Joint
Venture Profitable Model
Income
Potential
Joint Ventures averaging
$30 million in sales annually can expect gross revenues of $900,000,
1/3 or $300,000 to the Joint Venture after agent splits. With
projected expenses of $100,000, the Joint Venture can expect a
net profit of $200,000 to be split between the Managing Partner
and Magellan's Corporate Office, equally.
Additional income can
be derived through marketing consulting and sales training services,
Realtor referral programs and fees and potential advertising sales.
Profitable
Model
$30
|
Million
in Annual Sales Volume |
3%
|
Gross
Company Commissions |
=
$900,000 |
|
33%
|
Combined
Average Split To Company |
=
$300,000 |
Gross
Profit After Agent Splits |
Operating
Expenses:
Secretarial/Office
Manager - $25,000
Advertising
-
$30,000
Rent
& Utilities -
$22,000
Database
Collection -
$18,000
Miscellaneous
-
$ 5,000
*
Total Annual Operating Expenses Per Office - $100,000
Gross
Profit After Agent Splits
$300,000
*
Minus – Total Annual Operating
Expenses
- $100,000
Annual
Net Profit to Joint Venture = $200,000
Cost
of Joint Venture
Individual Cost
of Joint Venturing with Magellan, Inc.
The initial cost to Joint
Venture with Magellan is a $25,000 Licensing Fee.
In addition, the host
partner agrees to split the cost of setting up and managing the
local Joint Venture with Magellan's Corporate Office and to act
as Managing Partner. Estimated costs include $20,000 for start-up
expenses and $50,000 for a six month reserve to fund expenses during
the start-up period.
Company Cost of
Joint Venturing with Magellan, Inc.
The initial cost to Joint
Venture with Magellan is a $15,000 Licensing Fee.
In addition, the host
partner agrees to provide Magellan with office space, secretarial
and sales support and to act as Managing Partner. All expenses shall
be split between Joint Venture Partner and Magellan's Corporate
Office.
For more information about
investing in a Joint Venture or Career with Magellan you can Contact
Us or
Call 1-877-3MAGELLAN
|
