A real estate manager walks through an Excel-based calculator that shows agents their commission tiers and sales goals. The tool helps teams set performance metrics and lets agents see exactly what income they can hit at different sales volumes.
The next two tabs are very simple. I use these for one of my consulting clients. John Mendoza put these together and I like the visual of these. He used, he did them based on my comp structure, but he's just sort of does pretty things in Excel, so I basically robbed this from him. But basically we have four tiers in our comp structure on the buy side and everywhere there is a highlighted area here, so you can see 36 sides, 250,000 average price point, 3% commission. And this is the breakdown. So Agent Soi versus team lead agent converted versus scrubbed. Here is ISA appointment and a gimme is, you know, my best friend goes to buy a home. So this is, you can make a judgment on how these 36 deals break out. You may say, well, our team is running about 15% or 5 deals. Maybe 45% of your business will be team lead agent converted. Maybe you get 11 deals from the team or one a month. And then there'll be a few, you know, handful of gimme opportunities running Those numbers at 36 transactions. 250. This doesn't include transaction fees. We pay our agents on transaction fees. So that's something to consider as well. That's $113,000 to our agents. And 36 is sort of a joke. It's not really that, that hard to do 36 on our team because we're always top grading, we're always looking. And this isn't immediate, right? I mean you're not going to all of a sudden have agents on your team that are all doing 36. But, but you know, their first year with you, they'll probably have three to four months startup time where they're slow, but then they should get into the 2 to 3 deals per month and 3 to 4 deals per month is where they'll end up. One of my agents put 20 homes under contract in May, 20 homes under contract in May. And I think over 90% of them were team generated. So it's not like he, he's not bringing a bunch of business to the team. You know, he's just following through on business that the team is giving him and his splits are paid out of. So on that agent, I think It's, I'm about 67%, 68% gross margin may even be higher. But anyway, so that's buyer, agent comp. There's a listing agent comp tab as well. We have two tiers on our listing agents, 25% and 35% for team versus SOI. Keep in mind here, real quick, There's. If you're gonna use this, they're in this formula here for the income, the four tiers of income. I take out 10% off the top of all of our commission checks. So in this formula here, if you're not taking 10% off the top, you can see that there's a 0.9 up here. You may not be able to see it, but you'll have to get rid of this 0.9 in that formula in all four cases of it. There it is. So you can see the 0.9. You'll have to get rid of that 0.9. If you, if you don't take anything off the top, if you take 6% off the top, then you'll put 0.94 accordingly. Then this next thing here, this is actually what we do with our agents. You'll see that I think it's schedule C of our position agreements, actually has a written sales goal and written sales goal affirmation that we have our agents sign. This is what. What drives that. So say Chris wants to make 150 same inputs as the goal volume breakdown, but he wants to work 5 days per week, 10 hours per day, 2 weeks vacation on your business. 20% our gross commission earned per transaction. So let's call that for our team, it's 7,500 he receives on average, let's call it, you know, 45%. For the purposes of this exercise, 100% of his stuff, his transactions are buyer sides. What percentage of buyers you meet agree to work with you. So let's call it 75%. And then 60% buy a home. And then the listing stuff doesn't matter because we put it all to 100% buyers. So then when you go to sales, go Affirmation basically has a written statement here in order to gross a total of 150,000, blah, blah, blah. You know, basically it boils it down to an average rate of $75 per hour. I can do this. On average, I'll gross, have a gross commission of 70500 and we'll net 3,375 from each sale. This means that in the next 12 months, I have to close 44.4 transactions. And I can do this. I know that 60% of buyers I sign actually buy a property, and I sign 75% of buyers. To compensate buyers who don't sign with me, I'll need to make 99 buyer presentations. Eight per month, two per week. I can do this. And then there's a date and sign. I'm willing to commit to achieving these goals and will hold myself accountable to do so. If it's all a mindset sort of thing, and establishing a stake in the ground when they sign their position agreement on an annual basis that they're saying they can achieve these goals that they've set out. So that's a pretty cool tool. It's in Excel. It's called Agent Goals and Comp Affirmation.
