When it comes to choosing the right commission plan, agents at Fathom Realty have two compelling options: the Max plan and the Share plan. At first glance, the Max plan might seem like the obvious choice due to its lower cost per transaction. However, many high-producing agents are gravitating towards the Share plan. Why is this the case? Let’s explore the reasons behind this trend and understand why the Share plan could be the better option for high producers in real estate.
Influence and Downline Potential
One of the primary reasons high-producing agents favor the Share plan is their ability to leverage influence. High-producing agents, by virtue of their success, often have greater sway over other agents. This influence makes them more likely to successfully recruit and build a downline, which is a major perk of the Share plan.
Building a Downline for Passive Income: High producers, who close 10 or more deals a year, see the $3,000 cap increase as minor compared to the potential passive income from their downline. The Share plan, with its 100% higher revenue share potential, rewards not just for direct transactions but also for the activity of recruited agents. This setup strongly incentivizes growing their network and boosting their earnings through revenue sharing.
Earning Potential vs. Costs
While the Max plan has a lower flat fee per transaction, the Share plan offers much greater earning potential, especially for those who hit their caps regularly.
Higher Revenue Share: Agents who cap annually find that the Share plan’s benefits far outweigh the costs. The first level of the Share plan’s revenue share is 350% higher than that of the Max plan, and overall, the revenue share potential is 100% higher when considering all levels. This can lead to significantly higher total earnings.
Investment in Future Earnings: Though high-producing agents might face higher initial transaction costs with the Share plan, the long-term benefits are substantial. The ability to earn twice as much in revenue share, particularly from the first-level downline, makes the Share plan a smart choice for those aiming for financial growth. It’s an investment in future earnings, relying on their capacity to recruit and maintain a productive team.
Strategic Financial Planning
Choosing between the Share plan and the Max plan also involves strategic financial planning. High producers understand that a slightly higher upfront cost can lead to significantly higher returns.
Balancing Immediate Costs with Long-Term Gains: High producers balance immediate costs with long-term gains. They know that while initial costs might be higher, the Share plan’s enhanced revenue share and downline success offer lucrative long-term financial benefits.
Maximizing Earnings Throughout the Year: By selecting the Share plan, high-producing agents ensure they maximize their yearly earnings. Higher initial transaction costs are offset by the increased revenue share, which boosts their annual income. This approach lets them reinvest in their business, driving further success and profitability.
Conclusion
The Max plan’s lower costs might appeal to some, but high-producing agents focused on maximizing earnings and leveraging their influence often find the Share plan superior. The ability to build a downline and the significantly higher revenue share potential make the Share plan an attractive and financially rewarding option. By choosing the Share plan, high-producing agents at Fathom Realty set themselves up for long-term success and greater financial freedom.