The real estate industry runs on commissions.
And real estate recruiting negotiation touches on the issue of commission split.
When discussing commissions, it’s helpful to lay some groundwork by using price anchoring techniques.
Low-Cost Option. The highest split option (lowest cost to the agent) usually includes the least number of benefits for the agent. However, the agent may need extra support to be successful.
High-Cost Option. The lowest split option (highest cost to the agent) usually includes the most benefits for the agent. However, many of these benefits are not needed.
Best Value Option. This is the perfect balance between cost (amount earned by the broker) and benefits the broker provides.
As you know, most consumers do not buy the lowest price or highest price options. They search out the best value.
Your recruiting prospects will do the same.
Successful hiring managers spend time describing the low-cost and high-cost options before revealing the best value.
That value only becomes more apparent when the comparisons are skillfully chosen and thoughtfully positioned.
