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Why Agents Should Consider a Fee-Based Model


If youve been working as real estate agent for any amount of time, then youre familiar with the percentage cut many agencies take from their agents. While this is a fairly common business practice, its not the only option for agents, and its not always the best option either.

Understanding A Percentage-Based Structure With the fourth quarter of 2017 upon us, its only a few more months before many agents will have to start giving a larger portion of their commission to their agency. This is because many agencies that use a percentage model roll back their agents percentages at the first of the year.

Its not uncommon for an agent to start a new year off at a 70 percent / 30 percent splitwith the agency taking 30 percent to cover costs, fees, training and other tools they may offer. Then, as agents reach sales milestones throughout the year, that percentage shifts, with the agent retaining more of each sale.

Why Fee-Based is the Better Option Many percentage-based agencies point to a seemingly robust suite of marketing tools and support to justify their take of each sale. While this might benefit more inexperienced agents, a fee-based model allows the savvy agent the flexibility to make their real estate practice their own and really grow their business.

With a fee-based model, agents can manage their own marketing strategy and expenses without interference or expectation from the company theyre affiliated with. This means the agent has flexibility in determining not only how they reach their clients but also how much commission they charge those clients.

Take Your Career into Your Own Hands At Benchmark, we offer agents a completely set plan, where each agent selects their fees at time of transfer. This gives agents independence and the ability to plan exactly what out-of-pocket expenses will be for the year.

If youre looking to take your real estate career to the next level with more autonomy and less money per sale handed over to your agency, you may be a fit for the Benchmark team.


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