Mastering commission structures in your Agency Agreements

Here’s how to configure the most common commission types within Realtair.

1. Flat Percentage (%) Commission

This is the most widely used structure, where your commission is a simple percentage of the final sale price.

• How it works: Realtair calculates the estimated commission range based on the percentage you enter and the property's estimated selling price range.
• Example:
  • Estimated Selling Price: $1,000,000 - $1,100,000
  • Commission Rate Entered: 2%
  • Agreement Displays: Estimated commission of $20,000 - $22,000.

2. Flat Dollar ($) Commission

For ultimate simplicity and clarity, you can set a fixed dollar fee for your services, regardless of the final sale price.

• How it works: Enter the total dollar amount for your remuneration.
• Example:
  • Commission Entered: $25,000
  • Agreement Displays: Agent’s Remuneration: $25,000.

3. Tiered Commission Structures

Incentivise performance and align your success with your vendor's goals using tiered commissions. This "sliding scale" model adjusts the commission based on the final sale price achieved.

A) Fixed Percentage Tiered

The commission percentage is determined by which price bracket the final sale price falls into.

• How it works: You define price brackets and assign a specific percentage to each. The final sale price determines which single percentage rate is used to calculate the entire commission.
• Example:

B) Fixed Dollar Tiered

Similar to the percentage model, but a fixed dollar amount is awarded based on the final price bracket.

• How it works: For absolute clarity, especially with multiple tiers, Realtair automatically inserts the text “Refer to attached commission schedule annexure” within the Agreement. This prompts you to attach a clear schedule detailing the structure.
• Example:

C) Incremental (Incentive) Commission

This powerful structure rewards exceptional results by offering a base commission plus a higher "kicker" rate on any amount achieved above a set price threshold.

• How it works: To ensure this incentive structure is transparent and easy for vendors to understand, Realtair automatically inserts the text “Refer to attached commission schedule annexure” within the Agreement, allowing you to provide a detailed breakdown.
• Example Structure:
  • Base Commission: 2% on the sale price up to $1,000,000.
  • Incentive Commission: 10% on the portion of the sale price above $1,000,000.
  • If the property sells for $1,100,000:
    • Commission on the first $1M = $20,000 (2% of $1M)
    • Commission on the amount above $1M = $10,000 (10% of $100,000)
    • Total Commission = $30,000