I'm a newly licensed broker in the Springfield IL area looking for some advice on picking the right brokerage. I had a meeting today with a large company offering me a 50/50 commission split until I reach $16,000 then I will get 95% split. They also said I will have to pay $1,600 upfront for various fees. Is the $1,600 normal? This seems like a lot to ask for upfront to me. Does anyone have suggestions for good companies to apply with or good terms with a brokerage?
I would recommenced interviewing at least 5 brokerages before you commit to one. Make sure to ask about desk fees, what's included in those fees. The 50/50 split seems high even for starting out but the 95/5 after $16k is pretty nice.
Thanks Catherine! I'm definitely going to talk to a few different companies.
Hey @Sydney Hunter ! I just want to start by saying that for me, it is about VALUE over commission split. How's the training and mentorship? What about lead generation and automation tools? What are the benefits for an investor? What about for top producing agent? How much flexibility will I have? Do I HAVE to do a bunch of deals or can I go at my own pace? Does this brokerage match my goals?
$1,600 does seem like a lot for upfront fees. I paid $149 (but that didn't include MLS, which you usually have to pay for separately anyway).
The model for my brokerage (eXp Realty) is 80/20 up to a $16,000 cap and 100% after that. That math seems better to me. One model isn't right for everyone, but most are work a look. Definitely check out a few more brokers before settling on that one.
Best of luck to you and CONGRATS on getting licensed!