While people may be inclined to believe that most buyers and sellers of real estate properties no longer use the services of real estate agents since they can find what they need on the internet, statistics show that this is not true.
The National Association of Realtors shared that only 8% of sellers sold their properties without any help, and 87% of buyers still hired agents to assist them.
These numbers mean good news, especially if you’re a real estate agent since your earnings mostly depend on the number of transactions you complete. More completed dealings would mean more commissions for you or at least half of it since your broker will get the other half if you still abide by the traditional way of splitting commissions.
If you’re exploring other methods that will allow you to receive better compensation, perhaps a 100% Commission Real Estate Broker is what you’re looking for.
Here are some key aspects you should know about this compensation method:
What is the 100%Commission Split?
As the term suggests, this compensation method means you get the full commission. You do not have to split it with your broker. Unlike the traditional way wherein your broker gets a percentage of the commission fees, you get to keep 100% of the amount.
For instance, if the gross commission for the transaction is $12,000, you only receive around $6,000 in the traditional sharing scheme between broker and agent. With the 100% commission model, however, you get to keep the entire $12,000.
Note that the brokerage firm earns by charging you with at least a few hundred dollars a month for the use of office space or membership fees. Other brokers offer a flat rate regardless of the amount of the transactions.
What are the Advantages of the 100% Commission Model?
To help you appreciate the 100% commission split more, consider the following advantages of choosing this scheme:
- Higher Earnings
Given that this arrangement allows you to keep the full commission, you have the chance to earn more money, especially if you’re a seasoned agent who can complete multiple transactions a month. You may need to pay a certain amount for membership, office space, facilities, and other support services. The sum of these expenses will be much lower if you will compare it to the total amount of commission fees you will lose in the usual 50/50 split with your broker.
When you opt for a 100% commission broker, you have full control over your business. You’re in charge of all your transactions, schedules, and how you spend your money. You can meet with clients and manage your social life without having to answer to anyone or deal with sales quotas.
- Career Boost
Instead of promoting the broker’s business name, you have the chance to make a name in the industry if you choose the 100% commission model. You can build your brand according to the direction you want without having to worry about building-up the broker’s image as well. You will get sole recognition for all the work you put in.
The information above will give you an idea about the 100% Commission Real Estate Broker model and if it will better address your career goals as a real estate agent. Just make sure that you find a reputable brokerage firm that will work with you and will support you not only to earn more but to be the best in what you do.