6 Ways to Maximize Commercial Real Estate Commissions for More Money in the Bank


Jordan Everts | July 18, 2019

Who doesn’t like a little extra green in their savings account at the end of the month? When you’re self-employed, like in the commercial real estate world, earning more in commissions can feel like climbing Mt. Everest: an oxygen-sucking, nerve-wracking, time-eating task. It’s time to rethink how you calculate and split your commissions.

The National Association of Realtors® claims industry-wide, real estate agents average a 69 percent split. How do you compare? If you’re well below the average, try different ways to change your split structure.

Different Sources Lead to a Variety of Commissions

Lead nurturing is hard work. Think about the time invested in networking through professional organizing, friends, and family, plus all the drip marketing campaigns, emails, text messages, and phone calls.

Did you do all the work nurturing the lead on your last big sale? Then earn a little extra! Negotiate a system where individual agent leads earn more commission than brokerage team leads.

Incentivize Your Agents

Who said real estate agents have to be locked into a set split rate? Theoretically, as you complete more transactions, your value grows. Each transaction adds to your experience, potentially generating more leads through satisfied customer referrals, and in time, more high-value listings. Let your experience reflect this value by staggering commission splits. 

Say the first 20 closed transactions are a 60/40 percent split, while the next 15 are a 65/35 percent, and any after 35 earn a 70/30 percent split. It’s an extra incentive to stay busy and generate more business for the brokerage. 

Set a Tiered Split Plan

Similar to the staggered split method, negotiate a plan that provides better commission to your agents as they break through “tiers” of commission earnings . For instance, the commission split can be 60/40 percent (60% to the broker) until $150,000 in gross commissions has been earned. After that, the rate can change to something more favorable to the broker because they’ve already covered their desk costs, like an 80/20 to the broker.

The bonus is this makes it easier to keep track of what you’re making. In this method, the gross amount of commissions earned matters more than the number of transactions. There are really no limits to how creative you can be with these types of plans, here’s  a few popular frameworks to get you started: 5 Unique Commission Split Plans for Commercial Real Estate Brokerages to Consider

Wow Your Customers with Great Service

Commercial real estate is a customer-service industry. For all our efforts in social media marketing, print and TV advertising, and signage, word-of-mouth referrals still reign supreme. In fact, in a recent study from The Broker List, 73 percent of most commercial real estate business is developed from building personal relationships.

Give every client the same level of service, no matter their budget. In the commercial real estate world, you’ll likely be dealing with the office support staff of your client, and it pays to have good relationships with them, as they talk to their own networks. Satisfied customers lead to referrals, and in turn, more transactions.

Make the Most of Available Tools

For commercial real estate agents, the more qualified leads, the more potential for closed transactions. Use all the tools at your disposal to generate and win leads. 

If your brokerage offers marketing assistance, take advantage of it. Make your own marketing strategy too, using a blend of in-person and online networking. Leverage those referrals, create sponsored social media advertisements, have a pop-up chatbot on your website. Anything you can do to create leads will lead to more transactions and more commissions, no matter your spilt.

Streamline the Back Office

You can optimize your total revenue in the brokerage by enabling the back-office to handle even more transactions and comps as the brokerage grows. So instead of hiring an extra pair of hands, explore opportunities to leverage technology instead.

With the right technology, you can empower the back office staff you currently have with some of the new technology on the market, and, in turn, they will be able to optimize and streamline their own work loads, without increasing company costs.

If you are looking for a platform that effectively streamlines and automates your brokerage and increases the happiness of your agents, then give CommissionTrac a try today.

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