Amazon’s ever-popular LuLaRich docuseries presents many take-aways for entrepreneurs, especially for home realtors desiring to join brokerages.
Oklahoma Real Estate Experts founder Ruthie Gallardo-Owens, in a video released this week, said the miniseries highlighted the importance of doing one’s research before joining a seemingly promising opportunity.
The two-season series documents how a billion-dollar women’s apparel company allegedly mislead thousands of women entrepreneurs with its multi-level marketing program.
“What I noticed about a lot of the people on that documentary was that they were just so excited about the opportunity and about the promise of success that they didn’t do their homework,” she said, saying many who joined didn’t have a way of knowing whether the enterprise was a multi-level marketing company or a pyramid scheme.
“There’s red flags in everything. But it’s always so important to take the time to do the research and make sure that whatever we’re doing, whatever company we’re signing up with, is definitely on the up and up.”
Gallardo-Owens said the docuseries taught her the difference between a multi-level marketing company and a pyramid scheme, saying realtors seeking to join a brokerage should know the difference as well and look for “red flags.”
Explaining that difference, she said in a multi-level marketing enterprise, members are paid mostly based on the product sold, whereas in a pyramid scheme, members are paid largely by the number of recruits they add to the organization.
“The pyramid scheme is (where) you are selling product, but you’re also recruiting, and your income comes mostly from recruiting, not selling product. So that was the big ‘Ah ha’ moment for me,” said Gallardo-Owens.
Applying this knowledge to the home real estate world, she said at her brokerage, Oklahoma Real Estate Experts, members earn based on homes sold, not on recruitment or referrals.
Gallardo-Owens spoke of how many reputable firms, however, do have a large emphasis on recruiting.
“It’s more of a profit share situation. So the more you sell and the more you recruit and the more your recruits sell, the more you make, which is great; however, I wouldn’t know how to decipher if it’s a legitimate one or not, like the LuLaRoe consultants didn’t know how to decipher that,” she said.
She encouraged realtors prospecting brokerages to meet with the brokers and ask how they make money, and if the brokers make money even if they don’t.
“Because the big problem with LuLaRoe was that people who were selling absolutely nothing were still profitable to the people who brought them onto the company,” she said. “So make sure that you fully understand how the profit sharing works or how the recruiting works.”
Furthermore, she encouraged home realtors seeking a brokerage to not only interview the firm’s top sellers, but other members as well, thereby allowing the prospecting realtors to gain realistic expectations of potential at the firm.
“A lot of top sellers are very… the way they run their businesses are unreal. They work 24/7, and it’s not something that can be replicated just in a few months.”
As a last piece of advice, she recommended home realtors to remember a real estate brokerage is there to serve the realtor.
“If you are … interviewing brokerages … remember the brokerage works for you, you don’t work for them.”
Those wanting to watch the video can click here (How to Choose a Brokerage for Oklahoma Realtors: Lessons from LuLaRich) and subscribe to receive new news or tips and tricks for home realtors as they appear. Those desiring to know more about Oklahoma Home Real Estate Experts can go to the website at https://oklahomarealestateexperts.com .
Oklahoma Real Estate Experts
Oklahoma Real Estate Experts
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