Freedom!  

No Office Politics.

No "Broker's Favored Agents", aka the attractive female agents who are given the choice clients and referrals (I know of a Broker who did exactly that, everyone questioned what he was getting in return).

No mandatory Floor Time.

No "Advertising Fees", No Splits.

---  The Ability to Negotiate Commissions and Fees, the ability to charge what YOU want to charge ---

No 8:00AM mandatory meetings.

*** I have worked with Coldwell Banker, and with two different Century 21 Offices.  I highly respect and am grateful to both companies.    But I have been Independent since 1993, and wouldn't have it any other way.

The caveat to being your own Broker is the tremendous personal responsibility (no Broker or Office Manager to run to for help).  When challenges arise, look to the mirror for help, because that's the only place it is coming from.

Once I worked at other established brokerages and figured out that in real estate you have to bring in your own clients I asked myself why should I give my broker money to use "their" name.  After working 30 or more years in corporate America the thought of not having to "report" to anyone but myself really appealed to me.  Went on my own in 2006 and have not looked back...yes its not for everyone - you have to be self-motivated, be of service to those that may not appreciate your work but like Sinatra said it best "I did it my way"!

One of my best reasons (in addition to the relative "freedom" and not having to split my commission for no good reason) is to be able to "do things right".

For me it was a matter of never ever again being in a position of being told "just close the deal" even when lender fraud was taking place and I would have had to throw my clients under the bus. It's about control. By the time I left the brokerage I was with ... there were no perks I was paying for things I never used. 

Hi Noah - The last year we were at Big Box, we didn't use a single product or tech tool of theirs - the ones we had developed were better. We ranked higher on Google searches than they did. And our broker was an idiot. So for the privelege of having their roof over our heads, and with the highest split in the company, we still paid them over $66k. Leaving and starting our own company was a no-brainer, and it has worked out extremely well. And not a single client has cared. But we had an advantage - we have always used our own brand, our own marketing and our own ID. From our clients' view, the only thing that really changed was a physical location.

When I first became an agent, no large brokerage would allow me to practice buyer agency...in those days that was considered taboo.  So I got a brokers license and went into business an an Exclusive Buyer Agency Office.

I have always been a leader and could not see myself being told what to do by someone that knew less than I did.  I also did not see anyone in any office having my high standards.

I liked the control that I had over having my own office and making all my own decisions and setting the bar high for everyone that worked for me.  I admit, I micro-managed.

Looking back, I would not have hired so many agents...they drain your time and energy.  I am much happier now just working clients and not having to take up any slack.

Eve

Noah, I started my real estate career at KW. I was with that firm four years. I left there and went to a local brokerage that wasn't smaller just local for a better split. I had never planned on being my own broker but a few months ago, Tennessee Real Estate Commission announced that changes would be made to advertising laws.

Right now, we are required to have our brokerage name and phone number on all advertising. On our signs, the brokerage name and number must be larger than the agent's name. However, websites only require the brokerage name and number but the current laws don't state a size or location for that information. Many agents have started branding themselves with their brokerage name being placed in the footer.

Big companies like KW, ReMax, Coldwell Banker don't like all the agent branding that's occurring here. They have lobbied Tennessee to change the advertising laws so that the brokerage name would be dominant in all advertising and that the agent/team names be in much smaller font than the brokerage name.

I pay for my website. All the content on that website was created by me. The idea that my brokerage would get the credit for my hard work is absolutely ridiculous. The thought that a buyer or seller might call my brokerage because they think my personal website is owned by the brokerage was too upsetting to me. TREC hasn't changed the laws yet but the hand writing is on the wall. It's only a matter of time before these changes are implemented.

I am in the process of opening my own brokerage. In Tennessee, running my own brokerage costs less than my current split so I'll be ahead of the game. It wasn't about the money for me. It was the principle. Why should my brokerage be given credit for my work? Especially, when I don't get any business from them. 

One size does not fit all, and thank goodness we have options regarding our choice of brokerage.

because you are an entrepreneur at heart and can't tolerate answering to someone else

Noah, I started  out with big box and went over to an independent brokerage right when the market went down and everyone thought my broker was crazy for opening up at that time.  He's now the biggest independent brokerage around and we have more agents than some of the big box companies around.  In the process, our brokerage has become a brand.  Our split is minimal and as individual agents we can run our businesses as we see fit.   I might consider having my own brokerage in the future but for the time being, this suits me well.

I like being in charge.  I don't follow well.  I like being the Sheppard and not the a sheep.

Prudential cared more about nickel and diming agents than they did in keeping a top listing agent.  I left over a $250 color copy fee, and they wouldn't let me run my business the way I wanted to run it.  People were calling their office looking for me, not calling the office and finding me.  I found them first on the internet and they wanted to hand them out to other agents.

For all the people above who went out on their own and are happy about it, I echo their reasons.  For me and my partner the most pressing reason to go on our own was because we felt that because the big box companies are so tuned in to the bottom line (as they have to be) that we did not have enough flexibility to get some of our most difficult deals done without being financially penalized.  

Here is an example:

We had a listing from hell that was only going to appeal to 1% of the entire population of the entire galaxy.  It was listed for $320,000 and worth every penny of it to a creature from Mars.  Eureka! The Mars man showed up and offered $300,000 to which the seller would never have agreed except that we did the entire transaction for just 3% because there was not another agent involved.  Had we been with a big box company we would have had to pay the split based on 6% of the purchase price not the 3% our small firm charged.  Neither of us likes to give commission away or work for nothing but the job we were given was to sell the client's house.  We knew that if we held out for a higher price it would never sell and that if we did not work this buyer to a close there would probably not be another one like him in a blue moon.  It was so refreshing to just make the deal and not have to use the crummy used car salesman line of "let me speak to my manager."  I think that is one of the most important things to both me and my partner.  There is nothing that a big box company can do for us that we cannot do for ourselves.  Almost every "tool" they offer is available to us without them and most of the tools are all about branding them as a company, not me as an agent.

Noah Seidenberg - I was in corporate America in my early years and enjoyed it and learned a lot. However, I was making money for THEM and they were in control of my life with good and bad bosses. Fast forward, when I went into real estate after a decade or two being on my own in various marketing capacities, it never occurred to me to join any brokerage after the 3 years that I needed to get my broker's license here in California. I opened up my own brokerage in 2009 right in the middle of the bad market, but thoroughly enjoyed the challenge and certainly learned a lot out there on my own. It gave me the confidance to now add agents that I can mentor. I can see where others might like the structure of being with a "big box", I just don't fit that bill and agents that join me will feel the same way. I am a firm believer that THE AGENT gets the client, not the brokerage. Why pay 6% or whatever off the top of the gross commission check to the franchise before you and your broker gets paid, and then take a whole bunch of charges off YOUR side for other expenses charged by the brokerage? I know, I know, there are many of you out there who like it that way, otherwise these big brands don't have hundreds of agents working for them. But how many of them are making the big bucks? A very small percentage, I bet. IMHO

Fred Griffin -- you can look to Active Rain, which I have done several times.  I'm posted and made phone calls.  And the difference in the big box is the split.  

I like Tamir Ness 's response.

I haven't ever worked for a franchise and have only worked for my own brokerage. It's amazing! The money I don't split with the franchise goes into advertising, the training I want, the technology, etc. Brand name doesn't mean much to my Sellers after I meet with them. At the end of the day it's the person/agent/Realtor seeling your house.

Admittedly it's not for everyone though. I won't judge anyone one way or the other.

Noah,

We have on occasion talked some people out of doing that.  One of our clients has a fabulous split with her company...opening a boutique brokerage would have lessened her split substantially.  We did the numbers and it did not pay.  

On the other hand, one of our clients was a savvy business woman with also a fabulous split.  She owned a building that she moved into and started her own firm with people who are self starters and trustworthy.  She is still the #1 agent, and does even better than she did under the company umbrella.  

It is how we are built that makes the difference, we liked owning our own company.  We stood out from the pack, because we were small and could turn on a dime.  A

This is an awesome question Noah, and one that I toss around on a regular basis. 

For me, the mis-management of the established company I was with was a huge factor, the fact that technology was a word used, but not implemented did a lot for me. But also, the fact that the "Perks" as you put it, probably were valuable back in 2001... When I left, we had long left the fax machine behind... But we still got free faxing.

I have the utmost respect for the owner I used to work for a long time ago, but my team was not in a place to grow, so we had to leave. 

Money, as it turns out, really wasn't that big a factor, freedom to run my business was. 

Better know everyone in town.  The Branding is the biggest difference.

I have had an entrepreneurial spirit since I was a kid. I don't like mainstream anything and I like doing things others say can't be done. I own my own brokerage because I want to be different. I want to be in control of all my marketing materials, company logo, name, and everything else that goes along with it. There's the Walmart crowd and there's the crowd that likes to shop local. I'm the locally owned business not the Walmart. I like that and so do my clients. Plus, in twenty years when my brokerage has five offices and 200 agents I'll be able to laugh at anyone who thought I should have worked for one of the "established" brokerages. 

Noah, those of us that have that deep sense of entrepreneurial spirit it's hard to sit by and watch someone else making all of the decisions. That can be doubly hard when you realize your office doesn't have a clue what it's doing. I worked in two national brands before opening my own brokerage. In the last one, there were 25 agents. Three of us carried the office until it merged with another office. If guess I figured that if I was one of the primary players carrying the rest of the crew, I could carry myself and drop the dead weight. Also, with the advent of the Internet, the playing field has been leveled to a great degree. I draw a large portion of my business from the tech savvy buyers who do their Internet homework before calling an agent. In that respect, it makes it easier to match my big brand brothers and sisters. Last year, I was one of the top producers in our community. No big brand, just be vision executed successfully (and I didn't have to share my commissions).

I have worked for two of the big name, big box companies.  Deciding to go at it on my own was truly the best decision for me.  I am an indepent minded professional and frankly found that what the big boxes were convincing me that I needed from them, I really didn't.  I love being a small, boutique brokerage.  

I think Margaret nailed it. No perfect answer that fits everyone. I've been in our family owned "boutique" brokerage for my whole 20 year career. My wife has worked with 3 different "franchise" brokers in her first 12 years prior to being with me for the last 10. We built our brand with hard work over that time. The franchises have nothing to offer me that I can't do for myself. In this day and age, everything is available to all of us regardless of who we affiliate with. Franchises fir some, but not otheres. Make the choice that is right for you. 

I am not a broker, but I hang my license with a small brokerage office.  We have about 25 agents.  I've been with KW, Remax and a large independent in Arizona.  I like the small office I have here.

I'm not sure I want my own office... herding cats is not my thing. 

But I do like smaller, local, non-franchise brokerages.  Despite all the "name recognition" sales pitches a broker may give you - unless your broker is giving you leads that are more than just an internet query with a fake email address - in the end it's what you  make of it in this business.  

I never want to have to supervise anyone ever.  RE/MAX's slogan is "in business for yourself, not by yourself".  My broker lets me be free to make my own decisions (within the laws and code of ethics) and leaves me alone.  I couldn't run my business for the same amount I pay RE/MAX. 

sometimes I ask myself that? but if you love what you do and I want to see my agents grow and expand their business it is worth it... and then some days are just darn hard as hell... 

Noah Seidenberg I have worked for big names only so far - and have not dared to venture out. However, after reading some of the responses, I guess, it's worth taking risk. Thanks for 'budding' that thought in me.

I am an entrepreneur and like to work to bring in business for me, not another big firm who doesn't care about me.    I have always had my own website, my own email, etc, and never used anything but my own things, which I paid for.   There are very few issues involved in owning your own firm - just really nice to brand yourself and sell yourself!  That's who folks hire, not a large firm!  There are also opportunities to raise the bar and hold everything you do to a higher standard.   

Great discussion, Noah!

I think the answer depends a lot on your personality.

You also must consider your goals.  Where you do want to be in ten years?

The answer is totally personal. Everyone has a different perception of themselves and how they want to operate. If you go with a franchise, you have the added backing (or perception of backing) from the name. If you go out on your own, be prepared to struggle for a few years and do all your own advertising. Either way, there is no magic formula. Hard work and a little luck are what you need. I have never worked for a franchise, but I am also the type that wants to be different, hence the reason five years ago, I went out on my own and opened Stonehurst Realty.  I work very hard, but my name is getting recognized in my area and I firmly believe it is the actual Agent that makes the difference, not the name!   

RE/MAX is recognized world-wide.  They are the company I prefer to be associated with.

Great question.  Many Good answers.  

This I think of course has been asked before, because I know I answered this before.  What is interesting would be if the answer changes...........

For me it comes down to what do you want and money.  I don't want the headache of running 2 businesses.  That is what it would be, because you have to the the agent and then the broker.  If you hire a broker, it is still another job for you outside of being an agent.  But what do you want?  I don't want the headache, additional work, additional exposure to liability.  Yet everyone is different.

Those who plan to open their own business are smart to consider franchise opportunities. This is especially true in larger markets.

The best part about Metro Brokers - it is branded for Denver, yet all brokers can own their own company.   Our office has 30+ companies under the same roof.  It is a unique business plan that works! 

There are many, many, many, many reasons one may prefer to start a boutique brokerage. Some are niche driven, others business model and even the aspect of personal fulfillment. 

Example #1. Niche. As a boutique brokerage you "MAY" more easily qualify to become a HUD outlet.

Example #2. Business model. You keep all the money. Further you will find it easier to operate regarding the more complex transactions that most title companies will run from

Example #3. The opportunity to elevate those who choose to work with you from sales folks to transaction architect the elite in the industry. 

There are more, but you get the idea. Of course you are fully aware, those who opened their own brokerage, and attempted to compete using the traditional model and failed, will all state, "There's a reason they call them brokers."

I would think the big difference would be the splits as well as ability to hire more people to work for you.  Secondarily, you don't have to pay some fees (but obviously there are others). For some the "perks" may no really be perks e.g. having a desk...vs some prefer working from home.

I was with two large brokerages and encounter nothing by lies and bouncing checks.  I went independent in the summer of 2008 and never looked back.

Noah Seidenberg 
Well, you certainly got a marvelous set of responses! I read EVERY comment. The phrase most often repeated is "Haven't Looked Back Since" -- and that's my response as well. My boutique firm, Atlanta Homes ODAT Realty Services , gives me space to do things the right way, not to be told to do something that isn't correct.  My independence allows me to focus on what is best for each Client. I love being on my own!  Sincerely, Lynn

I split from Keller Williams in 2007 to make my own company.  Haven't looked back since. 

Noah -- I am checking in late -- however, this is a great question and I think you have received some very informative responses to this question.    I would follow up with phone calls to those whose message seems to hit a cord with you.

What a great topic.   I think each person has to discover what fits them and their goals best.

I myself like working somewhere else and not having the issues management has.

My first 20 years I spent time with the big 3 broker's here in New Orleans. The last 8 years being on my own has been my best move. With only 4 agents and a small office everything is great. I do have some growing pains as more and more agents are calling to join. I'm expanding in 2015. I have manage an office of 40 agents in the past. I don't think I will be that big. To each it own. I personally own rental properties many tell me they could not own/ manage as many as I do. I like to work by myself. My question is how do you know I would not work for you unless you try. 

This is a great question and one I have pondered myself. I have thought of opening my own brokerage as I have run my own company before (healthcare - and did so successfully for over 20 years). There are benefits from being in a brokerage that is well known and has a good name associated with it. But at the same time, it is expensive to hang your license at some of the larger firms. There are franchise fees, and of course the company split. I have found it depends on your area. Many luxury home sellers may prefer a "big name" versus an independent, so that could be a factor to consider also. Great question and have bookmarked this post.

I just an independent (some say headstrong) person, and always wanted to run my own business. I hated phone duty, sales meetings, and making copies of paperwork. But I admit it was nice to have a broker to run to for help, as Fred mentions!

Good morning, Noah -- this is a good question and one I've asked myself as well. I'm glad to see the different comments.  I've bookmarked this post so I can come back to see others' thoughts.  

I'm noodling that around now. I will keep an eye on this one.

I love working at an established brokerage. 

I have often been asked that question--why don't I just have my own firm. I did the numbers a long time ago and what I pay RE/MAX in annual fees is a fraction of what it would cost me to strike out on my own (separate from the headaches of running my own company).

After 30 years as the top dog in a small company I am enjoying the activity of a big company like KW.

So I could tell NAR to shove it, Noah Seidenberg !

For now I am happy with the relationship I have with KW - I don't want the responsibility of the extra paperwork since I am miserable at it - and always have been! I figure I would be in realtor jail if I had to do the paperwork to be the broker of record. 

Great topic, Noah!

I think it is a matter of whether you can create and maintain your own network of clients, Noah.  And, from Chief Cook's experience, she felt that people liked working with her.....not the big corporation.

Hi Noah, I worked for 5 years at the first Internet-based national firm.  Always an entrepreneur I went out on my own as I saw the firm imploding from a lack of management and focus on agents.  It was the best move in this business and I grow each year.

I found it isn't all about the money but the little things that matter. Some people like to do it their way or don't feel like they get company support. If you have good systems in place and a good split and good management then agents stay content longer. I don't plan on ever going back to owning my own business. But never say never. I don't want the liability of having agents working for me. They are so hard to control.

I have no interest in being the "owner" with all the headaches (financial and otherwise) that come with it.  I love being a sheep.