I heard there are offices that are offering agents a monthly draw on commissions. They even pay out $500 a month for the first 3 months until the agent gets a deal. Does this really work? My question is what happens when the agent doesn't perform or close a deal? And doesn't this attract agents that aren't experienced?
Have any of you Broker Owners tried this? I'd really appreciate you sharing your thoughts on this!
I am a multi million dollar producer. When I first started in real estate I couldn't afford to pay attention. Our company hired me as a staff agent. I got paid an hourly wage and was paid a small commission when something closed. After six months I went full time. I would have made more if I started out full time however thanks to this program, I had the opportunity to make it in the business. Since then dozens of agents have made it successfully and as a result our company is the top in the county for the last several years. Have there been failures? Yes, a few but that's the risk we take. Not all of our listings sell either.
There was a local office here that had a six month "salary" deal with new agents. There was a trade off though. The agent had to be in the office until 10PM one evening per week to handle calls. And had to cover floor time one weekend per month
Last Fall it was discontinued.
Vicki,
If I remember correctly, the "draw" was $1200 per month for six months. That was repaid out of earned commissions on the agent's side of the split. The result was they packed the office with a lot of people that never did much business. They really had no training for newby's, so most just disappeared.
Can you really survive on $500? I have had one draw in my career, I had an emergency and was 4 days away from a closing. But, I can't imagine trying to live on $500 a month.
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