How to Earn 100% Commission

At BRX, we have capped commissions, which means that anyone can earn 100% commission splits.

To explain how it works, let me share a quick example.

Jeff Mudrick joined our brokerage on August 1, 2021, and took the Rookie to Rockstar program. It took him 166 days to fund his first 10 files. (We help our rookies find and fund their first 10 mortgages.)

Once Jeff funded his 10th file, Jeff turned Pro, which means he switched from a 50/50 split to an 85/15 capped split for the next 12 months.

It then took him 115 days to fund his first $100,000 in gross commission. (Way to go, Jeff!)

This means that Jeff will earn 100% commission for the next 250 days.

• (365 days/year - 115 days to $100k = 250 days at 100% commission)

The company charges a maximum of $15,000 commission per agent per year. Now, let’s assume that Jeff closes 20 mortgages after hitting his cap.

He would then pay 20 x $99 = $1,980 in file fees. After an agent hits $100,000 in gross annual commission income, we only charge a file fee on the next 40 files.

What is the $99 file fee?

We charge this because we still have to do compliance on, and review of, all the files.

I have broker friends who crush $100,000 in commission in two months, after which we have to review their 180+ files for the next 10 months.

In this scenario, we would actually lose money on this broker because 50% of the $15,000 company commission goes into our broker revenue-share plan.

The $99 file fee only applies to the first 40 mortgages you fund after you have reached $100,000 in annual gross commission income (AGCI).

What is included in the AGCI calculation?

We pay on all revenue received from the lender.

Volume bonus, efficiency bonus, super-secret-don’t-tell-anyone bonus. If the lender pays us on your file, we include it.

To explain this a little better, I will share two examples.

• Example 1 – Fred and his volume bonus

Imagine that Fred closes a mortgage with TD, and when we get his commission check, he breaks $100,000 in AGCI.

Now, in 30 days, TD will pay a volume bonus on Fred’s file. When that volume bonus is paid to the company, Fred will receive 100% of the volume bonus.

Your commission split is not tied to a specific file. Instead, we just track your progress towards $100,000 in AGCI.

• Example 2 – Jane and a large commercial mortgage

So far this year, Jane has earned $50,000 in AGCI. She now closes a large commercial mortgage that pays a $75,000 commission. (Well done, Jane!)

Because Jane only needed to earn another $50,000 in commission to cap and be on a 100% commission split, we would only charge 15% on the first $50,000 of that commercial file, and Jane would earn 100% of the remaining $25,000 commission.

To calculate Jane’s commission:

• Total commission on file –  $75,000
• Commission required to cap – $50,000
• Commission Jane would pay the company on the file – $50,000 x 15% = $7,500

If Jane had made a $100,000 commission on one file (which would be a great payday, but it happens), she would be on a 100% commission split on her next file.

We focus on AGCI, annual gross commission income, and do not delineate whether it is a commercial file or residential file.

To us, commission is commission.