Residual Income & The Castle Quest Compensation Plan:
For Professional Service Contact:
Castle Quest Royal Real Estate, Brokerage*
284 East Main Street, Welland, ON L3B 3W9 -- Phone: 905-734-6000
* Independently owned and operated
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What is Residual Income?
"Residual income" (also called passive or recurring income) is income that continues to be generated after the initial effort required to produce it has been expended.
Most real estate professionals trade their time for dollars earning "linear income" which is one-time compensation for their services in the form of a commission, making it hard to achieve a sense of security for themselves and their families. The advantage of residual income over linear is that with residual income, once set in motion, you can continue earning money from your initial efforts.
At Castle Quest our Team Bonuses are a powerful form of residual income which are earned by Associates who help our organisation to grow by "Sponsoring" (recruiting) others to join our company as Sales Representatives and Brokers (which we call "network building").
With our "Freedom 5.0" compensation plan, your income will not be limited to your own efforts in selling real estate (linear income). By helping others, you can leverage the time and talents of other people to generate residual income which could eventually replace your commission income.... allowing you the freedom to retire.
Benefits of Earning Residuals in Real Estate
The real estate industry provides for a very lucrative lifestyle to many practitioners. However, few are immune to poor market conditions and most Sales Reprentatives go through several ups and downs. If your compensation structure is commission based alone, you may have little or no guarantee of your income level, as it could depend on various factors beyond your control. This is why financial institutions often view commission based earnings as "high-risk" and unstable. By earning residual income in addition to commissions, Castle Quest Associates can leverage their risk by building a stable monthly residual income stream... eading to a more secure future.
And unheard of in our industry until now, thanks to Brokerage Residuals, owners of Castle Quest brokerages openly encourage their sales representatives to get their broker's license and to open their own offices within the Castle Quest System.
Is Castle Quest the only real estate franchise system offering residual income?
There are other “New Breed” franchise systems that offer forms of residual income, but Castle Quest may be the most progressive.
We believe that several key differences make the Castle Quest system stronger and more stable for Realtors®. For example, most new breed systems either invest a smaller percentage of their earnings into residual income programs or offer a more limited number of payout levels, both of which can make it unrealistic for the average Realtor® to achieve financial security in a reasonable time frame.
Examples of other “New Breed” franchise systems offering residual income systems:
1) One “New Breed” competitor uses a 1-level deep unilevel residual compensation plan where 10% of each Associate’s gross commissions (on the first $100,000 of gross commissions earned per year) are paid to his/her immediate upline Sponsor. This is a good plan, but it might not produce a stable retirement income because if one of your recruits retires or dies, your residual income from that “leg” in your network stops entirely. In this system, your retirement income can steadily decline, and if you outlive all of your recruits your residual retirement income drops to zero.
2) Another “New Breed” competitor invests approximately 50% of the profitability of each brokerage into a residual income pool which is paid out monthly through a 7-level deep residual compensation plan. Although progressive compared to traditional brokerage systems, this profit-based residual program has serious drawbacks ….. including the fact that profitability can be easily manipulated by the franchise owner, and in a declining economic market a brokerage's profitability can fluctuate greatly and can even drop to zero in a bad market which means that your retirement residual income can drop to zero.
3) A third “New Breed” competitor invests approximately 10% of the brokerage portion of commission splits into a residual income pool paid out monthly through a 4-level deep residual compensation plan. Again, although progressive compared to older traditional brokerage systems, they invest into their residual income pool such a small percentage of the total gross commission pie that the average agent would require a very large downline network to achieve true financial security and to retire through this residual income system.
Compared to these franchise systems offering residuals, Castle Quest invests a higher percentage of gross commissions earned (50% of the brokerage's portion of commission split revenue) into the residual income pool and it produces a more stable monthly residual income stream by paying out residual bonuses more than one level deep (which provides more stability to your retirement income).
The Bottom Line... As a Castle Quest Sales Representative or Broker:
The Castle Quest Formula can allow you to build a network and to leverage the time, talent and energy of other people. The Castle Quest System can provide a clear path for you to follow toward your retirement.
Ask for a copy of our 8-page "Castle Quest Formula" to study the full details of our revolutionary compensation plan and our progressive "Freedom 5.0" retirement plan.
To arrange for a private and confidential interview to discuss the Castle Quest opportunity in detail, simply complete the short form below:
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