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Rethinking the Brokerage/Agent Relationship

What differentiates Pinnacle Real Estate Partners from other brokerages? The following three elements of our business architecture constitute the primary reasons Realtors love it at Pinnacle:

A platform for career agents to build their own brokerage

  • Maximum commission retention – Most successful Real Estate agents at one time or another say to themselves: “why don’t I just start my own brokerage and keep 100% of the commissions!” In reality, starting your own brokerage has tremendous upfront and on-going costs, so to actually retain 100% of your commissions on your own, you have to recruit other productive agents and have systems for paying them so that you can retain enough of their commissions to pay all your bills. And you also have to manage those agents, provide services for them and a space for them. Pinnacle Real Estate Partners shortcuts all of that for you. You can recruit other productive agents into our company and not have to manage them or have systems to pay them, etc.; in return, Pinnacle will increase your retained split on your commissions up to 100% (see our Compensation Plan).

  • Pinnacle Real Estate Partners manages the basics of a brokerage platform – You don’t actually have to get your brokerage license, we do that, but you can build your business as if you were an independent brokerage. We provide the office, maintain the technology platform, insure the accuracy of data with the online portals, bear the legal and financial liability with the state, oversee contract compliance, create the basic generic marketing materials and online presence, etc. You just build and maintain your lead generation systems, business processes and team structure (if applicable).

 A fair and nurturing environment for new agents

  • High Commission Splits – Because Pinnacle does not have a parent franchisor that demands part of the agent’s commission, we can offer higher entry-level commission splits to newer agents. Depending on the franchise we are being compared to, this can mean at least  a 6-8% increase in retained commissions to our new agents.

An independent brokerage system, not a national franchise 

  • We are heading into the most revolutionary changes the Real Estate industry has seen in 50+ years. This change is primarily being driven by the advancements digital technology and the Internet has brought to both the consumer and broker side of the equation. From other industries that have gone through similar watershed change the lessons are clear: large organizations that are financially tied to complex existing systems usually cannot move fast enough to get out of the way of fast, new, well-funded companies that are moving at the speed of technology. In the Real Estate industry the large franchises built on old Real Estate paradigms and systems are extremely vulnerable to the changes being brought about by powerful companies like Google, Facebook, and Zillow.

    At times like this, independent brokerages can quickly navigate the fast winds of change to nurture Realtors through historic industry transformation.

  • Not bound by imposed thinking and systems – Realtors are, by their very entrepreneurial natures, creative people, who typically figure out what works best for their own business, and then like to continue to execute on their proven formulas. Large franchise systems, on the other hand, like to create and impose over-arching structures on the entrepreneurial Realtor, which can become claustrophobic and limiting. The word “independent” when applied to a brokerage platform like Pinnacle Real Estate Partners can equally be applied to its agents: they are independent of the imposed systems and thinking forced down on the market from large franchises.

The most generous Realtor compensation at the Lake of the Ozarks.   

Basic Compensation Plan

Plan Summary:  Associate receives 70% of gross commissions (GCI) until an Annual Brokerage Fee (ABF) of $25,000 has been received by Pinnacle, after which Associate receives 90% of GCI for remainder of year. 

In the Basic Compensation Plan the Associate receives seventy percent (70%) of the GCI from each transaction until the ABF has been met. After the ABF has been met within any given year, ninety percent of any transaction’s GCI is retained by the Associate.   The year resets on your anniversary date with the company.

The ABF is reached at approximately $2,500,000 in annual total sales volume, so when an Associate’s volume exceeds that level, all subsequent GCI flows to them at 90%. Associates operating at this level, on the Pinnacle Real Estate Partners Basic Compensation Plan, are earning in excess of fifty five thousand dollars annually.

Each agent will pay a quarterly Errors and Omissions fee, currently $75 per quarter.   Pinnacle Real Estate Partners pays the current closing fee and listing fee, reducing the financial stress on our agents.

For more information, please call Kathy or Mark Beeler 573-693-1300.