Are you looking to get into real estate? Do you dream of having your own business and being in charge of your destiny? If so, you have probably heard that you need a real estate sponsor.
What does that mean and how can it help you?
Read on to find out all about how sponsorship brokers work and what they mean to you.
Why You Need Sponsorship Brokers
Real estate agents need a sponsoring real estate broker to activate their real estate license. They are also important because they often guide you during the hectic first year of your new career.
To sponsor agents a broker sponsor has to have a minimum of 3,600 points in experience based on the Qualifying Experience Report. They also need four years of experience as a broker or an agent in the last five years.
These are the minimum standards for sponsorship. Smart agents also look at some of the other intangibles like the mentorship and support they will receive from brokers.
What Is Commission Sponsorship?
The traditional broker model has a commission in sponsorship. This commission is a split and the percentages vary by broker. One of the common splits is a 70/30 split where the agent keeps 70% and the broker gets 30%.
When connected to a brokerage other monthly fees come along. These fees help pay for the office and other items so the office can run smoothly.
A New Model
There is a new model of sponsorship that is growing across the country. This is a 100% commission model. The agent still has a sponsoring broker but the costs are different.
The agent gets to keep all of their commission and they pay a monthly fee to the sponsoring broker. Sometimes there are other costs associated with each sale like a transaction fee to cover the help the office gives.
These sponsoring brokers are set up with more freedom for the real estate agent. The agent doesn't have to worry about offices and can focus on building their business.
Benefits of Sponsorship
No matter what type of sponsorship you get, there are some things you should look for. You want to make sure you have the support you need to succeed as an agent.
To succeed in real estate, you need to have the right tools. MLS is a key tool and you want to make sure you have access to the MLS in your state. You also want to have the ability to join different MLS boards.
You want to also see what other resources your brokerage offers and if there are extra fees attached. Desk fees and other fees can quickly add up as you are building your business.
If you are a new agent or still in your first couple of years, you want to find out about getting quality mentorship. Experienced brokers who are willing to answer your questions and give advice can make or break your career.
You also want to find out the requirements of your brokerage. Do you have mandatory office meetings? Is support offered all the time or only at certain times? Are there charges for extra support?
Too many sponsoring brokers will gladly split your money, but you are on your own for everything else. You want a broker who will act as a guide helping you learn the ropes so you can be successful.
Agents are only as successful as the tools they have in their arsenal. You want to make sure that your sponsorship broker gives you the tools to succeed. Find out about leads and if they help you generate leads.
Do they help you with all of the online tools you need to succeed today? So much of what you will do is online and you want to make sure they help you have the right tools.
You don't want to have to split your commissions and then find out that you have to pay for all of your online tools. Those memberships can get expensive!
What Level of Sponsorship?
Looking for sponsorship also means thinking about your own goals. What goals do you have for yourself as a real estate agent? Do you want to make extra money or go all the way and become a broker yourself?
Understanding this will help you find the right sponsorship.
A basic agent is someone who doesn't try to have a massive volume. You are either doing it part-time or have other priorities that pull on your time. You want support but you also want your freedom.
You are a driven agent and want help building your clientele. You want to get help generating leads and building growth strategies. What you want is dedicated support that can help you succeed.
You are looking for help in building your own business. Guidance in hiring your own agents and marketing your brand. You need to find senior-level support that will help you build your team.
Partnership for Success
A real estate sponsor is more than a person who signs a piece of paper. They need to be a partner in your goals as an agent. They don't do the work for you, but they should provide the help so you can build your career.
Your search for commission sponsorship should start with your goals. Figure out what you need and picking the right brokership sponsor will be easy.
Brokerbreakup.com is a company committed to your success as an agent. We help agents keep 100% of their commission and succeed with their real estate goals.
Check out the Broker Breakup Plans and set up a call to talk with us about our strategies for your success.