2. Setting the Stage for Change

3. This is one of the most important meetings we will ever have! Time to shake up the industry AGAIN!

4. GOALS By the End of 2012 We Will Be At…

5. By the End of 2012 We Will Be At… 58 New Franchises (Net)

6. By the End of 2012 We Will Be At… 1,928 New Executives (Net)

7. Now, let’s go back to look at our evolution and how we’re going to get there…together

8. Where We’ve Come From Dale’s vision in 1965: – 100% commission for all – Little in the way of company-paid services – Focus only on the top 10% of producing agents

9. Where We’ve Come From Evolution of the concept: – Widespread exposure of the brand in North America – Menu pricing for commissions – Addition of technology tools, training & education, mass marketing and communications

10. Where We’ve Come From Today’s “Norms”: – Low consumer confidence for buying real estate – Tighter lending standards – Marketplace shift to low cost providers – Competition outside of brokerages (NAR, MLSs, outside companies) – All companies offering robust toolsets

11. Where We’ve Come From Our Current Pricing Plans: – Inconsistent: some flat fees, some GCI, etc. – Mutated over the years Market Conditions & Industry Changes – Offered in some areas and not others – Losing $ because we cannot track closings – Need consistent Franchise Management System Tracking Reporting Payments

12. Where We’ve Come From What do Brokers & Agents WANT today? – Support in organizing their businesses – Help maintaining their business (bringing it back to “where it was” in the height of the market) – Synergy with other productive agents – Real estate knowledge and help – To be at a company that is affordable and that provides value and support – LEADS

13. Where We’ve Come From What Brokers & Agents DON’T 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 they’re productive) – Variable Costs vs Fixed Costs

14. Here’s Where We’re At National existing homes sales are on track to clear 5 million in 2011 which is slightly higher than the number of closed homes in 2010. The Pending 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.Pending Home Sales Index According to NAR Chief Economist Lawrence Yun, there should be an overall improvement in closed sales in the coming months of 2011.

15. Here’s Where We’re At Housing 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

16. Here’s Where We’re At Remember These? Innovative, Entrepreneurial Spirit Trusted, Effective Advocates Connected, Caring Family Uniquely Personalized Experience

17. Here’s Where We’re At We have a solid and established brand name We have experienced Brokers and Executives in many major (and small) markets We have industry knowledge We have high quality support

18. Here’s Where We’re At Let’s talk about our support staff at Realty Executives International: Recent promotions New positions Our goals for support of you and your regions

19. Here’s Where We’re At Your Regional Stats: Region Name # of Open Offices # of Active Executives # of Franchise Sales YTD

20. Here’s Where We’re At Our Collective International Stats (As of 10/31/2011): 546 Open Offices 8,393 Active Executives 104 Franchises (19%) have been with us for 10 years or more 202 Franchises (37%) have been with us for 5 years or more

21. Here’s Where We’re At Our Collective International Stats (As of 10/31/2011): 39 Franchises have been renewed to-date in 2011 116 Franchises are up for renewal which equates to 1,144 Executives

22. Here’s Where We’re Going Our 2012 Growth Goals…

23. Here’s Where We’re Going By Year-End 2012… 10% Net Growth in Offices = 58 New Franchises

24. Here’s Where We’re Going By 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

25. Here’s Where We’re Going By Year-End 2012… We will have… 10,321 Executives 604 Offices

26. Here’s Where We’re Going We have a need for change and a need for growth in 2012. We won’t accomplish these things without working together. We’ve 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 standpoints…we need for you to do the same in your regions.

27. Here’s Where We’re Going We need for you to keep your REGIONAL DEVELOPER “hats” on over the next two days All conversations should be from the regional perspective so we can best discuss on the same playing field Stay focused on NEW franchise sales… We are a FRANCHISE SALES & SUPPORT organization All conversations should circle back around to two things…

28. Here’s Where We’re Going How is what we’re talking about going to lead to 58 new franchises and 1,928 new Executives in 2012? Let’s keep it focused and work together!

29. Before we get started…let’s review some verbiage definitions so we’re all on the same page

30. Definition of Terms Executive Access: – Backend intranet for Realty Executives – Will become the one place for Executives to go to run their business every day – With house the new dashboard – What you know about it now and what it is for you when you leave will be two different things

31. Definition of Terms Franchise Management System: – Replacing the current Superlative Database – Will keep track of rosters – Will do REI billing – Will feed into RealtyExecutives.com website – Will be on the planetRE platform initially

32. Definition of Terms Broker Management System: – Online transaction management – Financial management of the brokerage

33. Definition of Terms Pipeline: – Systematic approach to selling the Realty Executives franchise – The process of gathering important prospect data – The tool you use to manage your prospects

34. Definition of Terms Prospects: – People to whom you are working on and communicating with to sell a Realty Executives franchise

35. Definition of Terms Address 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

36. Now let’s get going…