I just read this on the broker/agent forum and it gave me an idea:
"Many of the agencies who run such a program require that a portion of every commission go into a savings fund to assist with the transition to full-time. And, usually there is a time limit on how long one can remain in the part-time division --- usually one year."
I have been telling my part-timers that I expect them to be saving a big portion of their checks to go full-time. I've never even thought of holding that out for them. What do you think of this? What do you think of taking 50% of what they would normally net and putting it away for them?

I think some sort of program of this type is a good idea. However, I think that there should be different levels of participation. Get a standard form created with blanks for how much gets withheld, etc.

You need to work out other details as well. For instance, just holding that cash in your broker account does not make a whole lot of sense. It would be smarter to put it in some sort of account that nets them some level of interest while it is sitting there. That introduces all kinds of issues to be addressed. I have to be honest tho, I suspect that doing this would be very worth it in the long run.

IN OTHER NEWS: I have not forgotten about the program I promised you Carla...still working on it! ;-)

R

NOT LEGAL ADVICE

A key question . . what happens to the money saved if the agent doesn't make the transition to fulltime??

It seems you would want some kind of "penalty" if the agents failed to transition by the one year point --- maybe forfieture of half the money held?

I've heard of companies that have a part-time division that has completely seperate management --- usually a sales manager who holds an office meeting on Saturday and is the office that day. Plus, he or she is available by cell during the week.

Some only allow their agents to list properties. The arguement is that listings take less effort than sales, thus minimizing liability.

I would be very insulted if my broker were to withhold any money from my checks, just because I'm part time.
I may be a part time agent, but I do as much as many full time agents. And I have no intention of going full time. I have a real job that I need for insurance, and salary.
A good part time agent can be a great income producer.

wacky idea

what i dont know about is how can you "make" an independent contractor let you "hold" half or any of their commission earned.

most agents who are on part time status in a company that would hold a portion of a paycheck would probably be non performing 50/50 agents who could not even cover their own cost if they only got 25% of the total commission payed. not to mention at the end of the year they would have to pay taxes on the full amount of commission earned.

i could be looking at it wrong or missing an important step, but i must say that if a broker asked to withold money i would say no, and if they told me that is policy i would find another office that did not withold my "earned" commission.


try telling an employee that we are not going to make you pay taxes until the end of the year and but we will keep half of your hourly pay and then at the end of the year you will pay taxes on your full hourly rate.

just does not add up to me