Popular myth #2 about 100% commission brokerages: They don’t offer support, training, or resources to their agents

Popular myth #2 about 100% commission brokerages: They don’t offer support, training, or resources to their agents

There are a few popular misconceptions about 100% commission real estate brokerages that we want to clear up. These misconceptions arise because don’t understand how the 100% commission model works.

In the case of popular myth #2, this leads to the assumption that a brokerage would have to cut both corners and costs in order to survive while paying their brokers 100% commission.

Naturally, the costs they assume will be cut first are training, support and other agent resources. But we’re here to explain two things:

  1. You can make money on the 100% model without cutting corners/costs
  2. That it's not in the brokerage's best interest to cut these things out

How can brokerages make profits while giving agents 100%commission?

100% means that the agent gets 100% of the commission, but we’re not providing our services for free. We (ideally) collect $8,500 of commission money from each agent in our brokerage, each year. We collect that via a 10% share of the commission until the agent has paid the $8,500. After that, the agent gets 100% of the commission on every closing.

Agents will agree that taking home 90% is still very reasonable, even for those part time agents who might only sell 1-2 homes in a year. The agents who help buy and/or sell 5+ homes in a year quickly pay off that $8,500 and move to 100% commission.

Note: The agent will pay a $185 processing fee and $25 franchise fee on each transaction at 100%commission structure.

As you can see, the money is there. And while it’s true that we do forego some costs that your big box brokerage will deal with, the last place we’d want to try and cut costs would be support and training. Put simply, withholding support and training would be bad for business.

It’s in our best interest for our agents to max out, so the brokerage can make the full $8,500 from each. The way we make more money is not by sticking agents with hidden fees, cutting support, or raising commission: it's by having more agents and helping each of them max out. So with that in mind, why in the world would we not support our agents?

Enjoy large commissions and more freedom with Better Properties Eastside

This is our offer to real estate agents in the Puget Sound area:

No nickel and diming

  • No Monthly Fee
  • No Desk Fee
  • No Phone/Fax Fee
  • No Copier/Scanner Fee
  • No Mandatory Office Meetings
  • No Mandatory Floor Time

Keep more of what you earn

  • When a transaction closes, brokers will receive 90% of the listed commission.
  • We allow brokers to reduce rates to compete and match cut-rate commissions companies, such as Redfin, who offer lower percentages.
  • After a broker has paid $8,500 ($12,000 per two-person team, per calendar year) to the office, the broker will move to 100% commission.
  • At 100% commission, the agent will pay a $185 processing fee and a $25 franchise fee for each closing.

To discuss joining Better Properties Eastside, you can visit our contact page here.

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