Revenue share programs offer real estate agents the opportunity to earn passive income by recruiting and supporting new agents. Fathom Realty’s revenue share model is particularly advantageous, providing agents with higher commission income for your personal business while also providing significant financial incentives for recruiting. Here’s a comprehensive Q&A covering how revenue share works for real estate agents at Fathom Realty:

Q: What is revenue share?

Revenue share lets you earn a portion of the company’s adjusted commission split from agents you recruit. You will earn additional commissions from both your direct recruits (Level 1) and also from the agents your recruits bring in (Levels 2 through 5). These agents become part of your network, or “downline”. This system rewards you for helping grow and expand Fathom’s network.

Q: Why did Fathom Realty add a revenue share component?

Fathom added a revenue share component to cater to your diverse goals and needs as a real estate agent. By offering a leading flat fee model along with a rewarding revenue share model, Fathom provides you with multiple income streams. We recognize that revenue share is popular among the fastest-growing brokerages worldwide. This integration gives you more flexible and lucrative options, aligning with industry trends and your desire for diversified income opportunities.

Q: How does Fathom’s revenue share compare to other company’s revenue share models?

Fathom’s revenue share stands out because it offers you lower fees, lower commission splits, and lower caps. This means you keep more money from your personal sales. Additionally, these benefits make it easier for you to attract other agents to Fathom. By combining personal commission income with your network’s activities, you can maximize your overall income.

Q: How does a Fathom agent qualify for revenue share?

You qualify for revenue share by recruiting or “sponsoring” other agents to join Fathom. Your sponsored agents need to meet specific production thresholds, such as generating a minimum number of sales, to be considered “producing agents.” This ensures that the revenue share you earn is based on the tangible success and contributions of your sponsored agents to Fathom’s overall business. Every brokerage that offers revenue share operates with this production requirement as it ensures the long term viability of the company.

Q: What is considered a producing agent?

A producing agent is an agent who has closed at least one sale under Fathom within the last six months. We assess this status monthly by reviewing the agent’s revenue contributions over the prior six-month period. Virtually all brokerages with a revenue share model include this rule. This ensures that the agents in your downline are actively contributing to the business, enhancing the stability and growth of your revenue share income.

Q: Does a sponsoring agent need to be a producing agent to receive revenue share?

Yes, both you and your sponsored agent need to be producing agents to receive revenue share. However, once you recruit 12 agents in Level 1, you no longer need to be a producing agent. You just need to maintain active status with Fathom and pay your annual fees to continue receiving revenue share. This rule ensures that the revenue share program rewards active participation and contribution to the network’s growth.

Q: When is revenue share calculated and paid?

Revenue share is calculated when a transaction is closed and settled within IntelliAgent, Fathom’s transaction management platform. This includes receiving commissions, accounting for all documents, and marking the file as closed. You typically receive your earned revenue share around the 20th of each month for transactions that closed and settled the previous month. This ensures timely and consistent payouts for your efforts.

Q: How much of the commission is available for revenue share?

Revenue share is available from commissions earned before your sponsored agent reaches their cap. The amount you receive depends on the plan you and your sponsored agents are on.

FATHOM’S SHARE PLAN: If you are on Fathom’s Share Plan, here are the percentages you earn from your sponsors, regardless of your sponsored agent’s plan:

• Level 1: 35% of adjusted split before cap
• Level 2: 25% of adjusted split before cap
• Level 3: 20% of adjusted split before cap
• Level 4: 15% of adjusted split before cap
• Level 5: 5% of adjusted split before cap

FATHOM’S MAX PLAN: If you are on Fathom’s Max Plan, these are the percentages you earn from your sponsors, regardless of your sponsored agent’s plan:

• Level 1: 10% of adjusted split before cap
• Level 2: 10% of adjusted split before cap
• Level 3: 10% of adjusted split before cap
• Level 4: 10% of adjusted split before cap
• Level 5: 10% of adjusted split before cap

This structure ensures that you benefit from the commissions generated by your network before they hit their cap, rewarding you for your recruitment efforts and contributions.

Q: What is an adjusted split?

An adjusted split refers to the percentage of revenue that Fathom withholds from the company split before distributing revenue share. Different brokerages use various terms for this “withheld” amount, such as Adjusted Gross Commission Income (AGCI) or Operational Share. Brokerages like EXP, Real, LPT, and EPIQUE typically withhold 50% to ensure profitability, which is crucial for the company’s sustainability and your continued revenue share. Essentially, when you earn revenue share, you receive a percentage of the company split after this percentage amount is withheld, ensuring the company’s financial health and longevity.

Q: How do revenue share levels work?

Revenue share levels determine how commissions from recruited agents flow up to you. Here’s how each level works:

• Level 1: This includes all agents you directly sponsor. This level unlocks automatically.
• Level 2: Agents recruited by those in your Level 1 appear here. This level also unlocks automatically.
• Level 3: Agents recruited by those in Level 2 appear in your Level 3. You need 4 agents in your Level 1 to unlock this level.
• Level 4: Agents recruited by those in Level 3 are placed in your Level 4. You need 8 agents in your Level 1 to unlock this level.
• Level 5: Agents recruited by those in Level 4 appear in your Level 5. You need 12 agents in your Level 1 to unlock this level.

Each brokerage offering revenue share has similar requirements to unlock subsequent levels. Fathom Realty’s requirements are lower than most, making it easier for you to unlock and benefit from multiple levels of revenue share.

Q: What happens to my unlocked levels if a sponsored agent in my first level goes inactive?

Once you unlock all 5 levels, you only need to maintain 4 producing agents in Level 1 to keep all levels unlocked. Initially, you need a total of 12 sponsored agents to unlock all levels. However, your levels remain unlocked as long as you have at least 4 active producing agents in your first Level. Changes among other agents in your first Level won’t affect your unlocked levels, provided you maintain the minimum of 4 active agents. This ensures your revenue share potential remains stable even if some agents go inactive.

Q: Can I change plans and how will that affect my revenue share?

Yes, you can change your commission plan between Fathom’s Share plan and Fathom’s Max plan once per anniversary year. This policy allows you to switch plans twice in your first year, providing flexibility to adjust based on your business needs.

When you change plans, the new plan’s rules apply immediately to any future revenue generated by your sponsored agents. However, earnings from previously accrued revenue share under the old plan remain unaffected.

Before switching plans, review the specifics of each plan or consult with a Fathom representative to understand how the change will impact your revenue share. This will help you make an informed decision that aligns with your business strategy and financial goals.

Q: What happens to my downline if I leave Fathom and decide to come back later?

If you leave Fathom but return within 60 days, you can retain your previously sponsored agents in your downline. However, if you return after 60 days, you will lose any claim to your former downline agents. This policy ensures continuity and stability within the agent network while offering a grace period for temporary departures.

Q: If I recruit a team leader to Fathom, will all of their agents be in my first level?

No, when you recruit a team leader to Fathom, only the team leader is placed in your first level. The agents on their team will be placed into your second level and will be in the team leader’s first level. This structure helps maintain clarity and organization within your downline, ensuring you benefit from the broader network while keeping direct recruits and team dynamics intact.

Q: As a team leader, can I sponsor agents who join my team?

Yes, as a team leader, you can sponsor new agents who join your team. You agents will be counted in your first level. This helps you grow your downline directly through your recruitment efforts. However, if you persuade an existing Fathom agent to join your team, they will not be added to your downline unless you originally sponsored them and they are already in your Level 1. This rule ensures that your downline growth primarily comes from new recruits to the company rather than internal shifts within Fathom’s agent network.

Q: Can my team members choose to be on a different commission plan?

No, team members must be on the same commission plan as their team leader. This policy ensures consistency and alignment within the team, facilitating easier management and streamlined operations.

Q: What happens to my revenue share if my sponsored agent changes their plan or there’s a change to their producing agent status?

These scenarios can affect your revenue share in several ways:

1. From Max to Share Plan: If your sponsored agent switches from the Max plan to the Share plan, your revenue share dollar amount will increase because the Share plan generates a higher commissions. This change does not affect the percentages of revenue share you receive, only the amount earned from your revenue share.
2. From Share to Max Plan: Conversely, if the agent moves from the Share plan to the Max plan, the commission amount earned from revenue share will decrease as the Max plan generates lower commissions to Fathom. This change does not affect the percentages of revenue share you receive, only the amount earned from your revenue share.
3. Status Change to Producing Agent: If a non-producing agent becomes a producing agent by meeting the necessary thresholds, this will activate the revenue share you can earn from their activities. This change allows you to benefit from their transactions.
4. Status Change to Non-Producing Agent: If an agent becomes non-producing, your revenue share from that agent’s activities will be suspended until they regain producing status. You will not earn revenue share from their transactions during this period.

It’s important to monitor any changes in the plans or status of your sponsored agents, as these can directly impact your revenue share calculations and payouts. Helping your downline be the best agents they can be will not only help them but will also benefit you.

Q: How does the new agent mentor program work with Fathom’s revenue share?

New agents, regardless of their chosen plan, start in Fathom’s mentor program, which includes a $465 flat transaction fee and a 30% commission split. Transactions from agents in the mentor program do not qualify for revenue share until they graduate.

Here’s how it works:

• Mentor Program: New agents pay a $465 transaction fee and a 30% commission split during their mentorship. The 30% pays the mentor and covers the costs of the program.
• Revenue Share Exclusion: Revenue share does not apply to transactions made by agents in the mentor program.
• Graduation: After completing three sales, the new agent’s commission split adjusts according to their selected plan (Max or Share).

This structure ensures new agents get the support they need while contributing to the revenue share system once they complete the mentor program. By guiding new agents through their initial transactions, the mentor program helps them succeed, benefiting both the agent and their sponsors once they transition to the regular commission structure.

Conclusion

Fathom Realty’s revenue share program offers a powerful way for real estate agents to boost their income. By recruiting and supporting other agents, you can earn passive income and contribute to a thriving, collaborative community. With its clear structure and generous percentages, Fathom’s revenue share program is an excellent opportunity for agents looking to grow their financial success.