Salary Vs. Commission

**Trevordavisaah** · 10-01-2010, 06:38 AM

I've been in real estate about 1 year and have been paid on a weekly salary as an assistant to a top producing agent in my market. I am considering branching out on my own. My question is this: Is it better to go the safe route in my career and collect the weekly salary (which isn't much, hardly pays the bills) or go for the gusto and work for myself (which could produce multiple thousands of dollars, or nothing)? I am at a crossroads, and I would like to work for myself, but as a new agent, sometimes safety is the best route.

**gotlivechat** · 10-01-2010, 11:24 AM

You may want to start off as a realtor for an existing broker, to see how well you can do at it. If you start to build up a customer base, you could always set up your own office (don't forget the fees associated with the opening of your own business/licenses/etc.).
Maybe they'd allow you to work both as an assistant (to get the paycheck) and dabble in sales (for the same office)?

**Trevordavisaah** · 10-01-2010, 11:30 AM

Unfortunately, I've discussed that possibility with my boss and he said that's not possible. And while I've been his assistant, I've had 7 sales in the past 8 months. So that leads me to believe I may be able to do it on my own. But we have a great market here, and top producing agents are making in excess of 20-30000 a month. And I know i'll never be to that point as an assistant.

**Jonathan Radford** · 10-01-2010, 03:03 PM

If you've had those 7 sales in the past 8 months then you seem to know what you're doing. Do you feel confident that you can work those sales from start to finish? If so, then go for it. There's no time like the present.

**agentforhire** · 10-03-2010, 03:03 PM

If I were you, I would try to stay as an assistant until you can establish an online presence. If you go out on your own after that, you should have enough leads coming in to help you make a living.

**JLNorthOC** · 10-04-2010, 10:10 AM

I would say go for the commission because the harder you work the more you get payed. Something to think about is the fact that when you first start the may not have any income for the first 3 - 6 Months. It takes time to build up the pipeline. Even if you got an executed contract today you wouldn't be getting payed for at lease a month from it.

**Bones** · 10-05-2010, 08:22 AM

It sounds to me like you want to go out on your own. Do you have some cash reserves to keep you afloat while your business takes off?

**francinebourne** · 10-07-2010, 07:33 PM

Salary Vs. Commission?the best answer is "It depends"

If the expectation of the position is to drive in new business, then I would weigh the compensation plan heavier on the side of commission.

If the expectation is to maintain business, then I would weigh the compensation plan heavier on the side of salary.

**karinholmes** · 10-10-2010, 03:58 AM

Commission is the most common and traditional way to motivate and reward salespeople for closing big deals or meeting goals. The chief advantage associated with a straight commission compensation plan is that it gives salespeople major incentive to work very hard on behalf of the company,but when sales are slow during a downturn your income it is not secured.
I believe the key to a good compensation package is to create a balance of salary and commission.

**karinholmes** · 10-10-2010, 04:18 AM

Commission is the most common and traditional way to motivate and reward salespeople for closing big deals or meeting goals. The chief advantage associated with a straight commission compensation plan is that it gives salespeople major incentive to work very hard on behalf of the company,but when sales are slow during a downturn, your salary it is not secured income.
I believe the key to a good compensation package is to create a balance of salary and commission.