Many agency bosses fall into a trap: they treat contracted agents like salaried staff. The reality is different. You don’t pay them a fixed income. You only pay when they close deals. That’s not employment it’s a co-broking arrangement on success basis.
Too often, bosses demand things that go far beyond deal-making:
All of this is disguised as “team culture,” but in practice, it means agents are made to work for free on non-revenue tasks.
Some bosses believe that because they pay a high payout commission scheme, they have earned the right to control their agents however they please. “I’m the boss, so you must attend this meeting, or that dinner, or this event.”
But here’s the flaw: commissions are not salaries. They are payouts for results. An agent only earns if they close. Bosses who confuse high payout schemes with employment contracts misunderstand the nature of the relationship.
For seasoned agents, this logic makes no sense. Their interest is simple: close deals and earn commission. They did not join the agency to provide charity work—writing budget reports, submitting endless sales breakdowns, or attending functions that don’t lead directly to closings.
When pushed too far, these senior agents leave. They don’t leave for higher payouts; they leave for less control. They move to agencies that respect independence and treat them as business partners rather than subordinates.
Do you still want to hold strong control over your agents? Or do you want to build a business that attracts and retains senior producers?
High payouts win talent, not obedience. Treat commission-only agents as partners: set clear compliance standards, fund what creates deals, skip unpaid busywork. Control doesn’t scale—trust and results do.
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