Why do agents ask for a higher split?

One word: "Value."

Wouldn't it be great if agents were satisfied with "coffee" and a "great split"! But that is not the case.

Let's start with your interview.

Many interviews take on the face of a sales presentation, not asking enough questions, exaggerating your company features and failing to articulate the benefits. Don't sell in the interview.

• Have an agreement that money will not be discussed until both of you recognize there is value match that will create a long term working relationship.

• Find out what's important to the agent. What are they looking for? Ask Questions, Don't Sell!!

• Is there a value match? By asking questions you can now measure.

• Focus on what you can deliver, not what you think the agent wants to hear. Communicate your company features and clearly communicate the benefits the agent will experience. Be sure that you can and will deliver.

• Finally, don't cave in on split. If you hire someone based on money they will eventually leave because of money. Last time I checked rarely is there enough money to keep an average relationship together.

Now deliver value?

• Be "The Coach" for your agents. When agents have to pay a coach, your value begins to erode.

• Don't be a problem solver, be an inspiring growth leader.

• Expand your capacity as a leader, knowledge of the industry and ability to deliver this back to your agents. I'm sure you encourage agents to invest in themselves through continued training, how are you investing in your career?

• Pack them in at your sales meeting and have them coming back for more. This is it, once a week to communicate your vision and deliver value to the most critical audience. How good is your sales meeting? How is your attendance? Would you feel comfortable inviting a potential recruit to your meeting? Don't plan your meeting 15 minutes before and expect a great result, plan it a week ahead of time and pack it with value. A great sales meeting will do wonders for recruiting and retention.

• Manage your office systems and lead your agents.

Here is the solution to "I want a higher split." Interview by asking -- versus selling. Hire based on value -- versus money. And deliver as "The Coach" for your agents. Is that the cure all? Fill the gaps by doing your primary job of prospecting, interviewing and hiring agents. If you put these steps into action the next time someone else asks for a higher split you will operate from a position of strength versus vulnerability. Agents don't leave because they get offered a better deal. They leave because they are no longer getting what they expect from you.

If an agent asks for a higher split, stand your ground and go back to the "mutual agreement" they signed when joining your office. It's rather interesting, agents want you to keep your agreements but we find at times theirs are negotiable. Last time I checked, agents talk to each other and if you give agents a "higher split" your agents will love you for the wrong reason. Standards have been broken down and you have given life to the commission split virus. The next agent in line has been granted permission to ask for a "higher split." Now what are you going to do?

Published: August 9, 2007

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Jon Cheplak, ABR,GRI,CRS,CRB,CLHMS is the Founder of The Real Estate Recruiters, The Management and Recruiting Solutions Experts. Jon consults, coaches, and hosts retreats for brokers, owners, and managers internationally, supporting leaders in their growth and profitability strategies and tactics. He can be reached at 775-846-5748 or email him at recruit@therealestaterecruiters.com. Visit his website at www.therealestaterecruiters.com.