The Larry Trunk Realtor Commission Compensation Plan
The Larry Trunk Commission/Compensation Plan ************************************************
I personally believe that there is no commission plan which compares to this one! Take the time to read and understand and compare it with your present plan. Invariably you will find that you will make substantially more money under this plan than any mega broker plan. Our commission plan functions on a calendar year basis and has an ever increasing commission percentage until you have earned $30,000 and you then receive 100 % of the commission ! How does that compare with the plan you are presently working under! In real estate, sales are referred to as either “in house” or cooperative.” An in house transaction is one in which an agent has either sold a listing within his or her company, or had his or her listing sold by another agent within the same company. A cooperative transaction is one in which an agent has sold another broker’s listing, or another broker has sold the agent’s listing. Our percentage of commissions are outlined below as both in house and cooperative transactions.
Compare it with your plan
Annual Earnings In House Cooperative
0 to $9,000 30 % 50 %
9,001 to $12,000 31 % 52 %
12,001 to $15,000 32 % 53 %
15,001 to $18,000 33 % 55 %
18,001 to $21,000 34 % 57 %
21,001 to $24,000 35 % 58 %
24,001 to $27,000 36 % 60 %
27,001 to $30,000 37 % 62 %
30,001 - and above 100 % 100 %
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Example: You have annual earnings of $18,200 and your listing sells in house, by one of our agents, and a 6 % commission on $160,000 sale is paid, or a total of $9,600. In the $18,001-$21,000 bracket you as listing agent would receive 34 % of the $9,600 commission or a total of $3,264. If you were both the listing and selling agent you would receive 68 % of the $9,600 or a commission of $6,528. And the $6,528 would be added to your annual earnings ($18,200 + $6,528= $24,728) so that your next commission would be figured on the percentage shown in the 24,001-27,000 bracket. Example: You have annual earnings of $27,200 and you sell another company’s listing (cooperative) and a 3 % commission on $190,000 is paid , or a total of $5,700. In the $27,001-$30,000 bracket you as the selling agent would receive 62 % of the $5,700 commission, or a total of $3.534. Now the $3,534 would be added to your annual earnings ($27,200 + $3,534= $30,734) and you would have reached the 100 % commission bracket ! Example: You have annual earnings of $30,734 and you sell your own listing and a 6 % commission is paid on $250,000 or a total of $15,000. In the 100 % bracket you would receive $14,250 ( $15,000 - $750 administrative fee= $14,250) ! The entire $14,250 is yours as the listing/selling agent ! The company would receive just $750 and you would receive the balance without deductions for expenses of any type. In addition to the above commission splits the following bonuses are paid. Upon earning $9,001 a bonus of $150 is paid. At $12,001 another bonus of $150 is paid. At $15,001 a $200 bonus is paid and $250 at $18,001. At $21,001 a bonus of $300 is paid and at $24,001 a bonus of $350 is paid. Finally at $27,001 in earning you would receive an additional $400 bonus.That is a total of $1,800 in bonuses upon reaching $27,001 in earnings in a calendar year. Once you reach $30,000 in commissions earned then you receive 100 % of the commission. All 100 % commissions are subject to a nominal administrative fee. It is important to note that you pay nothing for advertising, long distance calls or faxes, nothing for copies, nothing for stationary. This is remarkable when many mega brokers charge for copies, faxes long distance, and everything else they can in order to cover their overhead by reducing your commissions.
Larry Trunk agents keep all that they earn, and have no charge backs for long distance ,faxes ,copies, signs desk fees or franchise fee. .Our agents’ commissions are not diminished by trivial charges... Mega brokers tend to keep their commission schedules out of the spotlight. They do not want their competitors to have access as their commissions may be non competitive, as compared to some other plans now in use. I have decided to make our commission schedule public so that real estate agents may see that they are often getting the short end of the stick, and are not receiving commissions commensurate with their value to the company. In other words you may not be being paid what you are worth. If you are grossing $55,000 to $60,000 and are earning any thing less than $30,000, you are being paid less than what you are worth ! If you should have any questions on our commission plan please feel free to contact me as I would be happy to discuss any of the foregoing with you.
If you are to be paid what you are worth, you should be familiar with and understand the compensation plans now in effect with your competitors. Ask yourself if you ever receive 100 % of the commission with your present affiliation , most agents with mega brokers do not. If you would like to know how much more you would earn under our commission plan substitute the gross commissions which you have earned and utilize the commission percentage as outlined,under the Larry Trunk,Inc. schedule You may find that your income would be at least 20-25 % higher under our plan, perhaps higher ! If your income was well in excess of $30,000, but your broker did not pay 100 % above $30,000, calculate how much more you would have earned on those transactions, alone, at 100 %, verses what you did receive under your present plan. Again, you will find significant differences between our plan and your present plan. The message is loud and clear-you will earn substantially more under our plan. Finally, do not be led to believe that the ability to negotiate commissions ( strongly discouraged, or prohibited by mega brokers ) will make you less money. Having the ability to negotiate commissions will close more deals for you, make you more productive, more profitable and vastly more successful ! Amen !
The preceding article is subjective in nature and represents the opinion of author/real estate broker, Larry Trunk