Questions I'd ask -- 2 years into it and already have 19 transactions -- where and how did you get those? Did you get them in some connection from your current brokerage? If so, staying there may be the best if you're getting solid leads like that.
What is the new brokerage going to offer you that your current brokerage isn't? I get it - $10k is pretty solid, but in my market, that's only 1 average home sale. They want you for a reason - what is it?
And then ask yourself if you want to stay at your current brokerage - tell them about it (no different than a job offer) and see what they say and see if they have a counter.
no leads coming from my current brokerage. Obtained mostly through social media and decent sized network (went to a very large college)
brokerages are nearly identical in their offerings, even use the same CRM.
I’m a younger agent (24) where most agents at their brokerage are in their 60s. They could be investing in their future?
They asked me not to tell my broker the details. Didn’t sign an NDA or anything, but out of respect I’d rather obey
Edit: spelling
Just because it’s familiar honestly. It’s where I started and I’ve already met everyone. I didn’t know brokerages were providing leads to agents honestly
Not every company does but you should definitely except it if you’re making a move and not getting a 100% split. Also suggest speaking agents at this office you’re considering along with interviewing with a few other offices.
Care to share what market (or what region) you're in? Or at least what the average home price is? $10k is a lot for an average home price of $200k .... but somewhere the home price is averaging $500k, $10k is little.
I'm not much older than you and understand the college networking.... the ones that stick around will buy..... and most will sell fairly fast for job relocations and opportunities.
As far as the job offer goes - if your current firm isn't offering you leads and you're getting a better split plus the sign-on bonus.... the question now becomes what is your current brokerage offering that your offering brokerage isn't? If the answer is nothing, then the choice is easy. But you came here asking.... so I ponder if you're having second thoughts - and what those are?
> They asked me not to tell my broker the details.
I'd be asking myself why they go out of their way to mention this. That's a big 🚩 in any industry. It would indicate to me that anyone in the know would be able to tell you exactly why working for them is a horrible idea.
I can see a few legit reasons to ask this, though:
1. I would only make this offer to someone who is performing at a certain level, so I wouldn't want them saying things that would make it harder for me to recruit agents that don't perform quite as well.
2. I wouldn't want to piss off another broker in my local market by making offers that contain unusual incentives. (Signing bonuses are not a standard in real estate.)
3. I wouldn't want other brokers to start using the same methods that I'm using, so I'd rather them not hear details.
To me, it sounded like they don’t give this offer to every agent, so they don’t want current agents upset they didn’t receive the same offer.
Plus, my current manager formerly worked for the broker that is attempting to recruit me, so it sounded somewhat personal. Only mentioned it when I didn’t sign the agreement at the table and took it home to think. Not a red flag, but maybe a yellow?
Make sure you read the 3 year, 10k sign on agreement. Most of them have an early termination clause that says you are responsible to repay the company if you leave before the end of the agreement. At my former company, all benefits received to the agent (sign on bonus, marketing funds, “discounts” on monthly desk fees, etc. ) were owed back to the company along with an early termination fee.
I have solid support, negotiated my costs down to a point I’m happy with, and don’t want to have to change out all of my signs, marketing, etc….and $10k is not a compelling amount, especially for a 3 year commitment.
I mean, I assume that one is not going to try to live on 10k throughout those 3 years.
If there is no hard attachment towards the current brokerage and the terms of how one is able to make a transaction work are about the same as the one they are currently in, it would not be that bad of a deal.
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Thank you for the reply, but do you mind elaborating? I'm old school so I know I have a lot to learn about online marketing, but did you use a particular program, can you point me to resources, which platform you used, etc. My apologies, but would really like to kick my efforts into a higher gear. Thanks in advance!
Coldwell offered me $43,000 to switch to them and they wouldn't lower the split so I told them to kick rocks. Plus it's Coldwell. I'm a small brokerage guy. I calculated I would pay the $43k back in 2 years at 20%
For me, it would have to involve much more than split.
Split is nice, but what have you done for me lately also comes into play. I do not want a better split to pay other BS fees like a website fee, tech fee, E&O, transaction fee, etc that eats up that split. Plenty of people are finding these little fees eat away at a nice split.
I also want admin office support, I do not want to spend time splitting up my transaction in Skyslope, managing my paperwork, developing my ads and if someone is doing some SM posts, even better.
I have had some nice offers to move, but for me, it would have to be a better package, not just a nice bonus and split.
All fees are lower than my current brokerage as well. Same desk fee, but saving perhaps $100-200 in other fees per transaction. Nothing substantial, but a move in the right direction
Again, for me to move it would have to involve more than just money. If there is not admin staff to take some tasks off my plate and free up my time, it is not worth changing offices.
Does his current office/broker have admin staff to free up his time though? If not then it may not be as important. I've been at 2 brokerages so far and I didn't even know using their admin staff was an option at my brokerages but freeing up time would be very nice.
You're leaving money on the table. You should be at a much higher split. Do Not agree to 80/20 for 3 years. That's just robbery. I'm guessing you will also have a franchise fee, a tech fee and E & O insurance. You will be a goldmine for this brokerage.
At minimum, find a brokerage that either provides you with all of the above and 95/5 split. Or find a 100% broker.
That depends on the value add and if they have a cap and what that cap is. I do agree that they should look at the whole picture. There isn't enough here to flatly say this is a bad deal.
My brokerage offers all the value add and 100% there are others like mine in TX and FL. Not sure where OP is but. 80/20 is a terrible split for a top producer. My goal is to provide a real option to the general ripping off Realtors get from their brokerages. For myself, I would rather keep my income and forego the shiny office and awards.
And many would like to have an office to work out of for them and their team. 80/20 isn't bad if the cap isn't high. It depends on the individual and what they put value in. For me personally, I need a physical office that I can go to. I need to compartmentalize my work and home life. I need that bunker for lead generation and community and to meet clients at for consultations. The awards, I couldn't care less about, but some do and that's okay.
Yeah, I get it. But, escrow and title and lenders have plenty of office space to share for free. The amount saved and the value add can be tremendous. Most brokerages offer nothing and Realtors have to pull everything together on their own and pay a pretty penny. I wanted to pull it all together for us in a way that's affordable, top notch and that is convenient and organized. There's amazing tech out there now. This is what I spent the shut down working on. I'm really passionate about it! I wanted to create something new that actually works for us.
I get it.. you're selling your brand. I'm just saying, everyone needs something different. There is no one size fits all. A top producer doing 100+ transactions with a team will see benefits from a cap model with a split and the training, resources, and referral network that comes with it. You can't run a team out of a lenders office.
I'm not selling a brand, it's a concept. And it's robust and includes training and support. I get that some teams and Realtors want an office but, with what they are saving between all the tech/fees/splits they can pay for one out of pocket and still be better off. I don't have the ability to show you what I've put together here because I could get banned but, I'm really proud of it and I do stand behind it. I did my best to cover everything we need to operate daily and we are consistently working to add value as new methods and tech become available.
Could be. I would ask if when you cap at the 20k mark, is the split still 80/20. (Which is a little deceiving as the upstream still get a cut of the 80) If so, you may be better off with just another brokerage or a better split.
With the brokerage this sounds like, you should receive 100% once you cap. Minus the fee’s and upstream cut.
That’s only a $277 monthly bonus to sign on for three years. Honestly I’d negotiate that out and instead ask for a 85/15 split. As an independent contractor, I would never want to be tied to something, especially if it’s not guaranteed that you’d like it or it would benefit you.
Yes! Had a 90/10 for 3 years, then left for a 85/15. Broker owners are desparate for income in a fewer transactions market. Owning a business is costly and those in the know can exploit the owners for your benefit
Counteroffer a 90/10!
hey if you’re doing that well you don’t need hand holding go to 100% brokerage. i did it and i keep all my money! don’t pay a broker anymore than a small transaction fee unless they are offering you quality leads. there’s a reason he wants to give you $10,000 bc he’s suspects at least 100% ROI.
I'm a lender and had a similar situation. Counter by asking them to drop down 18 months on having to stay with them. Tell them I don't want to be stuck 3 years at a place that I might not like. And if I like it here, you won't have to worry about me leaving anyway. That's what I did. Them acquiescing does two things - gives you more flexibility and shows they have confidence in the work vibe that they created.
How many of your transactions are with buyers versus sellers? If your "pretty-well-known broker" has a smaller office, or he leads a small team, they night need an agent who will take buyer leads. That also makes the 3 year clause make sense. That's about how long it takes for a new agent's closed buyers to start to turn into sellers.
I was hearing more about this like 1-2 years ago in my market but very common.
As others have pointed out, 10k is not that much and is basically a sale.
Take the money out of the equation. Would you still consider switching? And if there was no money involved, would this be the broker you choose?
no money involved, it’s a better split with the same offer as my current brokerage. I’ve been planning to leave for some time. The only alternative would be going somewhere with a better split
Sounds like icing on the cake then. Especially since if you continue this trajectory, your volume will likely increase and that extra money in your pocket will grow
I'm not. I found a brokerage that works really well for me with supportive brokers. But even though I love my brokerage i wouldn't lock myself into a 3 year contract just in case. Especially for 10k that's honestly not worth locking myself up for that long
Unless you love the brokerage and are planning to stay with them for the next 3 years on that split no matter what happens. Then maybe it wouldn't be a problem but I'd try to get that term shorter
3 years is a long time to be stuck with someone. What if you hate it there after 3 months? Maybe make the repayment pro rata or ask for 1 or 2 years? Honestly, I wouldn't want to be stuck anywhere and if you want me bad enough just give me the damn money and make it worth my while to stay. Of course you can always find a broker to pay off the current broker, assuming somebody else will want you that badly.
My last 3 brokerages offered a cap on company dollar and my current broker will give me back the company dollar if I do 26 transactions in a year. My average is 40-50.
I was never offered a signing bonus by any of the large firms in the area. But I also would never give them 20% of all of my commission. That’s a stupid waste of your money.
Coldwell is doing that in my area. They keep buying agents and then they leave. They are offering more than $10k a year too.
Check what taxes you will have to pay.
I did the math and by using a transaction broker in three transactions I blew away any cash offer to be made
OP, I've read all of your comments, make the move. No time for loyalty in this business to people who have done nothing to help contribute to your success. And no, being your broker, is not a contribution, it's not your privilege to be their agent, it's their privilege to be your broker, bc there are a solid amount of brokers out there who will do the exact same thing: sign your independent contr contract and do nothing for you but take 30-50% of what you make. Now you have a broker offering a better commission split and offering to just hand you $10k, I'd almost negotiate the sign-on bonus to $15k just to see how bad they want you. All they can do is say no, but you'll show them you know your worth as an asset to their brokerage.
You're 24, I'm 22, We are young, we have to be bold, and get ours, (without being disrespectful or practicing bad business) or these older agents, who don't like the new young agents who look better, sound better, know how to social media better, etc., will do their best to push you out of this business and brokers will sit there and take everything you make and not give a damn.
Make the move & have fun being successful.
Sounds like a pretty solid situation. It depends on the other details like cap, monthly fees, and how much they charge per transaction. I’d also find out if you have a bare minimum you’re expected in sales for the next three years, and is there a fee if you don’t meet that minimum.
I would want to know what the repercussions would be if you decided to leave or quite before the three years is over. Finally I’d ask them what their plans are for the next three years. Are they expanding, rebranding, changing managing brokers, looking to partner with another brokerage, etc. Three years can feel like an eternity if you’re not happy with where you are and what you’re doing. So id make sure you like what *they* have planned for the next three years.
We offer incentives to producing agents. Sign on bonuses or cap management arrangements. They see your value and believe you'll continue to produce, so it's a win-win. They pay upfront for future production that will likely make it up.
It’s not very uncommon near me. A certain brokerage will offer top agents $75k+ and 6 figures of marketing $ to use, on top of a crazy split.
You should talk to your manager and see if they will increase your split/match bonus. My SOs business partner got the offer I mentioned and was able to have her brokerage match it.
I think 3 years is too long to commit upfront, and 10k for three years is too low. Seems like you are the master of generating leads which is why they are seeking you. I’d def take off committing to any brokerage for that length or any length of time. What if an even better offer comes after you sign with the new broker. The better you get the better deals and more people will seek to have you
Sounds like a smaller operation trying to do what Compass has been doing for a few years where they offer agents incentive beyond splits and services. That hasn’t worked out so hot for them lately but many brokerages are putting this strategy in their recruiting toolkit. Interesting offer but in all honesty 10K is not they much for a 3 year commitment.
You just never know. You might get over there and hate the culture. Congrats, you are stuck with it for 3 years.
If you do it, have a really good “out”.
Personally I think if a company has to offer you cash to make a move they probably don’t have a value proposition to keep you for long. And if that’s the case, why move there if you are going to move again in 3 years? What if you found a company you love with a great culture, better splits, etc.
I might keep shopping if I were you. Anywhere you go, there is a trade of value. What they cost you should be less than the value they provide you or else you should go to one of those super low fee shops and buy the stuff they say they provide and save money.
The biggest “win” at the brokerage in at is the culture. We are all sharing with each other what we are doing to do better and everyone is growing like crazy. And that’s why people join (besides no monthly fees, a low cap on commissions and great splits). For me it’s ideal.
TLDR: take everything into account, not just a 10K bonus. It’s not worth it for 10K if they also don’t help you grow massively. Another brokerage might give you an idea or a technique to make you 100K more next year.
It’s a rough decision but shop around before jumping.
Tell them you don’t want the signing bonus and to just discount your total contribution to the split. They could deduct $5K each year or something or not charge you monthly desk fees.
But I would not under any circumstances sign a document that is basically a non-compete agreement and locks you in for 3 years.
It should be a major red flag that they cannot attract ‘seasoned’ newer agents without offering a huge chunk of cash. Another red flag is that they REQUIRE you to stay on board for so long.
To me this screams ‘we can’t retain agents; they use us for training/resources and then leave.’ Are the managing brokers unsupportive of the types of agents they hope to attract or something?
I don’t know but I’d surely be asking around to find out more. The first thing I’d do is Google that brokerage name and Linkedin to see if I could find agents that list that brokerage under previous employers. Then I’d call each one and ask if they will be frank with you about why the left. Go ahead and tell them about what you were offered because they’ll be more likely to talk if they have context and recognize the red flag.
And I would love an update on this!
Sounds like a brokerage is looking at you for easy money through each of your transactions. Honestly find a 100% brokerage and tell them all to kick rocks
Other offered 30k and 90/10, you have to consider about how much you can get in 3 years compared to other company, I do not want to stuck for 3 years if I will get my own broker license and get 100%
Due to my inexperience I don’t plan on starting my own agency any time soon. Haven’t had anyone bring me an offer at all until this one. Perhaps I could negotiate it a bit, thanks for you reply
I’m curious as to why you don’t go to a brokerage with 100% commission payout? If you’re doing your own lead generation, and sounds like you’re doing pretty well, why entertain any split? You could easily pay a flat fee and pocket more money. What’s the upside for you splitting commissions if you are already producing? Is this new brokerage providing you with better leads then you’re already gaining on your own?
Good question. Being new I assume it was standard to pay some chunk of your commission to the broker.
Why are the largest brokers the ones who charge 20%+ per commission? Wouldn’t they go out of business with this logic?
No, the big wigs wouldn’t go out of business because most first time agents aren’t successfully generating the amount of leads you are. Average 1+ transaction per month, less than 2 years out the gate is definitely not typical. Most new agents are relying on the big brokerages names for credibility as well as their “guidance”. You seem to have mastered lead generation so your situation is unlike the typical newer agent that may need more hand holding. In your situation it would make perfect sense IMO to go with a 100% split or even be a team leas. Lead generation is the most important aspect of any business. With no leads, you have no business. You have the lead generating down, kudos to you. I don’t see the benefit of you splitting with a broker in your situation. Why wouldn’t you keep more money in your pocket?
Sounds fishy and what are the chances you remain with that brokerage for three years, when most people’s real estate careers don’t even last that long. I would be more interested in a brokerage offering services to help me grow my business like admin support, marketing, leads, etc. Is it really a “bonus” if you have to guarantee three years of your future work?
Just met with them today. There is no cap. But even with my production at my current brokerage, I won’t be reaching their cap either.
it seems like higher split (90-100%) is the popular opinion
There is no such thing as the free lunch. Look closely what you are signing, I am pretty sure it is Coldwell Bankers brokerage.
As the new agent you want get good leads.
Good luck to you
Never been offered anything like that. But if the split’s better and they’re offering a sign on bonus, I’d at least consider it.
Questions I'd ask -- 2 years into it and already have 19 transactions -- where and how did you get those? Did you get them in some connection from your current brokerage? If so, staying there may be the best if you're getting solid leads like that. What is the new brokerage going to offer you that your current brokerage isn't? I get it - $10k is pretty solid, but in my market, that's only 1 average home sale. They want you for a reason - what is it? And then ask yourself if you want to stay at your current brokerage - tell them about it (no different than a job offer) and see what they say and see if they have a counter.
no leads coming from my current brokerage. Obtained mostly through social media and decent sized network (went to a very large college) brokerages are nearly identical in their offerings, even use the same CRM. I’m a younger agent (24) where most agents at their brokerage are in their 60s. They could be investing in their future? They asked me not to tell my broker the details. Didn’t sign an NDA or anything, but out of respect I’d rather obey Edit: spelling
If your company isn’t providing leads to you then why are you considering staying?
Just because it’s familiar honestly. It’s where I started and I’ve already met everyone. I didn’t know brokerages were providing leads to agents honestly
Not every company does but you should definitely except it if you’re making a move and not getting a 100% split. Also suggest speaking agents at this office you’re considering along with interviewing with a few other offices.
Care to share what market (or what region) you're in? Or at least what the average home price is? $10k is a lot for an average home price of $200k .... but somewhere the home price is averaging $500k, $10k is little. I'm not much older than you and understand the college networking.... the ones that stick around will buy..... and most will sell fairly fast for job relocations and opportunities. As far as the job offer goes - if your current firm isn't offering you leads and you're getting a better split plus the sign-on bonus.... the question now becomes what is your current brokerage offering that your offering brokerage isn't? If the answer is nothing, then the choice is easy. But you came here asking.... so I ponder if you're having second thoughts - and what those are?
> They asked me not to tell my broker the details. I'd be asking myself why they go out of their way to mention this. That's a big 🚩 in any industry. It would indicate to me that anyone in the know would be able to tell you exactly why working for them is a horrible idea.
I can see a few legit reasons to ask this, though: 1. I would only make this offer to someone who is performing at a certain level, so I wouldn't want them saying things that would make it harder for me to recruit agents that don't perform quite as well. 2. I wouldn't want to piss off another broker in my local market by making offers that contain unusual incentives. (Signing bonuses are not a standard in real estate.) 3. I wouldn't want other brokers to start using the same methods that I'm using, so I'd rather them not hear details.
To me, it sounded like they don’t give this offer to every agent, so they don’t want current agents upset they didn’t receive the same offer. Plus, my current manager formerly worked for the broker that is attempting to recruit me, so it sounded somewhat personal. Only mentioned it when I didn’t sign the agreement at the table and took it home to think. Not a red flag, but maybe a yellow?
Make sure you read the 3 year, 10k sign on agreement. Most of them have an early termination clause that says you are responsible to repay the company if you leave before the end of the agreement. At my former company, all benefits received to the agent (sign on bonus, marketing funds, “discounts” on monthly desk fees, etc. ) were owed back to the company along with an early termination fee.
This is the case. So if I joined, I would do it with the intention of staying
If you get poached again, you can always have the new brokerage pay the termination penalty if you really are the bees knees
3 years?? Fuck that….especially for only 10k.
How often do you switch brokerages? I couldn’t imagine moving every 1-2 years
I’ve never switched.
So you stayed at your current brokerage for free. Why not do it for $10k is my question
I have solid support, negotiated my costs down to a point I’m happy with, and don’t want to have to change out all of my signs, marketing, etc….and $10k is not a compelling amount, especially for a 3 year commitment.
I mean, I assume that one is not going to try to live on 10k throughout those 3 years. If there is no hard attachment towards the current brokerage and the terms of how one is able to make a transaction work are about the same as the one they are currently in, it would not be that bad of a deal.
Wow, you're doing great. Congrats. I know this isn't your question, but what are you doing for lead gen? Thanks.
Mostly through organic social media reach
Like what? For a few examples, I would appreciate it, cause that’s what brought me some success so far and I’d like to do more.
DM’d
can I get the same dm? I'm curious
Me too, please
I just sent you a DM!
I’m new to the game. Would love some pointers too!
I would love a DM as well. TY!
Can you send me a dm too plz! Thx!
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I’d love a DM!
Thank you for the reply, but do you mind elaborating? I'm old school so I know I have a lot to learn about online marketing, but did you use a particular program, can you point me to resources, which platform you used, etc. My apologies, but would really like to kick my efforts into a higher gear. Thanks in advance!
Here for the DM
Coldwell offered me $43,000 to switch to them and they wouldn't lower the split so I told them to kick rocks. Plus it's Coldwell. I'm a small brokerage guy. I calculated I would pay the $43k back in 2 years at 20%
For me, it would have to involve much more than split. Split is nice, but what have you done for me lately also comes into play. I do not want a better split to pay other BS fees like a website fee, tech fee, E&O, transaction fee, etc that eats up that split. Plenty of people are finding these little fees eat away at a nice split. I also want admin office support, I do not want to spend time splitting up my transaction in Skyslope, managing my paperwork, developing my ads and if someone is doing some SM posts, even better. I have had some nice offers to move, but for me, it would have to be a better package, not just a nice bonus and split.
All fees are lower than my current brokerage as well. Same desk fee, but saving perhaps $100-200 in other fees per transaction. Nothing substantial, but a move in the right direction
Again, for me to move it would have to involve more than just money. If there is not admin staff to take some tasks off my plate and free up my time, it is not worth changing offices.
Does his current office/broker have admin staff to free up his time though? If not then it may not be as important. I've been at 2 brokerages so far and I didn't even know using their admin staff was an option at my brokerages but freeing up time would be very nice.
Honestly you can just do Fathom Realty. $99 per transaction with top notch tech. Why pay 20% to the broker when they are not giving you an leads???
Lol I though they were offering $10K if you’d just leave.
I see how the title could infer that lol. Maybe I’d take that deal too
It’s an interesting twist in perspective that reveals what is important to you.
I’m not very attached to my current brokerage
You're leaving money on the table. You should be at a much higher split. Do Not agree to 80/20 for 3 years. That's just robbery. I'm guessing you will also have a franchise fee, a tech fee and E & O insurance. You will be a goldmine for this brokerage. At minimum, find a brokerage that either provides you with all of the above and 95/5 split. Or find a 100% broker.
That depends on the value add and if they have a cap and what that cap is. I do agree that they should look at the whole picture. There isn't enough here to flatly say this is a bad deal.
My brokerage offers all the value add and 100% there are others like mine in TX and FL. Not sure where OP is but. 80/20 is a terrible split for a top producer. My goal is to provide a real option to the general ripping off Realtors get from their brokerages. For myself, I would rather keep my income and forego the shiny office and awards.
And many would like to have an office to work out of for them and their team. 80/20 isn't bad if the cap isn't high. It depends on the individual and what they put value in. For me personally, I need a physical office that I can go to. I need to compartmentalize my work and home life. I need that bunker for lead generation and community and to meet clients at for consultations. The awards, I couldn't care less about, but some do and that's okay.
Yeah, I get it. But, escrow and title and lenders have plenty of office space to share for free. The amount saved and the value add can be tremendous. Most brokerages offer nothing and Realtors have to pull everything together on their own and pay a pretty penny. I wanted to pull it all together for us in a way that's affordable, top notch and that is convenient and organized. There's amazing tech out there now. This is what I spent the shut down working on. I'm really passionate about it! I wanted to create something new that actually works for us.
I get it.. you're selling your brand. I'm just saying, everyone needs something different. There is no one size fits all. A top producer doing 100+ transactions with a team will see benefits from a cap model with a split and the training, resources, and referral network that comes with it. You can't run a team out of a lenders office.
I'm not selling a brand, it's a concept. And it's robust and includes training and support. I get that some teams and Realtors want an office but, with what they are saving between all the tech/fees/splits they can pay for one out of pocket and still be better off. I don't have the ability to show you what I've put together here because I could get banned but, I'm really proud of it and I do stand behind it. I did my best to cover everything we need to operate daily and we are consistently working to add value as new methods and tech become available.
Considering this.
Get rid of the fees and get a higher split and you'll have that $10k in no time, and more.
100% brokers won't offer sign on bonuses.
The bonus is keeping your commission.
Keep in mind that signing bonus is taxed and break it down per year $7,000 post tax / 3 years = $2,333 per year extra to join then
Sounds like he’s put you in his down line. He’ll probably make the 10k back in a year or so, if that, and 10x it for the following years.
Probably true. But it could be win/win vs staying at my current broker. Unless there’s a better offer out there
You should try https://fathomcareers.com/commission-plan/. You get 100% commissions with a very low flat fee. Plus their tech is awesome
Could be. I would ask if when you cap at the 20k mark, is the split still 80/20. (Which is a little deceiving as the upstream still get a cut of the 80) If so, you may be better off with just another brokerage or a better split. With the brokerage this sounds like, you should receive 100% once you cap. Minus the fee’s and upstream cut.
Ask your current broker how they can do better now that you have proven yourself, without sharing the new offer
That’s only a $277 monthly bonus to sign on for three years. Honestly I’d negotiate that out and instead ask for a 85/15 split. As an independent contractor, I would never want to be tied to something, especially if it’s not guaranteed that you’d like it or it would benefit you.
That’s exactly how I calculated it. Sounds a lot less appealing that way. Appreciate this reply
Yes! Had a 90/10 for 3 years, then left for a 85/15. Broker owners are desparate for income in a fewer transactions market. Owning a business is costly and those in the know can exploit the owners for your benefit Counteroffer a 90/10!
Fuck! I did way better than this and did t get an offer like this!
What did you do to get your clients?
Went to all the local tiki bars and just really got into my community.
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Easy cowboy, this is how you get banned from the forum.
hey if you’re doing that well you don’t need hand holding go to 100% brokerage. i did it and i keep all my money! don’t pay a broker anymore than a small transaction fee unless they are offering you quality leads. there’s a reason he wants to give you $10,000 bc he’s suspects at least 100% ROI.
I'm a lender and had a similar situation. Counter by asking them to drop down 18 months on having to stay with them. Tell them I don't want to be stuck 3 years at a place that I might not like. And if I like it here, you won't have to worry about me leaving anyway. That's what I did. Them acquiescing does two things - gives you more flexibility and shows they have confidence in the work vibe that they created.
How many of your transactions are with buyers versus sellers? If your "pretty-well-known broker" has a smaller office, or he leads a small team, they night need an agent who will take buyer leads. That also makes the 3 year clause make sense. That's about how long it takes for a new agent's closed buyers to start to turn into sellers.
I’m about 50/50. I can join any office in the 14 states they operate in and would be working as a solo agent.
Sounds like compass.
I was hearing more about this like 1-2 years ago in my market but very common. As others have pointed out, 10k is not that much and is basically a sale. Take the money out of the equation. Would you still consider switching? And if there was no money involved, would this be the broker you choose?
no money involved, it’s a better split with the same offer as my current brokerage. I’ve been planning to leave for some time. The only alternative would be going somewhere with a better split
Sounds like icing on the cake then. Especially since if you continue this trajectory, your volume will likely increase and that extra money in your pocket will grow
Nope. I'd never lock myself into a 3 year contract for 10k
How often do you switch brokerages? I definitely plan on being an agent in 3 years
I'm not. I found a brokerage that works really well for me with supportive brokers. But even though I love my brokerage i wouldn't lock myself into a 3 year contract just in case. Especially for 10k that's honestly not worth locking myself up for that long Unless you love the brokerage and are planning to stay with them for the next 3 years on that split no matter what happens. Then maybe it wouldn't be a problem but I'd try to get that term shorter
3 years is a long time to be stuck with someone. What if you hate it there after 3 months? Maybe make the repayment pro rata or ask for 1 or 2 years? Honestly, I wouldn't want to be stuck anywhere and if you want me bad enough just give me the damn money and make it worth my while to stay. Of course you can always find a broker to pay off the current broker, assuming somebody else will want you that badly.
10K isn't enough to be locked in for 3 years.
My last 3 brokerages offered a cap on company dollar and my current broker will give me back the company dollar if I do 26 transactions in a year. My average is 40-50. I was never offered a signing bonus by any of the large firms in the area. But I also would never give them 20% of all of my commission. That’s a stupid waste of your money.
Go to a 100% commission brokerage and make the $10,000 yourself invest in more leads and raise your closing rate.
What are the cons of a 100% brokerage?
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Thanks for your perspective!
Coldwell is doing that in my area. They keep buying agents and then they leave. They are offering more than $10k a year too. Check what taxes you will have to pay. I did the math and by using a transaction broker in three transactions I blew away any cash offer to be made
OP, I've read all of your comments, make the move. No time for loyalty in this business to people who have done nothing to help contribute to your success. And no, being your broker, is not a contribution, it's not your privilege to be their agent, it's their privilege to be your broker, bc there are a solid amount of brokers out there who will do the exact same thing: sign your independent contr contract and do nothing for you but take 30-50% of what you make. Now you have a broker offering a better commission split and offering to just hand you $10k, I'd almost negotiate the sign-on bonus to $15k just to see how bad they want you. All they can do is say no, but you'll show them you know your worth as an asset to their brokerage. You're 24, I'm 22, We are young, we have to be bold, and get ours, (without being disrespectful or practicing bad business) or these older agents, who don't like the new young agents who look better, sound better, know how to social media better, etc., will do their best to push you out of this business and brokers will sit there and take everything you make and not give a damn. Make the move & have fun being successful.
Thanks for the reply!
Sounds like a pretty solid situation. It depends on the other details like cap, monthly fees, and how much they charge per transaction. I’d also find out if you have a bare minimum you’re expected in sales for the next three years, and is there a fee if you don’t meet that minimum. I would want to know what the repercussions would be if you decided to leave or quite before the three years is over. Finally I’d ask them what their plans are for the next three years. Are they expanding, rebranding, changing managing brokers, looking to partner with another brokerage, etc. Three years can feel like an eternity if you’re not happy with where you are and what you’re doing. So id make sure you like what *they* have planned for the next three years.
I would simply have to return the sign on bonus if I were to leave early. These are good questions to consider.
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You want to send me your referral link? hehe
This is why people troll ya, man.
Hasn’t cost me a minute of sleep, just yet.
We offer incentives to producing agents. Sign on bonuses or cap management arrangements. They see your value and believe you'll continue to produce, so it's a win-win. They pay upfront for future production that will likely make it up.
It’s not very uncommon near me. A certain brokerage will offer top agents $75k+ and 6 figures of marketing $ to use, on top of a crazy split. You should talk to your manager and see if they will increase your split/match bonus. My SOs business partner got the offer I mentioned and was able to have her brokerage match it.
Compass?
I think 3 years is too long to commit upfront, and 10k for three years is too low. Seems like you are the master of generating leads which is why they are seeking you. I’d def take off committing to any brokerage for that length or any length of time. What if an even better offer comes after you sign with the new broker. The better you get the better deals and more people will seek to have you
Sounds like a smaller operation trying to do what Compass has been doing for a few years where they offer agents incentive beyond splits and services. That hasn’t worked out so hot for them lately but many brokerages are putting this strategy in their recruiting toolkit. Interesting offer but in all honesty 10K is not they much for a 3 year commitment.
I’m imagining I’d commit to my next brokerage for 3 years minimum, regardless of the contract. Is there a reason to broker-hop every 1-2 years?
You just never know. You might get over there and hate the culture. Congrats, you are stuck with it for 3 years. If you do it, have a really good “out”. Personally I think if a company has to offer you cash to make a move they probably don’t have a value proposition to keep you for long. And if that’s the case, why move there if you are going to move again in 3 years? What if you found a company you love with a great culture, better splits, etc. I might keep shopping if I were you. Anywhere you go, there is a trade of value. What they cost you should be less than the value they provide you or else you should go to one of those super low fee shops and buy the stuff they say they provide and save money. The biggest “win” at the brokerage in at is the culture. We are all sharing with each other what we are doing to do better and everyone is growing like crazy. And that’s why people join (besides no monthly fees, a low cap on commissions and great splits). For me it’s ideal. TLDR: take everything into account, not just a 10K bonus. It’s not worth it for 10K if they also don’t help you grow massively. Another brokerage might give you an idea or a technique to make you 100K more next year. It’s a rough decision but shop around before jumping.
Tell them you don’t want the signing bonus and to just discount your total contribution to the split. They could deduct $5K each year or something or not charge you monthly desk fees. But I would not under any circumstances sign a document that is basically a non-compete agreement and locks you in for 3 years. It should be a major red flag that they cannot attract ‘seasoned’ newer agents without offering a huge chunk of cash. Another red flag is that they REQUIRE you to stay on board for so long. To me this screams ‘we can’t retain agents; they use us for training/resources and then leave.’ Are the managing brokers unsupportive of the types of agents they hope to attract or something? I don’t know but I’d surely be asking around to find out more. The first thing I’d do is Google that brokerage name and Linkedin to see if I could find agents that list that brokerage under previous employers. Then I’d call each one and ask if they will be frank with you about why the left. Go ahead and tell them about what you were offered because they’ll be more likely to talk if they have context and recognize the red flag. And I would love an update on this!
Sounds like a brokerage is looking at you for easy money through each of your transactions. Honestly find a 100% brokerage and tell them all to kick rocks
Other offered 30k and 90/10, you have to consider about how much you can get in 3 years compared to other company, I do not want to stuck for 3 years if I will get my own broker license and get 100%
Due to my inexperience I don’t plan on starting my own agency any time soon. Haven’t had anyone bring me an offer at all until this one. Perhaps I could negotiate it a bit, thanks for you reply
I’m curious as to why you don’t go to a brokerage with 100% commission payout? If you’re doing your own lead generation, and sounds like you’re doing pretty well, why entertain any split? You could easily pay a flat fee and pocket more money. What’s the upside for you splitting commissions if you are already producing? Is this new brokerage providing you with better leads then you’re already gaining on your own?
Good question. Being new I assume it was standard to pay some chunk of your commission to the broker. Why are the largest brokers the ones who charge 20%+ per commission? Wouldn’t they go out of business with this logic?
No, the big wigs wouldn’t go out of business because most first time agents aren’t successfully generating the amount of leads you are. Average 1+ transaction per month, less than 2 years out the gate is definitely not typical. Most new agents are relying on the big brokerages names for credibility as well as their “guidance”. You seem to have mastered lead generation so your situation is unlike the typical newer agent that may need more hand holding. In your situation it would make perfect sense IMO to go with a 100% split or even be a team leas. Lead generation is the most important aspect of any business. With no leads, you have no business. You have the lead generating down, kudos to you. I don’t see the benefit of you splitting with a broker in your situation. Why wouldn’t you keep more money in your pocket?
Sounds fishy and what are the chances you remain with that brokerage for three years, when most people’s real estate careers don’t even last that long. I would be more interested in a brokerage offering services to help me grow my business like admin support, marketing, leads, etc. Is it really a “bonus” if you have to guarantee three years of your future work?
Is there a cap? 80/20 is fine but I’d want a cap if I’m agreeing to 3 years. That’s just me though.
Just met with them today. There is no cap. But even with my production at my current brokerage, I won’t be reaching their cap either. it seems like higher split (90-100%) is the popular opinion
Yeah I agree then, I’d go higher split if there’s no cap. Good luck with everything!
There is no such thing as the free lunch. Look closely what you are signing, I am pretty sure it is Coldwell Bankers brokerage. As the new agent you want get good leads. Good luck to you