Hi,

I have been lurking and posting a while now but created a new user name to protect the name of my company. I am a commercial broker but was hoping that either way you guys might be able to shed some light on my problem.

I have been an agent since August of last year and have been working as a junior broker under a senior associate as well as a VP. From the time I began as a broker in this company I have personally sourced over $5 million in deals, $2.1 of which has already closed. I have been working pretty hard pounding the phones to get business and splitting the proceeds with my senior 50/50 as well as VP with the deal I have done with him. I am leaning more on the senior now as the VP has been busy with other things.

From the day that I started at this company no one has a significant amount of cold calls except for me. My senior has not done a deal in over a year (aside from the ones I brought him) and the 3 other senior associates have not closed a deal since I have been there in August. This disturbs me and frankly makes it hard for me to respect them as businessmen.

The VP sat me down that other day and let me know that he has been busy but will be more available now, and asked if I needed any help with my leads. I know he is basically hinting at me that I should bring him in on more deals now, I guess he feels entitled since he brought me in to the company. I maybe over analyzing but I really feel pressure from him for me include him in on deals yet I guess I have something good going with the Senior. I feel stuck because I do not want to create friction between the VP and the Senior by going to one or the other. I have been doing business with the Senior just by convenience. But now it has become a matter of principle, I just want to do my job well and achieve my goals but being at this company is making it increasingly hard.

I plan now to approach either the Senior or the VP and let them know that if I am to continue to bring them deals then they must bring me in on their deals. EG If i bring them $1 million they must bring me in on $1 million of their deals.

I understand that I need to pay my dues but this is just ridiculous. No one is prospecting for their own business and closing ANY deals except for me. I truly am starting to feel taken advantage of especially because the training they promised me was nonexistent. I pretty much learned everything myself through and my senior did not know a lot of the questions I had. Its interesting because this firm is the top commercial brokerage in the US but this division seems to be going under.

Would it be overstepping to ask my VP and Senior to bring me in on equal amount of deals as I bring them in on? Am I going too far?

Is this just the nature of the business? Time for a career change?

Should I look into changing companies?

Any thoughts, comments, or feedback would be GREATLY appreciated. Thanks in advance.

I don't understand the structure of the brokerage as well as I could. But I see the nuts and bolts of this. You need to protect your spot. You are right. He is hungry and sees you as a meal ticket. You might need to oblige but I'd rework the splits and float that you are looking around. It would not hurt to look around at new companies. I'd do it all tactfully with care not to burn any bridges. Keep in mind this is partnership. You are the junior, BUT you are the deal generator. Picture the yin and yang symbol. If they request something new of you, the you pull something new out of them. Good luck

Thank you so much for the reply.

The structure of our business is I believe a little more hierarchical than most residential brokerages and with the commercial market here near standstill, many brokers are hungry and willing to take advantage of that.

I agree with you that I should shop around but be diplomatic about it. And as far as the splits, I think I need to have that conversation sooner than later too.

Just out of curiosity with most of your partnerships how do you work it out. Do you split up the responsibilities (prospecting, escrow management, etc) or do you share all the deals? or set an amount that each partner must bring to the other partner in return?

Thank you again for your input, really appreciate it.

Hmmm,

So you do all the work, and they get half of your money.

What are they bringing to the table?

I have no problems with a leader who doesn't actively sell anything, but they have to bring something else to the equation (i.e. training, support, leads for you to work, etc.)

If they're aren't doing anything....well....then....what ARE they doing everyday?!

-Steve

I am the head broker and I do mainly commercial. It is not uncommon to split 50/50 the first few deals. If you told me I the owner had to split my deals with you I would give you the walking papers.

You haven't had enough time in this business to make dictations to everyone.

2.1 is relatively small in commercial especially in California where the prices are much,much higher.

I think the real issue here is you are struggling to survive. If the commission was 10 percent and you received 5 and then split with broker you would have a 2.5 percent payout. On 2 million in about a years time you have made 50k. In Cali that is poverty status.

It's true that many deals are not occuring in commercial above the 5 million mark. Those closed sales are down over 90 percent from the past year.There is a stand still with the bid-ask gap price of what sellers and buyers want.

I would not approach them with the "I am big stuff angle". I would simply tell them it has been almost a year and I am having great success. I like this company but now i feel is the time to renegotiate my commission plan and expectations moving forward. Either they agree or you move on but to keep building up a bad situation is not good for anyone. Their plan might simply be to keep bringing in new agents and split 50/50. They might not have to sell anymore.

On some big deals that take a few years to work you can make 400k or more.Just because they are not closing things right now doesn't mean they are not busy. I have 23 commercial listings and multiple projects right now and even though they are not closing in the next 30 days they take sometimes 6 months to 1 year to happen.

Residential is very different from commercial. In commercial everything is time intensive. If you are having trouble getting by you may want to focus on commercial leasing. Many are not getting rich off of it but are paying the bills.

Steve

The other brokers are very scattered and have been trying to sell mortgages, on facebook and espn for a large part of the day. My senior does help me with the deals helping me somewhat learn the process but I am bringing him ALL of his business.

super

I would agree 2.1 is small but is the most anyone has closed beside the VP since I have been there, and it is not about the money for me, I have enough saved up to last me another 3 years in this business without making money. I do agree with you that I have not had enough time in this business but it still is hard for me to swallow that no one else is bringing in business. And I know exactly what the other seniors are working on.... NOTHING. I hear them, I see the listings (or lack thereof) and I know what they do all day.

In addition I found out today that another senior at the office is pulled a farm of my market and calling the people in my database which consists about only 1000 people. I understand it is not proprietary, but this is still starting to get to me.

I guess the only thing to do is focus on my business for now and keeping bringing the senior in on deals and hopefully I will do enough business to merit higher splits and perhaps break off and do my own business.

i was in the business for a few months and asked my first broker to pay me 60% instead of 50...he said no...i left...i then went to a place that paid 80% and has more business than his entire brokerage put together...i then paid money to be at 100% and have been at 100% ever since...

point of the story is that people make what they are worth. if you are worth more, ask for it. if you dont get the answer that you like, leave.

never burn bridges.

this is business, not friendship.

do waht you need to do to further your business.

if i had names and numbers of people and someone went into my database and started making calls, i would be really, really, really upset.

Is it getting business as a Commercial Agent in Leasing ...then listing and selling? And if so why...I am quite interested in Commercial..even though It might be awhile until I enter it

Many commercial landlords need help in leasing to keep rent rates up and manage their headache for them.

When big sales were happening many brokers could not be bothered. Now that big deals are at a standstill for the most part brokers look at leasing as quick cash to get by. Others who made a ton closing bog deals during the boom times are simply making investments of their own and will do sales occasionally.

It depends on how bad you need the money as to what you are willing to do or not do in commercial.

I agree with estatereal.