In 1994, Chuck Scoble, majority owner and CEO of CPS-Creative Property Services rose to the challenge of expanding a small independent California real estate firm in the face of strong competition from major companies such as Prudential, Coldwell Banker, Century 21, and Re/Max as well as long established independent firms. His efforts resulted in one of the fastest growing real estate franchise concepts now known as the Avalar Network.
In order to successfully compete with other companies, it became apparent that the agents must be provided with an overall superior environment and a more diverse compensation package. Moreover, it was important that the program be designed to not only attract seasoned agents, but would ensure that they would not succumb to the next best commission split or roomy corner office with a window. The company evolved... incorporating good ideas and discarding those elements that were counterproductive. Among the changes made were the following:
Management's role was one of support rather than micro-management.
Innovative commission programs allowed agents to earn top commissions, while brokers were assured of a fair profit.
Agents could participate in building the company through a sponsorship program where they share in the continued revenues of the sponsee's earnings.
Agents become entitled to retirement residuals after completion of seven years service.
Half of all royalty fees are redistributed back to those franchise owners, staff and agents who sponsor new agents.
With these progressive ideas in place, the company began to attract top-producing agents. These agents were allowed greater flexibility through home office allowances; mentoring programs between experienced agents and new agents provided new agents a solid support system while compensating the experienced agent for their time and expertise "lessening managements" exposure to liability and reducing the need to micro-manage transactions. As agents came aboard, they brought others with them who, in turn, brought yet others... all selling real estate or closing loans and earning residual income from those they've sponsored.