Read This to Understand the New Model of 100 Percent Commission

Who does not prefer to make more money when they enter the real estate market? Certainly, this new model offered by 100 percent commission can make it a reality.

That is the reason why this new 100% commission model has become very popular in recent years among real estate agents. Here the real estate agents will get 100 percent commission on every transaction.

However, for agents who were familiar with the traditional models, this may come as a total surprise. After all, how a broker can make money if he offers full commission to his agents? Let us try to understand this concept.

How does the new model of 100% commission real estate broker works?

In this new model, there can be several ways a brokerage can change the structure of this 100 percent commission model. Some of the brokers may opt not to offer any official support services to all their agents. 

In this way, they can reduce their infrastructure expenses down, so they can easily pay out 100 percent commission to the agents on sales. It also permits them to charge their agents some amount of monthly fees for using the desk space in the office.

However, the responsibility of providing the necessary support and training is no longer with the broker and the agents need to take care of that at their own expense.

A few other brokers may prefer to charge a flat fee for each sale the agents make. These fees can be either very low or very high, which is depended upon how the broker develops an understanding with the agents.

Whatever the situation may be, a real estate agent will end up paying a certain amount of funds to the brokerage if he wants to remain an associate. This can reduce the amount of commission that an agent may take home.

With this understanding, you can decide whether you want to work as an agent with a broker or work independently.

What you can do?

If as an agent you have got enough experience and have succeeded in making a long list of clients, then this is an opportunity for you to start a successful business of your own rather than working with a broker. 

For those who are new and aspiring to be a real estate agent, for them, it will be better to work with a broker and continue with the traditional model that existed so far. Since as a new agent, you need to learn the tricks of the trade, and hence you cannot afford to work on your own.

As a new agent, it is still worth accepting a lower commission and continuing to work with the broker, and avail of the office and telephone facilities provided by the broker. You can also get additional on-the-job training, which will remain the responsibility of the broker so that you can deliver a better result.

Once you are confident about this line if you want then you can switch to the 100 percent commission model and earn more money.

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