100% commission real estate sponsorship

A guide for realtors on how to receive 100% of the commission when selling a property.

As a real estate agent, you’re likely aware of just how hard you work to earn that commission. From working with sellers to ensure their property is right for the market to hosting open houses or winning over prospective buyers, most real estate agents work long hours in order to succeed, especially if they run their own businesses.

This makes it all the more frustrating when commission splits enforced by brokers do not work in your favor, and you’re forced to hand over 20-30% of your hard-earned cash every time you make a sale.

For example, while the median gross commission for realtors increased from $43,000 to $54,300 in 2020, these figures are far lower than they could be if you weren’t bound to share this commission with brokers. While brokers often have good intentions, it’s nonetheless frustrating to lose out on money – especially when it could be reinvested into your business.

Fortunately, with a 100% commission broker sponsorship, you can maximize your earning potential and excel in your real estate career.

What are the most common forms of commission splits in real estate?

There are a few different ways in which commission may be split between a broker and a real estate agent, many of which are agreed upon at the start of your partnership. This includes:

fits any agent icon Split commission
accessibility icon Referral fees
easy customized icon Tiered commission splits
scalable icon 100% commission

However, it is also important to note that commission splits are open to negotiation, meaning you can leverage a better deal for yourself through a simple conversation with your broker.

To understand which form of the split commission is right for you, it’s important that you understand what each option entails.

A Split Commission

A split commission is most commonly offered in a traditional brokerage relationship – and most real estate agents will follow this model. For example, your brokerage may agree to split commissions 50/50 between the broker and the client. This means that if you were to earn $10,000 in commission, you’d receive $5,000 each.

Alternatively, they may take a flat rate from each commission you earn, which tends to be around 30% but can sometimes be much higher. The percentage taken by brokers can depend on a variety of different factors, such as the amount of work the broker has carried out or your geographic location. As discussed above, it could also depend upon your ability to negotiate a better deal for yourself.

Often, the longer you work in the world of real estate, the more confident you will feel when negotiating a deal with your broker. However, professionals who have only recently obtained their real estate license may find themselves agreeing to split commissions that do not work in their favor due to the fact that they are simply desperate to get to work and build their empire. This means they do not reap as many rewards as they should.

Referral/Transactional Fees

In some instances, a brokerage may take a ‘referral’ fee off the top of the commission each time you make a sale. This is a common business practice and is designed to cover the cost of the brokerage having sourced a buyer/seller. However, they can cut into your annual income quite considerably.

Other forms of monthly fees could include desk hire or technology/software fees. For example, these come into play should you wish to utilize your broker’s office space and technology. While this could be viewed as a cost-saving measure, as you don’t have to invest in the equipment yourself, it gradually reduces your earning potential, especially if you can carry out the majority of tasks from your own home.

Tiered Commission Splits

Some brokerage companies will offer a real estate professional a tiered commission split. That is, the more they reach certain milestones within the company, the higher % of the commission they will receive.

There are many benefits to this style of agreement. For example, many people find that this kind of partnership acts as an incentive to work harder, which could give you the push you need to sell more houses or grow your client base. Consequently, this could be a great way to heighten productivity and efficiency or simply become a little bit better at your job.

However, this means that in the early stages of your career, your share of the commission will be much lower than it would be if you worked with another broker. As a result, you could be missing out on hundreds of dollars while you’re focused on working your way up the ladder.

A 100% commission split

With a 100% commission split, realtors receive 100% of the commission they earn when selling a property, aside from a small flat fee that goes to the brokerage. This could be a one-off fee or covered in a monthly subscription, but it is often a much smaller amount of money taken than losses incurred in split fee agreements or sponsorships.

This is the most coveted form of a split due to the fact that real estate agents can increase their earning potential quite considerably without having to go at it alone (by acting as their own broker). To put it simply, it enables you to enjoy the best of both worlds: you can rely on the dedicated support of a talented broker without having to sacrifice your earning potential.

best commission structure for realtors

What are the benefits of a 100% commission split or real estate sponsorship?

Unsurprisingly, there are many benefits associated with negotiating with your broker to secure a 100% commission sponsorship.

After all, sponsorship from a brokerage is often necessary when activating your real estate license, no matter which state you’re hoping to set up business in. However, the most obvious benefit is the fact that this sponsorship can increase your earning potential quite considerably, allowing you to live more comfortably or re-invest in the growth and expansion of your business. In the current economic climate, this deal is particularly attractive as every cent counts!

The flat fee taken by the brokerage in this scenario is often less than $50o overall. When you sell multiple properties a year and receive the full commission for them, this fee will barely be noticed. For example, if you were to receive 100% of a commission of $10,000 – the $500 fee would seem fairly inconsequential. After all, you’d be taking home $9,500 -whereas, with a 70/30 split, you’d only have $7,000 to show for your hard work.

Furthermore, engaging in this style of real estate partnership can also provide you with additional support that you can call upon throughout the year. For example, your broker may provide you with access to a wealth of resources that help you to take your real estate career (and, by extension, your business) to the next level. This includes:

  • Access to a virtual office. With a virtual office, you can ensure your business stays on track, no matter where you may be in the world. This is because you have quick and easy access to important documents, contracts, and company information as and when you need it. This is particularly beneficial when you consider the fact that many real estate agents must carry out work on the go as they move from meeting to meeting or at open houses.
  • Marketing services. The biggest challenge you will face when working as a real estate agent is finding new clients, whether they are looking to buy or sell properties. Fortunately, when working with a brokerage, you’ll receive support when it comes to launching effective digital marketing campaigns. This is particularly important when you consider the fact that “In 2021, 97% of buyers used the internet to search for a home“, meaning that the majority of sales were initiated by strong marketing campaigns and a powerful online presence.
  • Dedicated broker support. The support (and sponsorship) of a dedicated broker is essential when it comes to running an effective real estate brand. This is because they’ll provide you with invaluable advice on every step of your journey, whether you’re dealing with administrative woes or struggling with conversions.
  • Training/continuous education credits. There’s no denying that the more skills and qualifications you have, the easier it will be for you to succeed. After all, not only does continuous education enable you to stay on top of industry trends and complete all tasks to a high standard, but it also demonstrates a level of professionalism and commitment that clients are sure to love.
  • Brand-building opportunities. As Brokers have a deep understanding of both your industry and locality, they’ll be able to provide you with guidance and support that will enable you to build (and grow) your brand. This, coupled with more money in your pocket, means this kind of sponsorship is a win-win scenario.

Do you want to remain in control of your business?

Do you want to increase your earning potential?

Do you require the support of a real estate broker to achieve your full potential?

How do I know if 100% Commission sponsorship is right for me?

100 Commission sponsorship

Do you want to remain in control of your business?

Do you want to increase your earning potential?

Do you require the support of a real estate broker to achieve your full potential?

If the answer to any (or all) of these questions is a resounding yes, then it’s likely that a 100% commission sponsorship is right for you and your ambitions as a real estate agent. And, considering that more than 30 million people moved house in 2022, it’s clear that with the right earning sponsorship in place, you have the opportunity to earn big in 2023. As a result, now may be the time to start looking for a new sponsor.

When you receive 100% of your commission, you are likely partnered with a company that offers BaaS or Brokerage as a Service.

What is Brokerage as a Service?

Brokerage as a Service is the new way for real estate agents to maximize their income without sacrificing the support they need from a broker. In many ways, this is a form of outsourcing that allows you to relieve the support you need without harming your bottom line by letting someone else dictate how you run your company. 

After all, while traditional partnerships require the real estate agent to relinquish control (and a hefty % of commission) when paying for Brokerage as a Service, you remain in the driver’s seat. This way, you can decide how your business operates and the goals that you are working toward each and every day.

What is included in Brokerage as a Service?

Each and every broker offering BaaS will have a different system in place. However, the support and guidance they offer are, by and large, the same. For example, you should expect to receive the following:

  • 100% of your commissions. This means no more split fees or target-based commissions – every cent of the commission will go straight to your business bank account. Not only will this improve your bottom line, but it will also help you to take your business to the next level. For example, you can use this money to invest in training opportunities or a new marketing campaign that will bring forth a better ROI.
  • All of the support you’d need from a broker. When paying for the brokerage as a service, you’ll continue to receive the same level of brokerage support as you would in a more traditional partnership. This support and guidance will help you navigate the world of real estate with confidence and ease, whether you’re trying to generate more leads or make that first, all-important sale. This means that BaaS may be particularly beneficial for those who are just beginning their careers in real estate and seasoned professionals.

100% Commission Split With Pinnacle Realty Advisors

At Pinnacle, we offer real estate agents the best of both worlds.

Through our sponsorship, not only can they keep 100% of every commission earned when selling properties, but we also provide them with the tools they need to develop their own brand. This support allows them to build a business that not only stands out from the crowd but one that is primed for longevity within an industry that is notoriously competitive. This can give you great peace of mind, especially in the current financial climate.

Furthermore, unlike other agents, we do not charge brokerage fees for things such as desk space, technology, transaction broker reviews, or franchise fees. While these fees may seem inconsequential, they quickly build up over time and impact your financial security.

Instead, you’d pay a monthly subscription fee which provides you with access to full real estate brokerage support. When partnering with Pinnacle RA, there are no hidden fees to worry about – simply pay your subscription fee and receive 100% commission every single time.

Starting from just $249 a month, we also provide our real estate professionals with

  • An on-demand agent success and support team, happy to answer any and all questions you may have. For example, they can answer questions on everything from the housing market to admin.
  • The PinnacleHQ dashboard gives you unlimited access to hundreds of vetted home-service vendors, marketing tools & services, and exclusive deals for you and your client. This will provide you with the insight you need to grow and scale your business while maintaining excellent levels of customer service.
  • A range of marketing services, such as logo design, website management, and social media resources. This will help you develop a brand identity that differentiates your real estate company from your competitors, which is essential if you want your brand to stick around for years to come.
  • The chance to improve their cybersecurity practices through partnerships with NordVPN and NordPass. Not only will this keep your data safe, but it will also help you to attract more clients, as they will know that their security is of utmost importance to you.
  • The chance to learn something new by making it easier for you to sign up and participate in the recommended Continous Education (CE), Salesperson Apprentice Education (SAE), and Post licensing courses from the best schools in your state, whether you’re based in texas or LA.
  • Access to time-saving technology that will improve efficiency, productivity, and client relationships. This includes software such as Skyslope, AFrame Software, Pipedrive, Nethunt CRM, RealCloud, and so much more.
  • Access to software that will make daily business operations run smoothly, such as Google Workspace, Ring Central, and Slack. These tools will make it easier than ever to collaborate or connect with clients, staff, or other collaborators.
  • Access to tools that will help with lead generation is considered to be a major pain point for real estate agents in the current climate. This will help you to grow your business day on day, as opposed to leaving you struggling to find and retain leads.

 

Get in touch today to find out more.

If you’d like to find out more, please do not hesitate to get in touch today. We’ll schedule a free, no-commitment call that talks you through every step of the process – and can even have your business set up and ready to go within just 24 hours!

We look forward to hearing from you and taking your business to the next level together! 

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