How most large real estate brokerages Work
So where does the Broker Commission go? Do you think it goes back out to market the agents? The majority of the time No! Most brokerage firms' commissions are used to recruit more agents. Why do you think some or most real estate brokerages have 200-300 agents, because they have an overflow of business that they cannot handle. No, not at all. Most of those 200-300 agents are most likely closing about 4-8 deals per year. We realized that large real estate brokerages with their fancy images are all about themselves and not the agent. Branding is extremely important for any company; this is what these large Real Estate brokerages spend their money on, branding the name of the brokerage firm, NOT THEIR REALTORS.
You gave your brokerage 30%-50% to help them brand their name and what did you get in return? OH, that's right. You get to put their logo on your business cards & for sale signs.
Keep that 30%-50% you're GIVING AWAY and market yourself. That's the only way your phone will ring!
But don't I need the biggest and most fancy office to impress my clients?
No. Top producers are always out in the field, not in the dugout (office). You won't see these agents hanging around the office because they are in the field making deals happen. The last time I met a client in our office was about 1.5 years ago. The majority of the time you'll meet buyers at the homes you will be showing or sellers at the listing appointment. Buyers and sellers only care about one thing and I can assure you its not what company you work for or if you have an executive private office. (send me an email & I'll let you know what clients care about, if you don't already know)
My old office was right across the street
Did you go to the office everyday, for what? Is it worth giving up 30% - 50% of your hard earned commission.
$10,000 Total Commission from a transaction - $5,000 Broker Split - $150 Office fee ( franchise fee, most likely not included) You Just Lost $5,150! $10,000 Total Commission from a transaction - $3,000 Broker Split - $150 Office fee (franchise fee, most likely not included) You Just Lost $3,150! You will keep 100% of your commission at about $1,800 a month, which will not include any Texas or International franchise fees. So you want to build a team? This will most likely cost you about $600-$800 each month per agent.The Typical 50% - 50% Agent/Broker Split Plan
The Typical 70% - 30% Agent/Broker Split Plan
The Large 100% Brokerage Firms
