How Commission Advances Can Help You Retain More Agents

Recruiting and retaining talent is a paramount challenge for real estate brokerages, MLSs, and associations alike. Ambitious and effective agents are what truly drives the success of the real estate industry.

According to NAR, 50% of agents have been at their current brokerage less than four years. This is a brief period when you consider the time and resources that were poured into training, coaching, and developing each agent and their book of business. And the average tenure for agents overall? Just eight years!

So, why do agents leave?

There are many reasons an agent might leave a brokerage, or the industry altogether. Some of these include commission split models offered by different companies, training programs (or the lack thereof), or just the general culture of the brokerage.

But for new agents in particular, the reason is often much clearer. With a median gross income of just $9,300 for REALTORS® with two or less years of experience, leaving the industry is often their only realistic option. Lack of access to capital to pay for business cards, signage, dues, advertising, etc. prevents these agents from utilizing the skills instilled in them.

They say for most businesses, it is somewhere between five to 25 times more expensive to acquire a new customer rather than to keep an existing one. Can't the same be said for keeping your promising agents? Outside of the skills you teach and the technology you provide, what are other tools your agents need to fulfill their potential?

The answer is simple. Agents need easy and timely access to working capital.

Access to Working Capital

We've all heard that old adage, "It takes money to make money." That's true for every business, including real estate. Agents need access to capital in order to market and sell a listing, to pay critical business expenses, and to stay afloat during cyclical or seasonal lulls.

eCommission solves the problem of inconsistent business cash flow by advancing commissions prior to closing.

Here are a few ways that commission advances can benefit your real estate organization:

• Retain agents at risk of leaving the business due to inconsistent cash flow
• Attract new real estate agents who are concerned about earning enough money to stay afloat during their first few months
• Ensure agents keep up with business expenses like member dues and desk fees
• Keep agents productive and motivated with access to cash flow during slow times

eCommission currently partners with various MLSs and associations across the United States, as well as some of the most recognizable brands, including Realogy, Keller Williams, and RE/MAX.

How It Works

The process is simple. The application process takes minutes and is 100% digital, with no supporting documents required. eCommission offers both pending sale advances of up to $15,000, or advances of up to $4,000 on active listings. Agents can advance whatever portion of their commission they'd like – as little as $750! While agents do pay a fee to advance, the cost is tax deductible.

In addition, there is never any financial liability on the brokerage, MLS or association, even when a sale that an agent has received an advance on falls through. In the rare instances where an agent leaves a brokerage or never earns another commission, the liability is still zero.

Highlighting eCommission as a partner or member benefit allows you to help your agents pay for expenses like overhead, payroll, transportation, advertising, technology, and more. Access to cash flow helps keep them more productive, relieves them of financial worries, and motivates them to focus on growing their businesses.

To learn more about how your brokerage, MLS, or association can offer commission advances to your agents, visit eCommission.com.