Everyone wants to increase their profit from real estate deals. It is made possible by the model of 100% commission. With worthy cause, the model has gained popularity in recent years.
So how does it function by giving the real estate agent a 100% commission on each and every deal? This can startle agents who have previously worked with conventional brokers. After all, how is the broker making money if they are not receiving a commission at all?
How Does this New Model of a 100% Commission Split Really Work?
A 100% commission split, as the name implies, allows you to keep all of your commission. Your broker and you won’t need to divide the complete commission.
In contrast to the conventional arrangement, where your broker keeps a sizeable portion of your commission fees, the new 100% commission split allows agents to save all of their earnings.
For instance, if the total commission for any of your real estate transactions happens to be $10,000, the broker and agent will only give you $5,000. However, if you engage with a real estate broker who uses the new commission structure, you will be able to keep the full $10,000.
You will be required to pay your brokerage firm where you work with a few hundred dollars every month in membership dues or for the use of their office space. Regardless of the total amount of transactions you do, they will give you a fixed cost.
What are the Advantages of the New Real Estate Commission Model
We have highlighted a few benefits of dealing with any such type of real estate broker offering this new incentive scheme to help you to understand and learn more about this new 100% commission model.
1. Better Flexibility
When you engage with a 100% commission broker, you will have complete control over your business. You will manage all business activities, make all appointment arrangements, and make all financial decisions.
Without having to answer to anyone or meet a predetermined sales target, you will have the freedom to manage clients and also your personal life as a real estate invest.
2. Better Earning
You will have the chance to work harder and earn more money because this new model allows agents to keep 100% of their income, especially if you have been in this industry for a long time and can quickly execute many monthly deals.
A few hundred dollars in membership fees may be required, but you will get access to facilities, office space, and other essential support services. Your overall costs will be much less than what you would lose in a conventional 50/50 split with a broker.
3. Better Opportunity
With the help of a 100% commission plan, you will have the opportunity to establish your brand in the industry rather than spreading the word about your brokerage. You will receive exclusive credit for all of your accomplishments and labor. Without being constrained by the broker’s reputation, you will be free to develop your own brand value as you see appropriate.
We hope with this explanation, you have got better clarity about this new commission model.