Professional advice needed about switching to a new company (RE agent, commission, Realtors)

[Global Friend]

Most of my time has been lead generating and referring to other Realtors. I keep the leads I want to work with (people I know) and refer out almost everyone else. I'm doing this because I have two other jobs and I just can't be a full time Realtor with this economy. I just started in the business and in a new area 2.5 years ago. My background is web design and marketing, so that's where I spend more of my time and what I prefer to do.

Recently there have been some changes at my company and I've decided to leave. I've narrowed it down to two companies and one being a Realtor I currently work with is opening his own company. He is mainly doing this so he can just work for himself and I feel confident he will do well. He has asked me to work with him and possibly be his marketing/client coordinator person. I would still have my license, my own web sites and keep whatever clients I want. What I would do for his company, would be build his site, generate leads and do the initial contact such as call the lead. The leads that are serious will be given to whatever Realtor at his company can best help them. How I will be compensated is a percentage of not only the leads I generate but of all sales. Neither of us have figured this all out or know what what be fair.

My question to you is; what do you think would be a fair percentage? Or do you have any other suggestions on how to do this? Does anyone here have their own company and do something like this?

The other company I'm considering would be a 10% higher split on sales and no fees. They are also offering me lockboxes and signs but if I refer mostly everything, I'm not sure how much that matters. I would have my sites, generate leads and basically continue to work as I have. The benefit here is they will have a lead generator system that I'm familiar with and I won't have to deal with IDX.

I'm sure I have left some things out but I would appreciate any advice.

[IntownHomes247]

I'd go with the marketing coordinator position. You and I have similar backgrounds. I am a web designer and began real estate marketing 12 years ago when I started a virtual tour web site.

It doesn't sound as though you are strongly motivated to actually be an agent, but that you would prefer (and perhaps are better suited) to using your design and marketing talents to provide another agent with the marketing element they need to grow their business. The key will be creating a fair compensation model. If you're going to be on commission, you also need to be sure that you'll still have enough time for your "day job" while the new business venture gets rolling so you can pay your bills.

If the broker/agent is planning on using your marketing platform to lure agents to his/her new office ("come here and we'll provide you with free leads from our slick internet marketing strategy") then I'd push for at least 35-40% of the broker's percentage of the commission up to a certain cap at which point his percentage would go up and yours would go down. So if he's got a traditional brokerage where he's making 30% of the commission, you'd get, say 10-12% and he'd get the remaining 18-20% up to whatever is considered a fair amount (probably no more than $100k in a year). After you reach that level, then his percentage would go up to probably 25% and you'd go down to 5% of the commission. That makes it worth your while to create a killer site, maintain it, and work the leads until they are ripe. Since the percentage will go down once a plateau is reached, that lets him know that if his company does take off and start doing amazing things he's not going to have to split that same level of earnings with you (although you'll still continue to make money off all converted leads).

[Global Friend]

Very helpful info., thank you so much.