Are your agents cutting their commissions and leaving money on the table? It’s a pretty common scenario in today’s competitive real estate market for agents to make concessions in their commission amounts to get a deal at any cost. But what is the real cost to the agent, the brokerage and everyone’s pocket book?
In today’s ultra competitive market, every agent is trying to stand out and differentiate themselves. But cutting commissions doesn’t necessarily show anything other than a willingness to give away your value as an agent. Instead of offering to cut commissions to win a deal, it’s important for agents to understand how to demonstrate their value in the services they provide to their clients.
As a broker, it’s important to know which agents are successful at selling their value and which ones struggle and then leverage those successful agents and share that knowledge with struggling agents to teach them how to sell their value to a client and get a full commission on a deal. When you have agents who are cutting commissions, word can spread, and while everyone likes a deal, it can also be construed that your brokerage doesn’t provide a high level of service and isn’t suitable for consumers who need an experienced agent or team to guide them through the buying or selling process.
Check out our new features that we’ve just released.
Customize your commission disbursements.
After you save your disbursement, you’ll see check boxes next to each line item on the disbursement.
To customize exactly which line items you want to display on your disbursement PDF, just check the boxes you want to show up on the PDF and then click the Generate Disbursement PDF at the bottom of the page. If you make a mistake, just go back to the commission disbursement page and check the correct boxes again, you don’t need to delete or re-create your disbursement to generate a new version of the PDF. Or if you are happy with the way the disbursements currently look, just leave the check boxes as-is and your disbursement will generate the same way it used to.
Preview Commission Disbursement PDF
In Firefox and Chrome browsers, when you click the Generate Disbursement PDF it will show your disbursement PDF in preview mode. If you are happy with it, you can download it from there by clicking the download button or if you want to go back and edit it again, you can close the preview by clicking the X at the top right corner in the row that says ‘Preview’. The screen shot below will show you where each of those buttons are on your screen.
If you use Internet Explorer, the preview mode doesn’t work and you’ll be prompted to download the PDF.
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I was surprised to learn how many real estate agent commission checks are still being paid with actual paper checks. In the day of direct deposit, simple bank transfers, and lots of other tools to easily transfer money online, there are still a lot of brokerages cutting paper checks to their agents. Some brokerages are using software such as Paypal or Quickbooks to pay their agents, but those are not real estate specific tools so using that data for reporting analytics is difficult.
BrokerSumo has solved that problem by introducing our direct deposit feature built right into our product. Now you can fully close out a transaction and pay your agents without ever printing a check. Start with our commission plan feature which will automatically calculate the agents commission. Then create a commission disbursement, and once that is done, click the Pay Agent tab within your transaction. You’ll be presented with an overview of what’s owed to your agent: