Greetings Forum,

I am releasing a commissions reporting product and need to know if it is a viable tool in your world. Can someone please run me through a typical commissions payment process and highlight any current tools they use to make this efficient/effective.


Thank you in advance,

M.J.

(Note I did not put this in the Products thread because I am not promoting anything. I am trying to see what type of techs you currently use)

Reporting to whom ? . . . . The IRS ?

Sorry for being unclear- reporting to the broker. So you receive your commission check at the end of the period, is there a commissions statement to complement it?

Furthermore, is this normally done by email/snailmail/hardcopy?

Thanks again,

M.J.

The Commission is reported to the Broker at Closing on the HUD-1 and in the form of a negotiable instrument called a "Check". S/he gets paid 1st.

The Broker then cuts a 2nd Check payable to the Agent for the net portion of the Commission earned by the Agent, and in accordance with that Agent's Independent Contractor Agreement.

Each agent is then responsible for their own record keeping? And this is done on a deal by deal basis so the broker doesn't send any type of summary statements to the agent?

Well, they are mandated to deliver the IRS Form 1099 to them.

And I am sure that some Brokers may have some form of fancy-schmancy document summarizing each Agent's earnings, and possibly ranking each individual Agent against one another.

But you know what? . . . . In this business, Agents develop a unique capacity for keeping track of every nickel they are owed . . . . even those that didn't do so well in Math suddenly develop a skill for Commission Accounting . . . . and they do so voluntarily.

And those that have no Sales will also hone their Commission Accounting skills so that they're really well prepared in and when they have a Sale that produces a Commission. It's amazing!

That makes total sense. Thank you for the ball bruising as well as the answers I sought.

Michael