What agents should really be focusing on when joining a real estate team.
“What are your splits?” Guys, if you’re asking this question as a real estate agent to brokerages or team owners, you’re focusing on the wrong thing. Let me explain why asking about splits is the wrong approach and what you should be asking instead.
First, focusing on splits overlooks expenses. Being an agent comes with a lot of expenses, like paying for leads, appointments, marketing materials, leverage like ISAs or showing agents, transaction coordination, signage, business cards, dues, and more. Understanding which expenses are covered by your broker is crucial when discussing compensation.
“Focus on how much money ends up in your pocket at the end of the day.”
Second, it disregards transaction volume. It’s not just about the percentage split; it’s about how many transactions you’ll be doing. 50% of 20 transactions is more profitable than 100% percent of four transactions. You need to know the average transaction volume for agents at your level in the business, not just the team owner’s income.
Instead of asking about splits, ask, “What is the average take-home pay of agents in your team or brokerage?” This gives you a clearer picture of what to expect financially. Before making any decisions, make sure you have this information.
If you’re unsure about what to ask during interviews with teams or brokerages, call or email us. We offer free strategy sessions to help you navigate these important decisions. We look forward to hearing from you!
