Friday, 30 August 2013

Commission Sharing Structures and Understanding their Underlying Philosophy..

Hi, I understand all agencies levy a certain % on commission earned by new salesperson. eg: 30% on the 1st $30K and 10% thereafter onwards. Some refund RES course fee, etc. Can various 'Shi-fu' enlighten me on your respective agency's practise so that I can have a better understanding before I join you. Tks

Posted by Eric Tan - Aug 26, 2013 - Viewed 193 times

Answers (9)

Mervin Tang
79d7532041822_1_V60B
Posted Aug 31, 2013
Hello Eric,

Thank you on your above query,

First and foremost, the key question that you should be asking yourself is,

"Why does the commission structure work that way?"

Broadly, ALL commission schemes are designed around 2 key philosophies, namely:

A) "A Sense of Entitlement", this philosophy characterises organisation structures that are tall and deep, meaning, the over-riding fees support multiple tiers upwards even though they may have little impact on your activities and training.

B) "Flat, Fast Growing Structures", this philosophy typically has very flat structures that push the bulk of the rewards to the downlines to build them up as fast as possible. This structure encourages constant grooming and recruitment which often results in very fast and dynamic growth.

Huttons Asia Pte Ltd is one such business entity that functions precisely this way!!

Secondly, of all the search criteria that you could put up as a first step in the Real Estate world, the commission structure should be the least of your concerns.

The key ingredients that you should be looking for are namely:

1. STRONG AND CLEAR LEADERSHIP
2. A Team Culture of Sharing and Support


Within Huttons Asia Pte Ltd, the lowest entry level is:

80-20 for Gross Comm up to $50k
85-15 for Gross Comm up to $80k
90-10 for Gross Comm above $90k

For the above, each commission stage is a benchmark to be fought for and earned by all our associates.

There are no short-cuts or entitlements. 
Each successful milestone is like a badge of honour earned via hard work and experience. 
Thus each and every associate that we train and succeeds has deep confidence each time they open their mouth to speak.

Hope the above sheds some light on your query!!


Best Regards,


Mervin Tang
Group Director
Division Lead Trainer, Project Sales
CEA Reg No. : R030951Z
Huttons Asia Pte Ltd

Mobile: (65) 9184 0208
Website: http://www.SGrealestate.sg
Sales Enquiry: mervintang@SGrealestate.sg
Discussions: http://sg-realestate-sg.blogspot.com/

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