What Do I Pay This New Employee?

Question

Marvin McTaw · Answer

@Ibrahim Hughes a lot depends on the area and how you plan for this person to work. I've done everything from straight commissions of 20% of net revenues to $20/hr. We currently pay our lead managers $20/hr plus 5.0% commissions so that they make money on the upside. It also helps them to stay firmer to our Max Offer numbers because they realize it impacts their bottom line.

A few additional suggestions: don't put all your eggs in one basket hiring one acquisitions manager right awa. I'd encourage you to audition multiple acquisitions managers instead of just hiring one. Have them place lots of phone calls before they even start formally working for you to get an actual idea of what you want them to do. Many of them will self-select themselves out or prove themselves to be terrible at the job.

I'd also encourage you to moderate your expectations. It will take them far longer than you potentially expect for them to become productive. Place the emphasis on what they can control (offers delivered to sellers) instead of actual contracts produced for your wholesale business to sell. Hope it helps!

Ibrahim Hughes · Answer

Hey Marvin! I really appreciate the input. Great suggestions!  I also asked this question on Facebook and got some great answers. Leaning towards full commission with some type of Advance Cash payment at the signing of every contract. That way the team member doesn't have to actually wait for closing to have some cash to live on. It also gives them an incentive to get contracts signed as we have a pretty high rate of converting them into close deals. Will definitely keep in mind your suggestions regarding my expectations. In other words "patience my brother". LOL.