I have been offered a position with a real estate company as the director of the residential division. I will not be the broker, the owner of the company will be the broker. I will be managing the day to day business and managing agents. I will collect a percentage of each sale as part of my compensation. Can someone share with me an idea of what percentage is typical for the industry?

This is a start up company and therefore we have no agents yet. We are working on recruiting. Thanks!

How many agents? How many transactions? Average sales price in your area? What is the average commission that your agents are charging?

Are you a Licensee? Being the "Buffer" between the Agents and the Broker would be an impossibility if you're not; and probably resented by anyone who is Licensed. If Licensed, will you also conduct your own sales activity ?

I would hope that the Broker has prior experience supervising other Agents, so that he/she isn't asking you to perform a function that he/she has never experienced before and probably doesn't fully understand.

Also, I would insist on there already being a comprehensive Policy and Procedures Manual in place, so that you're not actually developing one "on the fly" in the course of performing your job.

I have seen Brokers try to insert someone in between themselves and the daily fray encountered by the Sales Staff; and it is often a Communications Nightmare . . . . even for someone with a License. Good Luck.

"percentage of each sale"

You need to clarify this. This really doesn't make sense. Say you had a listing where the broker made 3 percent total and then the listing agent got their cut and the broker then got their split. That wouldn't leave much for you at all. I would imagine you are getting a percentage of the commission and NOT the sales price.

Talk is cheap and you need everything in writing down to the last detail signed by both parties so there ar eno midunderstandings of later the broker shafted me or th ebroker says they are dealing with a disgruntled contractor or employee.

It could work with the right circumstances and conditions.

my overrides are...

7% on 50/50
5% on 55/45
3% on 60/40

Based on GCI - Franchise fee (see below)

A couple of things I wish I would have asked for...

1)At least SOMETHING on agents above 60%, they typically produce more and take time...

2)I wish I would have known the procedure for agents getting their splits upped, I've had about 5 people's splits upped by ownership and they've never sold a thing, just went to class.

3)I didn't get mine in writing like an idiot...sure enough, math changed once i started working there