Agent Commission models have changed, time and time again, since I began as a real estate agent in the early 70s. When I first started I was on a 60/40 commission split. The company furnished an office, utilities, phone, and secretary. The company also paid all agent expenses which consisted of business cards, a Sunday newspaper ad and signs.
I witnessed my first Real Estate Evolution with the arrival of Real Estate franchises. Agent commissions went down under franchises because the Franchise Company got paid first. Basically, that meant if 6% went to the Franchise Company then agent commissions were based off 94%. An agent on a 70% commission split was actual receiving 65.8% .
Then Remax arrived on the scene and increased agent commissions, but also increased agent expenses as well. This higher agent commissions model started a Big Evolution in the real estate industry because it forced the Traditional and the Franchised Real Estate companies to pay higher commissions to prevent losing agents.
For the past few years, the real estate industry has been going through another period of Evolution brought about by Technology. The internet, computers, smartphones, sites like Trulia and Zillow are making agents less dependent on company resources. An agent now has the ability to obtain information from a number of sources and their mobile device — which gives them the ability to work from virtually anywhere.
The final Evolution is a direct result of this new Technology.
Agents are operating more as their own company by spending more of their money on technology and marketing in order to be competitive and increase their business. To this end, agents are no longer satisfied with paying 10%, 20%, 30% or more of their hard earned commission to a Real Estate Company. Without the need for company resources and the technology available, agents are dissatisfied with their company commission splits. The combination of Technology and agents unwilling to pay commissions that support a Traditional or Franchise real estate firm’s overhead like staff, offices, franchise fees and ads has led to the next – generation of real estate companies.
This Evolution is the 100% Commission Real Estate Company.
The 100% Commission is the future of the Real Estate industry. With this 100% commission model, the agent receives their entire commission. The agent is only responsible to pay a fee that is agreed upon with the brokerage. It’s a simple concept, more money for the agent!
With the availability of a 100% Commission Real Estate Company, it no longer makes sense for agents to work with a traditional brokerage or a Franchise Company.
At Waldrip Real Estate we are operating under the 100% Commission model, but have gone a step further to be different. We call our plan 100% plus Bonuses. It’s the Best plan for agents in the Real Estate Industry. It’s only a matter of time before brokerages who offer 100 – percent dominate the real estate industry.
The 100 – percent real estate model will become the new norm because Traditional and Franchised brands, who deduct 10%, 20 % or 30 % from an agent’s commission, are outdated and dying a slow death even if they haven’t realized it yet.
For agents, it’s easy to see that the Evolution of Real Estate is to their benefit.