RETECHNOLOGY PREMIUM MARKETPLACE RELATED PRODUCTS | WEBINARS | SPECIAL OFFERS
You are viewing our site as a Broker, Switch Your View:
Agent | Broker Reset Filters to Default Back to List
Due to the ongoing situation with Covid-19, we are offering 3 months free on the agent monthly membership with coupon code: COVID-19A
UNLIMITED ACCESS
With an RE Technology membership you'll be able to view as many articles as you like, from any device that has a valid web browser.
Purchase AccountNOT INTERESTED?
RE Technology lets you freely read 5 pieces of content a Month. If you don't want to purchase an account then you'll be able to read new content again once next month rolls around. In the meantime feel free to continue looking around at what type of content we do publish, you'll be able sign up at any time if you later decide you want to be a member.
Browse the siteARE YOU ALREADY A MEMBER?
Sign into your accountIncentive Based Commission
October 16 2014
Incentive based commission has been a component of real estate since the birth of the commission split between sales associates and brokerage firms. Some firms have innovated the incentive program with production incentives whereby the more an agent sells, the greater the percentage of the commission they retain. In some brokerage firms and franchise organizations, once you hit a top number, you "cap out" and get 100% of the commission.
These production-based incentives are effective at attracting and retaining top producing agents, but fall short in many other ways. A new model for brokerages to consider is an incentive program that encourages sales associates to adopt brokerage-provided solutions. Agents who choose not to use brokerage firms' provided solutions undermine the professional standards of the firm.
Going into 2015, brokerages may want to consider adding a points system to the production-based incentive program that is in place today. The thesis is that strategy would drive adoption of brokerage solutions that would increase the effectiveness of each sales associate and deliver a broker centric service experience to the consumer.
This thesis sounds like nirvana to brokerage owners. But I believe that a significant amount of thought needs to go into developing a good incentive solution. Firms need to go through a strategic process to arrive at a great solution. If a firm whips up an incentive program with little research, the risk is significant: agents will leave the firm.