When commission share out is 95%, is it worth to even start your agency? Part 1.
Commission payout for a job done according to Valuers, Appraisers, Estate Agents and Property Managers, Rules 1986 is 40%. This is specified in Rule 71.
However, the market cannot sustain the negotiator team when competing agencies are giving up to 70%. Negotiators will abandon your agency to those giving better payout. This is a norm, and understood as “cari makan”.
Now, as newer and more aggressive agencies are giving up to 95% commission payout, those agencies still giving less will have no more negotiators. This is reported in the article below.