broker splits?

[Josh Louis]

I am a newer agent and I am not sure who to turn to regarding broker splits. I just want to make sure Im not getting taken advantage of. I really like where I work but I want to make sure Im being treated fairly. I have been an agent for 6 months and have done 1.5 mill in sales. For the first 6 deals I was only payed 40% because I was told I was in a mentorship. After the mentorship I was told the schedule is as follows :

50% for my first 25K earned in commision
60% when I reach 30k earned in commision
65% when i reach 35k earned in commision
70% when i reach 40k earned in commision
75% when i reach 45k earned in commision

So each year i start back at 50%.

The other thing is that the franchise coldwell banker takes 6% off the top of the commision before I get my split.

What I also found out recently is that the woman that brought me on is getting 25% of my commision. We are a team? So what if I bring someone on? Do I get a cut?

Does all this sound ok to you guys? Am I getting a good deal? Im sure some of you more experienced agents can give me some good advice.

Thanks!!!!

[Chief Tutor]

Your question is an interesting one because as you know, commissions are always negotiable. Having said that, each market has a general guideline across offices. As a general rule across the country, a new agent can expect a commission split of 50%.

In your case, there are a number of other issues, which some brokers integrate into their commission breakdowns.

First, the mentorship commision is used in some offices to pay other agents to help new agents work through there first few deals. If you have another agent helping you with you first few deals, then they most likely received a portion of the commission for their efforts.

Second, in regard to the agent who brought you into the company, This is a new technique made popular by Exit realty and Keller Williams and depending how it is structured, is a form of multi Level Marketing or Profit Sharing.

Third, the Franchise Fee taken off the top normally comes out of the brokers side of the commission. I have not seen it come out of the agents commission before or taken off the top before the commission split.

As I don't know your broker, or the market you are serving, I can't really comment on if you are in the norm for your market, however from what you have said, I feel that you are being nickel and dimed by the broker.

I hope this helps.

chief

[ctroyer]

Josh,
I too am a new agent just hung my license this past monday.
I interviewed with Coldwell and several others I was not impressed with Coldwell after I went to Century 21 and then Exit Realty. I ended up with Exit and so far I am happy and all agents their tell me they are as well. Coldwell did however offer me 50% to start. Anyway I am going to copy and paste a letter I have been working on because exit offers sponsering residuals. If you should have one in your area atleast check them out. Also if you were too decide to hang your license with them please email me and I can give you my sponsoring info. Good Luck to you I wish you all of the best I had such a hard time making a decision. So hopefully mine is the right one. Anyway my email is ctroyer71 msn.com Here is my little letter that I am working on it should tell you almost everything. Have not perfected it yet. Also if you would like I can look to see if there is one in your area. :)


Good licensed real-estate sales associates wanted. Stop paying desk fees. Start earning what you are worth. No more 50/50 splits! At EXIT you receive a 70/30 split in your favor of course and 90/10 split once you have achieved $100000.00 in commissions.
You also get rewarded for anyone you sponsor! How many times have you told other agents to come and work at your current office did you get anything for that? Well with EXIT you will get 10% of the gross commissions for each associate you sponsor up to $10,000.00 per year per associate sponsored.
Now lets not stop their if you retire you will still get7% of the gross commissions for each associate you sponsor up to $7000.00 per year per associate sponsored.
5% Beneficiary Residuals
EXIT also offers 5% Beneficiary Residuals so what that means is that your beneficiary will continue to receive 5% of the gross commissions for each associate they sponsored up to $5000.00 per year per associate sponsored.
Over 30,000 agents at over 900 locations have joined our team already.
So what are you waiting for email this poster for more information and to set up an interview. Please include your email and phone number.

[nercentral]

ctroyer,
Based on your information, the franchise Exit Realty takes 8% off the top of the commision before their downliners get their split. On the other side, the franchise Coldwell Banker takes 6% off the top of the commision according to Josh.

It seems like that Coldwell banker pays more commission to its agents than Exit Realty.

[Lenderles]

But now you know and knowing is half the battle! Before you sit down and
negotiate have everything written down that you want to ask the Broker.
Do your home work on every company. 1.5 mil is good business and its only
going to get better. Dont let anybody cheepin it with "your New". If you allow someone to take your hard earned $, They need to explain what you
are receiving in return. (training,leads,fsbo's,floor time etc...) I say learn as much as you can then find you a 100% company and make more then the Broker. I dont sell my company, I make a lot of money selling Me.

Realtor for 19 months!

Good Luck!

[Micah Hall]

I work in South Carolina for Open House Realty and I don't split my commission with my broker. For a once a year fee of $4995 and a $280 fee for each transaction (taken out of the commission check) I don't give my check to anyone but my wife! :)

[Lenderles]

I like how you lumped all the monthly fees into one $4995.00 Then a transaction fee of $280.00. Do you work from home or do you have a
office (desk) at your company's location. I work from home only, My monthly fee is $75.00 x 12 = $900 and transaction fee is $275.00.
send me some business in Georgia and I will send you a referal fee of 20%.
And yes my wife also gets the check. :o :) :D

Go Game cocks!

Happy Holidays and Merry Christmas!

[Micah Hall]

Is that with no commission splits? If so, maybe I'll move to GA! :)

[Micah Hall]

And ditto on the 20% referral fee.

[Lenderles]

NO commission Split! e-mail me your job info for referals.
lenderles@yahoo.com

[klinckphilip]

I work in South Carolina for Open House Realty and I don't split my commission with my broker. For a once a year fee of $4995 and a $280 fee for each transaction (taken out of the commission check) I don't give my check to anyone but my wife! :)


I just wanted to ask starting out mabe even part-time what company should I choose and what is fair. Also have you heard of any part salary part commission companies here.

[klinckphilip]

what about keller williams they give a 67% split up to 2.2 mill and the only costs are $65 a month for marketing and all that after 2.2 mill you get 100% is this a deal, has anyone used them or are currently a part of them.

Real estate Phil

[Jennifer Allan]

I also started at Coldwell Banker, and in my town, they were the company that took all the new agents, trained them and then watched them go elsewhere for better splits. I never liked the idea of starting over on my split every year... I just don't see any reason for that.

I do think that first year agents need mentoring and support, but it sounds as if you're ready to assert your "right" to a better commission split. There are plenty of brokerage firms out there and it's so easy to switch companies. The only thing you need to check into is how leaving CB will affect both your current listings (can you take them with you?) and your buyers under contract... sometimes when you leave a company, they'll automatically put you on the minimum split so that when you close the buyer (the buyer deal will almost certainly stay with CB), you get scr*&ed. So it makes sense to time your departure carefully...

Jennifer