What is a fair broker/agent split for a new agent?

RealtorNva · 12-05-2005, 10:55 AM

I am newly licensed in the state of Virginia and I just signed on with a broker in Virginia Beach that is charging me a 45/55 split (for the first 5 transactions then it goes to 50/50 then depending on your gross sales it goes to 65/35)with a 8% franchise fee before the split. After some consideration this seems a bit high even for a newly licensed agent. They provide a desk and a phone and access to the internet, all which i have at my home. The also provide NO leads of any kind. Should I send my license back to the board?

j

webmaster · 12-05-2005, 11:06 AM

I dont know about sending your lecense back to the board, but I would certainly shop around the different brokerages and see what others are offering.

kyle422 · 12-05-2005, 12:18 PM

Go to a company that provides new agent training. Century 21 or Coldwell Banker.

kensmith · 12-05-2005, 12:22 PM

Your split means much less than the training you will recieve. Find a place that will train you and don't expect leads from anyone without getting even less than 50%.

Sam Dodd · 12-05-2005, 08:52 PM

Wow I started at 70/30 with a 6% franchise fee and i thought i was getting robbed.

ResaleBroker · 12-06-2005, 08:11 AM

Quote:

Originally Posted by RealtorNva

I am newly licensed in the state of Virginia and I just signed on with a broker in Virginia Beach that is charging me a 45/55 split (for the first 5 transactions then it goes to 50/50 then depending on your gross sales it goes to 65/35)with a 8% franchise fee before the split. After some consideration this seems a bit high even for a newly licensed agent. They provide a desk and a phone and access to the internet, all which i have at my home. The also provide NO leads of any kind. Should I send my license back to the board?

What's in it for you? Surely there is an upside to working with this brokerage or you would not have hired on. What is the upside?

tom · 09:19 AM

not to cut in - but what does XX/XX (ex.55/45) mean? i've made an educated guess, but i want to be sure.

my mistake...(changed 55/65 to 55/45) as brought up below

judyo · 12-06-2005, 09:15 AM

Quote:

Originally Posted by tom

not to cut in - but what does XX/XX (ex.55/65) mean? i've made an educated guess, but i want to be sure.

That means someone's getting 10% of nothing!

Really, those figures mean the commission split between the agent & broker from the listing or selling side of any deal brought in by the agent. At a 3% cooperating commission the agent would get 45% and the broker would keep 55%.

That sounds low to me. In my area I haven't heard of anything less than 50%. Also, in my specific area, Coldwell Banker probably offers the most in-house training for a new agent. Century 21 has training but it is usually something you have to sign up and pay for & attend off-site. Each office is different, though, & you'd really need to do some investigating on who offers what.

Seems like Keller Williams offers training but we don't have a local KW company. I also don't know of any companies in my area that "give" leads. Some allow floor time but if you're not trained for that you won't be generating many leads until you know what you're doing.

As has been suggested, you might need to do some further shopping around. Don't turn in your license until you know where you're going. Training is imperative in today's competitive market. Choosing a company to work for is a big decision. You need to interview with more than one company to find out where the best place would be for you.