In a tighter, more competitive real estate market, real estate agents are vying to land client after client. But during a period of slowed-down transactions, there’s still an opportunity to get the most income possible, even with fewer clients and fewer deals. One way this can be achieved is by opting for a 100% commission model.
Although 100% commission brokerages have been around for a while, they are only recently becoming more commonplace. Let’s look at what it really means to have 100% and go over some benefits of this kind of model.
What is 100% Commission (Really)?
As the name suggests, a plan like this means you get to keep all of your commission, minus a small transaction fee and other standard fees like errors and omissions insurance. You don’t have to split your commission with your broker, letting you keep more of what you earn.
For instance, if the total commission for a transaction is $15,000, you’d maybe get 65% or 70% of that with a traditional structure. When you join a brokerage with a 100% commission plan, you get – wait for it – all $15,000 due to you in that transaction minus fees. So, even in a tighter marketplace with fewer transactions, you can literally bank on more earnings with 100% commission.
Benefits of 100% Commission
One upfront benefit for 100% commission agents is that they get more ROI when it comes to getting paid for their hard work. As noted above, no matter the market, agents in this model can aim for more income per transaction than in a regular split model.
HomeSmart is a full-service brokerage that provides its agents with the power to choose their commission plan while also providing them with a high level of care and backing that they won’t find elsewhere, especially with a 100% model.
At HomeSmart, agents are provided the resources they need to not just expand their earnings and their brand but grow their skills as well. With hands-on continuing education courses available at their fingertips, lead generation programs to expand their contact opportunities, mentorship programs to put them in the hands of a helpful and insightful professional who can guide them and personalized support from our brokers and service teams, HomeSmart agents have the flexibility and the push they need to step forward confidently, no matter where the industry is at.
But, What About Fees?
Okay, yes, if you want to consider this a catch, we understand. With a 100% commission model, you can expect per-transaction fees as well as monthly or annual fees. However, you can also expect consistency in these fees and know what you’re getting paid on a regular basis, like what you can expect at HomeSmart, where 100% commission has been commonplace since day one.
Opting for a 100% commission plan allows you to take advantage of the fruits of your labor. You were the one who made the sale, after all. So, why shouldn’t you keep the money you earned?
While you have to cut off a slice of your earnings on a monthly basis, you can still expect flat fees and more earnings at the end of the day. This enhances transparency – another benefit of working with this kind of brokerage – and helps you to build more trust with your brokerage, knowing you’re operating with as much openness and honesty as you can get in real estate.
When it comes down to it, a 100% commission real estate brokerage poses many benefits to your bottom line and daily operations. This is especially true for those looking to break free from traditional splits and structures of a run-of-the-mill brokerage you might be familiar with on a national scale. It is worth getting familiar with this kind of model and seeing if it’s right for your business, earnings and long-term plans.