Why a 100% Commission Structure Isn’t For Everyone

Posted: May, 26, 2021 | Categories: News | By The Gove Group Real Estate, LLC

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Every company handles commission splits a little bit differently, and there are pros and cons to every option. While at first glance, 100% commission splits may seem the most rewarding, there’s many factors to consider that can have big impacts on your business and income. 

Consider the Fees 

Most companies that offer 100% commission will charge fees for things like E&O insurance, franchise fees, transaction fees, desk fees, technology, printing, signage, and more. Instead of making money from a percentage of your transactions, they charge these fees. If you add up the fees and compare the costs, the fees could end up actually costing you the same or even more. 

Cap Outs for Commission

If you’re not doing enough business to meet the cap out for 100% commission, it may not be worth paying higher fees. Even if you do meet the cap out, your bottom line could be too heavily affected by fees and other factors (like what support the company offers) depending on how much business you do yearly. 

Agent Support 

You should also consider what the company offers for support. Some companies may not have built-in support for agents such as admins, managers, and marketing personnel, while others will prioritize providing agent support. This support – or lack thereof – could add to your total costs if you have to devote more of your own time and money for these. 

Culture

Looking for camaraderie? There may be more value than meets the eye in brokerages that offer a more traditional commission structure. Our agents choose to work with us because of the immense support we provide, along with our tight-knit, family-like culture. We believe that agent support and a strong company culture helps our REALTORS® continue to grow and achieve greater success.

To learn more about The Gove Group and joining our team, check out our careers page or read more about us


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