T
he allure of high commission splits is understandable, but many agents who adopt this model today lack the foundation to make it work. Key points:
Agents who succeed in high split models typically have a different background than those who found success in the 1990s. To thrive, they need to invest in training and tools, which can eat into their profits.
Joining a team can be a helpful way for agents to build experience while scaling up. This approach allows them to tap into the resources and expertise of more established professionals.
The direction of an agent's business depends on daily decisions. To navigate these choices effectively, agents need access to guidance from experienced pros who have been there, made mistakes, and found success.
New or less experienced agents often seek higher commission splits as a way to maximize their earnings. However, this approach can be costly, especially when they lack the necessary training and tools to succeed.
High split models originated in the 1990s, attracting established agents with active practices who wanted to grow without taking on broker-owner responsibilities. These agents were typically full-time breadwinners who didn't need hand-holding or training wheels.
Today's agents are often attracted to high split models that offer more commission but lack the foundation and resources needed to succeed. They may not have solidified their clientele, revenue sources, or business systems, making it difficult to scale up.
To reach the next level, agents need access to robust tools, training, and mentoring. These costs can be significant, eating into their profits and limiting their ability to invest in growth.
Associating with a team can provide agents with the resources they need to succeed without sacrificing too much of their commission split. This approach allows them to tap into the expertise and revenue of more established professionals, enabling them to build a strong business foundation.
Ultimately, agents who want to thrive in high split models need to invest in themselves and their businesses. Joining a team or finding a brokerage with the resources they need can be a key part of this process.
