How to Protect Real Estate Agent Commissions When Clients & Landlords Want You To Earn Less


Logan Paton | September 18, 2018

As a commercial real estate agent, you know you work hard and deals can easily slip away. However, most clients don’t understand all the work involved in your job, or even how commercial real estate agents really get paid commissions on specific transactions, much less how eight out of ten deals you work on never happen.

In fact, we often hear from our customers that their clients tend to view their commissions as a jackpot paycheck, rather than as their hard-earned income. And we’d be willing to bet that many of your clients have felt the same way, at one point or another. So, what’s the solution?

Many commercial real estate professionals today who are searching for ways to help differentiate themselves and set themselves apart from the masses of CRE agents. And with the increasing number of new CRE agents competing for clients, how can you demonstrate and prove your value and immediately differentiate yourself?

3 Easy Steps to Protecting Your Real Estate Commission

To put it simply, you will need to distinguish yourself from your competition. Here are four approaches to help you justify your commission structure and protect your income…

1. Provide Testimonials from Satisfied Clients Who Have Worked with You in the past

Anyone who has ever worked in sales will tell you that, most of the time, customers and clients don’t buy based on a product or service, they buy based on people. The same principle holds true in commercial real estate. People want to work with an agent they feel they can trust. And while you can toot your own horn (so to speak) all day long, it will never have the same type of impact as hearing those same words from the mouth of one of your customers.

The philosophy is simple. If people like you, they will trust you. And if people trust you, they will do business with you. Show new clients what you’re worth by allowing your previous clients the opportunity to talk about working with you.

2. Portray Yourself as A Consultant – Not Just Someone Who Shows Space

It’s no secret that the average business owner is unaware of the complexities when it comes to completing a purchase, lease, or sale of a commercial property.

Be forthcoming and proactive, providing your clients a plan and timeline of exactly what you plan to do to help them through the process and complete their transaction. Be specific, showing a plan of action with task based, actionable items which are easily tracked and measured.  

3. Be Transparent with How Your Commission Is Structured. Take Your Commission Over the Term of The Lease as Opposed to a Cashing Out

Money can be an awkward topic of conversation — but only if you make it so. Most clients appreciate transparency and would welcome the opportunity to better understand just what they’re paying for when working with you. If you take the journey with your client it keeps you connected with virtually no opportunity for another agent to parachute in on your relationship.

The right software platform will make this a breeze by streamlining back office accounting and commission management. You typically also make more commission if you consider the annuity approach, especially on renewals.

To find out how you can use technology to manage your individual receivables, commission plans, invoicing and distributions,  please sign up for our blog and learn why Techstars Atlanta, selected CommissionTrac as their first CRE application for their intense 90 day mentorship program joint ventured with Cox Communications.

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