Hi, Like to inquire which is the best estate agent in town to work with, as I pass my RES exam like which ones offer - best comm rates and/or - which gives excellent mentorship other than training
Posted by Mr. titus ong - 2017-12-07 10:28:41 - Viewed 161 times
Answers (7)
Mervin Tang
Posted 2018-02-12 17:39:22
Hello Titus,
Good afternoon and thank you for your query on;
A) Commission rates and
B) Excellent mentor ship
Let me address both of these at the same time. On commission rates, typical agencies peg it at:
80/20 (i)
85/15 (ii)
90/10 (iii)
Each of the bands are achieved by achieving a certain level of production, therein an associate would keep progressing up the tier levels until the highest tier is achieved. Shortcuts are highly inadvisable. Why?
For (i) At this level, your tier 1 (T1) and tier 2 (T2) manager would generally get 6 and 4% of your commission, the balance going to the company for running costs.
For (ii), T1 and T2 will not be getting 4 and 2% of your commission, and for (iii), it would be 2 and 1% respectively. Thus, T1 and T2 are most incentivised to train and groom a new associate in the beginning of their business career.
This drops away as the new associate moves from (i) to (iii) progressively as they build up experience in handling cases and closing deals. For a new associate to jump into a 90/10 arrangement, it would be logically impossible to expect that your tier 1 and tier 2 would train you at the same level as that of a new associate.
Hence the answer to your question would be that it is structurally impossible to achieve a good commission rate TOGETHER with good training and mentorship at the same time.
Therefore, between choosing a good commission rate, and excellent mentorship, the choice is simply that to have a good mentor and training system as the priority. Simply because any commission scheme is contingent on the deals you close. A commission scheme of 99.99% multiplied by ZERO closing still translates into ZERO income.
I trust this would go some ways into resolving the conflicting requirements that you may have at the moment. All the best in your future pursuits!
Best Regards,
Mervin Tang
Huttons Asia Pte Ltd
Associate District Director (ADD) @ KLG
CEA Reg No. : R030951Z
Mobile: (65) 9184 0208
Website: http://thepropertygame.push.sg/
Sales Enquiry: mervintang.huttons@gmail.com
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