Finding the right brokerage can be a challenge for real estate agents in an ever-growing, competitive market. Some brokers charge high commissions, cutting into your own profits, while others make money charging extra fees. This article explores how a 100 percent commission brokerage can open new avenues for you if you’re a Realtor looking to grow your business while increasing profits.
1. Keep 100 Percent of Their Commission
As the name implies, 100 percent commission brokerages allow you to keep the entirety of your sales commissions. This is a distinct advantage over other brokerages, which can charge upward of 50 percent of your profits. With a 100 percent commission brokerage, agents pay a monthly “desk fee,” a flat rate for office space and support. Fees are limited and known upfront, while profits continue to grow independently. Usually, these fees are under $1,000, but even in cases where they’re a little steeper, the cost is more than worth it for an experienced Realtor.
- No In-House Service Requirements
Because of the variety in model and setup, fee-based brokerages do not require you to use in-house services or charge you for going elsewhere. You get to keep more of your money that would otherwise end up in the hands of brokers, who charge penalties and fees simply for using outside services.
- Cutting Operating and Startup Costs
Between advertisement, office space, and other necessary resources for agents, costs for startup and continued operation can quickly balloon. Flat-rate brokerages often provide these services at no cost. When that isn’t the case, you’re free to choose in-house or outside services that meet your budget requirements and professional goals. This flexibility allows you to plan your own way forward and maximize the growth of your business.
- Different Models for Different Agents
100 percent commission models vary, which lets you compare your needs to services and find those that best fit your business. Some brokerages provide office space and services at reasonable costs, while others charge lower fees or simply flat-rate charges for each commission. The latter is especially good if you are a new agent or have more time in between sales. Instead of a monthly fee, you pay the same charge every sale — so your broker gets paid when you make a profit. Brokerages may even offer annual fee options, giving you even more flexibility.
- Training and Growth Services
Many 100 percent commission brokerages offer valuable training and education to agents simply for being members, at no extra cost. These services can help you increase your number of sales transactions — and, therefore, your commissions — by teaching skills that are vital for increased success in the real estate marketplace. Different brokers offer a variety of programs, leaving room for you to decide which best fits your goals. These options mean freedom for making decisions on where you want your business to go.
- You Have More Freedom in Making Decisions
When you partner with a flat-rate brokerage, you don’t answer to an agency imposing its own set of rules and requirements — instead, you decide what your business goals are and how you want to achieve them. There’s no pressure from the management about how you operate. With a flat-rate commission brokerage, you are in charge of shaping your business, marketing your services, building your brand, and going at your own pace.
- Resources and Operations Can Be Found in One Place in a Virtual Office
When operations and expenses don’t rely on a physical office building and paperwork and training are done virtually, your business runs much more efficiently. Your records, transactions, sales, and even training resources are grouped into a virtual back office, which helps 100 percent commission brokerages cut operating costs while supplying everything you need to help your business grow and succeed.
- Costs Are Much Lower Than Traditional Brokerage Fees
Because flat-rate brokerages take advantages of virtual methods and new technologies, the flat fee that you’ll pay is much lower than the commission percentage traditional agencies take. Realtors often pay 50 percent of any commission with other brokerages, which can amount to a pay cut of thousands of dollars per sale. Flat-rate brokerages run more efficiently, so costs and fees stay low.
- No Sneaky Fees for Failing to Follow the Fine Print
Traditional agencies have a reputation for sneaking in surprise charges, essentially penalizing their Realtors for whatever they decide — whether that’s not reaching a certain amount in commission or not using office space. Extra charges hit unexpectedly, and that means you lose even more money. With 100 percent commission brokerages, your flat fee is the whole fee, with total transparency and no fine print.
- Access to the Resources of a Big-Name Brokerage Without Extra Fees
Realtors who are just starting out often face the challenge of not having access to the full scope of resources for their market, such as local listings and directories compiled into a multiple listing service. Some real estate agents can access their multiple listing services only through their agency — and that comes with more hidden fees. The flat fee charged by a 100 percent commission brokerage includes access to all the resources that big-name agencies have, which means that Realtors can use listing services and other reserves upfront and without penalties. That allows you to jump successfully into the market without playing catch-up with other Realtors or agencies.
- Technology as a Main Tool Means More Effective Marketing
Agencies know that social media is here to stay and that an online presence is vital for businesses in the 21st century. It’s also essential for any real estate agent. When technology is your main method of marketing and communicating with potential buyers, team members, trainers, and others, it’s the most efficient way to build your brand. The internet is your best resource for your business, so taking your operations to the virtual sphere means you reach more people, increasing your potential for growth.
- You Establish an Independent Name
A common struggle for Realtors employed with traditional agencies is losing their individual identity under the umbrella of the brokerage; even if your business becomes successful and your commissions grow, you’re still a part of the agency, not an independent name. With a 100 percent commission brokerage, you have the opportunity to grow your own brand — not the brand of the company you work with. Making your own decisions for your business goals means making a name for yourself, not a corporate office.
- Work-from-Home Opportunities
If you don’t want or need office space, you don’t pay for office space. With a 100 percent commission brokerage, everything from training resources to e-signature options is available for remote access. That means there are more opportunities for you to do your work from a computer or even a phone, wherever you are. Working from home is a growing option in today’s market thanks to modern technology, and that means more freedom to work how and when you want, on your own schedule.
- Free Marketing Materials
Many flat-rate commission brokerages include optional coverage for a range of marketing materials in their fees. That means that in addition to free online training resources, you also might have access to marketing options, such as yard signs, print ads, and business cards, allowing you more choices in how you market your real estate business. Marketing is a vital part of running a business, and 100 percent commission brokerages want to supply the resources to help your brand grow.
- Get Paid When You Close
Removing the process of calculating percentages and splitting costs with an agency has another benefit for Realtors: You get paid when you close on a transaction. Getting 100 percent of your commission and choosing your own payment options means getting your money on time without frustrating hurdles or delays. When the job is completed, you get a paycheck, without money sitting in escrow.
- You’re in Charge of Your Paperwork – With No Middleman
Without free training and resources, no office fees or commission percentages, and the freedom to work the way you want, you’re in charge of all your business transactions. These can be handled online in a virtual back office, and you know exactly where money is flowing and what transactions are being processed. Everything is in one place, and there’s no agency acting as a middleman, which means you’ll be completely up to speed on every aspect of your business.
- More Payment Options
Because a 100 percent commission brokerage charges flat fees upfront, you know exactly when and how much you’re going to pay. In addition, many flat-rate brokerages offer a variety of payment options. You can pay annually or monthly, put money up for specific services (such as office space if that’s something you’re interested in), or pay a prespecified fee for every commission you make. There are plenty of choices and plenty of freedom to decide which payment model is the best for your business.
- No Pressure from Agency to Add Services
Some agencies find other ways to sneak in extra, unexpected charges by pressuring agents into signing onto additional services that they don’t necessarily want or need, especially if the agency feels that you aren’t making them enough money (or earning their commission at their pace instead of yours). The services of flat-rate brokerages are known upfront and they’ll never change, so you won’t be pressured to rewrite your business goals and services just so you pay more fees.
- You Work at Your Own Pace
It’s common for some traditional agencies to put pressure on Realtors if they don’t like their pace or commission rates. But the simple truth is that not every real estate agent has the same goals. Some aim for 10 sales a year, while others want to focus on higher growth and expansion. Whether your goals are modest or lofty, you’ll have the freedom to make your own decisions about the size and rate of your business growth without the pressure of a brokerage that wants its pay cut.
- You’re Treated as an Individual, Not a Number
With a 100 percent commission brokerage, the focus is on your success and helping you build your brand with the best resources available. Your goal is the agency’s goal: Making sure you make a name for yourself as a real estate agent and represent yourself and your own work, instead of letting a company name take responsibility for your accomplishments. Flat-rate commission brokerages aim to provide you with the resources you need to help grow your reputation as an individual.
- It’s the Model of the Future
More and more real estate agents are finding that they prefer the freedom and transparency of flat-rate brokerages. Some estimates say these agencies could eventually comprise upward of 15 percent of the real estate market. This means that they have the budget and the resources to offer you the best experience as a Realtor in the 21st century, with all the marketing tools and virtual communication to help your business work effectively in the modern era. With more personal freedom, independent brand building, and online marketing, real estate agents can make their own choices for how they want their business to work in 2018 and beyond.
RisenLife Realty is not a law firm, and the employees of RisenLife are not acting as your attorney. Our educational blog and sample real estate forms are not a substitute for the sound advice of a local attorney, whom is familiar with your local laws and regulations. RisenLife cannot provide you with legal advice, nor are we permitted to engage in the practice of law. We are prohibited from providing you with any sort of advice, opinion, explanation, or recommendation about your possible legal rights – which may include remedies, options, or defenses.
About RisenLife Realty
RisenLife Realty is Miami’s premier 100% real estate brokerage firm. We retain Miami’s top real estate agents to help clients across the world buy, sell, and rent real estate in South Florida’s hyper-competitive marketplace. Although selling your home fast is our specialty, we also work with clients to advise them on when to buy a home in Miami, while also assisting for sale by owners with our popular flat-fee $98BuckListing™ MLS Listing service for Miami-Dade County. Deeply committed to South Florida’s socioeconomic success, we maintain an educational real estate blog that provides tip & tricks from buyers, sellers, renters, and FSBOs. Miami buyers can sign up for a free account and search our free Miami MLS real estate listings. Miami real estate agents can Join Us today and start keeping 100% of their commissions earned.