The decision is a big one and can ultimately lead to a fruitful career in sales or can lead to an expensive lesson. (see next blog Business Investments) Most brokerages are structured on a commission sales basis which means you are not an employee. You are an independent contractor. You get paid a portion of the commission generated from your sales. That’s the great part! There is no limit on income you can potential generate.
My recommendation is to first explore the brokerage for fit and culture. Never make the mistake of deciding on a brokerage based on the commission splits. Trust me when I say NEVER. You could earn 100% but, look at it like this 100% of zero is still zero.
- What is the per agent productivity of the office? Productivity is contagious. The people around you can bring you down or lift you up.
- Tell me about the technology and systems that your brokerage has adopted? How will these help me build a business that is consumer and relationship centric? Video communication will be essential moving forward.
- Do you offer access to training classes that help me earn real estate designations? The more you learn, the more you earn.
- Do you have coaching? Coaches provide guidance, experience and accountability. Three critical factors in a sales business.
- Do you have peer mentoring? Is there a fee to participate? This shows if agents within the firm believe in helping each other and the pay it forward mindset. Compete outside not within.
- Is your management team non compete? Agent focused philosophy. You are in business for yourself, not by yourself.
- How do you support and donate community? Giving back to great charitable causes means you don’t just do business in the community you care about the community.
- Do you have a global reach? Today’s real estate is global, is the brokerage? Brand goes beyond local name recognition. Credibility on a local, national and global level helps you generate more clients.
- What lead generation is available to me as an agent of the brokerage? Is there a criteria for participating? What fee does the brokerage charge for these type of opportunities? Referral fees can be substantial for corporate or company generated leads. Run the numbers and decide if it’s worth the cost.
- What is the minimum standard? Do you need a set volume of sales quota in order to maintain your license with the brokerage? Be around agents that are earning a living in sales.
- Is there a discount for buying or selling my own properties? Build wealth investing in real estate. Believe in real estate investment and ownership.
- What was your retention percentage last year? Growth and retention demonstrates the brokerage has a strong foundation.