You are Worth It! Tips to Explain Your Commission Percentage

commission-percentage-explanationHow should you respond when clients ask YOU to cut YOUR commission? Just say no! Then, explain why.

We know 82% of consumers hire an agent based on their negotiation strategy. Standing firm in the commission conversation will highlight your expertise and the importance of a negotiation strategy. Your seller will see your negotiation skills first-hand.

If your client needs more information, share a commission menu with them. At ReeceNichols we have a commission menu that outlines 3 levels of commission: 6%, 7%, and 8%. It can be tailored to include the level of service they can expect to receive from you based on each commission percentage.

The visual of the menu of services gives the opportunity to show all of the tools and resources you use when selling their home. For example, at 6%, they receive all of the ReeceNichols tools, such as Listing Alert. At 7% additional support, such as home stager, professional photography, and Tuesday Broker Opens with Lunch are added. At 8% additional marketing, such as a mailing Just Listed cards to the neighborhood, and professional cleaning (state rules can vary; check with your broker) are included.

This allows clients to select the marketing plan and commission level that is best for them all while clearly seeing the services that are provided at each level. And, it shows what they are missing out on by selecting a lower level.

After reviewing all of the information you’ve provided, if your client is not convinced you are worth your commission; it is OK to walk away. Your hard work and expertise should be recognized and it helps you maintain your credibility if you follow the same principles with all of your clients. The relationship between an agent and client needs to be a good fit. List price, commission, and overall expectations need to align for the relationship to work.


Written by Dawn Dunavant
Managing Broker
ReeceNichols Real Estate, Liberty