Field Guide to Compensation Plans For Real Estate Agents
(Updated January 2008)
Get the latest news on compensation plans. Are salaries a better idea than commissions? What's the best way to modify your compensation plan? Find the answers to these questions and much more. (M. Martinez, Library Manager)
Contents:
Compensation Plan Basics | Salaries or Commissions? | Books, eBooks & Other Resources
Pros & Cons of Salary Compensation Plans
Pro: Stable income Pro: Job security enhanced Con: Lack of incentive to excel Con: Underachievers are overpaidSource: Salary vs. commission--pros and cons, (Ohio REALTOR®, May 1994).
Compensation Structures for All REALTORS®
Percentage Commission Split--70% 100% Commission--17% Commission Plus Share of Profits--3% Salary Only--1% Salary Plus Share of Profits/Production Bonus--4% Share of Profits Only--1% Other--4%Compensation Structures for REALTORS®, (National Association of REALTOR® Member Profile , 2007).
Compensation Plan Basics
Self-employed workers can benefit from solo 401(k), (REALTOR® Magazine Online, Oct. 2006).
Methods of compensating real estate agents, (realestate.about.com).
The formula for compensating sales personnel, (The American Salesman, Apr. 2006). Q
Should you copy another company's compensation plan?, It's almost always a bad idea (www.compensationmaster.com, Mar. 2005).
Compensation plans, (REALTOR® Magazine, Jan. 2004).
Compensating sales personnel, (The American Salesman, Apr. 2002). Q
Real estate commission debate heats up, (REALTOR® Magazine, Nov. 7, 2006).
For brokers: companies to watch. Volume Players, (REALTOR® Magazine, May 2004).
Salaried success, (REALTOR® Magazine, Sept. 2003).
A salaried model that works, (REALTOR® Magazine Online Exclusives, July 2001).
Dollars & sense: Brokers, agents turn to salary models for alternative compensation, (California Real Estate, Apr. 2001).
eBooks & Other Resources
eBooks.realtor.org
The following ebooks and digital audiobooks are available to NAR members:
Beyond 401(k)s for Small Business Owners: A Practical Guide to Incentive, Deferred Compensation, and Retirement Plans(Adobe eReader)
Compensating the Sales Force (Adobe eReader)
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800.874.6500 for assistance.
The real estate entrepreneur: everything you need to know to grow your own brokerage, (New York, NY: McGraw-Hill, 2007). HD 1375 P41
Compensating the sales force, (New York, NY: McGraw-Hill, 2004). HF 5438 C48
When fighting for splits, be sure to remind agents of the service your provide them, (Real Estate Broker's Insider, Mar. 1, 2004, p. 1-2 ).
Lessons from the compensation front: separate salaried, traditional agents, (Real Estate Broker's Insider, Nov. 1, 2003, p. 1-2 ).
Comp plan guarantees new agent income for one year, (Real Estate Broker's Insider, Apr. 15, 2002, p. 3-4).
Brokers experiment with paying real estate agents a salary, (Real Estate Broker's Insider, Feb. 15, 2001, p.1-2 ).
Making the switch from commission to salary, (Management Issues & Trends, Vol. 14, issue 5, 2001, p. 7-8).
Field Guides & More
These Field Guides and other resources in the Virtual Library may also be of interest:
Field Guide to REALTOR® Income
Field Guide to Recruiting and Retaining Salespeople
Field Guide to Fee-for-Service
>> Have an idea for a new Field Guide? Click here to send us your suggestions!
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