Our office is heavily involved in recruiting right now and one of the biggest objection I have heard lately is our commission splits.  Our splits, I think, are quite high and a new agent can expect to start at a 70/30 split after completing a short mentoring and training period.  We have a fairly quick ramping up period for our agents and most are earning their full 70/30 split within 3 or 4 months of joining.  Then, once they reach an earned GCI of $100,000 they go up to 90% for the remainder of the year. 

There are a lot of companies out there that charge a flat desk fee.  Some only charge $275 per month.  But, what do you get for that $275?  Do you have to buy your own for sale signs?  Do you have to buy your own open house signs?  How much are you paying in Errors and Omissions?  One company I talked to charges $25 per transaction.  My best year was 50 transactions and that would have cost me $1250 (the actual cost of our E&O is $125-$150 per year).  Do you have to buy your own lock boxes (the new Sentrilock boxes are $100 in Anne Arundel County)?  Do you have to pay for copies?  Do you have to pay for faxes?  How about color printing?  Do you have a per transaction fee that you are charged?  Do you have use of office equipment, office space, conference room for settlement, office phones?  One company I talked to charged you extra if someone called you in the office and the receptionist had to take a message.  Do you have direct access to your broker?  Do you have a state of the art company and personal website with company email?  And, does your company give you leads?  How about floor duty or opportunity time?  Do you have access to international relocation leads or referrals?

When you work it all out, is it really worth staying with a company that only charges $275 per month or are you paying more than if you were on a 70/30 split? 

When you are choosing a broker remember the same holds true in choosing a brokerage as is true in buying a home - everything in real estate is negotiable.  If you have experience or particular skills maybe you can negotiate a better split than that 70/30. 

June Piper-Brandon, Broker - Advance Realty Anne Arundel Inc.

http://www.gb-advancerealtyusa.com