Understandably, agents want to know what the commission split is. However, that's kind of like asking a builder how much it costs to build a certain house plan. What it costs to build a certain house, depends on what you put into it. As it is with real estate, the more you put in, the more you make.
At Doug Burger Realty Group, we focus on long-term earnings. Earnings during good times, and bad. And, we reward high producers. The more you produce, the higher the split, up to 95%.
When considering where the best place is to conduct your real estate business, you have to consider more than just commission splits. What really matters is the bottom line over an extended period of time. It's kind of like evaluating a Truth in Lending statement. One bank may say they're at 5.75%, while another is at 6.25%. However, after evaluating both lenders, you find that the 5.75% one didn't cover a lot of the fees, that tend to add up, and is just about ready to go out of business. In reality, the 6.25% lender was the better choice.
At Doug Burger Realty Group, agents are evaluated every three months. Depending on their closings, their split for the following three months could go up, or down. And, it doesn't go up, or down, in five, or ten, percent increments. One quarter, you could be at 63%, the next quarter you could be at 81%. It just depends on your production.
In addition, each agent has the choice of participating in Company generated business, or work on their own. Those that work on their own, stay at a steady, higher commission rate. Every six months, they can opt to revert back into the lead systems at a fluctuating rate, depending on production. As such, commissions are extremely flexible, and structured to meet most every agents circumstances.
Also, keep in mind that your overhead will, typically, be substantially less here, so your net earnings, before taxes, will be greater.
"Helping agents attain a level of predictability in the unpredictable real estate business."
Make this your best, and last, Company move
While many top agents, as Doug found during his peak selling career, spend upwards of 50%, or more, of their gross dollar production, in business expenses, Doug Burger Realty Group takes on the lions share of those expenses. The result, is that agents end up with more take home pay.
In addition, their income is more predictable than under a typical scenario, where there can be huge up, and down, swings.
To answer the question, first ask yourself how many sales you typically do. Then, based upon what you have learned here, make a guess as to how many more sales you would make with an extra 30-50 leads, per month, and occasional ready to go buyers, and sellers, handed to you.
Also, figure out how many transactions you realistically think you can manage, given the fact that we provide staff support to process them. Following, we will provide some examples, given certain assumptions.
Using an example, based on a $285,000 average sales price, with a 2.5% selling, or listing, side commission, the chart below gives you a rough idea of earnings, assuming you choose the company lead system. You will notice that it is highly weighted towards higher, and higher, production.
The following shows approximate yearly earnings, to the agent, at various average sales productions, per month. If you tried to do these production levels, on your own, without company support and leads, you can almost double these figures, because of the costs you would incur bringing in the leads and paying all of your own business expenses.
1.5 sales - $42,500 2.0 sales - $85,500 2.5 sales - $128,250
3.0 sales - $171,000 3.5 sales - $213,750 4.0 sales - $256,000
4.5 sales - $299,250 5.0 sales - $342,000 5.5 sales - $384,750
6.0 sales - $427,500
While our commission structure is very competitive, it's all of the other things we provide that other offices can't, or won't, that can truly affect your long-term earnings. There is very little you have to deal with here, other than following up on the leads, showing properties, writing purchase and sale agreements, taking listings, and turning your business over to our staff for processing. Virtually everything else is taken care of, behind the scenes, so you can stay productive.
And, no matter what the market conditions are, you ALWAYS have people to work with!
How much money can I make at Doug Burger Realty Group? It's not all about how much. It's also about consistency and longevity.
So, back to how much can you earn...
Commissions
