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#414514 - 10/18/12 03:04 PM Rainmaker/Buyer Agent splits on a team
beccab2003 Offline
Junior Member

Registered: 10/18/12
Posts: 2
Loc: Texas, USA
Hello! I am a buyer specialist on a team and needed some input from fellow team participants. I know that this is a touchy subject when discussing commission splits, but feel I am being taken advantage of. I need some help determining what "industry standard" when working on a team. A little insight to my situation. I have been a Realtor for 3 years. Been on the team for almost 2. I have been very successful and have become very seasoned in a very short amount of time. My rainmaker provides most buyer leads, I do all my own prospecting on these leads, do my own showings, complete the transaction from contract to close......Any thoughts out there. There is nothing worse than feeling like I am overworked and underpaid. If you are a rainmaker or a buyers agent or even a listing partner, please share your commission structure with me so that I may be able to get a good "apples to apples" comparison. Thanks so much for your time!
Be Blessed!

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#414524 - 10/18/12 08:11 PM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7950
Loc: Vermont's North-East Kingdom
If you do everything from start to finish . . . . why do you need to be on a team ?

I have no idea what an appropriate Commission Structure would be for the distribution of Commission Earnings among Team Members or the split between the Teams and the Brokerages responsible for them.

Whether you are being taken advantage of, or are the beneficiary of a lucrative structure lies in the wording of the Contract you have in place with the "Team" and its relationship with the supervising Brokerage.

Maybe Texas Law and its Real Estate Regulations have been updated to recognize the "Team" entity in Law. Though we have some Teams, Vermont's Rules and Regulations have not yet been modified to reflect this Business Model, nor are they working on any revisions to address it.

Are you doing a disproportionate amount of the work and feel that you are carrying the rest of the Team . . . . or are you un-happy with the split that the Team has with the Broker ?

I'm a Sole Broker; never been on a Team and would never want to be on a Team. Why are you ?
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

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#414526 - 10/18/12 09:02 PM Re: Rainmaker/Buyer Agent splits on a team [Re: Vermont]
Dodger52 Offline
Member

Registered: 10/14/11
Posts: 266
Loc: Montana
Its tough to say what the proper split would be. I have been on a team, and I have had my own team. I can tell you that being a team member is much easier than being a team leader, or even running your own business as an individual. When you say your rainmaker provides most of your "leads", are they cold leads or real prospects? If you close one or two out of ten they are probably cold leads. If you close half or more, they are qualified prospects. We can all tell ourselves that we are great salespeople because of a high closing percentage, but unless you are the one sorting out the non-buyers, and unqualified buyers you are not doing most of the work.

Having said that, I have known "Buyer Agents", or "licensed Assistants" that can spend a career working for someone else and be happy, I do not think that's who you are. It may be time to spread you wings and go out on your own. Rest assured you will make less money working for yourself vs the time that you put in, but I think you will be happier.
_________________________
Dodger52 (Chris)
Prudential Montana Real Estate
www.MT-RE.net
www.facebook.com/MissionValleyMTHomes

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#414557 - 10/19/12 02:04 PM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
Kjmendy Offline
Veteran Member

Registered: 05/17/10
Posts: 935
Loc: London, Ontario
Sounds to me like your team leader is just passing you along a lot of referral business. The standard around here is a 25% referral fee for business like this.

If you are not liking your current arrangement then figure out a way to generate you own leads and strike out on your own.

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#414560 - 10/19/12 03:09 PM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
beccab2003 Offline
Junior Member

Registered: 10/18/12
Posts: 2
Loc: Texas, USA
Thanks y'all for your responses! I really appreciate it. I get cold leads from my rainmaker that I qualify and convert. This constitutes 70% of my closed business. The other 30 % is from sign calls that I have converted to closed deals, and referrals from past clients. I am very happy as a team member, and love focusing my efforts on the buyers side. I am really great at what I do and love my job as a buyers agent. I just wonder if my split with the team rainmaker is industry standard . Which is why I asked the question. My broker takes the first 5% then the rainmaker and I split it from there. Anyone want to share their splits with me so I can compare notes? This seems to be such a hush hush subject! Thanks again!

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#414565 - 10/19/12 03:49 PM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7950
Loc: Vermont's North-East Kingdom
Originally Posted By: becca2003
". . . My broker takes the first 5% then the rainmaker and I split it from there . . ."

So your take is 47˝% of the GCI on everything you touch . . . . or just from the Buyer's Side ?

On your Team, what does a Listing Specialist earn on a Closing of his Listing where you supplied the Buyer ?

And what if s/he supplied their own Buyer on that same Listing ?
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

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#414566 - 10/19/12 03:55 PM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
MHT Offline
Member

Registered: 12/25/09
Posts: 322
Loc: Ontario, Canada
I think that it is probably a fair split if you are not the one generating the leads.....and this represents 70% of your business so unless you are able to begin to generate your own leads, you may be best off just staying in this arrangement. That being said, you may want to go out on your own and begin to generate your own business....you may find that the hardest part is generating the leads though.

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#414583 - 10/19/12 09:57 PM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
Spartacus Offline
Member

Registered: 01/23/08
Posts: 171
Loc: Portland, Oregon
Yes, a 50/50 split is pretty normal for a buyer's agent, especially if you are being fed leads. if you are making a good living, accept your good fortune, smile and keep cashing those checks.

If you are not happy, do you think you can do better on your own? Where would you get your leads? I would think about this very carefully before you make any rash decisions.

That being said, I have seen many buyer arrangements where you would get 50% on first closing of the month, 60% on second, and so on. this might be a good discussion to have with your team leader, especially if is happy with your work.
_________________________
Spartacus

“Life isn't about finding yourself. Life is about creating yourself.” George Bernard Shaw

www.homesellingteam.org/

www.homesforsaleoregon.com/



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#416030 - 11/25/12 02:30 AM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
cartert Offline
Member

Registered: 04/14/12
Posts: 157
Loc: Saskatoon, Saskatchewan, Canad...
From what I've seen before, 50/50 is pretty typical for a new agent coming in who isn't familiar with the real estate industry and is being fed leads and basically just has to close on them.

Obviously, most people graduate from that and go off on their own, but that seems to be the goal of the team leader anyways, get someone's foot in the door by making money off them.

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#416150 - 11/27/12 09:45 PM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
johnnyloans Offline
Veteran Member

Registered: 03/29/09
Posts: 870
Loc: Los Angeles ,CA
50% of something always beats 100% of nothing.
_________________________
Johnny James
Real Estate Broker in CA
(702)204-1166
Greater Los Angeles Area
www.PalmdaleRealestate.biz
Have Car Will Travel
For Those That Google JohnnyJamesBroker@gmail.com

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#416163 - 11/28/12 02:03 AM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
Scintillion Offline
Member

Registered: 01/26/12
Posts: 437
Loc: Colorado, USA
From what I understand using certain terminology can be a violation of the Sherman Antitrust Act. With that said, if you are unhappy with your current arrangements I hope that you make the changes necessary to remedy it.


Edited by Scintillion (11/28/12 02:04 AM)

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#416364 - 12/02/12 06:43 PM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
Malok Offline
Member

Registered: 08/18/07
Posts: 441
Loc: Kentucky - in a barn!
40/60 or 50/50 are fairly common Buyer's agent splits based on the persons I've spoken to across the USA.

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#418692 - 01/19/13 08:07 PM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
LizL Offline
Major Contributor

Registered: 08/27/05
Posts: 1795
Loc: Missouri
As Vermont pointed out, you are actually making 47˝% of gross closed commission on your deals. That is a fair starting point for someone who needs to be trained. At the risk of going against the flow here, I'd say you might be in a position to renegotiate your split.

Look at it this way: The Rainmaker needs a buyer's agent to keep his/her listings serviced. Not only are you earning commissions for yourself, you are providing a needed service to the Rainmaker. At some point, you should at least try to convert to a referral basis. Granted, the Rainmaker does bear all of the advertising burden, so your split will have to take that into account.

Originally Posted By: Scintillion
From what I understand using certain terminology can be a violation of the Sherman Antitrust Act. With that said, if you are unhappy with your current arrangements I hope that you make the changes necessary to remedy it.
In reference to anti-trust violations, the anti-trust laws are there to protect consumers. This particular discussion is about commission splits within a team, not price setting for the industry. That seems different to me...
_________________________
Broker/Owner, REALTOR®,GRI, ABR
REO listing/selling since 2004; BPOs only for current clients

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#418745 - 01/21/13 06:24 AM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
Musa Opondo Offline
Member

Registered: 09/24/12
Posts: 210
Loc: USA
Seems fair enough if you are not the one generating the leads and if this constitutes 70% of your income and you want more you can slowly work on creating your own leads to a point you are comfortable working on your own.

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#418788 - 01/22/13 02:23 AM Re: Rainmaker/Buyer Agent splits on a team [Re: beccab2003]
Mike Burchyett Offline
Member

Registered: 05/21/12
Posts: 183
Loc: Nashville, TN
The hardest part of this business is finding people to buy or sell. Although they are cold, the rain maker is furnishing you with people who have responded in one way or another that they are interested in real estate. Without the leads he is furnishing, you would have to invest time and money into generating your own. Depends on what you want to do.....I started with a team and had a 50/50 split as well, but after about 18 months I was doing as much business from my own efforts (referrals, sign calls, etc) as I was from their leads that I decided to split on my own, as it effectively didn't "cost" me anything to drop their business. It's worked well for me. If you aren't the type that's going to be comfortable cold-calling, running pay-per-click campaigns, calling friends/family/past clients for referrals, etc than stick with the team structure. If you feel you can do better on your own, save up a few months reserves, then go for it.

Also remember everything is negotiable. If you're valuable to the rainmaker, he won't want you to leave. You may also want to approach him with and have the conversation of commission splits.

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