Commission Schedule Strategy

Overview:

In this article, we will breakdown the Commission Schedule Strategy field when creating a Commission Plan. The commission schedule strategy field determines how an agent's commission schedule is calculated based on their production, transaction activity, or sales volume. 

Please find the available resources below.

When creating or reviewing a commission schedule, it is important to understand which strategy applies to the brokerage's compensation structure. 

Commission Schedule Strategy Options:

Flat Rate:

A Flat Rate strategy is a fixed percentage that an agent receives per transaction. This Strategy applies the same rate to each applicable transaction rather than changing based on production or volume. 

Flat Amount:

A Flat Amount strategy is a fixed dollar amount that an agent will receive from that transaction, regardless of the transactions sales price. 

Threshold Based:

A Threshold Based strategy uses a defined sales price threshold to determine when an agent's transaction qualifies for a specific commission percentage. An example of this set ups can include, transactions with a $500,000 sales price or below, the agent will receive 70%. But transactions with $500,00.01 or higher, the agent will receive 90%. 

Accumulation: 

An Accumulation strategy tracks an agent's production over a defined period of time and will increase the agent's commission percentage as each level is met. An example of this set up can include, an agent will receive 70% until their production reaches $50,000. Once an agent reaches the $50,000 in production they will receive 80%. 

Rolling Accumulation:

A Rolling accumulation strategy calculates an agents commission based on their production activity within a specific rolling time frame.