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The Brokerage Firm with the Best Commission Structure Is…

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With the recent consolidation of major commercial real estate brokerage firms and the on-going acquisition of independent firms by national players, many individual brokers and agents are taking the time to evaluate their personal careers and deciding where to hang their license.

There are a variety of factors to consider when aligning yourself with a particular firm. Many incorrectly assume that the commission structure is the number one factor when determining which firm to work with (never for). Several, non-monetary, elements impact your ability to succeed in commercial real estate and each should be considered when determining which firm is the best fit for you.

For example, some firms are the least aggressive on a pure face value. However, these same firms may, although not necessarily, offer several resources that will assist you in reaching your potential, when compared to an independent firm or more locally-focused national brokerage organization.

Several mid-tier national firms offer more aggressive commission splits than their top counterparts; however, they may not have as strong the institutional client relationships, if this is a niche you are looking to pursue.

When determining the firm that best fits you, I would suggest you consider these 10 factors, the significance of each factor is up to you.

  1. Clientele

  2. Commission Structure

  3. Culture (Entrepreneurial vs. corporate)

  4. Marketing Support

  5. Mentorship Opportunities

  6. Opportunities to get involved in deals you couldn’t get on your own

  7. Personnel Support

  8. Team Environment (Scalable vs. integrate vs. none)

  9. Technology

  10. Training Programs

What is most important to you?

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