Thread: Opened new office in CA/what % offer agents

Hello, I have just recently opened a realty & mortgage office.....what percentage do I offer new licensed agents as far as the real estate transactions and the mortgage. I need advice we are trying to recruit a few. Help....trying to keep overhead down and profit up

good q

It's pretty competitive out there these days. New agents are a lot of work! If you are providing good training etc, guess 50/50 is standard.
Though you need a sliding scale so you don't lose your top producers - you have to make it better for them to stay than go & open their own shop...

The only problem is one is a top producer at her other company but she is unhappy and we are trying to reel her in....I believe she might get 50% on loans and maybe even 50% on real estate....should real estate transactions ba offered as more percentage?

what i'd do is have a scale based on production. 1st 10 transactions are @ 50/50 split, next 10 @ 60/40, then 70/30 and finish either at 80/20 or 85/15... that way it gives them something to shoot for. as for a top producer, start them out in the middle or towards the top of the scale as they are solid performers with a proven track record....

my opinion anyways...

Should there be a difference on real estate or mortgage transactions...meaning comission for buyers/sellers agent?
She does more mortgage loans than real estate.

I wouldnt think so... the problem with the broker competition is there is always someone out there with a better deal. Alot of the agents i've worked with have come and gone. Either for more money or a steady income. I've been with the same broker from day 1... part time for the last 5 years and now having been kicked out of my last job (layoff), i'll be full time. what keeps me there is what he has to offer... he's always looking for the next step to move his business and ours forward. I could easily earn more elsewhere but the technology & support keeps me where I'm at.

think of the bigger picture... what else is there to offer agents working for you?... things like that. goes beyond the commission split IMO.

Ok sounds about right, the good thing is also we worked with her previously and so she is comfortable with us...i think the only thing holding her back is job security due to the fact we are new business owners and her boss now is established. Although she is very unhappy where she is at now, I think she is concerned with stability. Thank you so much for the advice, I was having a difficult time getting answers until i found this website....Its Great

There are plenty of different ways to split the commission,depending of what you want to achieve
Do you want to make money for yourself?
Do you want to expand with a lot of agents?
Did you buy a franchise?
It all depends....

Well definately make money for ourselves but just to draw in a few other agents. We dont want to get to big...because we would like keep our overhead down but just a few to keep us busy and comfortable. We didnt buy a franchise ......we started our own small company from scratch but we already have a clientel. I am just looking for ideas to stay competetive with other co's

"Competitive" is the bottom line. Just look @ your specific industry - look @ it as a transaction, your agents are paying you for your services. What's a win/win where everyone is happy @ the end of the day?