Brokers Are Confused About Their Commission. That Has to Change.
There’s a problem in commercial real estate that many firms have come to accept as normal: Brokers are confused about their commission.
After spending countless hours closing a deal, they’re left wondering when and how much they’re getting paid.
Request a Demo to Learn How an Integration Between Rethink and CommissionTrac Can Improve the Broker Compensation Process
Here’s the problem:
Why brokers are confused about their commission
The traditional broker compensation process provides brokers with very little visibility into their upcoming commission payments.
And a major part of the problem is commission splits.
While most brokers know what their split is with the firm, when they work on teams, the issue gets a lot more confusing.
Brokers may expect to receive 75% of the commission — giving 25% to another teammate — only to be blindsided by the realization that the split is 50-50.
The second issue is timing.
Once brokers have closed a deal, they rarely have insight into exactly when they’ll receive their commission.
All of this leads to a very confusing and anxiety-inducing experience for brokers, which in turn causes issues for the firm as a whole.
How the lack of visibility into broker compensation affects firms
There’s no denying how important brokers are to their firms.
After all, they’re the ones driving the revenue that allows them to continue operating.
But when firms rely on a confusing compensation process, they’re actively driving talented brokers into the arms of their competitors.
Think about it: Would you rather work for a firm where you understand exactly when and how you’re getting paid or one where the entire process leaves you scratching your head?
That’s why firms who want the best brokers must adopt a new compensation process that helps them attract and retain superior talent.
A better approach to broker commissions
Using the integration between Rethink — the dealmaking platform purpose-built for CRE — and CommissionTrac — a CRE-specific back-office solution — firms can give brokers unparalleled visibility into their commission payments.
The combined solutions show brokers what their commission splits are and why, as well as when they’ll receive their share, so they have the appropriate expectations well before they get paid.
Best of all, the commission data populates based off deal information tracked in Rethink, meaning they don’t have to rely on manual data entry and calculations to determine when and how much they’ll get paid.
After closing the deal, the broker simply hits a button in Rethink that automatically syncs the data needed in CommissionTrac to generate a commission voucher.
Request a demo to learn how it works.