Potential Earnings

PLEASE READ THE EXPLANATION BELOW!
IF AVERAGE SALES PRICE WERE $139,000.00

The number of your sales per month of your firm's listings The number of your listings per month sold by your firm
5% commission
1 2 3
1 $ 1,564
   2,259
$ 3,823
$ 3,128
   2,259
$ 5,386
$ 4,691
   2,259
$ 6,950
2 $ 1,564
   4,518
$ 6,081
$ 3,128
   4,518
$ 7,645
$ 4,691
   4,518
$ 9,209
3 $ 1,564
   6,776
$ 8,340
$ 3,128
   6,776
$ 9,903
$ 4,691
   6,776
$ 11,468

 

The number of your sales per month of your firm's listings The number of your listings per month sold by your firm
6% commission
1 2 3
1 $ 1,877
   2,711
$ 4,587
$ 3,753
   2,711
$ 6,464
$ 5,630
   2,711
$ 8,340
2 $ 1,877
   5,421
$ 7,298
$ 3,753
   5,421
$ 9,174
$ 5,630
   5,421
$ 11,051
3 $ 1,877
   8,132
$ 10,008
$ 3,753
   8,132
$ 11,885
$ 5,630
   8,132
$ 13,761

 

The number of your sales per month of your firm's listings The number of your listings per month sold by your firm
7% commission
1 2 3
1$ 2,184
   3,167
$ 5,352
$ 4,369
   3,167
$ 7,536
$ 6,553
   3,167
$ 9,721
2$ 2,184
   6,334
$ 8,519
$ 4,369
   6,334
$ 10,703
$ 6,553
   6,334
$ 12,887
3$ 2,184
   9,502
$ 11,686
$ 4,369
   9,502
$ 13,870
$ 6,553
   9,502
$ 16,055


Potential Earnings Explanation

What is my earning potential as a licensed real estate salesperson you ask.? A very legitimate question and concern, upon entering the real estate brokerage profession.. How is your compensation to be determined? Most salespersons are on a straight commission arrangement with their brokers. Compensation may be paid to you only by your sponsoring broker, whether it is commission, salary, advance fee or whatever, and is strictly a matter of agreement between you and your broker.

...CAVEAT....WARNING...READ CAREFULLY...

This table above is presented as an illustration of possible earnings by a licensed salesperson. In no way does it represent a practice or policy of the real estate profession, or of any trade organization, or of any real estate broker. Commission rates and compensation are not set by law. They are not set by the Louisiana Real Estate Commission. Nor are they set or recommended by any trade organization. And they are certainly not set by any agreement or understanding between competing brokers or brokers as members of any trade organization. That would be a violation of the Sherman Anti-Trust Act. Because of that law, and out of an abundance of precaution, we repeat the same idea several times in several ways.

Compensation to a broker or commission rates are the result of individual contracts between brokers and their clients, and in no other way.

Payment of a part of a commission, or other payment of compensation by a broker to a sponsored salesperson is determined by agreement strictly between the respective parties, not by any law, the Louisiana Real Estate Commission, or any trade organization. Division of fees between brokers is ordinarily determined by the broker entitled to receive the fee from the client or customer. The division is not by law, the Louisiana Real Estate Commission, or any trade organization.

Your compensation and earnings will depend upon your contract with your sponsoring broker, and you will find as many variations as you will find brokers!

Brokers may have contracts with clients for more or less compensation or commission rates than illustrated in these tables. They may might pay their sponsored sales persons more or less than these illustrations. The number of sales per month may be more...or could be less! These are hypothetical figures, presented for your consideration and use. They are not intended and should not be used to suggest what compensation anyone should pay or receive. You and your broker will very likely have a different arrangement. We do not project or propose what the average sales price might be. What ever it may be, rest assured it will change.

And we are not too concerned with whether or not you can make these calculations. Although we have seen salespersons who could not add 2+2, so to speak, and although we have made some projections for your understanding, we have never seen a salesperson who could not accurately and quickly calculate his or her own compensation and correct the broker who might have made an error.

Hypothetically, the tables on the reverse side present possible earnings according to either one, two or three sales per month at the average sales price of $139,000.00 per property sold by the listing salesperson or another licensee within the same firm. The figures are based upon an assumed 22.5% of the commission received by the sponsoring broker to be paid to the sponsored licensee who listed the property, and 32.5% to the sponsored licensee who sold the property. Thus, according to the figures in these hypothetical illustrations, a salesperson who sells his or her own listing would receive 55% of the commission received by the sponsoring broker.

Caveat ...Warning...Quite often the property listed by the salesperson of one broker is sold by a salesperson sponsored by another (cooperating) broker. The commission is divided between the two brokers, each of whom receives less than the total agreed commission. It is out of the lesser sum that the sponsoring brokers then pay their respective salespersons.

Three tables are presented. One is for a broker who has a contract with a client for 5 % of the sales price as a commission. Another is for the broker who might have a contract with a client for 6% of the sales price. And the third table is for the broker who has an agreement with a client for 7%.