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Real Estate Maximum Compensation

Real Estate Maximum Compensation

The RE/MAX Services Concept

Let's talk 'Desk Fees'.  Everyone pays them.  Whether you are at a 50/50 split, 60/40 split, 70/30 split, or an 80/20 split, the portion of the gross commission going to the company is paying for expenses and office overhead.  Your company may call it 'Expenses or Company Dollar’; we call it 'Desk Fees'.  Terminology is all it is.

RE/MAX is well known for its high commission split and the desk fee program that attracts experienced agents.

At conventional real estate offices, agents are placed on a 50-50 split after paying a franchise fee of 5% to 7% of the gross commission. As their production increases, the agent receives more of the commission based on preset production levels.

At RE/MAX Services, you and I or you and Ray will agree on what split you will start at - it may be a 50/45/5 or 60/35/5 or 70/25/5. 

For this example lets say you start at a 50-45-5 split and you occupy a modular desk in either the Evansville or Newburgh office. 

50% of the gross commission is paid to the agent first.

Out of the remaining 50% - 5% is a franchise fee and the remaining 45% is applied towards your desk fee.  We track the 45% amount deducted from your gross commission checks until the annual desk fee for the fiscal year is collected. Once the desk fee is paid, you will receive 95% of gross commission for the remainder of your fiscal year.

For agents whose yearly average production is $1,500,000 or higher, you may choose to go on the 95/5 Commission Plan.  Earning you 95% on every closing.  Your monthly desk fee would be set based on - the type of office you occupy (Private, Modular or Unassigned) and depending on whether you have a licensed personal assistant - and be paid by you on a monthly basis.

Here are a couple of examples to look at: 

#1 – (earning 3.5% commission on each property sold)

Based on the sale of several properties amounting to $1,067,500 in total sales at an average commission rate of 3.5%, the gross commission would be $37,362.50. The gross commission of $37,362.50 would be paid out as follows:   $18,694.37 to the agent, $1,868.13 as franchise fee, $16,800 as desk fee.  All sales after that would be at the 95-5 split until the end of your fiscal year.

#2 - (earning 3% commission on each property sold)

Based on the sale of several properties amounting to $1,244,500 in total sales at an average commission rate of 3%, the gross commission would be $37,335. The gross commission of $37,335 would be paid out as follows:  $18,668.25 to the agent, $1,866.75 as franchise fee, $16,800 as desk fee.  All sales after that would be at the 95-5 split until the end of your fiscal year.

·                                 Our Associates work under a Maximum Commission Concept

·                                 Office expenses are divided equitably among all Associates

·                                 Associates are provided the environment and support that maximizes their opportunity to succeed.

·                                 Membership is limited to the most productive, ethical, and professional practitioners.

·                                 Associates are in charge of their own business and receive the benefits of every lead their marketing efforts generate.

Items to consider:

·                                 At your current location, what are the production level requirements to take advantage of a higher agent commission split? What is the maximum split?

·                                 What items is the broker paying on your behalf and what do they amount to?  Your advertising budget is for you to control not your broker.

·                                 Your errors and omissions insurance is included in the RE/MAX Services desk fee. 

·                                 Do you have a private office?  Modular office?  Unassigned?  Licensed Personal assistant?

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Janet Poehlein-Beem
812-759-7325
Cell: 812-204-5430
Office Website
Contact Me

All Inquiries are Kept Strictly Confidential

Ray LaGrange
812-759-7326
Cell: 812-760-7070
Office Website
Contact Me

All Inquiries are Kept Strictly Confidential