personal funds and money he borrowed from friends and family. I’m
guessing he’ll be spending some time in jail.
December 28, 2008 — 6:02 pm
frankfrank says:
Where did you find that out?
December 29, 2008 — 6:13 am
kudanersky says:
From Sandeep himself. If you would like a copy of the letter and email I’ll be happy to forward
it to you.
December 29, 2008 — 7:52 am
frankfrank says:
I’m probably not the only one interested in that. Is there some way you could post it on a
personal web page (if you have any one of the major internet providers, you get a few
megs of free web space)and publish the link?
December 29, 2008 — 8:00 am
kudanersky says:
Email me and you can post it if you’d like. lieutenantmitch@yahoo.com
December 29, 2008 — 8:59 am
frankfrank says:
Just sent you an email
December 29, 2008 — 10:44 am
kudanersky says:
http://www.lubockiclassaction.com/#update
December 29, 2008 — 12:02 pm
frankfrank says:
Seems like there is a lot more to this than meets the eye. The attorney lost 3 million or so
dollars in the stock market, and then wrote a mea culpa type letter to all of the people who
had claims-does not make sense-he all of a sudden got a conscience?
December 29, 2008 — 5:28 pm
FreddyGotFingered says:
Irvine attorney admits burning through $2.6 million in fund’ http://www.ocregister.com/articles/baweja-money-settlement-2270176-court-class
January 5, 2009 — 12:33 am
Florida agent says:
How terrible for those agents that worked their butts off to make the commission, have Zip screw them and then get their hopes up that they will get a portion of that lawsuit only to get screwed again! I hope they do get something for their effort and that this attorney gets OJ as a roommate!
January 8, 2009 — 2:52 pm
Dingo says:
Hi all,
I hope everyone here at a wonderful Holiday! Let’s hope it is a prosperous New Year!! Just an after
thought…I was looking at past post…Sean Johnson Re: I am in LOVE with Zip seems to have dropped off the face
of the earth…did he leave Zip? Sean, if you are out there, update us on your well being.
I always like to hear from current zipsters, especially those who are very happy as it does not seem to be many here….
January 11, 2009 — 2:41 pm
studious new zip agent says:
Hi,
I decided to join zip after reading this thread numerous times. Shocked? I am a little, but I think I know what I am getting myself into.
First, based on your comments I’d like summarize what I saw as the main pros and cons of zip for people who don’t want to read 100 pages
pros:
leads handed to you
accountability
experience with a successful e-realty system
more time spend on transactions
cons:
terrible terrible pay (its really terrible, i get it!)
accountability
terrible management (with a few exceptions)
corporate politics
I feel some pros out weight the cons particularly for my situation:
-weak COI
-newer, younger agent
-never worked in a structured sales environment before
Q: But what will you do for money?!?
A: I’m a little fortunate that I have quite a bit saved up like any new agent should so I’m treating this like an internship. From the previous comments its apparent that a lot of stars were created at zip but bounced out as soon as they learned what they needed.
Thanks for hearing my rant. Where will I be in a few months? Maybe I’ll act like I dropped a gigantic jar of pickles on the floor. Maybe I’ll love it. Or maybe I’ll still have no real opinion.
January 13, 2009 — 9:13 pm
...c says:
Dear studious new zip agent,
Clearly you have done your research (or you are actually from the PR firm serving Zip Realty).
Your attitude is great, you have prepared yourself for the worst, and it will not be that bad.
When I was with Zip District Management, I met many like you and many of those are still there! They are happy and loving their jobs.
Pay attention. Even fools can teach you if you listen, and Zip management is not comprised totally of fools, regardless of what some on this board might say.
There is definitely a system at Zip Realty which can make you productive when you choose to come back to the full paying real estate world. Remember to be full service, and do not complain about poor leads. You can be unhappy as you like, but do not complain! Can you see where I am going here? Complainers don’t get leads because managers (being people) don’t want to hear it. The leads MUST be assigned. Take every lead you can get and work them all. Those that fail are those that fail to work their platform. There very well may be other reasons for failure, including pay plans and corporate stupidity, but failure to work your platform is absolutely squarely in your corner.
Good Luck! I myself loved the concept of Zip Realty but could not endure the lack of expertise by my fellow managers. Otherwise, I would still be there.
To the forum: Please don’t bother to ask me where, when, etc. I do not burn bridges.
January 14, 2009 — 8:51 am
Godzilla says:
Well put and without the rancor normally exhibited on this website…..
January 14, 2009 — 3:00 pm
Godzilla says:
Well put and without the rants normally exhibited on this website…..
January 14, 2009 — 3:07 pm
Free says:
I couldn’t agree with ‘C’ more. I made a very nice living at ZIP, worked like a dog to do so but learned a lot about the market and got a head start on conducting an online real estate business which is obiously the model for future success in this field. Studious has a terrific attitude and will do well, at ZIP and beyond.
January 14, 2009 — 6:17 pm
shifting says:
Newly licensed and preparing to interview with Zip. Mainly looking for training to eventually earn a good living.
I’m wondering if the problems I read about here are particular to any market or prevail throughout
the company?
January 23, 2009 — 3:43 pm
Former Florida agent says:
It is across the board, starting at the top. However, each district is run by either the district director or broker, depending on the office. I personally have seen the very best of Zip and unfortunately, the very worst. If you can take it for what it is worth, then go for it. But keep in mind that they promote Zip, not you. You must keep that in the forefront of everything you do as when you move on, it is YOU that is going to keep your business running, not the next company you go to. Get what you can from it and then go on to a place that fits your needs and gives you more commission. Yes, Zip does provide leads, brochures, etc. etc but you are paying for it with the lower commission. Don’t let anyone tell you any different. Remember it’s YOUR business in the end, but not when you are an employee with Zip. Good Luck and keep us posted.
January 25, 2009 — 6:33 am
zippidy do dah says:
I’m a new agent and new to Zip. I’m in the Mnpls. district and after reading the last 6 months of this blog, I have to say, I am freaked out now. I mean, being a new agent, the leads for me was the draw. But I see things like “skinny dipping” and “making out” I have to wonder why they had me
sign the no sexual harassment policy? I was shown in a power point presentation what the commission
structure looked like, but have yet to receive a copy. I don’t want to say too much for fear of being
“discovered” by the zip watchdogs. I was told now is a great time to get into this business and how
many buyers are out there wanting me to show them homes and write offers. Does anyone know if smoke
is being blown up my seat cushion or is this true? When is the busy season in real estate?
January 31, 2009 — 1:12 pm
Greg Swann says:
> When is the busy season in real estate?
2012.
January 31, 2009 — 1:56 pm
The Real Buyers Agent says:
Trust me smoke has been blown up your seat cushion.
I have been in the business for over 16 years,
and I felt the “smoke” right away! They will tell
you anything. I feel they prey on newbies because no offense,
but real estate rookies are easier to mold into “Zippies”.
It is difficult for them to keep veteran agents around because
soon enough the veterans will smell the garbage being dished out!
January 31, 2009 — 8:19 pm
two bits for metal says:
As long as they keep announcing layoffs the housing market aint going to recover. In this area (Seattle District) we have Boeing, Microsoft, Starbucks and a few other established employers announcing major layoffs. WAMU of course. Who’s next? Even some of the homebuilders here are cutting back and lots sit undeveloped. How is Zip going to survive? They are already dwindling thier money down.
February 1, 2009 — 8:33 pm
The Real Buyers Agent says:
Thats my feeling exactly. I think its going to take a minimum of 4yrs
for the housing market to pick up again. Not too many people wanna sell.
I have only seen properties that no one wants, or properties that are priced way to high!
February 2, 2009 — 4:25 am
VP says:
Give the current environment, commission dollars are vital, marketing is a must. A 28% com. split would starve you right out of the business. Being a new agent is very tough in this market, even with a good beginning split. Buyers are expecting to get homes by underbid
40-50 thousand dollars under what the property is reasonably worth. The bank-owned deals can be decent.
What I can’t figure out, why would somebody spend time to rip a house apart before leaving, waste of time, if you ask me.
February 2, 2009 — 5:14 am
Too chicken says:
Meet the new boss; same as the old boss. Nothing changes at Zip. Instead of cutting the
useless deadwood at the top to save some money, Zip’s new CFO came in and has reduced the monthly
expense reimbursement by around $75.00 per month, by adjusting the mileage rate downward.
February 2, 2009 — 12:07 pm
Unzipped says:
I am a former Zip District Broker. While the company is great in concept, many of the posters here hit the nail on the head. The VPs are extraneous, and overly-aggressive, and the District Directors are as useful as a fan in a windstorm. The company is not founded on real estate principles, therefore neither has the best interests of the client nor the agent in mind. In any service industry, if you don’t place great, ethical service at the forefront, you’re doomed to fail. Zip is a great example of that.
February 3, 2009 — 10:11 am
c says:
I am also former zip broker. I agree completely. And let’s
face it: The stock price is what it is because “Unzipped” is
correct. Last one out should turn off the lights.
February 3, 2009 — 2:55 pm
Unzipped says:
One of the big problems is that they look at agents like they are a sales team. Real estate IS NOT sales, it is sservice. We are not selling homes to buyers, we are representing them during the process. Because they have this aggressive “cut throat” attitude about the industry they dehumanize the agents and the clients. They both are merely numbers. In the same way, they marginalize the broker and glorify the DD. It’s as if real estate law and ethics have no place in the company. When you first sign on, it’s easy to get swept away by the company’s offerings. It doesn’t take long, however, to see the emporer has no clothes.
February 3, 2009 — 6:03 pm
Too chicken says:
C and unzipped: What regions were you in?
February 4, 2009 — 6:48 am
Unzipped says:
*Emperor (I find this interface a little frustrating for checking your post prior to submission….)
February 4, 2009 — 7:42 am
Had Enough says:
I was with Zip for a year, left 6 months ago, I was in the Philly District.
This is the most Unprofessional, Unethical Brokerage I have ever worked in.
It is beyond me how they stay open, What I saw there just in the little time I spent freightened
me enough to get out. The Team Leaders are a joke, they have no idea what they are doing,
the DB is an even bigger joke, he was just as ridiculous as the team leaders.
I don’t even know what the DD does, I never saw him.
There is no money to be made, when you figure it out in the end you are only making 28.8% of the
commission. They keep agents on the website who are long gone to save their headcount,
this way the shareholders think they are doing well because of the amount of agents.
Fact of the matter is only about 25% of the total agents do any business.
And then there is the “Mandatory” meetings, they schedule more useless, pointless meetings
that take away from your sales and prospecting. The training… it is a joke, at least in
my district, it is being taught by agents that either were fired or who could not cut it
at a regular sales office, the DB who doesn’t have a clue ,Does not train right.
Contracts are a joke, none of them really know how to write one,
or the trainers who had no real estate experience.
It is a joke.
And yes…there is favoritism..certain agents do very well while others starve.
And yes…those that “suck-up” are the ones that do well.
I wouldn’t use any of their agents to buy an ice cream let alone a house.
They then encourage you to use their Vendors
who will land you in court as they are just as ridiculous. It is a joke..run the
other way!!!
They lied to me form the day I was hired, they “dangle” all kinds of carrots to keep the
agents there and working, but they don’t realize…they are doing all the work,
for 28.8%…it’s a joke! Even with the remimbursement, you are still making wayyyyyyy
less than you should be. I sat and figured how much I made per hour with Zips
commission… I would make more money working at Mcdonalds.
yes I had deals, but when you figure you are doing all the prospecting, all the paperwork,
running the transaction, doing all the conveyancing, for 28.8%??????????
I could do 1 transaction at traditioanl to make as much as 10 transactions at Zip.
I cannot see this outfit staying open they ripoff the agents and treat them as if they
were morons, no respect, no pay, run the other way!
Ask them how many lawsuits they have against them.
They should do all the consumers a favor a close them down.
February 4, 2009 — 7:25 pm
Too chicken says:
What lawsuits besides Lubocki?
February 5, 2009 — 10:53 am
Intrigued says:
What king of suits?
February 6, 2009 — 2:57 pm
maggie says:
There was and is several lawsuits against Zip Realty. Usually Zip Realty pays the lawsuit, not admitting guilt and on the condition that the lawsuit remains secret. HUSH HUSH HUSH. I know a few people in my state that took the money and ran. Now on the Lubocki lawsuit that’s a different story. That is a class action lawsuit that you had to sign a statement before they represented you giving away your right to sue Zip Realty on your own. Then you could be part of the Class Action Lawsuit and then the lawyer ran away with the money. It’s true, how sad….LOL
February 6, 2009 — 4:05 pm
Too chicken says:
What lawsuits are current?
February 7, 2009 — 5:41 am
Hilarious says:
Wow this site hits in on the nose! From my experience it seems every district is different though… I came from what was once one of the most succesful office in the company. It was the top office in all of Florida every month until recently… We have a drunk for a broker and the new DD who replaced our last two very succesful DD’s, closed his old brokerage (where he was the broker) without paying his agents.
The broker Linda Schindele does not have a clue. She says that she has been doing real estate since she was 18 but yet she has no clue how to write a contract. Her highest education grade is High School and it shows in her professionalism.
For a year they have been stringing us a long with a carrot of a pay raise. For a year they have been testing and researching a new pay plan in which they would address the concerns of the agents. What was the outcome?? 15 dollars more per closing!
Zip as many have stated have an awesome lead generation system. While I will admit I really did appreciate the platform and the lead generation system in the end I worked insane hours and was compensated less than a disney housekeeper.
Too bad though…
February 7, 2009 — 10:15 am
been there done that says:
To “Unzipped February 3rd”
your comments are 100% accurate.
To “Hilarious February 7th”
A Broker with only a high school education? Phoenix topped that one a couple of years ago when they hired a District Broker with NO high school diploma.
February 9, 2009 — 11:59 am
two bits for metal says:
What about the Broker in Tampa who has a prison record?
WoW! Bunch of upset ex-Zipsters here or is it just one ex-Zipster with a huge grudge!! LOL!!
Like I said….Zip may not be independent for long. Either Zip will be in the RE graveyard or swallowed by a bigger fish.
February 9, 2009 — 4:48 pm
Unzipped says:
I agree. I think the BEST thing for the agents and the industry would be for Zip to be bought out by a company with business sense and real estate experience. (Not to mention ethics.)
February 9, 2009 — 5:29 pm
Florida agent says:
It’s not the broker in Tampa but the DD. He is being moved to Miami. And there are many of us.
February 10, 2009 — 5:21 am
Had enough.... says:
Nothing will change until the consumers realize they are getting inexperienced agents and
awful service, the company does not care about the clients they just want the profit.
There are no ethics, it is a disgrace, and the agents that are left working there have to
ask themselves why they would work for substandard pay.
At the end of the day no agent at Zip can look in the mirror and say
I am being compensated properly for the job I am doing, or
I am being treated with the respect my position camands.
That is why they have subpar agents working there, no “good” agent would put up
with their nonsense which is what it is.
I am just glad to be outa there, I do not even admit to working there,
their agents have such a bad reputation in this area other agents do
not even want tp work with them
February 11, 2009 — 1:45 pm
Too chicken says:
Ship is sinking; yet more options awarded to management. http://biz.yahoo.com/e/090217/zipr8-k.html
February 18, 2009 — 6:24 am
too chicken says:
Had enough- what district were you in? Where I am; there is no issue of other agents not wanting to work
with zip agents. In this market, you think another agent is going to flatly refuse to work with
a zip agent who may be bringing a ready buyer to the table?
March 6, 2009 — 3:59 am
Scott G says:
Coming from Exit Realty with a 70/30 split plus residuals I would find it hard to cope with a 50/50 split. I’m on the ownership side of things and number of good quality agents is where it is at. 80 percent of the business is done by 20 percent of the agents and those agents will go to a company that has a better split if not for the benefits.
March 6, 2009 — 9:38 am
Had enough.... says:
too chicken….
the problem with the zipagents in this area
is, most are not properly trained, very inexperienced.
some deals they write should not even be written
our area is not and has not been that desperate, we are in what I would
call a “normal market”
March 7, 2009 — 5:51 am
Working with Zip Agents - Utah says:
I currently submitted an offer on a home listed by a zip agent
in Utah and I can’t even get a response. I left voice mail, email and I
know the fax number is working. Unfortunately I’ll most likely have to
ask my broker to call the ZIP broker but this is no way to do business.
March 7, 2009 — 10:22 am
too chicken says:
Can;t argue with the point as to the level of inexperience of zip agents. Sometimes I think
they want to hire brand new agents so to mold them into the zip image (what that might be-who
knows)
March 7, 2009 — 4:17 pm
Had enough.... says:
anyone notice their stock took a dive?
March 10, 2009 — 11:20 am