Your Pay Your Way™ For Broker/Owners

Your Pay Your Way – Part I

I’m writing this post to offer some insight into one of the ways we approach our relationship with our Realtors® – our compensation strategy.  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.

We want to be the first and last brokerage our agents work with.

ROOST Real Estate Co. is a full service brokerage that strives to offer the highest level of service possible to both buyers and sellers.  We are a relationship focused business eager to create clients and referral sources for life.  

Anytime an agent puts themselves through the emotional upheaval of changing brokerages, they are taking a leap of faith that their new broker has their best interests and goals at heart.  

Over the course of a career an agent is going to pay their brokerage tens of thousands of dollars in the form of expenses, fees, and splits.  Personal, emotional, and financial commitments of this magnitude deserve the very the best the broker owner and ROOST Real Estate Co. can offer.

We at ROOST™ are always looking for ways to express our gratitude and appreciation to our agents for choosing us.  Ours is a relationship with our agents.  We are not interested in a simple series of transactions. 

What are the actual costs of doing business at ROOST?

The first commitment a broker has is the ROOST Monthly Franchise and Marketing Fee.  This money is used by ROOST Real Estate Co. to continue to expand the brand through social and other electronic media, upgrade our marketing materials, and to keep the brand fresh and forward thinking.  This fee is equal to 5% of sales and is payable by the broker monthly to ROOST Real Estate Co.  

This fee is capped through year 2022 at 5% of gross agent sales or a maximum of $5,000 per agent per year.  And, unlike the national franchises, ROOST does not collect transaction fees or annual dues of any kind.

The second commitment the Broker has is The Shared Office Expense.  This fee is collected to cover the overhead of the physical office space including, rent or mortgage payments, office equipment, phone services and all of the things required to maintain a business.  This fee is equal to 5% of sales and is retained by the broker.  

This fee is also capped through 2022 at 5% of sales per agent per year to a maximum of $5000.

The third commitment the Broker has is to the Administrative Staff including the Agent Business Manager(s) or ABM’s.  Whether an office has 50 agents or 5 agents, administrative functions have to be completed by someone and even if this is done in the early days by the broker himself, there is a cost involved.  This fee is equal to 5% of sales and is retained by the broker.

This fee is also capped through 2022 at 5% of sales per agent per year to a maximum of $5,000.

The fourth commitment the Broker has is to The Basic Agent Service and Technology Package.  We want our agents focused on working with buyers and sellers.  We do not want our agents doing basic marketing and promotion, setting up showings, or filling out contracts with pen and paper.  The Basic Service and Technology Package is a commitment from your broker to provide the following:

  • Ongoing support for agent training and development.  Our brokers are Buffini and Company Certified trainers for Peak Producers – quite simply the finest working by referral training program in the world.
  • Up to 100 personalized monthly item of value mailers to the very best referral sources in agents’ databases.
  • Buffini and Company Referral Maker CRM – The best contact management software in the real estate industry.  If an agent elects to pursue personal coaching with Buffini and Company – which includes Referral Maker – the brokerage will help pay for it up to the cost of Referral Maker as a stand-alone product.
  • Dotloop paperless office.  Create contracts and get them signed from anywhere there is an internet connection.  Save time and better serve your clients.
  • Presentation Brochures – Branded items to reinforce your place with your clients and customers.
  • Professional Showing Services – Never have to stop what you are doing again to set up a showing.  (Your MLS may already offer this service.)
  • Dedicated personal cloud based telephone number integrated with the corporate phone system.

The actual cost of these services to the brokerage runs from $400 to as much as $600 per month per agent depending on location.  There is also a tremendous amount of time involved in working with agents to get the full benefit of the Basic Agent Services and Technology Package.  

This fee is also capped at $5,000 a year or 5% of sales through 2022.  In our experience agents who take advantage of these services see an immediate increase in productivity of 15 to 20%.

The Fifth Commitment is to the Broker/Owner Herself – The Broker Service Fee.  Every fee we have defined so far exists to cover the cost of owning and operating a brokerage.  Every entrepreneur expects a return on their investment of time and capital.  ROOST broker owners are no different.  This is where the Broker Service Fee comes in.

As you will note above, the monthly Franchise and Marketing Fee, the Shared Office expense, the Administrative Staff fee, and the Basic Agent Services and Technology Package add up to 20% of every commission dollar earned by an agent.  However, the most an agent will ever pay in any calendar year for these fees is $20,000 regardless of how much they earn.  These fees are capped to cover actual costs and no more.

The Broker Service fee is equal to 10% of every commission dollar earned by every agent.  There is no cap on this fee.  Whether an agent earns $100,000 or $1,000,000 over the course of the year, the brokerage will retain 10%.  We structured our fees this way to ensure our broker owners are rewarded and motivated to support elite producers regardless of their volume.

Our Financial Goals For All Of Our Agents

We want to see every one of our agents earn at least $100,000 in commissions each year.  If that agent is on a 70/30 split, they are paid $70,000 and the brokerage retains $30,000.  

What if this agent has a great year and hits their $100,000 sales goal at the end of September and still has several closings in the last quarter of the year?  Once the brokerage gets to $30,000 the agent keeps 90% of every dollar they earned for the rest of the year.  This compensates the agent at or above the industry average and allows the brokerage to continue to grow, upgrade, and offer new services over time.

For the New Agent

For a new agent just starting out, we offer full service and support with a 60/40 split.  60 percent of every dollar the agent earns is paid to the agent and 40% is retained by the brokerage.  The agent is responsible for their monthly MLS(s) fees and a monthly Errors and Omissions Insurance fee.

The ‘Power’ Agent

Agents with a proven track record earning in excess of $150,000 per year may negotiate up to a 90/10 split with the monthly Franchise and Marketing Fee, the Shared Office expense, the Administrative Staff fee, and the Basic Agent and Technology Services Package covered with an additional monthly payment. The agent is responsible for their monthly MLS(s) fees and a monthly Errors and Omissions Insurance fee.

The Team Leader

ROOST Real Estate Co. is also the best place for teams to set up shop.  10% of commission dollars earned by team members are retained by the brokerage and the Team Leader pays a negotiated monthly fee for the Franchise and Marketing Fee, Shared Office expense, Administrative, and Basic Agent Service and Technology Package fees to the broker/owner. The Team Leader is responsible for their team members’ monthly MLS(s) fees and monthly Errors and Omissions Insurance fees.

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?

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