Coaching-call transcript advising brokers how to redirect agent questions away from commission splits toward concrete income outcomes and support. The speaker contrasts low-split/transaction-fee firms (example: 100% commission model with ~800 agents and ~3,700 sides last year) with their own team approach that guarantees a $60,000 take-home in the first 12 months and shows paths to $100K+ by increasing sales volume and using systems (transaction fees can add another ~$7,000 at higher volumes). The talk stresses asking candidates about past earnings, expenses, and goals rather than splits, cites that roughly 5% of agents in the market take home more than six figures, and presents team targets (most agents selling 40+–48 homes; upside near $150K+).
Questions this video answers
$60,000
About 800 agents
Approximately 3,700 sides
About 5%
Most agent goals cited are 48 deals (many sell 40+)
So everyone wants to ask, you know, what are your commission splits? And I'll kind of end it with this here and then we'll open up for Q and A. It's, I guess this might be because I know a lot of you have that hesitancy, like, how am I going to compete with someone that's offering 70, 80% commission splits? Like, it's just math. It doesn't matter if you give 100% commission splits. Our biggest broker in our market is 100% commission. So they do a transaction fee model and they have like, it's like 800 agents or something. I think they may have more than that now. When the market turned, everybody went to them because they have no fees. If you don't sell a home, you don't pay anything. And they sell like I think a half of a home per agent. So for me, that's just like a really good example, sort of tongue in cheek, like, well, you know, listen, if splits were the determining factor of the ability to build wealth doing real estate sales as your job, then I would just tell you to go to this firm, they offer 100%, it's like 250 per transaction. But I will tell you, agents in that firm, 800 agents, have sold 3,700 properties or 3,700 sides last year. That's really probably not the conversation we want to have. We want to talk about what have you done in the past, how much have you made in your best year financially? If you've been in real estate, what did that look like for you? How many homes have you sold? What kind of expenses have you had, what have you tried, what's worked, what's not worked, what are you paying your current broker? So you want to just have those kinds of conversations at the first meeting. We avoid conversations on splits. So we're talking about the opportunity to make a six figure income in their first 12 months. We guarantee 60. So that's the first thing we do. We guarantee a $60,000 take home income in their first 12 months because we know we can get them there. If they're not going to get there, they're not worth keeping. So they won't even make the cut for the 12 months. But to show them a path to $100,000, Wood is 100,000. And we've turned away people that have come from an industry where they made maybe 200, where we know that 100 to 150 is not sort of great pay for them. For most people that are on our team, we've doubled their income by joining our team. Some came from a different industry and some came from just new to real estate. And a couple came from builders where they weren't making 100,000. And now that they've doubled their income, you just have to tell that story. You're going to get asked this question, but you don't really want to talk about that. Let's just talk about what you need, what you've been making. Have you been in real estate for four years? Let's talk about has your net worth increased in the last four years? Have you made more money than you've needed and you've been able to invest the difference? Most agents and most people in general have no concept around any of that. So you can easily talk through that with them. You can do it in a way where you're totally serving them. Let's. I know you want to talk about commission splits, and I don't want to just blow off that question, but let's not talk about that right now. Let's just talk about you and what you've been able to earn in different jobs and what you're really looking to do in real estate. Then the cool thing about meeting with me is that I'm going to give you the honest truth. There's no pitch here. One out of 10 people we talk to are going to be a good fit for us anyway. But I'm going to give you the honest truth about real estate and what really happens. You know, 5% of agents in my market, in our market here, and I'm role playing this. Five percent of agents in our market are making more than six figures take home. That's the reality. So one out of 20 agents are taking home more than $100,000. With the exception of the agent that had a baby, all the other six agents on my team are well over that take home. So let's just put the commission discussion aside for now. Let's talk about if you're, if this is a good fit for you, but really just talking about them, their needs, what they've been able to do. If they're in real estate, what are they doing now? If they have lulls, if they have enough leaves to work, you want to talk about. You want to just get the conversation going in the right way in terms of getting them excited about the opportunity, then you probably have to work through the. If they're in real estate, you have to work through that with them, what their expenses are, how much they've done, and then you want to compare it against, and I use Mendoza's tracker. And I would suggest for every one of you, you set this up once. This thing I'm about to pull up, and you just print these out. So when you're talking to someone and they want to talk about splits, you want to talk about bottom line, Net. This is the opportunity that we're offering you. Let me just pull it up real quick. I'm actually meeting with an agent on Friday morning for a cup of coffee that Cherie's already vetted, And I printed out these exact slides. Let me make this a little bit bigger, and I'll show you the two slides I printed out for him. I believe this guy has the ability to do more than this, but my conversation with him, and I forget the numbers. I think I. I assume he has a pretty big network. I think I assume 30%. 30. 40. 30. And no gimmes. Yeah, I think that's what I assume for him. Yep, 81 grand. So I know that I can get this guy selling two homes per month easy, and he'll clear 80 grand. And I'm pretty sure I can get him to 30, where he'll clear over 100. And really, the opportunity is 36 plus 120. We've got agents on my team. Most are selling over 40. Most of my agent goals are 48. So there's $150,000 opportunity on my team, and we've got the systems to get them there. This doesn't include transaction fees. So on 48 deals, we assume this times, call it, if they're bad, they'll get 50% of transaction fees. Equals, let's call it this times 695 times 0.4. So they get an extra $7,000 on top of the 162 or whatever for transaction fees. So we'll go through that with them. All right, cool.
