During this long recession, lots of agents are changing brokers and searching to find which companies have the best real estate commission splits. Chances are, the dip in your real estate business isn't because of your commission plan, it's due to the lack of training and support you are receiving.
Choosing a 100% Discount Broker
Let's say you switch companies by moving to a discount brokerage and receive 100% of your real estate commission; in order for this to happen, you are going to have to give up a few things. Independent means exactly that; you are on your own and aren't going to have anyone to turn to for advice or support. Your broker is more than likely a competing broker, meaning they are out there competing for business against you and aren't focused on helping build your business. Yes, you do keep all of your commission, but if you aren't producing because you aren't generating business, it kind of defeats the purpose; 100% of zero is always zero!
My New Broker Provides Me With Leads
Another option is to go with a brokerage that provides you leads. These types of companies are springing up all over the place with the recent advancements in internet technology. It's not hard to generate an internet lead, but to generate a quality lead takes time and energy. Not every person who fills out a form on a real estate site is looking to buy or sell tomorrow; more like six months to a year and half. The split on a lead provided by this type of broker can be anywhere between 60-70% paid to the office; you can tell right there these types of companies definitely do not the best real estate commission splits! Most people get into real estate sales because they want to be their own boss; when you become dependent on the company to generate business for you, whose business is it? When you work for an office that provides you leads, you are similar to an employee; it's their lead, you just do all the work.
The Keller Williams Commission Structure
Keller Williams is neither the independent or the dependent broker; interdependent is the best way to describe how our company operates. KW allows you to be as independent as you want to be, but is always there to support you when you need assistance in your business. You are not just thrown to the wolves and sent out into the field without training and you aren't put into a cubicle and told to stay there from 9-5 Monday through Friday. Every agent, whether you are a mega agent or a new associate, is on the same commission split (70/30) with a cap on the amount you pay in a given year. (What's a commission cap?) In return, you receive the best agent training and proven business model to build your business. At Keller Williams, it's not about the broker; it's about you and helping grow your real estate career.
So, what does it come down to? You have the independent, 100% commission brokers, the dependent, provide you leads and take all your money brokers and the interdependent company that gives you the best of both worlds. The company that pays the best real estate commission splits is the one that is going to provide you with the best training, support and proven business model to build your business without taking all your commissions. Keller Williams is that company and we want to help grow your business to the highest level!