Lasting Impact: RE/MAX’s Dave Liniger changed the broker-agent relationship

Lasting Impact: Dave Liniger, founder of RE/MAX, built a business model that forever changed the relationship between brokerage firms and their agents

From its founding in 1973, Liniger’s organization offered the concept that, since the agent did most of the work building a client data base, handling the sale or purchase of homes for their clients and getting deals close, they should receive the bulk of the compensation. That compensation would be more in line with the contributions to final results from the agent and the brokerage firm. 

Despite fierce and overwhelming resistance to his ‘agent-focused’ business model, RE/MAX succeeded in becoming the largest firm in the U.S. and the world. His model changed the entire brokerage industry from the standpoint of the economics of agents and brokerage firms. And, Liniger built an organization that has led in average agent productivity for nearly 40 years.

The growth and development of RE/MAX caused every incumbent brokerage organization to change their compensation offerings and was instrumental in the 30-year increase in the agent’s share of the commission revenues. 

RE/MAX’s impact on the industry is seen in many of the fast-growth business models of the current period, which also recognize the importance of the agent in every transaction in the industry.