OK so I am clearly biased but over the last three years my team and I have studied many residual income models from Keller Williams to Exit Realty and many major brokers in between. We've been doing our due diligence to develop the most effective and attractive compensation/residual income model for agents working for our company, Connect Realty (this is where the bias comes in: I'm a principal/shareowner of the company). However, our model is quite simplistic in nature (not rocket science) but we really spent a lot of time and effort to develop it. Part of the reason it works so well strangely enough is because we are a non-franchise company operating in 17 states and growing very quickly. Why is this important: Because any agent/broker in our company who hires any agent/broker in any of the states we operate in (not just the state you are licensed in) gets paid 5% of every commission of every agent they hire. We also pay this 5% three levels deep. In summary, our first transaction was February of 2008. To date, we've grown to well over 1500 agents, most of whom are productive agents who are very satisfied with our residual plan. Of course, we offer (here's more bias) virtual everything (transaction manager, website, realtor.com, email, training, etc) but this is a residual income discussion. Suffice it to say the "hundreds" of agents I've spoken with over the last year say our residual income model is the "Best Icing on the Cake" they've ever been provided to date! Anyway, what we do is pay a flat 80% with no rollbacks ever. The remaining 20% goes into a corporate holding account so the 80% commission is always a true 80% to the agent. Now lets discuss the 20%. It is used to pay back agents in 5% increments up to 3 levels deep. OK...In plainer english: Agent A recruits Agent B, Agent B recruits Agent C, Agent C recruits Agent D. If Agent D closes a deal then she gets her 80% commission. Of the remaining 20% the corporation now holds, 5% will go to agent A, 5% will go to agent B and 5% will go to Agent C. The corp is left with 5%...Make sense?? So you wanna test drive the model and see how it works in real dollars. I guarantee you'll like it. Just call ANY of the agents listed on our site (this is where I'm not biased as I'll never even meet most of them). Odds are they'll have a positive testimonial about it. Oh yeah...almost forgot: Here's the link to our residual commission model. Play around with it and let me know what you think. Just click here to launch the calculator: http://new.connectrealty.com/Agent_Commissions.php
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