Which Residential Commission Plan Works Best For You?
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Referral Plan PLAN 1 | Residual Referral Plan PLAN 2 | Referral Plan PLAN 3 | Revenue Share Plan PLAN 4 | |
|---|---|---|---|---|
Турe | Low Cap | Low Cap Hybrid | Per Transaction | Rev Share Plan |
Monthly Fee | $0 | $0 | $75 | Please visit Revenue Share site for details: Red1Plus.com |
Franchise Fee | $0 | $0 | $0 | |
Agent Split | 50/50 | 70/30 | 100% | |
Agent Transaction Fee | $0 | $0 | $500 | |
Client Fee | $0 | $0 | $250 | |
Commission Cap | $4,800 | $6,000 | N/A | |
Agent Referral Bonus | $500 – One Time* | $500 (L1) / $250 (L2) – Residual* | $250 – One Time* |
* Plans 1-3 have an Annual Fee of $249 (includes Agent E&-O Policy)
*
Commercial transactions: 100% Commission minus only $12,000 Cap on 85/15 split *
FAQ - General
Q: How often can I change commission plans
A: Every year on your anniversary date.
FAQ - PLAN 1
Q: Are there really no other fees on Plan 1?
A: Absolutely Not. Only a $249 Annual Fee and $4,800 Commission Cap.
Q: When do I receive my $500 Referral Bonus when I refer in an agent to Red 1?
A: The bonus is paid out once the referred agent closes on their sale.
Q: How much real estate do I need to sell to hit my Commission Cap?
A: You only need to sell $320k in real estate at the standard 3% Commission
Many of our Agents hit this mark after they sell only 1 Home!
Q: How much real estate do I need to sell to hit my Commission Cap?
A: The split is irrelevant when you have such an absurdly low Cap.
Q: What happens when I hit my Commission Cap?
A: Once you’ve paid $4,800 into the Brokerage, you will receive 100% Commission of all of your transactions until your Anniversary Date.
Q: What happens if I don't hit my Commission Cap? Do I need to make up the difference?
A: Not at all. Your $4,800 Cap will reset at your Anniversary Date and any remaining balance will disappear.
FAQ - PLAN 2
Q: How does the referral bonus structure work for Plan 2?
A: You receive $500 bonus for each agent you directly refer to Red 1 EVERY year that they hit their Cap on Plan 2. They are considered your Level 1 Agents.
You also receive a $250 bonus EVERY year for each agent who is referred to Red 1 by one of your Level 1 Agents and hits their Cap on Plan 2.
Q: When do I receive my Referral Bonuses?
A: The annual bonuses are paid out quarterly after the Referred Agents hit their Cap.
Q: Are there really no other fees on Plan 2?
A: Absolutely Not. Only a $249 Annual Fee and $6,000 Commission Cap.
Q: How much real estate do I need to sell to hit my Commission Cap?
A: You only need to sell $667k in real estate at the standard 3% Commission.
Based on the Average Home Sale Prices, many Agents hit this mark after they sell only 2-3 Homes!
Q: Why would I want to pay a $6,000 Cap vs the $4,800 Cap in Plan 1?
A: Referring Agents in Plan 1 only receive a One-Time Referral Bonus of $500 for each of the Agents they refer to Red 1.
Referring Agents in Plan 2 not only get a $500 Referral Bonus Every Year the referred agent Caps, they also receive $250 Every Year for all Agents referred in by their Level 1 Agents!
Therefore, Agents on Plan 2 can end up paying less than $4,800 each year once they receive their bonuses! They could even receive more money from Red 1 in bonuses than their $6k Cap!
Q: What happens when I hit my Commission Cap?
A: Once you’ve paid $6,000 into the Brokerage, you will receive 100% Commission of all of your transactions until your Anniversary Date.
Q: What happens if I don't hit my Commission Cap? Do I need to make up the difference?
A: Not at all. Your $6,000 Cap will reset at your Anniversary Date and any remaining balance will disappear.
FAQ - PLAN 3
Q: Is this plan a good choice for me?
A: This plan is typically only good for agents who only plan on selling 2-3 homes per year.
Q: When do I receive my Referra! Bonus when I refer in an agent to Red 1?
A: The bonus is paid out once the referred agent closes on their sale.
Q: Can I cover the $250 Client Fee?
A: Yes, you are not required to charge your client the fee if you would like to cover it.
Q: Is there really no split on Plan 3?
A: Not at all. You receive 100% commission minus only the fee listed per transaction.
