The 100% real estate commission isn’t exactly a new idea. In 2009, Trulia blogger Joseph Ferrara, posed the question, Is 100% agent commission the future of real estate? It was Ferrara’s view that implementation of a 100% commission structure would hurt new real estate agents who were more dependent on their agencies for income. However, Ferrara was unsure whether experienced, self-sufficient agents and brokers would consider 100% commissions a boon or bust. He asked real estate professionals to share their views.
According to the experienced real estate agents who responded, whether or not such a fee structure would benefit agents would hinge on the value/expense of the trade off. In most incarnations of the 100% commission model suggested at the time, real estate agents would pay their realty firm a monthly administration fee and/or a transaction fee. Agents would also assume responsibility for the expenses typically paid by realty firms: marketing, advertising, lead generation, training, internet presence, business cards, etc. In return, agents would keep 100% of the broker’s fee rather than splitting it with their brokerage firm (typically 70%/30% or 60%/40%).
Back in the days before agent websites, Facebook, Twitter, listing domains, mobile communications, email marketing, smartphones, QR Codes, and the ever-growing proliferation of software and apps now available to produce and manage a professional-looking marketing campaign online; the financial tradeoff offered by the 100% commission business model wasn’t always considered in the agent’s favor. Today, sophisticated real estate technology tools, mobile apps and social networks that make it possible for real estate agents to perform most realty tasks themselves is providing new traction for the 100% commission model. Real estate firms in Sarasota, Florida are moving almost exclusively to the new business model in what many industry watchers are calling a new national trend.
Web providers like Properties Online provide the services and expertise real agents now need to make the most efficient and most cost-effective use of internet technology and social networks to ensure that the 100% commission business model works in their favor.