I would like to reward in some way my agents who recruit other agents. time ago a broker told me she was giving the agent 2% of all net commission earned by the agent who they recruited for the office.
Anyone has other ideas?
what would you think is fair?
thanks!!!

I usually just give them a 50.00 credit off of their next closing. My trans fee is 300 so they would pay just 250 in that instance.

If you are looking to grow just find a full time recruiter and pay them based on results so your agents can focus on sales.

My former broker gave a $100 gas card for recruiting. If the agent preferred cash, he was cool with that also. As an agent I am not a recruiter, I referred a couple agents over the years, 1 worked out, one did not. The gas card was nice I was actually able to break it up into 4 25 dollar cards (for a small fee) and use them Christmas presents.

Kind of like Super said though, my job is to focus on getting deals closed not bringing in agents. My broker never pushed recruiting, it was just out there, if you know an interested agent send them in to talk.

I interviewed with with a broker whose company it seemed to me was based upon agents recruiting other agents as you earned money based on the number of agents you had underneath you. It sounded like the ultimate Amway pitch.

I asked what is the monthly fee to belong?

Free, all you have to do is recruit another agent and they will give you a stream of income that will cover it all.

How much will I write the check for monthly? It does not matter, because when you bring agents in you have checks coming in, and its a lot more coming in than going out.

So Dayton, when would you get that reward? When they first hung their License . . . . or when they became a Member of the Billion Dollar Round-Table?

He was fair with it. He paid up when they hung their license.

.........or you could just buy into the Exit franchise (I left Exit over a year ago). Recruiting efforts are taken care of (residual income), and added benefits as well.

I have it setup that I pay my agents $500 per agent recruited. I am a 100% model collecting a monthly fee, so I basically give away 2-3 months of the monthly fee to the recruiting agent.

If my agents are associate brokers, I let them work out what split they want with the agent they recruited, otherwise they get a free month on the fee. I am also a 100% broker, so if they get a free transaction, that makes them happy.

Our franchise is set up so that they basically get 1-1.5% off each sale for everyone they recruit, plus get paid at every closing of anyone recruited by people under them. Since the agents get a check at every closing, it gets them motivated. Our office has handed out over $14,000 so far this year to 11 agents (We started out with 8 agents at the beginning of the year and we've just gotten checks for the first three quarters, since most of our agents were hired in the last two quarters, those numbers aren't showing up yet. We now have 35 agents. They all say they aren't recruiting, don't want to recruit... But they see the checks other agents are getting, and my agents have given me the names of 6 agents to call just this week- and these are people they've already talked to.
It's not just about giving them rewards. The agents have to believe in the company. We have fair splits; we're not the cheapest, but we provide a lot of value: relevant training that won't be a time-waster for anyone, great technology, two very experienced managing brokers, a nice office space. We really do teach agents how to make money in the business, and we give them the tools they need to be successful.
When agents believe they work for the best company in town AND they're rewarded when they bring someone in, there's no stopping them. I'm planning on growing to 100 agents in the next year, and we're right on track to do that.

How about a matched contribution to their designated charity? Split the bonus (not necessarily 50-50) and/or add to the total.

I see it as a win-win: They get the bonus, you get the write-off and their respect for doing something that is important to them. They also get the reward of indirectly helping their cause.

This is a framework; plug your own numbers and ideas...

-AP

I offer a $100 referral fee to our agents when they bring someone in. This is credited to their monthly dues.

I have considered the pyramid commission model, but decided not to go that route...there can too many potential problems arising from that situation.