Real estate brokers have toyed with the concept, but it is primarily utilized by top producers who hire assistants. Many top producers employ one or more licensed agents to maintain transaction growth and provide quality core services. Compensation generally includes a base salary and the opportunity to participate in performance incentives. Salaried agent may be interpreted as a fixed payroll expense while an employee agent typically has the opportunity to earn both fixed and incentive compensation. Commission splits are in favor of the agents who operate under broker guidelines that permit personal promotion, sometimes to the exclusion of the broker.
Management is frequently at the agents' option.
A successful employee agent business model requires fundamental change from the traditional approach. No longer independent contractors, employee agents are employees of the broker. Commission splits are in favor of the broker, who has the option of assigning sales leads, work schedules and technology tools. The broker retains ownership of the customer information and relationship, along with the freedom to even require participation in meetings, training opportunities and new revenue opportunities. Recruiting Change Agents Recruiting employee agents presents new challenges.