5 min read · October 26, 2022

6 Tips for Finding the Right Sponsoring Broker

Finding Sponsoring Broker | Pinnacle Realty Advisors

The cost of housing is rising.  In fact, in 2022, you can expect to pay an average of over $350,000 for a home in the United States. As time goes on, the price of real estate will continue to increase.  With this increase, there is an increase in real estate commissions that are earned on the purchase and sale of almost every piece of real estate.  Real estate agents earn their living on these commissions and must seriously consider who they work for and what to look for in a sponsoring broker.

Broker Sponsorship and finding the right sponsoring broker is one of the more overlooked aspects of becoming a real estate agent.  However, due to the money on the line, finding the right sponsoring broker is more important than ever.  Take a look at these tips for finding the right sponsoring broker.

1. Know What You’re Looking For in a Real Estate Sponsoring Broker

Before you start your search for a sponsoring broker, it’s important to know what you’re looking for in a brokerage. Are you looking for a firm with a great reputation? One that offers lower commissions?

Or maybe you’re interested in a company that provides extensive training and support. Whatever your priorities are, make sure you keep them in mind when meeting with different brokerages. It will go a long way in helping you find the right fit.

Looking for Real Estate Sponsor | Pinnacle Realty Advisors

Understand commission structures and not only how you will get paid but what your costs will be.  You want to make sure your sponsoring broker has plans that are affordable and transparent.  If brand building is important to you, white label sponsorship might be something to consider.

2. Research Broker Sponsor Reviews

Once you know what you’re looking for, it’s time to start doing some research. Talk to friends and colleagues who are already in the business, and see if they have any recommendations.

You can also check out online reviews, but be sure to take them with a grain of salt. For this reason, it’s always best to speak with someone you know and trust.

Be sure you know how to recognize fake reviews so you can avoid working with a broker who is not able to meet your needs. This will also save you plenty of time and headaches in the future.

One thing you can look at is does broker sponsor have reviews and agent success stories.  

3. Meet With Multiple Brokerages About Sponsorship

After you’ve done your research, it’s time to start meeting with different brokerages.

Choosing Real Estate Agent Sponsor | Pinnacle Realty Advisors

This is an important step in the process, as it will allow you to get a feel for each company and see if they’re a good fit for you. It’s crucial to ask lots of questions during these meetings and make sure you’re comfortable with the answers you’re getting. You should also consider how you feel about the company’s culture and whether or not you could see yourself working there long-term.

There are plenty of opportunities available, so don’t limit yourself to just one or two options. With technology comes options and you may choose to work with a cloud-based brokerage that offers brokerage as a service (BAAS) instead of the traditional brick and mortar brokerages.

4. Compare Commissions and Fees For Various Broker Sponsors

One of the most important factors to consider when choosing a sponsoring broker is the commissions and fees they charge. Be sure to compare these between different firms, so you can be sure you’re getting the best deal possible. It’s also a good idea to ask about any hidden fees or charges so there are no surprises down the road.

Although uncommon, some brokerages may also require you to sign a contract, so be sure to ask about this as well.

5. Ask How The Sponsoring Broker Provides Support to Their Agents

If you’re new to the business, it’s important to find a brokerage that offers extensive training and support. This will help you hit the ground running and avoid any costly mistakes.

Without the proper training, you could quickly find yourself in over your head. Many people will find it difficult to justify the cost of a sponsoring broker that does not offer any type of training or support. Keep this in mind when making your decision.

6. Get Everything in Writing

Once you’ve chosen a sponsoring broker, it’s important to get everything in writing.

This includes the commissions and fees you’ve agreed to, as well as any other conditions of your relationship. This will help to avoid any misunderstandings down the road. It will also protect you in the event that something goes wrong.

Choosing The Right Sponsoring Broker Pays Big Dividends

Many brokerages offer extensive training and support, which can be extremely helpful if you’re new to the business. Many people who are new to the industry find that broker sponsorship is the best way to get started. It can provide you with the resources and support you need to be successful.

However, it’s important to do your research and choose a reputable brokerage. With so many options available, it’s crucial to find one that fits your needs and goals. 

Making sure the costs and commission splits align with your real estate career goals is very important.  After all, if you aren’t happy with they way you get paid or the fees you have to pay just to do business, you aren’t as likely to succeed.

Agent Sponsor Tips | Pinnacle Realty Advisors

What Are Common Mistakes That People Make?

When it comes to finding the right sponsoring broker, one of the most common mistakes people make is not doing their research. It’s essential to take your time and meet with multiple firms before making a decision. Another mistake is failing to compare commission structures and fees.

Be sure to ask about this upfront, so you can be sure you’re getting the best deal possible. If you don’t, you could end up paying far more than you bargained for.

Some people fail to consider the importance of training and support. If you’re new to the business, it’s crucial to find a brokerage that offers these services.

It’s worth keeping in mind that you don’t always have to work with a real estate broker who expects you to be there full-time or give up control over your professional life. You can check out this page to learn more.

Finding The Right Sponsoring Broker is Not Something You Should Overlook

Choosing the right sponsoring broker is an important decision that should not be taken lightly. Be sure to keep the above tips in mind during your search and you’ll be sure to find the perfect fit for you.

Want to learn more about what we can do? Be sure to reach out to us today and see how we can help you.