In August 2022, we launched our Revenue Sharing program and are excited to spotlight it as one of the five pillars of our brokerage. That month alone, we paid out $7,955 in revenue share. Although it’s small now, we expect to grow this number exponentially over the next year.
Revenue sharing allows our brokers to benefit from their contribution to the growth of our company, which I love.
I like to think of our Revenue Share model as a way for any broker to create passive income without having all the hassles of managing licenses, insurance, payroll, admin., etc.
Basically, it allows a broker to build a Brokerage Without the Brain Damage of running a traditional brokerage.
https://lh3.googleusercontent.com/D3Z51UiakswhzuAj5kYp_maIawSaUzOjFp3zDFm7cvMsYBqo-gy-L4jt7gMbEyc0x78cjbtW1hm_uaWrLtiTmIyIv-rQTtVYUx-7dYeLiEmM6vlWKWn5fxIe2cpuDMnAuGz2oJ--vg2_FAg3A60tJux1Fo_1fnmi9qmklvEm3cQQ8FfJYCafsy4xMw
I often see brokers make the mistake—once they start funding a lot of mortgages—of thinking that the next logical step in their career is to start a brokerage.
In the vast majority of cases, they find that their personal production and income goes down, while their frustration and stress level goes up.(I share my experience here)
This is because running a brokerage is not the same thing as being a successful broker. They are two completely different businesses.
So how can a mortgage broker build a brokerage without the aforementioned brain damage?
Two words. Revenue Share.
Revenue Share is a percentage of revenue that agents earn for attracting other agents who generate revenue for the company.
All Pro brokers at BRX are on a capped 85/15 split. With revenue sharing, when an agent closes a deal, a percentage of the company's 15% goes back to the agent who sponsored them.
Let me break this down some more. The revenue share is paid by BRX from BRX’s commission of 15%, not from the agent's commission. We’ll refer to this 15% as “company money.” Revenue share is paid on every deal until the agent caps for the year and no more company money is earned.
The cap is $15,000 in gross commission income paid to BRX Mortgage. This totals $100,000 in total commissions. $100,000 x 15% = $15,000 paid to BRX Mortgage. At that point, the agent is on a 100% split until the end of the year, when their cap resets. (We currently have 3 agents on 100% split, with more to follow.)
https://lh4.googleusercontent.com/mPCedYF18poXLkl-UTuCNTRduZUYoGGEBMqRUIQQIspEptvISMq_DFS0cev1d7stRrIxKeOwD0KUbM8Mzw3x-pTy5rYoM-K7JhQlbTi-j4eVvqShGPtr0Ys4j8i7EvvtEuKQJR-isalHjKD2JB1IqUigY7O1GDS9eon5T6JyODQcH6nXNGPvaVytMA
Revenue share allows a broker to build both passive income and a retirement plan. The mortgage industry has no retirement plan, and brokers generally have to work until they can’t, or no longer want to, work.
I believe that, if you help grow a company, you should be able to benefit from the growth of that company.
Which is why I love revenue sharing.