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Celebrating Agent Teams

Your Pay Your Way™ – Part II

Last month I wrote about the basics of Your Pay Your Way™. This month I want to expand upon this with a discussion about how we approach our agent teams. Your Pay Your Way™ is designed to be transparent, easy to understand, and most of all flexible. It is designed to support both the goals of the agent, the brokerage, and the ROOST Real Estate Co. mission and brand values. Celebrating Agent Teams is an extension of our approach to agent compensation.

The Broker / Owner Is The Ultimate Decision Maker

How Your Pay Your Way™ fees are assessed for agent teams is ultimately the decision of the broker. When assessing fees, consideration needs to be paid to the size of the team, whether or not each team member has a desk, and the additional responsibility the agent team places on the brokerage and staff. These are all determining factors in a fair and equitable split that preserves broker profitability and ensures an attractive and competitive opportunity for the agent team leader.

The Five Commitments of The Broker

Your Pay Your Way™ defines the five financial ‘commitments’ of a ROOST or Lucky Town broker / owner:

  • The Shared Office Expense Fee
  • The Administrative Staff Fee
  • The Basic Agent Service and Technology Fee
  • The Franchise and Marketing Fee
  • The Broker Service Fee.

Depending on the situation, some or all of these fees may be assessed to the Team Leader for their team members.

Annual Team Investment Basics

If the team shares a single desk in the brokerage then The Shared Office Expense, and The Administrative Staff Fee are both waived for the team member or team members. The Basic Agent Service and Technology Package is also waived unless there are actual costs associated with a specific team member. For instance, if the team leader desires that her team member has their own 8 X 8 phone line, the team leader would be assessed those actual charges on a monthly basis.

Marketing Basics

As a rule, agent teams operate, advertise and market themselves as a single entity. For instance, the hypothetical three-member ‘Sims Team’ would advertise as a team and not as three individual licensees. If at some point a team member elects to ‘graduate’ to doing business on their own as an individual agent, they would do so in accordance with Your Pay Your Way™.

Situations When Adding a Team Member Makes Sense

The granting of team status is at the sole discretion of the broker owner. Here are three examples when forming a team makes sense for an individual agent:

  • An agent and their significant other decide to work, market themselves, and sell together.
  • An agent who brings on a son or daughter to learn the business, assist in day to day activities, and possibly take over the team in the future.
  • A successful team member consistently grossing more than $150,000.00 per year who needs to bring on a buyer agent to expand and take the quality of their service to a new level.

Two Person Team Example

Let’s consider an agent team made up of two people who average together $250,000 a year in gross commissions. The team will pay 30% of their gross commissions to the brokerage on the first $100,000 earned to meet their five fee obligations outlined above. They will pay just 10% on the last $150,000 earned to cover The Broker Service Fee. Because they are a 2-person team, they will also be assessed and an additional $5,000 for the designated team member.

In this scenario, the effective discount to the team leader is $15,000 per year compared to two individual agents doing the same amount of business. Here is the math:

  • 35% of the first $100,000 earned is $35,000. (30% for the team + 5% for the single team member)
  • 10% of every dollar earned in the calendar year above $100,000 for the team is $15,000. ($250,000 gross commissions less the first $100,000 earned = $150,000. 10% of $150,000 is $15,000.)
  • Total fees for a 2 person team grossing $250,000 in a calendar year = $50,000. ($35,000 + $15,000) The effective split is 80/20 ($50,000 / $250,000 = 20%) with each team member enjoying the full financial support of the brokerage. (The team leader is also responsible for licensing fees, MLS fees, board dues and errors and omissions insurance.)

A single agent grossing $125,000 would pay $30,000 on the first $100,000 and 10% or $2,500 on the last $25,000. That totals $32,500 for the single agent in fees. Two single agents with this sales volume would pay a total of $65,000 in fees. Bringing two people with this total volume together saves the team $15,000 a year. ($65,000 – $50,000 = $15,000)

When a Team Makes Sense

A team structure only makes sense when two people working together can do the work of three or more. We want to encourage and support that kind of productivity and pledge to make all the resources at our disposal to help make that happen.

Whether you are new to the business, an experienced professional, or a team leader looking for the best possible brokerage to build your business with, ROOST Real Estate Co. has a compensation plan and fee structure that grows with you as your business grows.

Care to Learn More?

Care to learn more about how we approach our business, and relationships with real estate professionals like yourself? Visit us at www.CareerWithROOST.com.

Celebrating Agent Teams

Your Pay Your Way™ – Part II

Last month I wrote about the basics of Your Pay Your Way™. This month I want to expand upon this with a discussion about how we approach our agent teams. Your Pay Your Way™ is designed to be transparent, easy to understand, and most of all flexible. It is designed to support both the goals of the agent, the brokerage, and the ROOST Real Estate Co. mission and brand values. Celebrating Agent Teams is an extension of our approach to agent compensation.

The Broker / Owner Is The Ultimate Decision Maker

How Your Pay Your Way™ fees are assessed for agent teams is ultimately the decision of the broker. When assessing fees, consideration needs to be paid to the size of the team, whether or not each team member has a desk, and the additional responsibility the agent team places on the brokerage and staff. These are all determining factors in a fair and equitable split that preserves broker profitability and ensures an attractive and competitive opportunity for the agent team leader.

The Five Commitments of The Broker

Your Pay Your Way™ defines the five financial ‘commitments’ of a ROOST or Lucky Town broker / owner:

  • The Shared Office Expense Fee
  • The Administrative Staff Fee
  • The Basic Agent Service and Technology Fee
  • The Franchise and Marketing Fee
  • The Broker Service Fee.

Depending on the situation, some or all of these fees may be assessed to the Team Leader for their team members.

Annual Team Investment Basics

If the team shares a single desk in the brokerage then The Shared Office Expense, and The Administrative Staff Fee are both waived for the team member or team members. The Basic Agent Service and Technology Package is also waived unless there are actual costs associated with a specific team member. For instance, if the team leader desires that her team member has their own 8 X 8 phone line, the team leader would be assessed those actual charges on a monthly basis.

Marketing Basics

As a rule, agent teams operate, advertise and market themselves as a single entity. For instance, the hypothetical three-member ‘Sims Team’ would advertise as a team and not as three individual licensees. If at some point a team member elects to ‘graduate’ to doing business on their own as an individual agent, they would do so in accordance with Your Pay Your Way™.

Situations When Adding a Team Member Makes Sense

The granting of team status is at the sole discretion of the broker owner. Here are three examples when forming a team makes sense for an individual agent:

  • An agent and their significant other decide to work, market themselves, and sell together.
  • An agent who brings on a son or daughter to learn the business, assist in day to day activities, and possibly take over the team in the future.
  • A successful team member consistently grossing more than $150,000.00 per year who needs to bring on a buyer agent to expand and take the quality of their service to a new level.

Two Person Team Example

Let’s consider an agent team made up of two people who average together $250,000 a year in gross commissions. The team will pay 30% of their gross commissions to the brokerage on the first $100,000 earned to meet their five fee obligations outlined above. They will pay just 10% on the last $150,000 earned to cover The Broker Service Fee. Because they are a 2-person team, they will also be assessed and an additional $5,000 for the designated team member.

In this scenario, the effective discount to the team leader is $15,000 per year compared to two individual agents doing the same amount of business. Here is the math:

  • 35% of the first $100,000 earned is $35,000. (30% for the team + 5% for the single team member)
  • 10% of every dollar earned in the calendar year above $100,000 for the team is $15,000. ($250,000 gross commissions less the first $100,000 earned = $150,000. 10% of $150,000 is $15,000.)
  • Total fees for a 2 person team grossing $250,000 in a calendar year = $50,000. ($35,000 + $15,000) The effective split is 80/20 ($50,000 / $250,000 = 20%) with each team member enjoying the full financial support of the brokerage. (The team leader is also responsible for licensing fees, MLS fees, board dues and errors and omissions insurance.)

A single agent grossing $125,000 would pay $30,000 on the first $100,000 and 10% or $2,500 on the last $25,000. That totals $32,500 for the single agent in fees. Two single agents with this sales volume would pay a total of $65,000 in fees. Bringing two people with this total volume together saves the team $15,000 a year. ($65,000 – $50,000 = $15,000)

When a Team Makes Sense

A team structure only makes sense when two people working together can do the work of three or more. We want to encourage and support that kind of productivity and pledge to make all the resources at our disposal to help make that happen.

Whether you are new to the business, an experienced professional, or a team leader looking for the best possible brokerage to build your business with, ROOST Real Estate Co. has a compensation plan and fee structure that grows with you as your business grows.

Care to Learn More?

Care to learn more about how we approach our business, and relationships with real estate professionals like yourself? Visit us at www.CareerWithROOST.com.