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Hello to all the Realtors on this forum. I have a question in regards to commission cuts and what is standard. I realize that when newbies start out, they're at 50-60%. But what about top producers? What do they usually top out at?
I realize it differs pending on location, size of brokerage, etc but was just wondering what your experience has been.
It doesn't just vary on location and size of brokerage, but it varies depending on companies. I've been with 5 brokers over my 15 years (one was for 11+ years). The first was 50/50 with the opportunity to increase based on income. The next was 100% and then they switched to 99%. Then I moved from Dallas to Austin and couldn't get 99% anywhere and took 97%. Then I made a business change (mistake) and went to an 80% split with a lot of broken promises so that didn't last long, and now I'm back at 100%.
It all depends on what YOU want, not what a company is offering. All companies are negotiable. My 100% company is not a Ma&Pa shop either. They're in 5 states with almost 400 agents.
Some people like 70/30, some people like 80/20. It depends on what you are looking for in a company and what other money you pay out monthly or per transaction that truly makes up your number. For example, when I was at 97%, after monthly fees, I was actually making only 84%. Big difference, right? But still a heck of a lot better than an 80/20 with no monthly fees.
As stated, I realize it depends based on a number of variables. Just wanted to hear what peoples' experiences were.
My broker recently mentioned our company tops out at 80% and I thought that was odd.
We don't have any monthly fees, but do pay for our own O&M. Company pays for a lot of marketing as well. I would like to see top producers at at least 85-90% though. Just didn't know if that was unreasonable.
No two firms are the same. I recently got my license and I spoke to 8 different firms, and every single one of them started out with different splits, had different caps, different franchise fee's, different desk fee's...
No two firms are the same. I recently got my license and I spoke to 8 different firms, and every single one of them started out with different splits, had different caps, different franchise fee's, different desk fee's...
Yes, I know. That's why I am asking for other Realtors to share their personal experiences/commission cuts.
Hello to all the Realtors on this forum. I have a question in regards to commission cuts and what is standard. I realize that when newbies start out, they're at 50-60%. But what about top producers? What do they usually top out at?
I realize it differs pending on location, size of brokerage, etc but was just wondering what your experience has been.
ALL - To clarify, I already know many factors come into play when determining commission cuts.What I'm asking is what your personal experience has been. Thank you for the the 2 agents who actually answered the question.
If anyone else would like to share, it would be much appreciated!
I receive 100%. I do pay the broker a monthly admin fee ($35 paid quarterly) and a transaction fee ($250 per closing up to $4,000 maximum payout yearly). Fees cap out at 16 transactions each year. High achievers will cap early in the year and others don't care. Either way, it really levels the playing field and helps to divert spoiled agent syndrome. I've been on percentage splits and won't go back. I like it this way. Hope it makes sense.
Last edited by TampaKaren; 04-30-2015 at 12:52 PM..
We don't have any agents who are higher than 90%, but we also don't charge desk fees. Agents do pay their own overhead, as well as continuing education, license renewal, lockbox key fees, E&O insurance, and NAR, state and local dues. We pay monthly fees for MLS membership. Most of our agents are at 60-80%, but a few of the long timers who don't need any hand holding are at 90%.
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