nextage franchise presentation

Agent Compensation

Franchisee Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

How Agents Earn Income•Commissions on Personal Production•Generational Sales Bonuses•‘Spread’ Sales Bonuses

Agent Income Calculator

Commission Levels

Generational Sales Bonuses

1 –4

Spread Sales Bonuses

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

How Agents Earn Income•Commissions on Personal Production

• You set the Personal Production Commission Split for all agents you recruit

• As the Responsible Broker you may adjust the commission rate, up to 80%, set by the recruiter to meet market conditions in your area

2 –4

Commission Levels

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

How Agents Earn Income•Commissions on Personal Production•Generational Sales Bonuses

• Paid six levels deep

• Paid whether the recipient has business or not

Example

3 –4

Commission Levels

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

How Agents Earn Income•Commissions on Personal Production•Generational Sales Bonuses

• Paid six levels deep

• Paid whether the recipient has business or not

•‘Spread’ Sales BonusesExample

4 –4

Commission Levels

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Management Fees

Personal Production

Franchise Income Calculator

Franchisee Compensation•Franchisees are Compensated in Five Ways

•1.625% of GCI•$250 Transaction Fee•$3.5% of NCI•Any applicable Sales Bonus•Any Spread Bonus

Example

1 –2

SpreadSales Bonuses

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Commission Sharing• At Nextage Realty, we don’t just split

commissions, we share them.

• The Agent closing the transaction receives his or her commission split.

• The balance of GCI is shared by other members of the team, the Franchisee, the Nextage Regional Developer and Nextage Realty International.

Example

2 –2

Management Fees

Personal Production

Franchise Income Calculator

SpreadSales Bonuses

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Recruiting1 –6

Team Development

ProcessRecruiting Process

Real Estate Is What We Do -- Recruiting is what makes us different

• The benefits of team building are so powerful that everyone in the office becomes a recruiter.

• Office population can grow rapidly as can numbers of listings, sales and marketshare.

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Recruiting

Recruiting Targets•Experienced Agents•New Licensees•Referral Agents•Inactive Agents

Team Development

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Recruiting

Experienced Agents•Attracted to multi-tied compensation•Depressurizing the career•Building a retirement plan•We real estate•Growth Opportunities

•Mentoring•Leadership positions•Becoming a Franchisee

Team Development

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Recruiting

Newly Licensed Agents• Attracted to multi-tied compensation• Comprehensive training through The

Nextage Performance Institute• Web-based training• Mentoring program tied to training

•90-Day Career Builder Plan•Steps to Success

Team Development

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Recruiting

Referral Agents•Active real estate license•Placed with a Nextage LIFRO

• Don’t list and sell• Refer business• Earn sales and generational bonuses on their

entire team

Team Development

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Recruiting

Inactive Agents• Often, those who didn’t make it in real

estate sales still have the ability to build a team and create a residual income

• Place their licenses with a Nextage LIFRO

Team Development

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Retention

The Power of Residual Income

Agent Franchisees

Staying Power• Successful Nextage agents tend to stay

• Commission Splits cease to be the reason to stay or move

• As they grow, you benefit

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Retention

Agent Retention•Multi-tiered compensation

•Sales bonuses on entire team•Generational bonuses up to 6 levels•Mentor income

•Team community •Nextage Performance Institute™

•Mentor Certification•Advanced training

Agent Franchisees

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Retention

Agent Retention•National recognition program•Monthly Web site recognition •Office recognition programs

•Agent Council •Monthly recognition of top producers

Agent Franchisees

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Retention

Agent Retention•Retirement opportunities•Become a Nextage franchise

•Not a competitor but a team member•Compensation continues as before•Increase in recruits adds your bottom line•Increased recognition of Nextage in your marketplace

Agent Franchisees

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Nextage Leader’s Contract Level

Nextage Leader’s Contract

Percentage

Requirements for Promotion from Previous Leader

Contract Level

Additional Promotion Requirements

Sales Consultant1 SC

55% Entry Level

Sales DirectorSD

65%1 team closed side or $7,500

GCI1 active Nextage agent

Senior Sales DirectorSSD

68%5 team closed sides or $37,500

GCI2 direct active agents & 5 team

agents

Regional Sales Director RSD

71%15 team closed sides or

$112,500 GCI3 direct active agents & 15 team

agentsDivisional Sales

DirectorDSD

agents

National Sales Director NSD

$375,000 GCI7 direct active agents

& 50 team agents

Executive Sales Director ESD

& 80 team agents

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Percentage

Contract Level

55% Entry Level

Sales DirectorSD

agents

DirectorDSD

agents

& 50 team agents

& 80 team agents

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Percentage

Contract Level

55% Entry Level

Sales DirectorSD

agents

DirectorDSD

agents

& 50 team agents

& 80 team agents

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Percentage

Contract Level

55% Entry Level

Sales DirectorSD

agents

DirectorDSD

agents

& 50 team agents

& 80 team agents

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Generation % Sales Bonus

1st 7.5%

2nd 3.75%

3rd 2.25%

4th .50%

5th .25%

6th .25%

Example

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

1st 7.5%

2nd 3.75%

3rd 2.25%

4th .50%

5th .25%

6th .25%

Example

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

1st 7.5%

2nd 3.75%

3rd 2.25%

4th .50%

5th .25%

6th .25%

Example

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

1st 7.5%

2nd 3.75%

3rd 2.25%

4th .50%

5th .25%

6th .25%

Example

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

1st 7.5%

2nd 3.75%

3rd 2.25%

4th .50%

5th .25%

6th .25%

Example

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

1st 7.5%

2nd 3.75%

3rd 2.25%

4th .50%

5th .25%

6th .25%

Example

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Carol is a new associate who has achieved Sales Director Level (65%). She was brought into the company by Bob who is also at 65%, who was brought in by Ann, also at 65%

Carol closes a $200,000 transaction producing GCI to the company of $6,000.

NCI = $5,360.

Carol - $3,484 (NCI X 65%)Bob - $402.00 = 7.5% 1st Generation Sales Bonus)Ann - $201.00 = 3.75% 2nd Generation Sales Bonus)

Generational Sales Bonus ExampleAgent

Compensation

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Carol is a new associate who has achieved Sales Director Level (65%). She was brought into the company by Bob who is aalso at 65%, who was brought in by Ann, also at 65%

NCI = $5,360.

Compensation

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

NCI = $5,360.

Compensation

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

NCI = $5,360.

Compensation

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

NCI = $5,360.

Compensation

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

NCI = $5,360.

Compensation

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

NCI = $5,360.

Compensation

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

Spread Sales Bonus Example:

You recruit ‘A’ who recruits ‘B’.

‘A’ is at 74%, ‘B’ is at 71%. You, as Franchisee, are at 80%.

‘B’ closes a transaction that produces $6,000 in GCI = $5,360 NCI.

‘B’ receives $3,805.60 in commission.

‘A’ receives 7.5% Sales Bonus (1st Generation) plus 3% spread = $402 + $160.80 =$562.80.

You receive 3.75% Sales Bonus (2nd Generation) plus 6% spread plus Franchisee Allocation = $207 + $321.60 = $528.60 plus Franchisee Allocation.

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Franchisee Personal Production

Franchisees have an 80% Commission Split. This applies in calculating ‘Spread’ Sales Bonuses as well as commissions on Franchisee personal production.

Example:Sandra is a Franchisee. She closes a $300,000 listing side transaction that produces $10,500 in GCI (3.5%).

NCI = GCI – 6.5% - $250 = $9,567.50

Sandra gets:Commission = NCI X 80% = $7,654.00Management Fees:

1.625% of GCI = $ 170.62Transaction Fee = $ 250.003.5% of NCI = $ 334.76

Total: $8,409.38

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Franchisee Personal Production

Franchisees have an 80% Commission Split. This applies in calculating ‘Spread’ Sales Bonuses as well as commissions on Franchisee personal production.

Example:Sandra is a Franchisee. She closes a $300,000 listing side transaction that produces $10,500 in GCI (3.5%).

NCI = GCI – 6.5% - $250 = $9,567.50

Sandra gets:Commission = NCI X 80% = $7,654.00Management Fees:

1.625% of GCI = $ 170.62Transaction Fee = $ 250.003.5% of NCI = $ 334.76

Total: $8,409.38

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Franchisee Allocation (Management Fees)

Every transaction produced in the Franchisee office produces three fees to the Franchisee regardless of whether the agent closing the transaction is on the Franchisee’s Team or not.

The Fees:1.625% of GCI$250 Transaction Fee3.5% of NCI

In situations where the agent is on the Franchisee’s Team, the Franchisee would receive these Fees plus any applicable Generation or Spread Sales Bonus

In situations where the agent is not on the Franchisee’s Team (i.e. was recruited by someone not affiliated with this office), the Franchisee would receive the three Fees only and would not be eligible for Generation or Spread Sales Bonuses.

Example

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Franchisee Allocation (Management Fees)

Every transaction produced in the Franchisee office produces three fees to the Franchisee regardless of whether the agent closing the transaction is on the Franchisee’s Team or not.

The Fees:1.625% of GCI$250 Transaction Fee3.5% of NCI

In situations where the agent is on the Franchisee’s Team, the Franchisee would receive these Fees plus any applicable Generation or Spread Sales Bonus

In situations where the agent is not on the Franchisee’s Team (i.e. was recruited by someone not affiliated with this office), the Franchisee would receive the three Fees only and would not be eligible for Generation or Spread Sales Bonuses.

Example

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Management Fee Example

If Macy was recruited by Jill (1st Generation), Jill would receive:

Management Fees:1.625% of GCI = $113.75Transaction Fee $250.003.5% of NCI = $220.32

Generation Sales Bonus (7.5%) = $472.12Spread Sales Bonus (9%) =

$566.55Total: $1,622.74

Macy is an RSD at 71% Commission Split working in Jill’s office. She closes a transaction producing $7,000 in GCI (NCI = $6,295).

If Macy was recruited by someone outside the office, Jill would receive:

Management Fees:1.625% of GCI = $113.75Transaction Fee $250.003.5% of NCI = $220.32Total: $584.07

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Management Fee Example

If Macy was recruited by Jill (1st Generation), Jill would receive:

Management Fees:1.625% of GCI = $113.75Transaction Fee $250.003.5% of NCI = $220.32

Generation Sales Bonus (7.5%) = $472.12Spread Sales Bonus (9%) =

$566.55Total: $1,622.74

Macy is an RSD at 71% Commission Split working in Jill’s office. She closes a transaction producing $7,000 in GCI (NCI = $6,295).

If Macy was recruited by someone outside the office, Jill would receive:

Management Fees:1.625% of GCI = $113.75Transaction Fee $250.003.5% of NCI = $220.32Total: $584.07

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Franchisee Compensation Example #1

Bill, the Franchisee, recruits Tara, a new licensee who quickly becomes a Sales Director, bringing her commission split to 65%. Tara closes a buyer side transaction for $265,000 that produces GCI of $7,950 (3%)

NCI = $7,950 – 6.5% - $250 = $7,183.25

Tara = NCI X 65% = $4,669.11

Bill = 1.625% of GCI = $ 129.19 Transaction Fee = $ 250.00 3.5% of NCI = $ 251.41 7.5% Sales Bonus $ 538.74 15% Spread Bonus $1,077.49 Total: $2,246.83

Example 2

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Franchisee Compensation Example #2

Jean, a Divisional Sales Representative with a 74% commission split, is 4 generations down from Bill, the Franchise. Chris is at the top of Jean’s team and is at 80%. Jean recruits Sam, a new licensee who quickly becomes a Sales Director, bringing his commission split to 65%. Sam closes a buyer side transaction for $265,000 that produces GCI of $7,950 (3%)

NCI = $7,950 – 6.5% - $250 = $7,183.25

Sam = NCI X 74% = $5,315.60

Jean = 7.5% Sales Bonus = $538.74

Bill = 1.625% of GCI = $ 129.19 Transaction Fee = $ 250.00 3.5% of NCI = $ 251.41 .25% Sales Bonus $ 17.96 0% Spread Bonus $ 0 Total: $ 648.56

Bill Chris

NetCommission

Income(NCI)

Gross Commission Income (GCI)

Generational Sales Bonuses (14.5%)

How Commissions are Shared

To Nextage Realty International, LLC

Agent’s Commission and Spread

(if any)80%

1st Generation 7.5%

2nd Generation 3.75%

3rd Generation 2.25%

4th Generation .5%

5th Generation .25%

6th Generation .25%

1.625%$2503.5%2%

Franchisee Allocation

1.625%

To Nextage Regional Developer (if any)

Example

NetCommission

Income(NCI)

Gross Commission Income (GCI)

Generational Sales Bonuses (14.5%)

How Commissions are Shared

To Nextage Realty International, LLC

Agent’s Commission and Spread

80%($7,280)

1st Generation 7.5% ($682.50)

2nd Generation 3.75% ($341.25)

3rd Generation 2.25% ($204.75)

4th Generation .5% ($45.50)

3.25% ($325)

1.625% ($162.50)$250

3.5% ($318.50)2% ($182)

Franchisee Allocation

1.625% ($162.50)

To Nextage Regional Developer (if any)

6.5% ($650)

ExampleAssume $10,000 GCI

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Nextage LIFROLimited Function Real Estate Office

•Agents place their licenses with a Nextage LIFRO if they do not intend to list or sell real estate.

•As affiliates of a LIFRO, they may refer business through the Nextage Referral Program and receive referral fees when those transactions close.

•They are also eligible to receive Sales Bonuses on production done by agents on their teams and affiliated with Nextage Realty offices.

•LIFRO agents may not list and sell. They must refer their buyers and sellers instead.

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Nextage LIFROLimited Function Real Estate Office

•Agents place their licenses with a Nextage LIFRO if they do not intend to list or sell real estate.

•As affiliates of a LIFRO, they may refer business through the Nextage Referral Program and receive referral fees when those transactions close.

•They are also eligible to receive Sales Bonuses on production done by agents on their teams and affiliated with Nextage Realty offices.

•LIFRO agents may not list and sell. They must refer their buyers and sellers instead.

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

The Recruiting ProcessStep 1: Preparation in Target Market and SOI Market

Step 2: Prospecting Approach - DVD Drop/Brochure/ Invitation

Step 3: the Business Presentation

Step 4: the Close - Overcoming Objections

Gauge 1: Stay after the meeting

Gauge 2: Give information package

Gauge 3: Set an interview

Gauge 4: Meet and sign up

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Step 1: Activation

Gauge 1: Fastrak Checklist

Gauge 2: Accountability Agreement

Step 2: Engagement

Gauge 1: Develop prospect list

Gauge 2: Set goals/business plan

Gauge 3: Schedule team building activities

Step 3: Replication

Gauge 1: Learn Recruiting & Team Development Processes

Team Development Process

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Step 1: Activation

Step 2: Engagement

Step 3: Replication

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Step 1: Activation

Step 2: Engagement

Step 3: Replication

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Step 1: Activation

Step 2: Engagement

Step 3: Replication

Gauge 1: Learn Recruiting & Team Develpoment Processes

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Step 1: Activation

Step 2: Engagement

Step 3: Replication

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Step 1: Activation

Step 2: Engagement

Step 3: Replication

Recruiting

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Jan Feb Mar April May June July Aug Sept Oct Nov Dec

The Real Estate Roller Coaster

Traditional agent income: driven by the fluctuating market

Building a Team and adding an additional stream of income from Sales Bonuses not only smoothes out the peaks and valleys . . .

It also raises your total income without greater personal production on your part

Retention

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Retention

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Retention

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Retention

Agent Franchisees •Broker Bob opens a Nextage office and builds a team.

•One of his agents, Sue, does quite well and decides to open her own Nextage office.

•She takes two agents from her team with her.

•Bob is delighted because Sue is still on his team. He will continue to receive Sales Bonuses and Spread Bonuses on her production and on many of the people who join her office!

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Technology

Our Home Search Focused Public Website

Nextagerealty.com

www.nextagerealty.com

Agent Compensation

Recruiting

Retention

Training

Technology

Franchise Support

Technology

NextageAdvantage.com

Our World Class Recruiting Websitewww.nextageadvantage.com

Technology

Franchise Management System

Track your listings, your transactions, your associates and your trust account all from one convenient online portal.

Technology

Team Management System

Great Reports: •Pipeline Report•Recruiting Report•Agent Production by team and generation•GCI Report•Transaction Report•Listing Report•Closed Transaction Report

nextage franchise presentation

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sales bonuses example

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