Bill, a while back there was a mass exodus from our local R/M when they went from 100 to 95 and made it retroactive several months! And the desk fees did not change.

I don't know if that is the case everywhere but it was here.  

If I can find them, I will send you the breakdowns from when I worked for Prudential. I found it helpful when determining who pays what and what splits got what benefits, value etc.

Oh! And I left Pru, a wonderful company, when I realized that since I had a broker's license, I did not need to pay for support that was not immediately available. My broker there was wonderful, brilliant and insightful, but it was always way too long before I would hear back when I needed him. Like days, sometimes a week. Way too late.

My agents can ALWAYS find me, immediately. They are never left to twist in the wind or given the time to make bad decisions. They are also spoon fed leads and business from my non-repeat/non-referrals. Almost all new business goes to them. So they in essence have a non competing broker.

I had one 100%er who I did not give business to per our IC agreement. He eventually found it better to go to a 'name' where he would get leads and floor time for a lesser split. It was right for him.

Bill, I found the cost sheets but they're docs so you'll have to e-me

Candice@RealEstateBHC.com  

and I'll send them.  :)

Hi Bill

Show your Uncle this link, don't forget to play the Mr Mouse Jingle

http://www.c21clickit.com/

The E Bay Guy ha ha

I started at 50/50 back when I got my license. At that time I didn't really know there were better splits available and most importantly, I really wanted the training my old company was offering at that time. I went through 5 different offices within the same company and had quite a few wonderful brokers and agents to learn from. I had a broker's license from the very beginning and always knew I'd go on my own when I felt I knew enough to do so. I wish I had done so sooner though.

While I don't mind offering 100% (with a transaction fee ... you may have seen Vance talk about this model before), I wouldn't give this option to a new agent. First they have to learn before they can be out there on their own! When it comes to splits, I see them just as negotiable as our listing commissions ... tell me what you bring to the table and what your expectations are and I'll tell you what I can offer you. I know one thing, in today's market, I don't know how a new agent can survive starting at 50/50. They need a lot more encouragement than that!

I sometimes wish new agents were disallowed from the 100% model. It almost always comes with an absentee broker.

Oh Bill

I have a RE/MAX friend, he pays 9 grand a year and is 100%

VanceMart

Oh Bill

Here is a number One keller agent team....She is great also I might ad..

http://gitta.com/

I am with and ERA franchise and the splits run from 50/50 (although I don't know of anyone that was actually paid that) to 95%.  My Brokers's model is based on the level of commission brought in in the last 12 months.  The lowest that I am aware of people getting paid is 60/40.  This Broker is great.  I could go on and on - actually left for an independent for a couple of years.  The model there was 65/35 until she felt like giving you a higher split.  One of the agents there got a raise in her split shortly after I went over and was at 72.5/27.5 and she had been with the independent for 15+ years and was a top producer.  After receiving no training and watching agents flounder, I went back to the ERA I was at before.

I could go on about all the differences, but I don't want it to be out in cyperspace. :)

Darcy

I too am with an ERA Franchise.  Our splits start at 60/40, and then go up throughout the year as your personal production goes up.  So, in August my split could increase.  In January, I start at a certain threshold, and as my productionn goes up, my split increases.

Except for Cendant referral business.  The referral fee is taken off the top of commission recieved for the brokerage, the remaining is split 50/50.  Darcy, how does your ERA handle Cendant referral business?  And does your franchise participate in Cendant (actually Cartus now) referral business?  

And I get so much referral business, it is worth my staying. As my mom (and partner) says, 100% of nothing is still nothing.  I get handed a lot of referral business that is the bread and butter, as I am building my personal business.

Just a word of caution ... know your company's policy on giving out too much information about your commission splits here in public. Just as Darcy said, it will be out there in the cyberspace (at least that's what I think the word is :-)

Shelley,

We have CARTUS and USAA, both of which I am approved to do. (Had to take a training course and have a refresher every six months.)  Our broker doesn't change the split on those.  The referral is paid off the top of whichever side (listing or selling) and then my split is normal.  I have a great broker when it comes to sharing.

Darcy

60% is the minimum an agent will get when they start with me. That's my first-year-agent-high-grief-factor fee. LOL

Our company goes from 50/50 - 100% and it is clearly spelled out by production.  (no small print like with the last company we were with)We do not pay office fees.  In fact we don't pay for much.  We are with an Independent.

Jana

We are with an independant that just recently bought the Sotheb'y franchise for the Boston area. Hence - Gibson | Sotheby's International Realty. Our broker is great. You start at the 50/50 and then can go as high as 80% based on production. 6% marketing fee of top, but they pay for most of it. they are very generous. Once you hit your fiscal year with them you revert back to the 50/50 unless you hit a certain threshold and then you go back to 65/35.

We are with EXIT Realty, everyone starts the year at 70/30 then go to 90/10 after 100k gross commission or 8 sides. No desk fees and fabulous training. We also recieve 10% in residuals up to $10k a year for any agents we sponsor into EXIT it will go down to 7% when we retire then 5% beneficiary residual when we become one w/the land. Those checks can really add up! We both started out with the largest brokerage in our area but there wasn't much support or useful training. Our current broker/owner and husband our two of the most generous, supportive and generous people we could be associated with and it's nice to be able to have a broker who is available when you need one.  

The company I work for, we have 80/20 split until you meet the cap of $6,000 per year (1 commission check basically)then you are 100% until your yearly anniversary date then you atart over again.

We have transaction coordinators available, if needed (no cost to agent), mortgage and attorney services also. Your also given a website linked to MLS for buyer lead incubating, as well as company leads from the main company website if your the agent that covers a particular area. We are also able to build teams and earn income from agents on our teams if your the team leader.

The only downfall is your responsible for your own advertising costs and signs.

I believe each RE/MAX franchise handles fees differently.  My first RE/MAX office as a new agent I was on a 50/50% split and had $200/mo. desk fee.  You could have 100% commission split for something like a $800 desk fee/mo. If you paid your annual desk fee at beginning of year, your commission would be 100% right away if on 50/50 plan.

The 2nd RE/MAX office I worked in, my split was 80/20 and my desk fee was $250/mo.  That was the only split offered and 100% commission was $750/mo. desk fee.  The desk fees were raised, however, as long as I was current, I was grandfather under the old system.  New people had to pay an additional 5% of their commission into a franchise fee on top of the annual $490 franchise fee.  Also, if desk fee paid in one lump sum, you could be 100% with no split.

An independent broker in town charged a $70 desk fee for a 70/30 split.  It was $350/mo. for 100% commission.  No training - no support

I interviewed at Keller Williams - It was $70 desk fee for 70/30 until you reached a cap (don't know what that is) then 100% commission.  Bonuses for brining in people under you.

Just be aware up front of those dime & nickel things that get you - expensive color copies; transaction fees, is E&O & B&O covered in the transaction fee or is that separate.  Is there a required charity donation?  etc.  Good luck!

Bee,

What company do you work with now?

Spits here, are anywhere from 50-50 to 100%,

Most fall around 60-40 but from the 60%, you subtract the franchise fee which is usually 6-8% so the agent really gets 52% on a 60% split.

I pay 100% commission to my agents, the agents pay $325/month and $300 transaction fee at closing. (which includes all franchise fees)

http://realestatetorrington.com

Ah, Sharron - you're going to make me say it, aren't you :)

I work for Zip Realty.

All expenses are covered - my percentage averages 50% but again, I have no expenses at all.

Remax does charge a HIGH desk fee.  My husband started out with them paying between $1200 and $1400 a month.  Thankfully he was busy when he started b/c he bough an active practice.

Later we moved and then he came back to real estate w/ me on board.  We went with Coldwell Banker.  We did a 50/50 since we were starting over.  It KILLED him every time he got a commission check.  We went to Vegas and I got a 70/ 30 split with Coldwell Banker since I was an experience agent w/o having to pay up each month (you can pay a desk fee each month with them to get a bigger cut).

I got my 1st commission and almost still died a little since they did not on thing to help.  Any marketing I did I paid 100% for plus office usage fee's.  I never used there fax once.

Came back to Texas.  You are familiar with Realty Associates.  My husband is eligible for his brokers and should get off his lazy $$$ and take it (just kidding that man works his $$$$ off).  We had to find a broker that would allow us to work both Galveston and San Antonio by being a member of 3 boards.  They were it and guess what.  I pay usually $199 for any transaction.  I can start my own branch if I want with a DBA plus I do get support when I need it.  They are not a discount broker b/c they are what I am.  My service is 100% full service.

I looked into starting my own brokerage.  I don't think I could get E&O that cheap if I tried.

Do miss the relo's from Cendant and other sources when you are with a national firm.  My husband reminds me of those checks every time I contemplate even going back to a 70/30 firm.  

I do think Bee is right.  Now Remax has other options at some locations.  At his you could not be on any split at the time and you had to be invited to join.  They were the snobs of that market.  He did love Remax but he hated that desk fee.

Good question.  I hope you kiss that uncle of your every chance you get.

Can he adopt me?????  

Everyone thinks it is a discount brokerage but it's not, or at least my Houston office is not.  My broker is a super nice guy and I pay a flat fee based on the amount of my commission.  On an average Texas sale of under $200K I pay $199 dollars.  I get advice.  I get to run my office the way we prefer.  We have education, sales meeting and all the things I got at Coldwell Banker.  I miss benefits like Cendant and other nation brokerage perks but I do not miss having to pay either half my commission or a huge fee to keep more of it.

My acting broker at Coldwell told me I was going to a discount broker yet I feel the service we give it not a discount.  I have one of the best sites in Galveston and plan on getting to that level in San Antonio.  I still pay the same price for ads.  the only thing I don't have is the Coldwell Banker website behind me.  I never got a lead from it.  I did get leads on floor time but I consider that passive marketing.  I did love Coldwell Banker, just not the huge fee's involved.  even when i was on a 70/30 in Vegas I felt robbed when I got my commission.  Kevin and I looked into starting our own brokerage but with him being so active building we decided RA was the best.  Plus we can't get E&O for as cheap as the fees we pay for each transaction.  

We are pretty happy with the situation.

Thanks for asking Bill.  How life in Richardson?  The rain here is killing us.  Being builders it makes me eat beans and rice.

My husband and I started our own brokerage on the Central Coast in CA just over a year ago. We are thinking of hiring some agents and were wondering what would be attractive to offer in terms of desk fees, commission splits, etc. We have been running the business from home and are just now looking into office space, so there is not a lot of infrastructure at this point, which we know we need to keep in consideration.  Any info would be helpful-Thanks!