How do brokerages typically handle agent bonuses from clients? Do you distribute them at 100% to the agent or do you split them according to your commission policy?

100% to the agent is how we do it. To many brokers get greedy.

If you are with a traditional company, probably at the split, with a 100% company probably all yours. (check individual company policy)

I concur wholeheartedly.

I dont think because a Broker takes a cut they are bring greedy. It really depends on what the agreement is and compensation plan.

My broker gives us 100% of the bonuses. I think that is fair because when the bonus is something other than money (trip, gift card, etc) the broker can't/doesn't take a split of that.

Once my office is up and running, I will be giving 100% of all bonuses to the agent.

R

In my area the typical wording for offering a bonus specifies "for the exclusive benefit of the selling agent". Having said that I am having some feedback from agents at the brokerage where I was before going on my own that the current management is taking 8% off before distribuiting the bonus. I hope someone will stand up to that and make them honor the terms of the bonus offer!

Whenever I open my own brokerage, bonuses will be all the agent's. I cannot see any other way as fair. It would be like giving a Christmas bonus, then taking half back...

Sometims companies require a franchise fee on all GCI (ie, Prudential, RE/MAX, etc). That is generally the only amount that should be taken out of 'bonuses'.

my company i one i own, we split everything according to there split. But i as the owner dont keep any money neither and i am on the same split as they are. Every thing that the company makes goes back in to advertising to supply the leads that we produce. If i am not selling i am not making any money.

I would allow the agents to keep the bonuses. I feel that the agent worked hard and has earned those bonuses that usually come few and far between in my area, they feel inspired to work harder, they feel better knowing that I'm a fair and generous broker and won't be tempted to go elsewhere, and it keeps the morale high in the office.

I have had brokers take my bonuses and it really upset me. The broker deserves the commission split as agreed but I felt I deserved that bonus.

I know once I decide to hire agents I'm going to have some hard decisions to make about commissions and what is fair to all but I definately don't want to be considered greedy....

My agents get 100% of the bonus they earned.

Sellling bonuses are treated like commission; they always appear on the HUD. So, the commission is paid to the broker, who pays them to the agent according to the agreement they have.
This is how it is done where I am now and where I was previously (I switched firms this summer.)

If the broker gives all of the bonus to the agent what happens if the commission is 0 and the rest is a bonus. With this slow market be prepared for some strange happenings.