In this episode of The Ken Jones Real Estate Show I address the debate about who really makes more money; a real estate agent who works in a traditional fee-split firm, or an agent who works in what's called a "100%" firm.
For those of you who don't know, there are basically two types of real estate brokerage companies that an agent can work for:
1. A so-called "fee-split" company where the broker provides various services to the agent and they share the commissions generated by the agent, and
2. A "100%" company where the company doesn't provide anything to the agent, the agent pays all of their own expenses, including advertising, and where the agent is paid 100% of the commissions they generate.
To determine which type of agent makes more money, has a greater return on their invested dollar, and has the lowest level of risk, I create a scenario where I pretend to be an agent who's deciding which type of agent would be more profitable.
To do this, I developed a list of expenses that each type of agent would typically have. I then made the assumption that - under both the fee-split and 100% scenario - the same agent would generate the same number of transaction units at the same price, generating the exact same amount of commission.
Download Agent Income & Expense Sheets at https://KenJonesRealEstate.com/blog
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