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  • Writer's pictureChris Muellenbach

Mastering Real Estate Success: The Ultimate Guide to Team Structures and Commission Splits!

Real estate teams can adopt various structures depending on their goals, size, and the nature of the market they're operating in. Here are some common team structures in the real estate industry:

Traditional Team Model

  1. Team Leader: Usually the founding agent, responsible for overall strategy, growth, and often the

Real Estate Team meeting

key client relationships.

  1. Buyer’s Agents: Focus solely on serving buyers.

  2. Listing Agents: Specialize in securing and managing property listings.

  3. Administrative Staff: Handle paperwork, coordinate schedules, and manage the office.

Rainmaker Model

  1. Rainmaker/Team Leader: Focuses on lead generation and high-level tasks.

  2. Showing Agents: Take buyers to see listings but may not handle negotiations.

  3. Transaction Coordinators: Specialize in the administrative aspects of closing deals.

Pod Model

  1. Pod Leader: Oversees a small group or "pod" within the larger team.

  2. Buyer’s and Listing Agents: Work within their pod and report to the Pod Leader.

  3. Support Staff: Each pod may have dedicated administrative support.

Expansion Team Model

  1. Central Hub Team: Core team located in one geographical area.

  2. Satellite Teams: Smaller teams or agents in various locations, reporting back to the central hub.

Boutique Team Model

  1. Specialized Agents: Agents focus on niche markets or specific types of real estate.

  2. Support Staff: Administrative and marketing support catered to the specialty.

Hybrid Models

Teams may also employ a combination of these structures depending on their needs. For example, a team could use a traditional team model but employ a separate pod system for luxury listings or commercial properties.

Specialized Roles In addition to the above, larger teams might include:

  • Inside Sales Agents (ISAs): Specialize in converting leads into appointments.

  • Marketing Specialist: Focuses on marketing strategies and implementation.

  • Client Care Coordinator: Manages client relationships post-sale.

Choosing the right team structure is crucial for effective collaboration and maximizing productivity and profits.

The commission splits between real estate agents and their teams can vary widely based on a

range of factors, such as experience, the market, and the specific responsibilities of the agent. However, here are some common scenarios:

Traditional Splits

  1. 50/50 Split: In this straightforward arrangement, the agent and the team each take half of the commission. This is more common for new agents who rely heavily on the team for leads and support.

  2. 60/40 or 70/30 Split: More experienced agents who bring in their own clients might negotiate a more favorable split, where they take home 60% or 70% of the commission.

Sliding Scale Splits Some teams offer sliding scale commission splits based on performance. For example, an agent might start the year at a 50/50 split but could move to a 60/40 or 70/30 split after reaching certain performance benchmarks.

Cap Model In this model, agents share a fixed percentage of their commission until they reach a "cap." After capping, they may take home a much larger share, like 90% or even 100% of future commissions for the remainder of the year.

Salary Plus Bonus Some teams offer a base salary with a smaller commission bonus for each transaction. This provides agents with some income stability but offers less upside than a commission-only model.

Team-Specific Splits Specialized roles within the team might have unique splits. For instance, a listing agent might get a smaller percentage than a buyer's agent if the team leader was responsible for acquiring the listing. Alternatively, inside sales agents (ISAs) might receive a small percentage or flat fee for each lead they convert to a client.

100% Commission Model In this model, agents keep all of their commission but pay a monthly fee to the team for services like marketing, administrative support, and office space.

Hybrid Models Some teams use a combination of these structures, especially for agents with specialized roles or responsibilities.

It's important for agents to thoroughly understand and negotiate their commission structure, considering both the percentage and any additional fees or expenses. Always consult the team's contract to understand the specifics of the commission split.

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