Whether you are new to the business, an experienced professional, or a team leader looking for the best possible brokerage to build your business with, ROOST Real Estate Company has a compensation plan and fee structure that grows with you as your business grows. Your Pay Your Way™ is designed to be transparent, easy to understand, and most of all flexible. It is designed to support the goals of the agent, the brokerage, and the ROOST Real Estate Company mission and brand values
A ROOST Real Estate Company broker/owner has five financial commitments.
The Monthly Franchise and Marketing Fee is payable to Real Estate Brands Ltd to continue to expand the brand through social and other electronic media, upgrade print materials, and to keep the brand fresh and forward thinking. This fee is equal to 5% of sales and is payable monthly by the broker/owner. This fee is capped through the year 2020 at 5% of gross agent sales or a maximum of $5,000 per agent per year. And, unlike other national franchises, Real Estate Brands Ltd does not collect fees on individual transactions.
The second is the Shared Office Expense. This fee is collected to cover the overhead of the physical office space including rent or mortgage payments, office equipment, utilities, and all the rest of the things required to maintain a business. This fee is equal to 5% of sales and is retained by the broker. This fee is also capped through 2020 at 5% of sales per agent per year to a maximum of $5000.
Third is the Administrative Staff. Administrative functions have to get done, and even if this is done in the early days by the broker herself, there is a cost involved. This fee is equal to 5% of sales and is retained by the broker. This fee is also capped through 2020 at 5% of sales per agent per year to a maximum of $5,000.
The fourth commitment the broker has, is to the Basic Agent Service and Technology Package. We want our agents focused on working with buyers and sellers. We do not want our agents doing basic marketing and promotion, setting up showings, or filling out contracts with pen and paper. This fee is also capped at $5,000 a year or 5% of sales through 2020.
These four commitments add up to 20%. However, the most an agent will ever pay in any calendar year for these fees is $20,000 regardless of how much they earn. These fees are capped to cover actual costs and no more.
The Fifth Commitment is to the broker owner herself and is called the Broker Service Fee. Every fee we’ve defined so far exists to cover the cost of owning and operating a brokerage. Every entrepreneur expects a return on their investment of time and capital. Our franchises are no different. This is where the Broker Service Fee comes in.
The Broker Service fee is equal to 10% of every commission dollar earned by every agent. There is no cap on this fee. Whether an agent earns One Hundred Thousand or One Million dollars over the course of the year, the brokerage will retain 10%. We structure our fees this way to ensure the broker owners are rewarded and motivated to support all producers, regardless of their volume.
Agent teams are a strong trend right now and Chris believes they will continue to be popular well into the future. All ‘team’ sales whether credited to a team member or the team leader are subject to the first four broker commitments up to a maximum of $5,000.00 each or a total of $20,000.00 per year. All team members are subject to The Franchise and Marketing Fee up to an annual maximum of Five THousand Dollars per year. The Broker Service Fee is equal to 10% of all gross commissions earned by the team and has no annual cap.
Phew – that was intense! Feel free to re-watch this chapter, or read it in the book to really digest all those numbers. Next week, I’ll tell you about The Agent Experience: Financial Goals for Our Agents.