The Declining UTF Commission Plan rewards real estate agents with 100% of the earned commission (including bonuses) after subtracting a flat Unit Transaction Fee (“UTF”). The UTF declines in stair-step fashion, while covering office overhead and allowing a fair profit.
How it works
An agent’s first closed transaction each year begins with an “Initial UTF” and declines incrementally with each subsequent qualifying transaction. Hence, the name: “Declining UTF.”
Each calendar year all agents begin anew at the top of the Declining UTF scale until they reach the Minimum UTF amount, where they "lock" for the remainder of the year.
It makes life easier
This means there's no need to renegotiate splits or calculate vague, quarterly "rolling" bonus schedules. Instead, agents are incrementally rewarded for each and every additional transaction they close throughout the year! And when everyone fully understands the commission program, there is much less hassle and stress.
A good deal all around
Best af all, brokers earn a reasonable return on investment while keeping their troops happy. How's that for an innovative idea?
Want to know more?
Contact Compass Realty Systems for full details about this innovative compensation plan for real estate agents, and our many other programs to improve your real estate business.