How a “cap” works at Modern Broker:
In the beginning of his/her year an agent starts with an initial split. At Modern Broker this split is never starts less than a 75% split and can start as high as 95% depending on the agent’s prior year’s sales. Once the company dollar generated by the agent’s closed sales reaches $10,000 the agent is considered “capped” and will receive 100% of the commission and is only charged the Risk Management Fee of $150 per file.
- Example 1: Sally is an agent at Modern Broker. Based on her sales last year, Sally starts the year with an initial split of 75%. After a few months of hard work in the next year, by mid year Sally has closed 8 homes with the same average commission of $5,000 each for a total of $40,000. She kept 75% percent of those sales which amounts to $30,000 and the company retained the remaining $10,000. Since the company has received $10,000 Sally is now “capped”. Sally closes another 7 transactions before the start of the next year. Since Sally was capped for those last 7 transactions she receives 100% for each of those sales. She maintained the $5,000 average commission so she kept all of the last $35,000 earned less only her risk management fees of $150 on each sale. Go Sally!!
- Example 2: Joe has just joined Modern Broker. At his last company Joe earned $120,000 in gross commissions in the last 12 months. He starts at Modern Broker with an initial split of 90%. Joe does great in his 6 months at Modern Broker reaching $100,000 in GCI in those first 6 months. Based on his 90% split, he kept $90,000 and Modern Broker received $10,000. Joe is now capped. In the last 6 months of the year he earns another $100,000 in GCI and keeps 100% of it. By year end Joe has earned $200,000 in GCI, paid just $10,000 to Modern Broker for his cap and only $150 per file for risk management.
Note: Even though Sally and Joe started with a different initial split they both have the same cap and have the same benefit of just paying the $150 risk management fee per closing once they’ve capped.