You’ve completed all necessary certifications and you’ve passed the test. You are officially a real estate agent. You’re hungry, passionate, and ready to dive into your career with full force. Your next step in becoming a licensed real estate agent is selecting a broker to sponsor you. Even though, it may feel as if you work for yourself, you by law need to work on behalf of a broker. This decision can affect the direction of your career, determine your growth rate, and ultimately; your paycheck.
Most brokerages are consistently hiring agents to fill their desks. However, there are important differences among companies in structure, operations, and ethic. Make sure to take the time to find the brokerage that is the best fit for you and will ultimately be the right place for your growing business.
The Traditional Model
In traditional real estate business transactions, a seller would contract to have their property listed for an agreed upon percentage of the selling price. The listing brokerage lists the property in the MLS and shares that commission with any MLS broker member that brings a buyer that completes the purchase. That is considered split #1. Each of the brokers would then split their portion of the commission with the agents involved as split #2.
Until now, the typical real estate brokerage would pay their agents a percentage of the total commissions. In many cases, a majority of that commission ( sometimes even up to 50%) would go the brokerage in exchange for allowing that agent to work under the brokerage license. The traditional brokerage would provide the agent with some training, leads, and access to MLS information.
This traditional brokerage model may no longer make sense. With the booming digital age, agents have direct access to all data, communication, and contracts; and can support themselves and their clients without much help from the brokerage.
The 100% Commission Model
The traditional model has all changed with the introduction of the 100% commission real estate brokerage. This new concept allows real estate agents the ability to keep full commission value without any splitting. This makes it even more convenient for agents to manage all transaction documents and truly be in charge of their own finances. Not only do you keep your full commission, allowing you to quickly ramp up your career, but also 100% brokerages have no sales quotas to follow and actually support you in however they can to help you build your book and close faster and more effectively. This allows agents to set their own base and determine their own personal goals that are best for them and their career.
100% commission model brokerages are also offering marketing programs that can generate leads at a lower cost than if the agent was to do it alone. Instead of letting sales quotas cause unnecessary competition between real estate agents, they help foster relationships between agents that will benefit both of their careers.
Making Your Choice
When making a decision to choose a 100% commission brokerage in Chicago, compare what services come with what fees. Some brokerages offer digital tools necessary for agents to be competitive in their market. Even if you are keeping 100% of your commission, you need the tools, support and training to help you sell. The 100% model will continue to evolve in favor of the agent since there is no doubt a paradigm shift occurring.