Industry News

Canadian business whiz storms U.S. real estate

Exit Realty founder plants 400 offices in 6 years

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Exit Realty founder and chief Steve Morris cooked up the idea for the company's residual business model in his sleep one night about 20 years ago. He went to bed asking himself how a realty company could outflank RE/MAX, which he thought was the industry's top dog at the time. He woke up with his answer a few hours later. "I ran out to the dining-room table and wrote it down. For about five weeks, I was six feet off the ground, but then I had to wait 13 years before I could employ it," Morris said. Competitors say that Exit Realty is a multilevel marketing scheme, but Morris characterizes it differently. He says Exit Realty incorporates what he calls a "third dimension" to realty brokerages. The first two dimensions are listings and sales, and the third is a single-level residual model that enables brokers and agents to profit from new agents they recruit into the company. Exit's business model is based on residual incentives. Agents recruit others into the company and earn up t...