When a real estate agent joins a brokerage that has a 100% commission structure, it means they are paid 100% of the commission on all transactions. However, there is a monthly cost associated with that brokerage as well as fee with each transaction. As real estate professionals, people often think about how their firm operates and whether switching to a 100% commission model or an additional ancient split is better for their company.
There are many different businesses in the industry that assert to use of a 100% commission model. Only a small number of businesses have been able to attempt to do it successfully. With the help of Big Block Realty real estate agents take home 100% commission. There are no hidden fees or transaction fees, in their plans, simply choose any one of their 3 plans and get 100% commission. Check their website 100commissionrealestate.com to know more about their company.
100% Commission Real Estate Model
The traditional commission in the United States is shared 50%-50% between the agent and the brokerage.
For example, a deal has a $30,000 sales commission.
According to the traditional 50/50 split formula, the agent would receive $15,000, while the brokerage would receive $15,000.
However, under the 100% real estate broker model, the agent receives the entire commission. That is the entire $30,000 deal commission. Which, even after paying the transaction fees, results in increased earnings for the agency.
A brokerage can set up the 100% commission model in numerous ways. Many employers decide not to provide their agents with office support services. This enables them to keep costs low so that they can pay out 100% of the commission from sales. Additionally, it enables them to pay exorbitantly low monthly fees to their agents for the usage of desk space.
However, it prevents them from attempting to provide coaching and support services to their agents. Some people have the propensity to charge a flat fee on each sale. Depending on your broker, these costs can range from low to high. In either case, the real estate agent ultimately pays money to the brokerage to be an associate. The amount of commission the agent receives, as a result is reduced.
Advantages of 100% Commission
- Complete disclosure of the services you purchase from the brokerage.
- There is no requirement to employ internal brokerage services.
- Receive sales and industry training as needed, not at the brokerage’s convenience.
- No sales targets must be met to fulfill a deal.
- The ability to build your own brand while working as a realtor.
When it comes down to it, 100% commission real estate offers straightforward advantages for agents, especially for those looking to carve out their own journey as successful business owners. It would be wise to try to learn a little more about the 100% commission business model to determine whether making the change would be an honest step forward for your career.
The 100% commission model has gained a lot of popularity in the last ten years, but the idea is far older. This approach isn’t for everyone, but for those that need to build a career in real estate, have a clear focus, a love for the fulfillment, and need more money in their pockets, this can be the best option.