Module 2 ~ Lesson 2

Lesson 2: Team Member Compensation Plans

 

Admin Assistant(s) (TC, Leads Coordinator, Marketing, ISA)

  • Hourly
  • Hourly wage + bonus
  • Bonus on closings
  • Bonus on profit / specific goal attained
  • Salary +

Considerations

  • Market wages/salary
  • Licensed vs. unlicensed
    • See download

IC – Employee – Virtual Assistant

Independent Contractors – 1099 (Liabilities)

Employee (use a payroll service)

Virtual Assistants (pros and cons)

Resources

For tax year 2015, the federal tax rates are as follows:

  • Social Security: 6.2% of an employee’s gross wages, up to $118,500 for each employee.
  • Medicare: 1.45% of gross wages, with no earning limit.
  • Federal Unemployment Tax: 6% of gross wages, up to $7,000 for each employee.
  • Possible state and other expenses

Team Manager

  • Higher split (90% on personal business/75% for leads)
    • Percentage of team associates closings
      TM gets portion of the TL net for each closing paid via the CDA (10-30%)

Tiered model based on TL revenue/mth
Tier 1        0 – $20,000                     15%
Tier 2        $20,001 – $45,000         25%
Tier 3        $45,000+                         35% 

Example:

$275k sales price @ 3% = $8250
50% =  $4,125 (TL NET)

$4,125 x 3 closing/mth = $12,375
15% to TM = $1,856.25

$4,125 x 6 closings = $24,750
25% to TM = $6,187.50

Team Members

Buyers Agents

Rainmaker Team

  • All team provided leads paid at 50% commission
  • Agent generated transaction (75-90%)
  • Traditional Brokerage Style
    (Typically a graduated commission split)
  • All team provided leads 50% regardless of commission levelSample New Licensee Plan

0 to $10,000                        50%
$10,001 to $20,000           55%
$20,001 to $30,000           60%
$30,001 to $40,000           65%
$40,001 to $50,000           70%
$50,001 and above           75%

Plan starting at 65% (Newer-experienced agent)

0 to $40,000                        65%
$40,001 to $50,000           70%
$50,001 to $60,000           75%
$60,001 and above           80%

Listing Specialist/ Showing Agent

Typically a listing specialist / showing agent receives a percentage of the Listing side commission depending on scope of tasks and responsibilities (generally ranging from 10% to 40%)

This position could also be salary + bonus or flat fees earned per activity.

Module 2 - Lesson 1

Choosing Your Team Model and Org Chart

Module 2 - Lesson 2

Team Member Compensation Plans

Module 2 - Lesson 3

Customize the WBNL Team Operations Manual

Module 2 - Lesson 4

Team Member Job Descriptions and Agreements

Module 2 - Lesson 5

Hiring & Onboarding System

Module 2 - Lesson 6

Team Reporting and Tracking

Module 2 - Lesson 7

Team Software Solutions

Module 2 - Lesson 8

Let’s Get to Work!

If you have not already done so, go to the Module 2 Overview page and download the Workbook, Slide Decks, and all related Documents for this module.

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