Adam Empringham,
Director of Sales at Image Property.
How to retain 100 per cent of your commission
[lwptoc]Is it possible to retain 100 per cent commission? If there is a bear to be poked in most sales agencies, it is the split of the commission between the sales agent and their principal.
Time and time again, resentment brews as successful selling agents see more and more of their commission diverted to the boss – albeit appropriate that the agency is compensated for its support.
However, the traditional model of commission splits is outdated because technology has replaced much of the service offerings that agencies used to provide.
When we launched our Supported By Image model two years ago, this fact was at the forefront of our thinking because we knew that all the old school model did was ultimately “train your competitor”.
Commission retention
As well as our cutting-edge technology and superior support network, 98 per cent of Image Property agents reach the threshold to retain 100 per cent commission.
When other agents or principals hear that metric, they wonder how on earth we financially manage to do that. The answer is simple – we have a long-term mindset with each and every one of our agents, which means they are being compensated fairly from the outset because we believe in the longevity of their careers and our relationship with them.
Once an Image Property sales agent settles at least $200,000 gross commission annually, they retain 100 per cent of their commission from that point on. In return, we charge a small settlement fee.
On average, agents working in traditional agencies usually have to bring in around $600,000 GCI annually to earn the same income as an Image agent does for writing half that amount.
For a long time, agents in traditional franchises have been blindly chasing high gross commissions as a status symbol or to win a trophy, without factoring in the percentage of the business they create and where that income is distributed for the value that they’ve offered the company.
Is having to retain 100 per cent commission important? What is more important? Your personal earnings and achievements, how much you write in gross commission, and which trophies you win.
I’ve always believed a better system involves agents being rewarded financially for their success by retaining more of their earnings while having a superior work-life balance.
The Supported By Image model does just that and creates a delineation between professionals who are renumerated accordingly and those who aren’t for all their hard work and efforts.
One thing that has always astounded me about the old way of doing things was that many principals never appreciated the long-term value of their sales team.
Instead, because they didn’t want to sell anymore, they just wanted to grow a sales team that could financially compensate them. As a result, they rarely had a retention plan and were more interested in their income than their agents’ income potential.
Agents are attuned to human behaviour. They can sense that mentality and often decide the grass is much greener elsewhere – exactly what we’re seeing.
Our model is the opposite of this outdated mindset because we view it as a long-term venture about supporting agents and helping them be the best they can be. The mentality is also about always providing them with a great tech stack and excellent support and service.
We want each of our agents to be with us for years and years because they are the backbone and future of our business success.
Work-life wonder
Unsurprisingly, being fairly compensated for the hard work that agents personally do is one of the reasons for the extraordinary growth that we have achieved in the past two years.
We had four agents when we launched the Supported By Image model two years ago. Today, we have 72. That is a growth of 1700 per cent!
Now, before anyone starts to wonder how we manage such an increase, it is because our model is fundamentally supported by our bespoke technology platform that allows agents to operate their business from their phones from anywhere at all – and it’s also all about their brand equity and market – not ours.
As well as always having immediate access to their own backend support team, our agents have also achieved a level of work-life balance and remarkable brand presence that they previously only dreamed about.
In fact, when asked, 100 per cent of our agents are happier with a more balanced life, without compromising their sales or income, than they were before joining our team.
It’s the efficiencies that our platform provides that allow them to feel this way.
Sure, our agents earn more money by doing fewer deals (if they so wish). Still, they can also complete more deals than ever before because each sale uses less of their valuable time. As a result, we are seeing a massive shift in our team’s productivity, presence, and income without compromising their valuable time.
Our system also allows them to reinvest in their business to generate more opportunities and build momentum for the long term.
This means they are in a fortunate position where they can choose whether to sell more or to spend time with their family, at the beach, or at the gym.
Now, let me ask you again, is it possible to retain 100 per cent commission?
