Kaiser Sotheby’s International Realty Commission Plans FAQ’s
Plan Qualification, Timing & Other Key Points Starting Plan Levels (Qualification) Based on Previous Year Gross Commission Income (GCI): ü You will qualify for the new plans based on your previous 12 month GCI.
Plans ‘Refresh’ Annually; Acceleration Points Pro Rated for the Transition: ü Plans ‘Refresh’ each year on your anniversary date. That means you earn your way to the highest commission levels each year. In addition, plan eligibility is ‘refreshed’ based on your last 12 months of Adjusted Gross Commission Income. ü Once you change plans, your commissions begin as stated in the elected plan. For most plans, your plan acceleration point will be prorated based on your anniversary date. A sample calculation is shown in illustration #1 (on the next page) for your reference. ü If you choose the Elite Plans, the date you start on the plan becomes your new anniversary date and you begin a 12 month year. There will be no pro rations on these plans.
1 This information is only for the use of Kaiser SIR Sales Agents and personnel (12.7.17)
Current Kaiser SIR Sales Agents A. Example of Mid-Year Pro Rated Plan Start Illustration #1 Kaiser SIR Commission Plans Example for Mid-Year Pro Rated Plan Start
-
Start with the commission acceleration point for your level of “until the company reaches”; divide by 365, multiply by the number of calendar days remaining until your anniversary date.
-
This is the prorated acceleration point you must achieve before moving to the next commission level. Sample scenario below:
Plan starts at the 60% level – Commission Acceleration Point = $19,650.
Assume you are 150 days into your anniversary year and change to one of the new plans. That means there are 215 calendar days remaining until your anniversary date. The revised commission acceleration point is: - $11,574.65 ($19,650/365 x 215) during the next 215 days before moving to the next commission level.
Upon reaching your anniversary date, the plan ‘refreshes’ – and the Agent would move to the stated plan based on the most current 12 months of Adjusted Gross Commission Income. For the new full year, you would need to achieve the stated acceleration point ($19,650 in this example) before moving up to the next commission level. See your Broker for your one-on-one meeting for your individual prorated plan.
2 This information is only for the use of Kaiser SIR Sales Agents and personnel (12.7.17)
New Sales Agents (Those new to the business) General Overview The Kaiser SIR Commission Plans offers a wide variety of choices. As a result, they are designed to appeal to both new sales agents entering the business and experienced veterans selecting Kaiser SIR to build their career. Key points are noted below: All new or transfer Agents who affiliate with Kaiser SIR choose from one of the Kaiser SIR Commission Plans.
Options for New Sales Agents (Those new to the business) Ø Review and Select One of the Kaiser SIR Commission Plans ü Sales Agents new to the business start with a lucrative plan and begin building credit toward higher commission levels with their first closing. ü The anniversary date for you as a new sales agent is based on your ‘affiliation date’ with Kaiser SIR.
Transfer (Experienced) Sales Agents Joining Kaiser SIR General Overview Build Your Career with Kaiser SIR If you have just decided to join Kaiser SIR, welcome to the company! You will find a high level of support and dedication from Kaiser SIR to help you achieve your business goals. Experienced sales agents are considered those with experience within the current Kaiser SIR market. Note that if you have been Agent with Kaiser SIR in prior years, you would fall into this category (and welcome back….). The Kaiser SIR Commission Plans are designed to significantly increase your earning potential in conjunction with your productivity. Your options are shown below: Ø Starting Kaiser SIR Commission Plans are Based on Adjusted Gross Commission Income ü As an experienced sales agent, you will start on the plan based on your qualifying level. That level is determined by your verifiable Adjusted Gross Commission Income (based on the prior 12 months or your 2016 or 2017 1099 whichever is greater). ü Once you achieve the stated commission acceleration point as outlined in your eligible plan, your commission level will increase accordingly. ü The anniversary date for you as a new Kaiser SIR sales agent is your ‘affiliation date’.
3 This information is only for the use of Kaiser SIR Sales Agents and personnel (12.7.17)
Frequently Asked Questions (FAQs) 1) Why is the company offering new plans? Kaiser SIR has built its business on leadership and innovation based on fair and honest relationships with its sales agents. These new plans offer several innovative choices to help meet your business needs at any stage in your career. With great options available for you, these plans help build on our foundation of partnership and leadership.
2) What are the advantages of the new plans to me and the company? You now have a “choice” of commission plans allowing you to best determine how to run your business as it relates to compensation. These plans were built with feedback during a series of “Needs Assessment Survey” conducted with our sales agents. The result delivers a high level of choice in plans that are simple. We listened to our sales agents when designing these new plans. 3) Will the new plans change each year? An annual CPI (inflation) update to the plan levels would normally occur or market conditions. This type of adjustment is expected to have minimal impact. 4) When does my “plan year” start? All new plans will begin on December 7, 2017. You will have until December31, 2017 to choose a plan that is right for you. If you have not chosen a plan by December 31st you will be placed on the highest level that you qualify. Note that the plans ‘refresh’ each year on your Kaiser SIR anniversary date (the date you most recently affiliated with Kaiser SIR or your start date on the Payment Plans).
4 This information is only for the use of Kaiser SIR Sales Agents and personnel (12.7.17)
5)
If I elect one of the new plans and change my mind, can I select a different plan?
Yes. If you find that an alternative among the Kaiser SIR Commission Plans better fits your business needs within 90days of your initial election, you may have the option, one time, to change to another plan. Beyond the first 90-days you can only change your plan election on your anniversary date. Should this scenario come up, please contact your Broker for assistance in making the transition a simple and easy one. 6) Are the new plans different from the current commission schedules? Simply put, the new plans offer many more choices to best fit a wide variety of sales agent business models. The older schedule offered little flexibility while the new plans offer many choices and are designed to help you progress to the maximum opportunity quickly. 7) Why didn’t we do this before? We believe now is a great time to redefine how we do business by adding more choice for our sales agents. These new plans place Kaiser SIR and our sales agent partners in an even more competitive position in the marketplace. We are excited about the potential of these plans to help drive our mutual business. 8) Under the new plans how are agents paid on Kaiser SIR leads referals and leads. The new Kaiser SIR Commission Plans will pay company generated leads at the sales agents split up to 90% and will count towards your acceleration level. 9) Do we pay for Errors & Omissions Insurance (E&O)? No, the current policy will remain the same and is still paid by the company. 10) Are there exceptions if an agent’s previous year’s Adjusted GCI were close to the qualifying amount? No. While we are excited to offer so many aggressive commission plans for our sales agents, part of doing so results in no exceptions to the plans being offered. We are confident with the broad offerings there is one that works best for most business scenarios. There is Buy Up- Cash Back Program that allows you to buy up to a higher level – see your Broker for more details. 11) What is the Legacy Plan? Agents who have been with the company for 10 years or longer will have the ability to start at a higher level Premium Plans (see the qualifier for Legacy Plan). See your Broker for additional details or agents who have been with the company for 10 years or longer can qualify for one level higher than their Prior 12 months AGCI allows during the transition period.
5 This information is only for the use of Kaiser SIR Sales Agents and personnel (12.7.17)
12) How do these plans affect teams? There are separate Kaiser SIR Commission Plans specifically designed for teams. We are working on developing these plans and will have them completed by midyear (2018). Please see your Broker to discuss and review those plans. Note: Individual agent’s plans do not allow for the accumulation or aggregation of AGCI between agents as a new team. 13) Why does the breakeven dollar amounts change as the splits go up? The plans are all designed to recover fixed and variable expenses at the breakeven. As the split for the agent goes up, the company receives less money, so it takes longer for the company to recover both fixed and variable expense. 14) Why do some of the plans state qualified or eligible AGCI vs. recommended with a minimum GCI 100,000. The plans were designed on 2 principles – to be fair and transparent. In order for the plans to be fair to both the agents and company there are qualifiers. In the case of Payment Plans the verbiage states that these plans are available (not required) to agents who have generated a minimum GCI and Adjusted Gross Commission Income. Anyone in the company can go on the 90% plan but if you don’t have the level of production stated in the plans – this plan could actually cost the agent – there could be other plans available with less risk. You need to meet with your Broker to determine which plan is best for you. 15) What is the policy on receiving commission on a primary residence? The policy will remain the same.
New Terms & Definitions Gross Commission Income – all commissions, fees, Bonuses & all other compensation, charged and received by Kaiser SIR. Adjusted Gross commission Income (AGCI) – the portion of the Gross Commission Income received by Kaiser SIR less any referral fees due or paid to another broker. Agent Earning – the total amount of commission earned by the Sales Agent per their commission plan. It is calculated by multiplying the AGCI by the Sales Agents’ plan lever %. This is the amount that counts towards meeting the next acceleration point. Acceleration Point – the amount of Agent Earnings required advancing Sales Agent to the next commission percentage level. The Acceleration Point varies based upon the commission plan selection by the Sales Agent. Net Commission – Agent Earnings less any fees pertaining to the transactions (i.e. transaction fees, monthly fees & Franchise Fees. Note: This document is intended to provide a quick reference guide for sales agents. For complete information and official Kaiser SIR policies relating to commission plans, please refer to the Sales Agents Policies and Procedures manual. These policies are subject to change at the sole discretion of Kaiser SIR. The illustrations described within are intended to be used as examples only and should not be relied upon for accuracy. This document contains confidential and Proprietary Information and should not be distributed or disseminated other than to authorized Kaiser SIR personnel.
6 This information is only for the use of Kaiser SIR Sales Agents and personnel (12.7.17)