Closing a commercial real estate deal can be stressful. It can take months to conclude a transaction. So, when you finally receive your commission, the last thing you want is a substantial portion taken out as a split by your brokerage. It’s a common practice, but it doesn’t make much sense and only keeps you from giving your best shot every time. Here, we discuss why this model is outdated and inflexible and how new-age commercial real estate broker compensation models are rewriting the rules.
Understanding Traditional Splits
A commercial real estate transaction is high-stakes and complicated. You need to find the right kind of property, negotiate aggressively, navigate zoning issues, and do so much more. It is time-consuming and tricky, so you expect to be paid reasonably for all the effort.
However, with traditional compensation structures, there is a 70/30, 60/40, or even 50/50 split, which is higher than residential transactions. You must also pay marketing, franchise, technology, and desk fees, which are usually mentioned in fine print and easily overlooked.
Yes, this is the industry norm, but the model can restrict your long-term success. It becomes a liability in transactions where tens or hundreds of thousands are in question. You could lose a considerable amount just to access the firm’s branding and support.
So ask yourself – if you are an experienced commercial real estate agent, do you really use the support a traditional brokerage offers? Are these services worth sacrificing 30-50% of your commissions on every deal? We don’t think so. But then, what is the alternative? And are alternatives even safe and effective? Can any new-age commercial real estate broker compensation models fare well against these older ones? The short answer is yes; some models are emerging as true game changers in the real estate sector.
Here’s the 100-Commission Structure
The term 100% commission is being thrown around a lot lately. But is it just another buzzword? Not at all. It’s an innovative model to help you take control of your earnings.
At NB Elite Realty, we operate on the 100-commission commercial real estate broker compensation model. Agents only pay a low-cost membership fee and a flat transaction fee. No hidden costs and no unreasonable deductions.
Here’s an example: If you close a $700K deal under NB Elite Realty’s flat-fee model, you can earn a $21,000 commission minus $749 in fees. Compare this to a traditional 80/20 brokerage, and you have to split around $4,200 with the brokerage.
That’s a straight $3,451 in savings.
When you pay only a small, predictable fee and keep all your earnings in your pocket, it streamlines your workflow and finances. This is the flexibility that traditional brokerages cannot guarantee.
It does make a difference in the long run.
Is There Any Compromise On Support?
Despite our low-cost fees, we do not control your leads, branding, listings, marketing, etc., like traditional brokerages. You’re fully in charge of your growth.
From us, you can expect agent-centered solutions, not cookie-cutter support. Our fee goes directly into establishing tools and resources that help you perform your best. Our offerings include:
- Lead generation, CRM, and marketing tools
- Cloud-based document storage solutions
- 24/7 agent access portal
- Training and mentorship
- Agent webinars
- VIP Investment training
- Access to BrokerSumo
Our 100% commercial real estate broker compensation supports experienced agents with a proven track record in the commercial space. For those without experience, we pair them up with a knowledgeable team leader for a reasonable (and negotiable) commission split decided between the agent and the team lead.
You have full autonomy. You aren’t bound to a desk. And you have the freedom to explore other geographies as well. Our head broker, Nebo Bandovic, an industry veteran with over 3 decades of experience, can also assist you in better understanding the domain and taking control of your earnings.
You Can Also Build Wealth
As a commercial division agent, you won’t just earn more income, but you will also be able to multiply your wealth. Under the guidance of our founder and expert team, you can learn to reinvest your earnings and make passive income. You won’t just close deals but build a portfolio and become a smart investor to safeguard your future.
Contact Us for Assistance
If you’re tired of giving up your hard-earned commissions to your brokerage, better alternatives exist. Traditional structures no longer work for today’s driven and savvy agents. New-age compensation models are the way to go. Our revolutionary 100% commercial real estate broker compensation model helps you embrace independence and financial freedom. No gimmicks, no hidden charges. Only real value. Call (844)444-6237 for details.