COMMISSION GUIDELINES
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1 FACTS & FORMS
2 COMMISSION GUIDELINES COMMISSION GUIDELINES Up to $90,000 7% or minimum $2,500 per side $90,001 - $200,000 7% or more $200,001 or above 6% or more Bonus and marketing fee earned on a transaction are all yours when your side meets half the above guidelines. Also, bonus will be paid to selling associate if commission is a minimum of 3% on sales price of $150,000 or less. Commission agreements on unlisted properties (FSBO): Commission of 4% or more The in-house bonus will be paid on half of commission. Commission of less than 4% will be paid at co-op level. Please talk to your manager prior to committing to commission reductions involving the company portion of the commission. FLAT FEE COMMISSION The Flat Fee Commission for contracts written in 2017 will be $
3 YOUR COMMISSION ROADMAP ReeceNichols has developed the perfect commission plan for each stage of your career. As your business changes and grows over time, your commission plan needs to adapt and grow with you as well. The 50/80 Plan, 70% Plan and 95% Plan offer the most competitive commission plan options throughout your entire career. Each rewards you for your hard work and dedication and gives you the flexibility to pick the right plan at the right time. 50/80 PLAN: ReeceNichols 50/80 Plan provides you with the opportunity to best meet your financial needs along with the cycles of your business. When you add up everything ReeceNichols does to accelerate your career, the 50/80 Plan is the perfect all-inclusive commission plan for you as you build your career. 70% PLAN: ReeceNichols 70% Plan rewards you for your hard work and efforts in your real estate career. After attaining $1 Million in closed sales volume, sales associates can elect to move to the 70% Plan. For many experienced agents, the 70% Plan will be the perfect commission plan throughout their career and for others, it is an excellent transition commission plan before moving to ReeceNichols 95% Plan. Either way, the 70% Plan is yet another great option for building your business and career with ReeceNichols. 95% PLAN: ReeceNichols 95% Plan affords you the opportunity to earn 95% on all commission payouts throughout the year. This allows sales associates to securely plan their business around a consistent commission split and fixed monthly costs. The 95% Plan is a perfect fit for those disciplined sales associates seeking greater responsibility over their business in exchange for higher annual overall earnings. The 95% Plan is the most competitive commission plan in the market, rewarding the hard-working and productive real estate professional.
4 THE 70% COMMISSION PLAN REECENICHOLS 70% PLAN ReeceNichols 70% Plan rewards you for your hard work and efforts in your real estate career. After attaining $1 Million in closed sales volume, sales associates can elect to move to the 70% Plan. For many experienced agents, the 70% Plan will be the perfect commission plan throughout their career and for others, it is an excellent transition commission plan before moving to ReeceNichols 95 Plan. Either way, the 70% Plan is yet another great option for building your business and career with ReeceNichols.
5 THE 70% COMMISSION PLAN Q: When can I enroll in the 70% Plan? A: Sales associates can enroll in the 70% Plan after reaching $1 Million in closed sales volume during any 12-month rolling time period. Once eligible, a sales associate electing to enroll in the 70% Plan will have their new Anniversary Year commence on the 1 st day of the following month. Each Anniversary Year, a sales associate must maintain at least one million in closed sales volume to remain eligible for the 70% Plan. Q: Is there any monthly cost on the 70% Plan? A: There are no monthly fees or costs on the 70% Plan. Q: What are the transaction fees on the 70% Plan? A: The Agent Services Fee on the 70% Plan is $250. There is a 6% fee on the first 15 transactions of each Anniversary Year a sales associate is on the 70% Plan. After the 15 th transaction in the Anniversary Year, there is no 6% fee for the remainder of that Anniversary Year. The 6% is calculated at 6% of 3% and taken from the agent s portion of the commission. Q: If I enroll in the 70% Plan are my pending deals paid out under the 70% Plan or my previous commission plan? A: If enrolling in the 70% Plan from the 50/80 Plan or the Legacy Plan, your pending deals will be paid out under your new 70% Plan. Q: Can I switch Plans? A: Yes, a sales associate may move to the 95 Plan on the January 1st and July 1st enrollment dates. In addition, a sales associate may move to the 50/80 Plan at the conclusion of their 70% Anniversary Year. Q: Can a real estate team participate in ReeceNichols 70% Plan? A: Yes, real estate teams may enroll in the 70% Plan as either a Marketing Team or Marketing + Financial Team. As a Marketing Team, each team member individually pays their Agent Services Fees and the 6% Fee on their first 15 transactions of the Anniversary Year. As a Marketing + Financial Team, the combined team members would each pay the Agent Services Fee on each transaction and would collectively pay the 6% fee by taking the number of team members, multiplied by 15. For example, a team consisting of 2 sales associates would pay the 6% fee on the first 30 transactions they collectively close during their Anniversary Year.
6 70% PLAN REGISTRATION FORM - INDIVIDUALS INDIVIDUAL SALES ASSOCIATE REGISTRATION To: Date: Agent: Office: Accounting Annual Anniversary Date: (1st day of the next month following Sales Associate s election to join the 70% Plan) The 6% fee will be taken from the agent s commission on the first 15 transactions of each Anniversary Year. After the 15 th transaction, there is no 6% fee. The Agent Services Fee is $250 per transaction. Agent Signature: Manager Signature: Accounting Signature:
7 70% PLAN REGISTRATION FORM - TEAMS TEAM REGISTRATION Branch Office: Team Members: The following elections are made by the Team joining the ReeceNichols 70% Plan. Marketing Team (Market as a real estate team with no combined finances) Each Team Member, individually pays their $250 ASF and 6% fee on each Team Members first 15 transactions of each Anniversary Year. Sales volume and units will all be collectively counted for the team. Marketing + Financial Team (Market as a real estate team and combined finances) Team Members collectively pay the $250 ASF on each transaction and pay the 6% fee on the first 15 transactions, multiplied by the number of team members. (Example: 2 Team Members x 15 transactions = 30 transactions). Annual Anniversary Date: (1st day of the next month following the Team s election to join the 70% Plan)
8 70% PLAN REGISTRATION FORM - TEAMS Agent Signature(s): Manager Signature: Accounting Signature:
9 THE 50/80 COMMISSION PLAN REECENICHOLS 50/80 PLAN ReeceNichols 50/80 Plan provides you with the opportunity to best meet your financial needs along with the cycles of your business. MARKETING AND SUPPORT TO HELP GROW YOUR BUSINESS The Agent Services Fee provides marketing and support services to help grow and protect your business, including: 8/22/2018
10 THE 50/80 COMMISSION PLAN Q: Do I have to sign up for the 50/80 Plan? A: For current ReeceNichols sales associates - Absolutely not. The 50/80 Plan is offered as an alternative to ReeceNichols legacy commission plan, the 70% Plan and the 95 Plan. The 50/80 Plan is very competitive and for many sales associates it will be the most financially attractive commission plan apart from the 95 Plan. New ReeceNichols Sales Associates will automatically be enrolled in the 50/80 Plan, unless they choose the 95 Plan. Q: Can I switch between Plans? A: Yes, sales associates may always elect on the start of their next anniversary year to switch between the 50/80 Plan and the 95 Plan. In addition, once a sales associate reaches one million closed volume, they can elect to go onto the 70% Plan. Once a sales associate elects to move to the 50/80 Plan, they may not move back to the legacy commission plan but may always choose the 95 Plan in the future or the 70% Plan if eligible. Meeting with your Manager will always be the best way to determine what plan is right for you and your business. Q: Can a real estate team participate in ReeceNichols 50/80 Plan? A: Yes, real estate teams may enroll in ReeceNichols 50/80 Plan. Depending on the nature and type of the team, there are two different ways for teams elect treatment under the 50/80 Plan. See the Teams on the 50/80 Plan marketing handout for guidelines. Q: When do my earnings reset each year? A: Sales associates joining the 50/80 Plan will have their earnings reset on the 1st day of the month following the anniversary date they elected to enroll in the 50/80 Plan. This gives you the flexibility to choose which business cycle best meets your individual needs. The commission split paid to the sales associate under the 50/80 Plan is always based on the closed date of the transaction. Q: Can the jump points and earnings levels change? A: The jump points and necessary earnings levels may adjust annually in small increments like the ReeceNichols level plan based on the Consumer Price Index. 8/22/2018
11 50/80 PLAN REGISTRATION FORM - INDIVIDUALS INDIVIDUAL SALES ASSOCIATE REGISTRATION To: Date: Agent: Office: Accounting The following elections are made by the Sales Associate in joining ReeceNichols 50/80 Plan. 55/50 Start Point Commission percentage of 55% on the sale of all ReeceNichols listings and 50% on all outside sales and listings. Upon reaching $31,500 in earnings, Sales Associate has a commission percentage of 85% on the sale of all ReeceNichols listings and 80% on all outside sales and listings. There are no required prior year earnings for the 55/50 Start Point. Annual Anniversary Date: (1st day of the next month following Sales Associate s election to join the 50/80 Plan) Sales Associate s earnings will automatically reset each Anniversary Date. The commission split paid to the Sales Associate under the 50/80 Plan is based on the closed date of the transaction. Once enrolled in the 50/80 Plan, Sales Associates may not revert back to the Legacy commission level plans. The jump point and necessary earnings level may adjust annually in small increments like the ReeceNichols level plan based on the Consumer Price Index. Agent Signature: Manager Signature: Accounting Signature:
12 50/80 PLAN REGISTRATION FORM - TEAMS TEAM REGISTRATION Branch Office: Team Members: The following elections are made by the Team joining the ReeceNichols 50/80 Plan. Marketing Team (Market as a real estate team with no combined finances) 55/50 Start Point Each team member has a commission percentage of 55% on the sale of all ReeceNichols listings and 50% on all outside sales and listings. Individual team members separately attain the 50/80 commission level once achieving $31,500 in individual earnings. Marketing + Financial Team (Market as a real estate team and combined finances) 55/50 Start Point Team members have a commission percentage of 55% on the sale of all ReeceNichols listings and 50% on all outside sales and listings. The team attains the 50/80 commission level once the collective earnings of the entire team meets the following formula: (# of Team Members x $31,500 = Earnings Jump Point). Annual Anniversary Date: (1st day of the next month following the Team s election to join the 50/80 Plan) The Team s earnings will automatically reset each Anniversary Date. The commission split paid to the Team and its members under the 50/80 Plan is based on the closed date of the transaction.
13 50/80 PLAN REGISTRATION FORM - TEAMS Once enrolled in the 50/80 Plan, the Team and its members may not revert back to the Legacy commission level plans. The jump point and necessary earnings level may adjust annually in small increments based on the Consumer Price Index. Agent Signature(s): Manager Signature: Accounting Signature:
14 THE 95 COMMISSION PLAN REECENICHOLS 95 PLAN ReeceNichols 95 Plan affords you the opportunity to earn 95% on all commission payouts throughout the year. This allows sales associates to securely plan their business around a consistent commission split and fixed monthly costs. The 95 Plan is a perfect fit for those disciplined sales associates seeking greater responsibility over their business in exchange for typically higher annual overall earnings. MARKETING AND SUPPORT TO HELP GROW YOUR BUSINESS The $198 *Agent Services Fee provides marketing and support services to help grow and protect your business, including:
15 THE 95 COMMISSION PLAN Q: When can I enroll for the 95 Plan? A: Sales associates can elect to start on the 95 Plan on January 1 st or July 1 st. Q: If I want office space, what is the cost? A: Office space on the 95 Plan is calculated at $5 per square foot. Q: How do I pay my 95 Plan fees? A: 95 Plan fees are due at the first of month and will be automatically deducted each month from the debit or credit card provided to ReeceNichols at the time of enrollment. In the event a sales associate is more than 1 month behind on the payment of 95 Plan fees, they will be moved to the 85 Plan and may enroll again on the 95 Plan at the start of the next calendar year and upon payment of any past due 95 Plan fees. Q: If I elect to add an Administrative Assistant, can they sell or list real estate? A: Administrative Assistants do not list or sell, but may refer business to you. Q: How is ReeceNichols 5% calculated? A: ReeceNichols 5% is calculated at a 3% commission per side. If the selling commission offered by a cooperating broker in the MLS is less than 3%, ReeceNichols 5% is calculated off the offered selling commission. Q: Can a real estate team participate in ReeceNichols 95 Plan? A: Yes, real estate teams may enroll in ReeceNichols 95 Plan. Depending on the nature and type of the team, there are different ways for teams elect treatment under the 95 Plan. See the Teams on the 95 Plan marketing handout for guidelines.
16 95% PLAN REGISTRATION FORM To: Accounting Date: Re: Agent Name Office Monthly Rate Monthly Rate is due on the first business day of the month. Current Agent Service Fee will be collected from sales upon closing. Office Space ($5.00) x ( sq.ft) = $ Primary Licensee = $ 1, Administrative Asst. $ x (# of assistants) = $ No transactions 1 st Selling Asst. $ = $ Each Additional Selling Asst. $ x (# of assistants) = $ Total Monthly Fee = $ Effective Date Agent Signature Date Manager Signature Date Accounting Signature Date Contracts written before enrolling on the 95% Plan will be paid at current level. Team leaders must override on all transactions. The company portion of commission is 5% of GCI with a minimum of 5% of a 3% side. Team is not approved until all the above parties have signed the form. 10/13/2017
17 95% PLAN REGISTRATION FORM Team Roster Split Team Leader Paper work Assistant First Buyers Agent Buyers Agent Buyers Agent Buyers Agent Buyers Agent Buyers Agent Buyers Agent Buyers Agent Buyers Agent Buyers Agent 10/13/2017
18 LOYALTY PROGRAM AGENT SERVICE LOYALTY PROGRAM In recognition and appreciation for continued loyalty to ReeceNichols, we offer the Agent Service Loyalty Program. This rewards our valued team members for their commitment to their real estate careers and the Company. 20 YEAR PROGRAM Legacy Commission Plan Agents attaining 20 years of continuous service with ReeceNichols are recognized with a lifetime commission percentage. The percentage is the highest earned level from their 18th, 19th or 20th year of service. This percentage will never decrease but may increase based on increased performance after the 20th year of service. Once increased after the 20th year, that becomes the new lifetime commission percentage. The 80/85 Commission Plan For agents on the 80/85 Plan when attaining their 20 th year of service, they will automatically receive the highest earned Start Point achieved in their 18 th, 19 th or 20 th year of service for each anniversary year thereafter. If a higher Start Point is earned following the 20 th year of service, that Start Point will be the new lifetime Start Point for each anniversary year thereafter. UP TO 20 YEARS For our agents on the Legacy Commission Plan which have not yet attained 20 years of service, they can feel secure that their commission levels will never decrease more than one-step per year if their production has an unexpected down year. However, they will always enjoy the ability to raise multiple levels each year based on increased yearly earnings. As an added benefit, if an agent on the Legacy Commission Plan has a year which did not meet their goals, they may keep their level provided that the commission level was previously earned over the preceding two years. *Earned Level is defined as actual earnings on current year s schedule.
19 GETTING YOUR NEW BUSINESS STARTED AGENT SERVICES FEE Bundled services to keep you online and in business. Instead of billing sales associates monthly for every service used, ReeceNichols Realtors have an Agent Services Fee (ASF) which covers the systems, tools and services needed in today s fast paced real estate industry. The ASF is $ and is collected from every closed side. When you sell your own listing, only one ASF will be collected. Customized ReeceNichols Website Agent.ReeceNichols.com Full IDX Full Mobile Integration Lead Management Integration News & Advice Agent Branded App Personal ReeceNichols Agent@ReeceNichols.com ActiveSync Today Studio Customizable Agent Dashboard Online Forms and esignatures Home Match Reverse Prospecting Listing Alert Action Plans e-letters Trendgraphix Buyer & Seller Marketing Materials Leadtrax Software Coaching, Training, and Education Continuing Education (Free) Leading RE Training E & O Coverage Multifunction Devices Full Color Copies in all Offices Dot Loop Premium Centralized Showing Service Technical Service Center Weekdays 8am-5pm Help.ReeceNichols.com Usage of all RN Offices Agent Service Center Iron Port Spam Filter Common Area Computer - Microsoft Office Suite - Outlook Marketing TV, Radio, and Online Advertising Online Recognition Zillow Broker Partnership Adwerx Partnership Boomerang Partnership Reminder Media Partnership Real Satisfied Survey System Xpressdocs Open House Advertising Facebook Ads During OHC ReeceNichols Branded Cloud CMA News & Advice Social Media Resources 12 Last Updated 11.16
20 EARNINGS POTENTIAL EARNINGS POTENTIAL ReeceNichols provides state of the art offices, management support and marketing & technology to ensure your success. You & ReeceNichols share the success and commission. Commissions are calculated based on the sales price of the property and determined by the percentage of commission charged. Example:* Sales price of Home $200,000 Commission Rate x 7% Gross Commission $14,000 50% to Listing Agency $7,000 50% to Selling Agency $7,000 Your Share after splitting 50/50 with your company $3,500 In-House selling Bonus $3,850 A 95% Plan is an option for your consideration. For details, check with your Branch Manager. PLANNING YOUR INCOME Home Sold Approx. Annual Income** 1 Home per month $42,000 2 Homes per month $84,000 3 Homes per month $126,000 4 Homes per month $168,000 *The commission schedule at ReeceNichols is in your favor, starting with a 50/50 split and jumping to an 80% split after $31,500. Your earnings will be considerably more due to inhouse transactions which are computed at a higher commission split. Your opportunity for in-house transactions are greater due to the extensive ReeceNichols market share. **These amounts will be higher because of the ReeceNichols Progressive Commission Plan. Note: Expenses are tax deductible and tax withholding is the sales associate s responsibility. Additional income may be generated from local and national referrals.
21 A COMMITMENT TO COACHING & TRAINING REECENICHOLS ADVANTAGE All ReeceNichols agents, new and experienced, are encouraged to attend ReeceNichols Advantage, a fast-paced and information-packed course. ReeceNichols Advantage will provide you the insight into ReeceNichols, which will allow you to use every tool, resource and person to your advantage for your business. ReeceNichols Advantage is a 5-day course offered on a monthly basis at the ReeceNichols Training Center. Please visit Training.ReeceNichols.com to view the calendar and register for an upcoming class. Day 1: Company & Business Basics Day 2: Marketing Your Business Day 3: Working with Sellers Day 4: Working with Buyers Day 5: The Next Step as CEO of Your Business ReeceNichols VISIT TRAINING.REECENICHOLS.COM FOR UPCOMING COURSES. 28 Last Updated 11.16
22 A COMMITMENT TO COACHING & TRAINING FASTTRACK COACHING PROGRAM New agents are paired with an experienced and successful REALTOR Mentor in their office to serve as a one-on-one coach and accountability partner. The mentor provides the agent with real life and hands-on experience to help them understand and witness the day-to-day actions it takes to grow and sustain a lasting real estate career. The second part of the Mentor Program is the step-by-step nine-unit tutorials online. Each unit is packed with videos, instructions, role playing scenarios and scripts to help each new agent have the best opportunity for early success The combination of a REALTOR Mentor and an online tutorial will help you create the right plan for your new business. The units are as follows: Unit 1: New Agent Tasks Unit 2: Open Houses & Partnering with HomeServices Lending Unit 3: The Closing Process & Partnering with Kansas City Title Unit 4: Learning to List & Partnering with AB May Unit 5: Becoming A Market Expert & Partnering with Reece & Nichols Insurance Unit 6: Creating a Business Built on Referrals & Farming Tools Unit 7: Financial & Business Planning Unit 8: Mastering the Buyer Relationship Unit 9: Mastering the Seller Relationship Coaching Program 29 Last Updated 11.16
23 A COMMITMENT TO COACHING & TRAINING CERTIFIED REECENICHOLS CONSULTANT PROGRAM The Certified ReeceNichols Consultant designation is offered exclusively to ReeceNichols agents. The program consists of 10 advanced classes covering: prospecting; engaging with sellers and buyers; open houses; dialogue and objection handling; business planning; goal setting and many more relevant issues for today s real estate professional. After completion of the 10 courses, agents receive the CRNC designation, the CRNC lapel pin and a $500 bonus on their next closed transaction. COURSES TO BE COMPLETED: Class #1: Classic Prospecting Class #2: Working with Buyers Class #3: Open Houses Class #4: Sellers: From Phone Call to Meeting Class #5: Family of Services Class #6: Sellers: Listing Appointment Class #7: Innovative Prospecting Class #8: Objection Handling Class #9: Buyers for Life Class #10: Being Your Own CEO 30 Last Updated 11.16
24 MENTOR AGREEMENT MENTOR/NEW ASSOCIATE AGREEMENT Mentor: Sales Associate: MENTOR MENTOR QUALIFICATIONS: Mentors are ReeceNichols agents with a certain level of experience and expertise and have the recommendation of your Broker. Mentors are supportive of ReeceNichols programs, procedures and business affiliations. Mentors understand the importance of attending sales meetings, in-office training/events and attending Company educational opportunities. Mentors have a working knowledge of MLS, contracts and the Studio programs including action plans, MNR, Buyer s Tour and CMA. Attended a FastTrack orientation session or on-line tutorial. MENTOR COMPENSATION: Mentor receives $500 from the Company for the first closing of the new Associate; $750 from the company on the second closing of the new Associate; and 5% of the Company Dollar earned from the new Associate at the conclusion of their first 12 months in business. New Associates joining a Team must have the Team Leader sign this Agreement if the new Associate is going to have a Mentor as the Team is responsible any agreed upon compensation to the Mentor. New Associates on a Team may participate in FastTrack without a formal Mentor. Team Leader will be provided administrative access to FastTrack. MENTOR S RESPONSIBILITIES Mentor will advise, critique and volunteer feedback on a weekly basis to the new Associate in all areas of the new Associate s responsibilities. Mentor will track the new Associate s progress in FastTrack and provide accountability to the new Associate to ensure their completion of the units. Mentor will provide shadowing opportunities to the new Associate to gain field knowledge in actual real estate settings and meetings.
25 MENTOR AGREEMENT NEW ASSOCIATE NEW ASSOCIATE COMMITMENT: The following is my commitment for my success: I will take pride in our office and company by upholding ReeceNichols Vision: ReeceNichols goes above and beyond to deliver an experience that is rewarding for employees, agents and consumers. We understand that every individual interaction matters throughout the entire home and lifestyle journey. As a Partner for Life, we are never finished. We honor the significance of the home by developing branded solutions that support our agents and consumers as they move through that journey. Work diligently to serve and add value to customers and clients in a professional business manner. Perform all activities and assignments in FastTrack and work diligently to complete all 9 FastTrack units. Maintain the standard of the REALTOR Code of Ethics. Balance my career and personal life. Maintain a positive attitude about all listings, agents, personnel and business issues. Dress professionally at all times. I represent myself, my family, my office and company. The above are guidelines and assistance from your Mentor will vary based on the help you need. Please be considerate of your Mentor s time and other responsibilities. Your Mentor cannot be available 24/7 but can be an invaluable source of information and guidance. You can always ask your Broker and office staff if your Mentor is not available. Mentor: New Associate: Manager: Date: Date: Date: If necessary: Team Leader: Date:
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