Acquisitions Agent Compensation Structure

[Christopher Morin]

Hey all, I am looking at bringing some additional team members into my business.  Specifically, using my established realtor relationships to receive my inbound leads.  I've pitched the idea to several and they seem ecstatic to be able to do this.  I'll be providing them with my scripts, questionnaires, company email, and set up my phone service to forward to their devices.  They can then perform my lead capture, visit properties if necessary, and act as project manager or listing agent for additional compensation.  For unmotiviated sellers that would like to list, the agent is able to get a first impression and perhaps offer a free consult.  They'd also have access to my follow-up list to increase profits.

We will be targeting properties for wholesale and contract assignment, rehabs, and long term rentals.  So the whole spread. 

My question is, how would you structure the commission structure for an agent assisting in off-market acquisitions?  I'd like to tie it to my bottom line to incentivize the lowest prices. 

I could pay a buyer's commission, but then they are rewarded for a higher acquisition price.  A flat referral fee also doesn't give them room to shoot for big targets.  Perhaps 10 or 20% of profits?  50%?

Also, I want to use my brand for advertising and all seller interaction (beyond necessary license disclosures).  Think their broker will have issue with this?  

[Pratik P.]

@Christopher Morin

I would pay them $3000 flat plus 10% net profit on each deal they get under contract. If you close 5 deals a month at 10k profit each, that's an additional $5000 for their monthly pay...pretty damn good!

If the lead is an MLS lead, they could list it and once the property closes, they could pay your business a certain % from their comission.