Hey wondering if anyone has a contract they would be willing to let me use, or any idea how i could get one, aside form having a laywer write one up for me.

ive been messing around with some ideas to improve my agent retention...

i currently have had paid trainings that i offer...however business is slow and i want to try somehting a little more innovative...along these lines

$499.00 training course fee waived contingent upon 1 year exclusive agent agreement with my office. If agent leaves office they must repay the training course fee.

the whole idea is to train agents, without the risk of them leaving me after training (which has happened a little too much recently) and have a steadier flow of comission splits.

is this legal? possible? ideas ? thoughts? greatly appreciated.

-Mike

Agent retention depends on the right balance of many factors: your firm's reputation, size, expertise, lead generation, training, atmosphere, team-building skills, referrals, fees, expenses, splits, caps, office availability, technology and equipment availability, e&o insurance, hand-holding if or when necessary, allowing agents the freedom to market in any way that is ethical and legal, transaction management assistance, troubleshooting, quality of agents, your personal integrity as a broker, how you treat your agents and people in general, etc.

that said, here are some random thoughts about your question:

you can contract for one year commitment from agents but you cannot stop agents from leaving prior to one year completion if they want to;

you can collect a training fee according to terms of your contract;

your contract should have terms that allows for you to terminate your association with an agent -- what if they engage in unethical or illegal behavior? -- are you going to keep them for a year? you have to specify, for example, that the training fee is still owed even if they are expelled from the brokerage for cause and definne what cause is

your contract should also have some resolution mechanism in case an agent contends that you as the broker did not live up to the representations you made about the quality and follow-through with your training

on a tangent: you could also put in your IC agreement that listings belong to the brokerage and are not transferable if an agent leaves or alternatively that a referral fee is owed if agents are allowed to move their listings on departure

as much as I dislike attys; you should probably hire one, write up what you want and then have them tweek it, save from having one drawn from scratch

This sounds like it is just an additional "clause" that you want to add to the existing Independent Contractor Agreements you have with your Agents.

Who wrote the existing ICA ? I'd just have them incorporate the New Clause in the existing Contract; and then have everyone sign the new Contract (provided they wanted to take advantage of the "Free" Education).

I gather that the One (1)Year Commitment would be measured from the Date that the Training Course is taken . . . . by both the new AND the existing Agents ?

In my opinion that would get you a "BAD" rap in the business. If agents are leaving it's probably because you have a high split. More are gravitating to a virtual company to keep costs low. In my opinion an agent pays for most of everything anyways.

Maybe it is time to redo your business model so you can offer a better split so they won't leave.

thanks for you responses,

so much to think about...

another reason im concerned with my retention is because, im debating addinga bpo training portion. and while i have no problem training a current agent or guiding them.

ive had newer agents specifically ask for this. and since they dont produce on the real estate side. why would i want to train them and lead them into the bpo reo world. when they leave after....(ok ok...so i had 1 new agent that came, i interviewed. specifically asked about bpos, he signed, i trained him, he left and is at keller williams now. i think he was literally a mole.)

im thinking that since the real estate sides are so low, i could add in a bpo/reo training aspect to attract new agents...

possibly take a split from bpos? do any brokers take splits from bpo earnings. i currently do not.

again just messing with some ideas to increase my offices production....

hmmmm... i will continue to ponder my gran plan to increase production as i drink this glass of wine...

It all goes back to your business model. If you own or rent expensive office space you are going to get pounded. I only buy space if I can pay cash and do not rent. You make your money on the fee buffers agent's can't see.

I'd say as long as you get something in writing that you will be fine. But, you are going to need to consult with an attorney in your state to get things squared away.

I once worked a summer in a National Park. We were paid X per hour. But if we stayed the entire summer, we got a bonus. I'm not sure which is the best way to go.

Isn't that part of why you take a split? to mentor your agents?...as a broker, I couldn't justify charging my agents to train them and then taking a split of their commission.