How to make joint sole agents work harder? Urgent, help pls!

linhneu

My company is considering selecting 2 estate agencies as our joint sale agents. We hope to take advantage of their customer database.

They will cooperate to do the marketing campaign for our company and share the commission on the 60:30 basis with the larger proportion for the one who introduces customer. However, the issue is how to make both of them work harder to find new customer instead of just sitting back to get shared commission. How can I properly split commission between the two?

Procrastinator333

linhneu wrote: »

My company is considering selecting 2 estate agencies as our joint sale agents. We hope to take advantage of their customer database.

They will cooperate to do the marketing campaign for our company and share the commission on the 60:30 basis with the larger proportion for the one who introduces customer. However, the issue is how to make both of them work harder to find new customer instead of just sitting back to get shared commission. How can I properly split commission between the two?

Who gets the other 10%?

googler

linhneu wrote: »

They will cooperate to do the marketing campaign for our company and share the commission on the 60:30 basis with the larger proportion for the one who introduces customer. However, the issue is how to make both of them work harder to find new customer instead of just sitting back to get shared commission. How can I properly split commission between the two?

Split the whole commission, not just 90% of it.

linhneu

so sorry, we split 60:40, but is it good enough to motivate both of them?

DVardysShadow

linhneu wrote: »

so sorry, we split 60:40, but is it good enough to motivate both of them?

No, IMO. It actually looks quite demotivating. It looks very attractive to me to do zilch, sit back and wait for the other agent to make a sale and just collect 2/3 of what you would if you had actually made the sale.

If I were to do this, I would not be more equal than 70:30 - perhaps 75:25 is nearer the mark. How much is the actual percentage commission you are proposing to split? It will depend more on this than on the split.

terrierlady

your imput will make them work harder...keep ringing them asking questions ie how many viewings booked this week what papers are we going in? is my property house of the week ,give bonus to the negotiator who sells as a sweetner, keep speaking to them call into see them push them hard it works for big developers so why not you

roobyroo07

I work for an Estate Agents and generally if its joint agency its on a 'winner takes all' basis.

hazyjo

roobyroo07 wrote: »

I work for an Estate Agents and generally if its joint agency its on a 'winner takes all' basis.

I thought that was pretty standard...

Is it different for commercial agents?

Jx

linhneu

I am proposing the "winner takes all" basis in which the agent who introduces tenants will take 100% of the commission for their leasing service, and we split 50:50 of their joint marketing service (because my property is newly built, and I need them to advise on mktg strategy). And the one who performs better (generate more revenue for me) will be my Sole agent for the next period.

Do you think it is the best choice? Any considerations?

Caroline73_2

Surely to see who can generate the most revenue they both need to be doing maximum marketing as if they were sole agents? That's the only way you can see accurately.

Is it just about maximum revenue though. If you have to constantly chase the company who makes most money but the other company makes 95% of that but functions much more efficiently taking less of your time then they maybe a better prospect.

linhneu

Thank you, Caroline. You raised a very interesting issue.

As I understand your point is that you agree with my solution except how to judge the winner. It should not be based on revenue only, right?

I am thinking of making a list of criteria to judge the better performer. But beside revenue, it is hard to think of another factor (such as time, efficiency... as you mentioned) because they are non-quantitative one, and can not be measured.

I am looking forward to hear your suggestion