How would you allocate those commissions fees?

[Jonathan Thomas]

Hey there.

As basic as it can sound, I'd like to hear your ideas about something.

To sum it up: besides our own investments, we have a company doing consulting stuff. We advise people to invest in some specific markets: we find property for them, we find contractors, property management and so on. We also supervise the renovations (as you can't never fully trust the workers as you know).

We have a commission for finding the property. We also take a commission for the supervision of the renovations. Those commissions are fully transparent.

Issue appears when clients are sent by some of our asset managers we're working with. They send us the client and we provide them a fixed commission. However, the amounts at stake are important and marketing-wise, it's not always easy to make the client accepting such a big commission.

For example:

Property price: 160k

Renovations : 90k

Total : 250k

Commissions for the asset manager: around 16k
Our commissions: around 30k

Do you have any tips to allocate those commissions?

We thought of:
- Having an agreement with the seller about the price, so we can sell it for more money and we get back a certain amount of it
- Same system with the general contractor, so we can get some money from it indirectly.

Any suggestion is welcomed!