draw against commission

Group Member

Feb 3, 2009 7:39:45 PM

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Quick question: some of you may be able to provide input...

I am in the process of phasing my best Full Time support employee into a Full time agent. I have already found her replacement who will be given the same salery she was getting. Because she is nervous about "no income" (who isn't?) I have offered her a $500 draw per week which will be paid pack as her commissions come in. She will be servicing my Listings as well as my top producers listings for a 30% servicing fee and also work on her own "deals". She is interested in getting a salary but I doubt I will do this because I would have to reduce her split to a level I doubt will be appealing...no risk, no reward. My question is basically...what do you think? and have you ever used a contract that I can follow for draw against commission.

Troy Sage

Group Organizer

Feb 3, 2009 10:02:38 PM

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I don't have a contract but I have done a similar thing. I have paid a $500 per week draw for no more than 60 days (If I don't have a closing in 60 I need to re-evaluate my biz). When I have a deal close I deduct the draw from the commission. Usually I pay 25% to an assistant, unless they are showing homes (Spending money on gas), doing CMA's, and pulling property tax informaion. I make sure I have the relationship with the clients, and I write all offers.

Hope this helped.

Troy

Julie Vanderblue-The Vanderblue Team

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Feb 4, 2009 5:27:04 AM

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HI Troy..yes, it does help...it validates my thoughts. She will actually get 30% on ONLY my listings...my buyers I will either refer to my agents or I will actually split 50/50 w/ sarah (the one with the draw). My worry is that she is going to get too busy...but I geuss that will be a good thing...thanks so much...we are drawing up a "contract " for the draw...which is what is bothering me because contracts is not my "thing"...talk soon! Thanks for your help! jules

Maurice Vaughn / The Vaughn Team.Com Real estate

Group Member

Feb 4, 2009 6:28:20 AM

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Hi Julie, I have tried several times to transaction a support person to agent with limited success. I think the draw with a cutoff date is workable, but I do question the duties this person has and how it will limit the time left for showing and follow up with their clients. It's very difficult to focus on that many task. You don't mention the commission split, but the 30% servicing fee on your and your top producers is high for our area. I don't clam to be an expert, most is done by asking those that have gone before me or trial and error. Good luck, I would to know how it works out. Maurice Vaughn

TheBuzzAboutDownTownOceansideCalifornia

Group Member

Feb 4, 2009 10:37:58 AM

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Hi Julie,

The best advice I can give or suggestion other than what I currently use is to read the national best seller "The Millionaire Real Estate Agent" by Gary Keller. It helped me beat my goal for 2008. I read it everytime I need boosting.

Let me know what you think of the book. By the way if you know anybody that is looking for a several beach condos let me know I have 48 condos that I need to move. Take care and good luck.

Sincerely,

Frank Santos

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