Commission splits

[Mark Yuschak]

I recently had a discussion with my broker about commission splits and when I would move on to the next commission split level (would have been easy to learn had we signed a contract, but we didn't...that's water under the bridge now). Since I am relatively part time it's taken me a while to get a decent dollar volume of deals under my belt. He claimed it still wasn't enough to be bumped to the next level.

Continuing on, I told him I plan to take the GRI and get a Broker's license soon and would like to be an associate broker. He said even when I do, the commission split won't change until I reach 2,000,000 in sales because it's not affordable for him.

I could tell he was getting frustrated with me, so I stopped pressing. But my main question is...why does it matter what volume of sales a Realtor does to attain a given split level? Is there a volume discount on E & O insurance or something? I would think that making 20 or 30% of a deal anyone of his Realtors brings in is still 20 or 30% - regardless if the Realtor does 100K in sales a year or 2 million.

Am I missing something? This really has me perplexed.