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#124257 - 05/24/06 08:59 AM Other firms' commission structure...
GregInAtlanta Offline
Veteran Member

Registered: 04/14/05
Posts: 1170
Loc: Atlanta, Georgia
I am developing a marketing tool to recruit new agents. Basically, it is a guide that shows a potential agent what he/she would make if they joined my company vs. the other companies in the area. It shows low, average, and high performance benchmarks. It also allows the potential agent to enter custom figures to see what they would make. I include pros and cons for every company (even my own).

My question is- How would you feel if another company disclosed your commission structure? Being a new company, I don't want to create enemies this early on. However, commission structures are essentially math problems, and we all know we can't outrun mathematics. Also, I am pretty sure it is not protected information (atty is out of town, will know for sure next week).

Thanks!
_________________________
Greg Sargent
Licensed Georgia Real Estate Broker.

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#124258 - 05/24/06 09:17 AM Re: Other firms' commission structure...
Area Pro Realty Offline
Member

Registered: 05/24/06
Posts: 284
Loc: California
if your competitive in the market, i wouldnt mind. However, the big brokerage houses might have a problem with that, but it is public knowledge.
_________________________
Author of "How to Evaluate Real Estate Franchises" www.EvaluateREFranchise.com
and host of Real Estate Agent Radio
www.RealEstateAgentRadio.com

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#124259 - 05/25/06 05:36 AM Re: Other firms' commission structure...
broker Offline
Major Contributor

Registered: 08/16/04
Posts: 1979
Loc: Cary, NC
If it's common knowledge then you should be o.k.... however you better make sure it's right.

A safer approach would be to just list percentages without assigning them to any particular company... that way you're not setting yourself up for confrontation.
_________________________
the real estate industry is changing...

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#124260 - 05/26/06 05:21 AM Re: Other firms' commission structure...
Tanya Offline
Moderator

Registered: 04/03/06
Posts: 304
Loc: Jacksonville, FL
I agree with Broker. I have a chart that shows them what they make at "Local Large Independent Company" and "Other 100% Commission Concept Companies".
_________________________
Tanya Watson/Owner
Sellstate Performance Realty, Jacksonville, FL

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#124261 - 05/26/06 07:23 AM Re: Other firms' commission structure...
ky realtor Offline
Major Contributor

Registered: 04/21/05
Posts: 1879
Loc: kentucky
 Quote:
My question is- How would you feel if another company disclosed your commission structure?
I could probably turn you in for violation of Anti-trust. There is no way you could claim to know my commission structure, as commissions are negotiable. I believe we can only discuss our own commission structure, and not others. You cannot quote commission of others, unless it is published, and common knowledge.
_________________________
Comments made are my opinion, and not intended to be legal advice of any kind.

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#124262 - 05/26/06 12:03 PM Re: Other firms' commission structure...
GregInAtlanta Offline
Veteran Member

Registered: 04/14/05
Posts: 1170
Loc: Atlanta, Georgia
 Quote:
Originally posted by ky realtor:
 Quote:
My question is- How would you feel if another company disclosed your commission structure?
I could probably turn you in for violation of Anti-trust. There is no way you could claim to know my commission structure, as commissions are negotiable. I believe we can only discuss our own commission structure, and not others. You cannot quote commission of others, unless it is published, and common knowledge.
Are we on the same page? I am not talking about the commission charged to clients. I am talking about the commission structure between brokers and their agents.
_________________________
Greg Sargent
Licensed Georgia Real Estate Broker.

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#124263 - 05/26/06 12:17 PM Re: Other firms' commission structure...
ky realtor Offline
Major Contributor

Registered: 04/21/05
Posts: 1879
Loc: kentucky
I see----I was reading the title.
Where would you get this information about other companies?
_________________________
Comments made are my opinion, and not intended to be legal advice of any kind.

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#124264 - 05/26/06 12:33 PM Re: Other firms' commission structure...
Paul Oaks Offline
Major Contributor

Registered: 06/23/04
Posts: 3370
Loc: Central Illinois
By talking with other agents. Escpcially if the agent recently left another office

 Quote:
Originally posted by ky realtor:
I see----I was reading the title.
Where would you get this information about other companies?
_________________________
Paul Oaks
Oaks Real Estate Group

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#124265 - 06/05/06 02:29 PM Re: Other firms' commission structure...
rwilson99 Offline
Member

Registered: 09/04/05
Posts: 479
Loc: Tampa, Florida
 Quote:
Originally posted by GregInAtlanta:
I am developing a marketing tool to recruit new agents. Basically, it is a guide that shows a potential agent what he/she would make if they joined my company vs. the other companies in the area. It shows low, average, and high performance benchmarks. It also allows the potential agent to enter custom figures to see what they would make. I include pros and cons for every company (even my own).

My question is- How would you feel if another company disclosed your commission structure? Thanks!
It wouldn't be too hard to create an excel spredsheet with some different common scenarios from other companies and a custom column for the potential agent to use if they interview with another broker.

I am not a broker... but I would shy away from any statement of "this is what you would make at broker x," and I would prefer to here... "this is what you would make under this commission plan."
_________________________
Robert Wilson
Keller Williams Tampa

I am not a laywer, and I can't even spell very well.

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