Creating a Path to a Six Figure Net Income for Your Agents

Kyle Kirchhoff works at The Lars Group in a senior leadership role where he is responsible for recruiting, training, coaching and mentoring our buyer agent team. His unique abilities are in ground-level sales management and coaching leaders to play their best game.

Transcript:

This is a short module I do on value based commission splits, your path to a six figure net income. These are people that are on-board, you've shared the basic commission splits with them, so they know where they're coming from.

I love this slide because it takes out the mystery of what you're going to be paid on a per-deal basis. I always start off on this by talking through how important it is to look at the bigger picture, meaning how much you actually end up making at the end of the year instead of a specific percentage. As we all know, a lot of people get focused on a higher commission split, and that is just craziness. There are so many people in our industry who have a higher commission split, but they're not making a six-figure income.

This lays out in a very specifically way your path to a six-figure net income. When explained that way, an opportunity to go out an make over $100,000 once their business is up and going, it gives them a significant opportunity. It puts them in the top 1% or so of wage earners in America! That's exactly the way I communicate it to them.

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I recently had this conversation with two agents who are in fast start right now, and it was just so great to see their understanding of it and their buy in of it. They don't have a sideways view of commission splits because they see the bigger picture. They see that they can go out and earn $65,000 to $80,000 in their first year, and with a mature business, go out and get more than six figures in their second year.

Everything is broken down on this slide with the average sales price. I think this is where each of you can go in and customize this fast start. If your average sales price is different from the $250,000, you need to make sure you get your numbers in there. It's important to show agents what they're going to make on an average sales price and show that transaction fee, administration fees, and net income per sale by type of transaction. This way, they can see exactly how it's broken down on a pre-deal basis.

I think it's very important that a new employee doesn't find any surprises on their pay stub. You need to set expectations about compensation up front and meet those expectations on payday. That's why this slide is so important. The goal is eventually to get agents to the point where they're making that six figure and setting expectations and showing them what it's going to take to get over $100,000 in net income is very important.