Jon Washburn posted a broker/agent query and Cheryl Johnson posted a followup. Here's yet another folllowup:
To me the commission split has never been about what the broker pays the agent, it's been about what the agent pays the broker. Every agent has a business (though some don't realize it). The agent needs to look at what services/benefits he's getting and what he's paying for it. If that make sense, great. If it doesn't, change it or move.
In the last several years, many agents have formed teams, so that they actually have a recognizable business within a business. There are still some hassles of brokerage that I don't want, so I'm willing to pay for them. There are still some advantages of name recognition and client comfort that I want, so I'm willing to pay for them.
I'm not willing to pay for things that I don't want and that I don't use - so, don't make me.
Give me more tangible benefits (i.e., income that I'm making because of you instead of because of me) than I have expense, and I'm not "paying" anything.
Dollars aside, benefits aside . no amount of pay or profit will keep me with you unless
- you're honest
- you have integrity
- you have leadership, knowledge, inspiration and above all,
- caring.
If you don't CARE about my customer, if you don't put my clients interest above my money or your money, if you don't know it's all about the customer,
then I'm gone.
Sharon,
I feel the same way. I don't want to work for, or be associated with someone who does not have integrity and doesn't seem to care. Not everything in life is about money.
Sandy
Renee - I read your responses and in your inimitable way, wrote a perfect response.
Sandy - For 16 years I stayed with the "same" company though it changed names from Merrill Lynch to Prudential to Arvida and though we were in three different locations over those years. But one thing was the same - our leader, Rich Cope. He was a visionary, a leader and a friend. He was an innovator, and he was approachable. He'd listen. He'd make fast decisions once he had all the information to make a sound decision. Most of all, he cared. He not only cared about his company, his managers and staff, his agents, he truly cared about every customer we all had. He would do, we would do, whatever was right for that customer. It wasn't about squeezing out the most profit, it wasn't about everyone fitting in the same little boxes. It was about people. He cared. With the next sale of the company, when he left, that spirit and philosophy left. And once I was sure it had gone, I, too left.
Steve - yes, it has to work for both/all parties.
Rosemary - hopefully it's not the client caught in the middle.
Sharon - Every agent indeed has a "quote" business, but the definition is skewed when not used correctly, as the independent contractor business of each agent is a piece of a larger business, the brokerage you work for. And by most laws, the brokerage is ultimately responsible for every little thing you do. It's their neck on the line for the good AND the bad. That's something I absolutely believe the majority of the agents I see posting on this topic completely fail to understand or maybe simply do not care greatly about at all.
Remember, you chose to work for someone, you got your real estate license and you didn't have the guts to start your own company, and with that said I find it absolutely disgusting how many agents on AR, regarding this topic, especially the replies from that post by Jon, feel they are OWED something due to their "talent". Simply un-believable the sheer size of the EGOs screaming out in that thread. The "good" brokerage thanks you constantly, the "good" brokerage gives you recognition and awards, acquires the latest technology tools, shows you new resources, trains you, and yet, it's NEVER EVER enough from the looks of those answers.
I especially love the one comment I saw where the person compared the atmospher at the office to being like a family, and the comment was 'I don't need another family'. Ok you don't, but that explains perfectly the attitude of so many agents. Once I actually saw a young, new agent, attempt to ask for help from an experienced agent in our company when the manager wasn't around one morning. Did the experienced agent offer help to a simple question, did they even attempt to try and show the new agent some assistance? Nope, "I'm busy here, find someone else to help you."
I understand you're in "business", but the human element to an office environment can be absolutely horrible to bare witness to with such self centered attitudes. That experienced agent was indeed busy alright, reading the newspaper.
Back onto your post, you say you don't want to pay for anything you don't use. Alright, I understand that, to a minor degree...but, how about, as a broker, I don't want to pay for anything you screw up on that gets me called to court? Or how about, when you run into a serious bind with a contract problem...hey, you're in business, soooo...go figure it out and good luck! Or how about, if you have a 90/10 split...I'll pay 10 percent of the damages from a claim, while you pay 90? I think that's fair, don't you?
Or how about this, one day you actually have to come into the office...and you need to use your laptop! I suppose I should just provide you with unlimited Internet access, pray you don't have a virus infected Windows 98 machine that brings down the entire office network, then allow you unfettered use of copiers, printers (which of course requires an I.T. professional to sit down and set them up properly on your PC so you can actually print, as you have no idea about computers other than checking your email and turning it on), then, give you total unlimited access to phone lines, a conference room....oh yeah, have some coffee while you are at it and just snap your fingers when the copiers run out of paper, so as Jon puts it, you can spend time doing more important tasks.
And then there's the $20,000 new technology service or tool that comes out every year that the broker should instantly acquire, that only 10 of the 400 agents will actually sit and use, and that should simply be given to all agents, free of charge. Oh and then there's the expensive corporate relocation business we have been using since before you even knew how to spell the word realtor. Let me guess...just hand you the leads, free of charge, right? Sure, that'll keep us afloat.
Ya know, if you're a brokerage with 4 agents...all of that may be possible. But when you are a company of hundreds or thousands, there needs to be structure to a degree, and their needs to be certain rules you MUST follow. Don't want to follow? Want to make your own rules? Need more money?
GO START YOUR OWN COMPANY OR SELL MORE HOUSES.
Your broker had the GUTS to create the company that YOU work for. But you're saying AGENTS should be the ones dictating their payment to the broker? Maybe after years of service and proof of integrity, honesty, and hard work....then there's a possible argument. But for new people, with that attitude, we're going to see brokerages go down the toilet because they can't keep the lights on anymore.
Giving every agent whatever they want, however much money they want, salaried staff help, and heck, what did you say in your other post...a free postage machine...is not always going fly. Give one member a special benefit and watch how long it takes before 126 other people start crying about it.
Brokerages CARE, believe me ours definitely does, and I know we give the support, the training, and the resources that are required for an agent to be successful in today's market, but we should not try to cater to the individual, and usually, whining special needs of 897 agents, just so their "suit" fits better or so they can make more money than it takes to support the actual franchise! You can't make everyone happy, even by asking them what they want, and trying to do so is literally 'failure' defined.
And speaking of brokerages caring, especially about customers and clients, the link to the "Current Market Conditions" of your personal website is severely out of date. The APRIL 2007 MARKET REPORT is obviously not current. If I was a potential buyer, came to your site, and I noticed you didn't even have your own website properly updated, I'd possibly wonder where the care actually was.
Patricia - if your broker did read your comment, she'd be happy, but wouldn't change the split.
Nick - thank you very much for taking the time to write that lengthy response that made some good points. I didn't stop to think of the many agents who might take advantage of their access to all the equipment and supplies you provide.
Sharing knowledge and help is very important, and experienced agents should do that willingly, regardless of commission split or type of office. For that matter, I always preferred spaces that were shared by small groups of agents with varying time in the business and various production levels; I never did like separating the top producers (and I was one).
We shouldn't paint with a broad brush - there are wonderful brokers and agents in any company and brand, just as there are not so wonderful ones.
Liability claims - if I were on a 90/10 split then by all means any costs not covered by E&O should be shared in the same percentage as our income. In fact, that was the situation where I was before. Fair is fair. Using lots of paper? I believe I said I should pay for anything I use.
Special IT help needed? I should pay for that, too. Virus when I connect a PC or laptop to your network? Certainly it can happen, but to reduce that situation our office requires a copy of a clean virus scan monthly from each of our computers.
New technology - and any shared equipment such as copy machines and computers - I share your pain. Equipment was "down" so often for repairs because agents didn't know how to use them properly that I had my own copy machine, computer, binding machine, etc. and used those instead of the common equipment - that also freed up the equipment for others who needed it to use.
It wasn't lack of a broker's license of lack of guts that kept me from opening my own brokerage. I didn't want to manage a lot of agents, and I felt that my clients deserved more than coming to an empty office if I and staff were away at the same time.
No, I'm not saying that agents should DICTATE their payment to the broker. I'm saying that both the agent and the broker should have the opportunity to determine value - where it makes sense to stay with a company, where it makes sense to not keep an agent. I understand the costs of keeping the lights on - like you, I have a team. And the choice I made (not that it's right or wrong for anyone else, much less a generality, but it's right for me) means that if a month or months go by without income, I'm paying each month, and not expecting the company to subsidize my existence. Again, that's part of the bargain. I pay my own staff, too - I don't expect the company to provide it.
My first broker cared - a lot - which is one of the reasons I stayed with his companies for 16 years, instead of going where I'd get a larger percentage. And after the change - I still had a manager who cared, and a staff who cared, agents and upper management who cared. I didn't object to local policies - it was the national ones that I chose not to follow.
You've absolutely right about my non-current market report. That will go higher on my To Do list.
Actually, I think we're a lot alike. Sometimes I also get riled up and write.
If you're in St Pete or I'm in Emmaus, or we're at a conference together, I'd like to sit down over coffee and talk - and I'll buy the coffee.
Thanks again, Nick, for caring enough to take the time to comment.
Sharon - You're very welcome and I do believe and agree that there are valid points between all of the discussions, as you have shown. It really is a mixed bag and I think this industry would be much better off if all agents, top producers and new agents, realized that and respected each other, their brokerages, and their coworkers the same.
I tell ya, I am starting to see more and more success in the business in the very way you and I are promoting our own, as teams. One of the most successful stories in our company right now involves a TEAM. Not only do they help themselves, they help others, AND they help the brokerage! It is so nice to see.
Anyway, I have to say that initially the arrogant statements about money, coworkers, and a general lack of appreciation frm what a brokerage provides, was just too much to handle. Combine that with late night coffee and how I love to write in long detailed sentences.....well, you happened to catch me when I just finished a second cup!
And hey...if ya think about it, my comment kicked you in the rear end to get a key aspect of your web site updated! Sooooo I'd have to say, it's a GOOD thing all around no matter what was said!