Special offer

The Automotive Business Comes to REAL ESTATE

By
Real Estate Agent 40CA1147997

It was announced this morning in the local paper that a large real estate firm in the area would be paying new  agents that enroll in a payment plan a check each week based on the previous years commissions.

The reasoning was because an agent does not get paid until the close of the home and would make it easier for them to survive. 

The weekly interest free advance would be paid back against future commissions earned. 

Another factor they failed to disclose was what if there were no future commissions earned and what happens with the outstanding balance!

In the auto industry there were a number of ways this was enabled but most times it was from the previous month's commissions. 

Seems to me if they were making money the first year they would not need this the second year.

Posted by

 

 

 

Raymond E. Camp

Real Estate to a Close  

If you are considering buying or selling a home, lake frontage in Webster, Penfield, Perinton, Pittsford, Mendon, Honeoye Falls, Victor, Farmington, Canandaigua, Macedon, Walworth, Ontario, Williamson, Marion, Sodus, Sodus Point, Wolcott, Huron, The Finger Lakes and Lake Ontario feel free to contact me at 585.469.9199 or raymondcamp@raymondcamphomes.com or visit one of my websites  at http://www.nothnagle.com/raymondcamp

Make yourself a great day.

 

 

 

Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

I'm not an agent but it sounds like a bad idea to me. Should be interesting to see how it turns out.

Jul 28, 2015 10:58 PM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Ray. There is something wrong with this picture, what happened to having a free enterprise system? This type of thing will definitely effect employment in the rear estate industry.

Jul 28, 2015 11:03 PM
Raymond E. Camp
Ontario, NY

Debbie Reynolds I agree it is a recruiting tactic as one of there quotes is we have the most agents!

Sharon Tara I hope the newbies read the fine print!

Joe Petrowsky It seems they have there ups and downs.

 

Jul 28, 2015 11:14 PM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I think this is/was common in the Life Insurance business and it may help get some new agents on board but without the motivation of sell or starve I see just as many failures with it as without.

Jul 29, 2015 06:10 AM
Raymond E. Camp
Ontario, NY

Bob "RealMan" Timm The payback part could be a killer if they don't have a good second year!

Jul 29, 2015 06:25 AM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Kind of like student loans Raymond E. Camp 

Jul 29, 2015 06:31 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Raymond.  I've read about some firms that have been doing this for years.  I guess it must work for some.

Jul 29, 2015 09:06 PM
Raymond E. Camp
Ontario, NY

Bob "RealMan" Timm Probably

Gabe Sanders It did not work in auto

 

Jul 29, 2015 09:34 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Raymond E. Camp,

I would not be interested in advancement on commissions. When I've earned it I like to be paid! As Conrad Allen commented "Advances are a very tricky and slippery road!"

Jul 29, 2015 09:56 PM
Raymond E. Camp
Ontario, NY

Dorie Dillard It helps keep my mattress lumpy and that helps keeep me motivated for more lumps!

Jul 29, 2015 10:11 PM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Not a very good way to run a business in my opinion. If you aren't ready to work hard and do what you need to do to make it in the real estate industry then you aren't ready to be in the real estate industry. 

Jul 30, 2015 12:54 AM
David Barr
Berkshire Hathaway HomeServices Florida Realty - Sarasota, FL

Before real estate I was in advertising sales, and they paid a base salary plus draw against commissions.  This plan is no different.  In fact, it may be the coming trend.  Embrace change.

Jul 30, 2015 01:18 AM
Chuck Willman
Chuck Willman - Alpine, UT
NewHouseUtah.com

It's not surprising. One of the hottest internet/tech business sectors deals with alternative banking. I see it as a non traditional choice- offering consumers an option against the norm that they may or may not want. As in all things, it would be crucial to read the fine print.

Jul 30, 2015 01:58 AM
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Hi Raymond E. Camp ,  I see nothing but problems with that decision, unless they are looking for ways to take a loss.

Jul 30, 2015 11:20 AM
Raymond E. Camp
Ontario, NY

Nicole Doty - Gilbert Real Estate Expert I agree.

David Barr I had that in auto sales and went strictly commission; nothing to pay back. Change is always good but this type of plan does not help a salesperson.

Chuck Willman Alternative banking might be good!

Jul 30, 2015 09:55 PM
Raymond E. Camp
Ontario, NY

Larry Johnston One of the major problems with a business today; overpay executives and what can we write off this month!

Jul 30, 2015 09:56 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Raymond this concept also exists in the Insurance Industry, based on small commissions this could make sense in other industries. In my market place this would not work....unless you recruit people who are non producers.... anyone with a brain in my market place would not go for this....Endre

Jul 31, 2015 08:03 AM
Raymond E. Camp
Ontario, NY

Endre Barath, Jr. I agree

Jul 31, 2015 09:17 PM
Roy Kelley
Retired - Gaithersburg, MD

The best agents do not need those advances. Smart professionals make sure they have the needed financial reserves.

Jul 31, 2015 10:12 PM
Raymond E. Camp
Ontario, NY

Roy Kelley So true.

Jul 31, 2015 11:42 PM