Anyone who has been a part of company with revenue share and has experienced the life changing passive income that comes from it knows just how special it is to have a Revenue Share Program that rewards you for bringing other agents to your brokerage. 

How it Works

The 5 Tier System

When you sponsor an agent to join Real, they get added to the Tier of your Network.

This means you will earn 5% of their commissions until they cap. So, if they cap at $12,000, then you have the potential to earn $4,000 per year from that agent.

Note - This doesn't come out of their commission, it comes out of Real's alotted 15% split. So, in this instance, the agent get their full 85% split of the comission, you get 5% and Real get 10% making the full 100% of the commission.

So, let's look at your earnings by tiers. Remember tier 1 is comprised of agents you sponsor into the company, Tier 2 is comprised of agents that your Tier 1 agents have sponsored into the company, and so on.

Tier 1 - You earn 5% up to $4,000 per referred agent per year.

Tier 2 - You earn 4% up to $3,200/agent/year

Tier 3 - You earn 3% up to $2,400/agent/year

Tier 4 - You earn 2% up to $1,600/agent/year

Tier 5 - You earn 1% up to $800/agent/year

Unlocking the Tiers

Okay, so now we understand there are 5 tiers of earning potential.

Initially, only Tier 1 is "unlocked" meaning you can only earn Rev Share from tiers that are unlocked.

So, how do I unlock tiers?

It's simple, you just need to attract more agents to your tier 1.

So, to unlock Tier 2: you need 5 agents in Tier 1

To unlock Tier 3, you need 15 agents in Tier 1, 

To unlock Tier 4, you need 20 agents in Tier 1, 

And finally, to unlock Tier 5, you need 25 agents in Tier 1.

So basically your goal is to attract at least 25 agents and then the earnings from all 5 tiers will be available to you.

One more point to make. In order for each agent in your Network to qualify towards unlocking the tiers, they need to be "Producing."

Producing agents are defined as defined as active and earning $450 in commission to Real every 6 months. The same qualification that you need in order to earn Revenue Share.

A quick note on fees

$175 Annually taken out of your first earnings, and a 1.2% processing fee on each payment.

A Few Elements of the Program that Set it Apart from Other Revenue Share Programs

There are a few very significant risks for a company to offer a revenue share program that are important to understand. They are as follows:

Risk #1. Create a Company of Just Recruiters (not high quality producers)

Risk #2. Create a bunch of Silos in the company

Risk #3. The risk of going Bankrupt from paying out too much in Revenue Share

Let's get into each point and I'll show you how Real has designed their program to mitigate these risks.

Risk #1 - No Active Agents, Only Recruiters

It's no secret that Revenue Share programs allow you to earn a LOT of money, passively for many many years to come.

And with that understanding, can attract people who are not interested in being involved in real estate production and instead join the company just to be full time recruiters.

The trouble with this, is that you then have a lot of recruiters in the company and fewer producing agents. It can quickly feel like everyone in the company is just here to recruit others to the company which some people say, starts to take the soul out of the company.

So how do you keep from turning your company of producing agents into a recruiter heavy hollow company that just cares about exponential growth above all else?

You do the two things that Real Broker has done

#1 - You Must be a Producing Agent to be eligible for Revenue Share

Real combats that by saying you must earn $450 (amount Real earns) in commission every 6 months or else your revenue share earnings won’t be active. They’ll still be there, but you’ll need to do deals to activate them.

Basically you need to do a deal every 6 months to remain active.

The one caveat to the 6 month rule, is you have a grace period in your first 6 months. So if you bring a network of agents with you, you automatically earn revenue share from them in your first 6 months, and then the following 6 months (and every 6 months going forward) you need to qualify as a Producing Agent.

2) A strict "No Recruiting" policy

Real Broker has clearly spelled out what is not allowed:

• Customized sponsored social media advertisements (use of Company templates are allowed);
• Email campaigns or email solicitation;
• Automated text message systems or dropping messages into voicemail boxes;
• Automated email and social media marketing platforms;
• Print advertisements, postcard campaigns or mailers focused on attraction; 
• Disparaging comparisons of other brokerages to the Company in any printed or digital format;
• cold calling, sly-dials/voicemails, direct messaging, texting and/or mass texting, e-mailing, to prospective agents that Agent has no previous relationship with;
• Meetings organized to explain the Company’s business model or training events primarily created for agent attraction purposes without prior written permission from the Company and full disclosure of event agenda; or
• Inviting prospective agents to join in-person or online trainings or events where agents are promised something, but instead delivered a pitch to join Real. 

Risk #2 - Creating a bunch of silos

This brings us to another potential downfall with organizations that offer revenue share. Creating Silos.

What are silos exactly?

Well, imagine you are being recruited to join a company by 3 different agents within the company. They all know they are competing with one another to bring you into their network so they "add value" to their pitch to have you join under them by offering all sorts of goods and services. These can run the gamut from private masterminds, access to free tools, exclusive education, and much more.

The trouble wiht allowing this is that you then create Silos where people compete to bring other agents in to their organization and you effectively get a bunch of insular silos within the greater organization that are all competing with one another.

It can even go so far that some people are disparaging the offerings of other people to attract agents into their organization. 

Not good.

So, what has Real done to mitigate this risk?

The have made another VERY STRICT policy of not allowing to offer anything of value clearly articulated as follows:

• Enticing or promising agent “value” by selecting agent as sponsor;
• Lead generation platforms provided to potential agents;
• Coaching;
• Trips;
• Leads;
• Contact Relationship Management;
• Rebates;
• Currency in return for naming agent as Sponsoring Agent; 
• Office space; 
• Other valuables or consideration to name agent as a Sponsoring Agent;
• “Bait and switch,” or enticing a potential agent to name agent as Sponsoring Agent versus another Company agent who referred the potential agent to agent for validation; 
• Use of third-party recruiting services on agent’s behalf; or
• Exclusive offers.

Sponsor-provided offers or incentives may only be offered if extended to all agents and must be offered through, and meet the requirements of, the Company’s approved processes. A team leader of a Company approved Team (not a marketing group) may offer value-add incentives to all members of the team so long as the team members provide value back to the team leader through a commission split or fee. If Agent is operating as a marketing group, Agent is not permitted to offer value-add incentives to that group. 

Risk #3 - Company goes bankrupt by giving away too much in revenue share. 

Real earns 15% of the commission from a pre-capping agent. 

And of that 15%, they literally could give all of it away in the Revenue Share program if the agent has all 5 sponsoring agent in their upline.

And if was the norm in all of the transactions in the company, Real would receive no revenue. 

And of course, this would very quickly lead to bankruptcy.

So, Real Broker designed a solution to this.

They can only ever be 60% of their gross revenue to the Revenue Share Program.

In the event the Revenue Share 60% is meant to give out more than 60% of gross revenue, they will proportionately reduce everyone’s revenue share the amount necessary to bring the total cost of the program to 60% of gross revenue for the company.

If and when this occurs, it could of course be frustrating to have your earnings reduced, but a bit of frustration is far better than having the company go bankrupt and provide you with $0 in revenue share for the future.

Co-Sponsorship

Real Broker has introduced a brand new feature into their Revenue Share program that no other company currently offers.

Co-Sponsorhship.

Now, instead of only being able to hgave one agent sponsor you into the company, you can have two.

This is huge for a number of reasons:

1) Your sponsor(s) is effectively a mentor or guide that has a vested interest in your success. By having the ability to have two people that care for your success you are doubling the people that want to see you succeed.

2) Often times multiple people will have talked to you about joining Real with them. before it put you in a hard spot about which one to choose, now you can choose both. Of course, if 3 or more talk to you, you still have to have the hard conversations, but c'est l'vie.

3) This increases the "mesh" of the organization. When you just have an organization with one sponsor per new agent, no matter what you do, you're still effectively creating silos. With this two, you're basically creating a big mesh, or a braid that brings everyone together.

4) It actually offers the potential to earn even more through revenue share. 

Previously if someone in your 5th tier was bringing someone into their organization, you wouldn't have a financial interest in them joining because there is no 6th tier to earn revenue from. Now, you could co-sponsor that agent with the agent in your 5th tier and effectively bring that agent into your 1st tier as a co-sponsor. Pretty cool, right?

Here are a few common questions with co-sponsorship:

Can we do custom splits ie, 70-30? No, the only option is a 45-45 split with 10% going to Real. They have allocated this 10% to cover infrastructure support for this system (which is much more sophisticated than a single agent sponsor system) and ongoing support for it.

Is there any addition cost to co-sponsor?

No, there are no additional costs

What if one of the co-sponsor leaves Real?

You keep your split and Real assumes the other portion of the revenue share. 

Retirement Program

 With the Retirement Program, agents can continue to earn revenue share after they retire from production.

In order to qualify to the Retirement Program:

You Must have been a producing for three full consecutive years.

You must maintain an active real estate license that is affiliated with Real.

The amount of revenue share you can earn will be adjusted based on the number of consecutive years you were producing:

After 3 full consecutive years: You receive 60%

After 3 full consecutive years: You receive 80%

 After 3 full consecutive years: You receive 100%.

Note: If you leave Real (or are terminated) at any time, for any reason, you will no longer be eligible to receive revenue share payments.

People have been terminated before, so it is very important to understand Revenue Share is a privilege that can be taken away.

The few agents that have been terminated usually violate the "No recruiting" policy of agent attraction. Real is very committed to making sure agents are attracting and not recruiting. 

Willable to the Next Generation

You are able to designate a beneficiary to receive a portion of your revenue share after you pass away.

How it Works

For every full year of tenure with Real, 20% of your revenue share will be paid to your beneficiary.

You must have been with Real for at least one year for your beneficiary to receive the minimum 20% payment.

The payment schedule is as follows:

One year  - 20%

Two Years - 40%

Three Years - 60%

Four Years - 80%

Five Years - 100%

Examples:

Example 1 - If you were to pass 3 years and 6 months after joining real, your designated beneficiary would be eligible for 60% of the earnings from your revenue share.

Example 2 - If you were to pass 10 months into joining real, your designated beneficiary would not be eligible for any of your earnings from Revenue Share.

Who can be a beneficiary?

This can vary state to state, so when in doubt, consult a lawyer.

You can designate a trust as the beneficiary.

To designate a beneficiary, you can just log in to the Revenue Share section of your reZEN profile, and follow the steps after clicking on Designate Beneficiary.