Setting the Stage for Change

This is one of the most important meetings we will ever have!

Time to shake up the industryAGAIN!

GOALSBy the End of 2012 We Will Be At

By the End of 2012 We Will Be At58 New Franchises (Net)

By the End of 2012 We Will Be At1,928 New Executives (Net)

Now, lets go back to look at our evolution and how were going to get theretogether

Where Weve Come FromDales vision in 1965:100% commission for allLittle in the way of company-paid servicesFocus only on the top 10% of producing agents

Where Weve Come FromEvolution of the concept:Widespread exposure of the brand in North AmericaMenu pricing for commissionsAddition of technology tools, training & education, mass marketing and communications

Where Weve Come FromTodays Norms:Low consumer confidence for buying real estateTighter lending standardsMarketplace shift to low cost providersCompetition outside of brokerages (NAR, MLSs, outside companies)All companies offering robust toolsets

Where Weve Come FromOur Current Pricing Plans:Inconsistent: some flat fees, some GCI, etc.Mutated over the yearsMarket Conditions & Industry ChangesOffered in some areas and not othersLosing $ because we cannot track closingsNeed consistent Franchise Management SystemTrackingReportingPayments

Where Weve Come FromWhat do Brokers & Agents WANT today?Support in organizing their businessesHelp maintaining their business (bringing it back to where it was in the height of the market)Synergy with other productive agentsReal estate knowledge and helpTo be at a company that is affordable and that provides value and supportLEADS

Where Weve Come FromWhat Brokers & Agents DONT Want Today:To pay add-on fees for each additional service they get (We live in an era of free with the growth of downloads, applications, blogs, etc.)Agents today are more cautious about paying monthly fees up front (even if theyre productive) Variable Costs vs Fixed Costs

Heres Where Were AtNational existing homes sales are on track to clear 5 million in 2011 which is slightly higher than the number of closed homes in 2010. ThePending Home Sales Index, a forward-looking indicator based on contract signings, fell 4.6 percent to 84.5 in September from 88.6 in August but is 6.4 percent higher than September 2010 when it stood at 79.4.According to NAR Chief Economist Lawrence Yun, there should be an overall improvement in closed sales in the coming months of 2011.

Heres Where Were AtHousing market is by no means back to normal but falling inventory is a good indication in the right direction. The number of existing homes for sale fell to 3.5 million in September 2011.By January/February 2012 there could very well only be 3 million homes for sale nationwide (compared to 3.6 million in July 2011 and 4.6 million in July 2008).62% of all NAR brokerages are unaffiliated brokerages

Heres Where Were AtRemember These?

Innovative, Entrepreneurial SpiritTrusted, Effective AdvocatesConnected, Caring FamilyUniquely Personalized Experience

Heres Where Were AtWe have a solid and established brand nameWe have experienced Brokers and Executives in many major (and small) marketsWe have industry knowledgeWe have high quality support

Heres Where Were AtLets talk about our support staff at Realty Executives International:Recent promotionsNew positionsOur goals for support of you and your regions

Heres Where Were AtYour Regional Stats:Region Name# of Open Offices# of Active Executives# of Franchise Sales YTD

Heres Where Were AtOur Collective International Stats (As of 10/31/2011):546 Open Offices 8,393 Active Executives104 Franchises (19%) have been with us for 10 years or more202 Franchises (37%) have been with us for 5 years or more

Heres Where Were AtOur Collective International Stats (As of 10/31/2011):39 Franchises have been renewed to-date in 2011116 Franchises are up for renewal which equates to 1,144 Executives

Heres Where Were Going

Our 2012 Growth Goals

Heres Where Were GoingBy Year-End 2012

10% Net Growth in Offices = 58 New Franchises

Heres Where Were GoingBy Year-End 2012

23% Net Growth in Executives = 1,928 New Executives

58 New Franchises X 5 Executives/Per New Franchise = 290 3 New Executives X Existing Offices = 1,638

Heres Where Were GoingBy Year-End 2012

We will have

10,321 Executives604 Offices

Heres Where Were GoingWe have a need for change and a need for growth in 2012. We wont accomplish these things without working together.

Weve had to take a long, hard look in the mirror at areas we need to improve upon and are making changes in how we approach the year from both growth and support standpointswe need for you to do the same in your regions.

Heres Where Were GoingWe need for you to keep your REGIONAL DEVELOPER hats on over the next two daysAll conversations should be from the regional perspective so we can best discuss on the same playing fieldStay focused on NEW franchise salesWe are a FRANCHISE SALES & SUPPORT organizationAll conversations should circle back around to two things

Heres Where Were GoingHow is what were talking about going to lead to 58 new franchises and 1,928 new Executives in 2012?

Lets keep it focused and work together!

Before we get startedlets review some verbiage definitions so were all on the same page

Definition of TermsExecutive Access:Backend intranet for Realty ExecutivesWill become the one place for Executives to go to run their business every dayWith house the new dashboard What you know about it now and what it is for you when you leave will be two different things

Definition of TermsFranchise Management System:Replacing the current Superlative DatabaseWill keep track of rostersWill do REI billingWill feed into RealtyExecutives.com website Will be on the planetRE platform initially

Definition of TermsBroker Management System:Online transaction management Financial management of the brokerage

Definition of TermsPipeline:Systematic approach to selling the Realty Executives franchiseThe process of gathering important prospect dataThe tool you use to manage your prospects

Definition of TermsProspects:People to whom you are working on and communicating with to sell a Realty Executives franchise

Definition of TermsAddress Only Sale:A franchise sale where the territory given is the physical address of the office only I.e.: 123 Main Street Anytown, ST is the territory

Now lets get going