A real estate coach explains how to structure commission splits using value-based tiers (30%, 40%, 50%, 60%) instead of flat rates, with a fixed admin fee taken off the top. The approach ties higher splits to productivity milestones and onboarding plans, making it easier to recruit and retain agents.
And now so our buyer. So real quick, the buyer agent splits on our team. So I take 10% off the top. So you start with a $100 commission check. It goes down to $90. Right off the top is just more margin. It's got 5% ReMax fee and 5% admin fee. The way it started, honestly, is ReMax, the one I was at, charged 5%. And in my mind I said, well, if they charge 5%, I can certainly charge 5%. So it's 5% that I didn't touch and it was 5% that I call team Admin. And then I bought my own ReMax and the 5% went to 1%. So. So ReMax corporate charged me 1%. My old ReMax was clearing 4%. So now I clear 9%. So that's how it came to be. But I do think something off the top, like most agents aren't gonna really kind of figure it out. They do, but they don't. Like we still talk 30, 40, 50, 60. They don't really get that 60 is 54. So you think that'd be a way to transition if you already have a team? I just. You don't take that off the top to do that. I think only if you had, like maybe with the shakeup in admin, maybe it's like, listen, we added some benefits to you guys, so we're going to have to. Most brokerages do this. Most brokerages have a franchise fee and just do it in a way where it's legit. Say, listen, guys, I've taken on more expenses and the goal is to keep you off the admin tasks. So you've got to be able to position it that way. Anytime you take away something the 30, 40, 50, 60, people want to forget the 30, like it's some bad thing, you know? Yeah. So 60 is Agent Soi. Like they never had anything to do with the company. 50 is I generated the lead or it's a yard sign call and the agent converted it. So they picked up the lead. They were able to get face to face. They were able to sign a loyalty agreement and close it. 40% is an ISA or Keeley or someone else other than the agent going out to service that client. It's paid at 40% or 36%, 90% of it. And then 30 is a past client of mine or sphere of mine or Julie. So people just know that if that deal comes in, it's generally at a decent price point. So this is just buy side. So your average buyer agent is booked by the isa, it's. I looked this morning and I couldn't get that number out of the tracker because I put all my listings as scrubbed. It's or listing also. Isn't it on the buy side though? Yeah, I couldn't get. I mean, I don't know it exactly. So what if it's a referral from the vet buyer agent, works with a client. Yeah, I don't want to go through all that now because that's like total minutia, so. But the 30% is just a gimme. Like I promise you, agent, you're overpaid at 30% and they get you're the highest dollar per hour activity you do. That's what I did. Like it's the lowest, highest dollar per hour you're going to make and just explain it's not a big deal. So everyone just gets freaked out about it. That's one thing I changed. But I think for all of you, you could do it that way. So I went back to my sellers, a regular seller. What do we do? We change. We tweak one thing where if they're not like a client, if they weren't a past client of mine, they're a seller and they're buying. But now we have some agents doing both sides and then it's paid at 30%. So it's just in your mind, whatever you commit to. I just believe the value based thought process for commission structure. There's nobody that doesn't understand it and say it's not about splits. The first meeting with an agent is not about splits. It's about like, what does your business look like right now if you're in real estate or what did you do before? Okay, you made $37,000 last year. Well, let me show you a way to make double that and not have much risk in it. There's no expenses. I'm going to show you what to do in the first 30, 60, 90 days to get you productive. You got to have a little cash set aside. But I'm going to get you to a point where I can double your income and that's what you focus on. And then when they say, man, this sounds good, I get the accountability, I can totally do this. And then you're like, then you pull out the position agreement and then you just go through it with them. It's like a listing agreement, don't give it to them, I made that mistake. Don't say, go home and read this because they're going to ask their agent friends that they know and they'll be like, man, my split's 100% or my split's 110%. There's like some firms that, like, claim to have more than 100% splits, but just go through it with them like a listing agreement, and you're going to close them on that agreement. Right when they're standing there and printing out your spreadsheet, your agent Comp Calculator at 24, 30 and 36 sides for your comp structure is what you're laying in front of them. You're saying, listen, if you do our minimum, which nobody on our team is doing our minimum, but if you do the minimum, you're going to make $72,000. If you do 30, which is just a little step up from that, you're going to do 92. And then if you do 36, which every one of my agents is doing more than 36, you're going to do $107,000. And then just sign here.
