Independent Brokers - Have you distributed equity to top agents?
I am the 100% owner of a brokerage that has grown tremendously over the last 3 years. The team continues to develop and I have a few emerging leaders that would be good candidates to become partial owners of the firm. Does anyone have experience in the process of creating a system that rewards agents with equity in the firm?
[{"id": "ij5ucfs", "text": "No. But plain old cash bonuses are always good. You can reward performance year to year and stop if performance drops.  Equity requires thought, operating agreements, and a lot of discussion about what-ifs.", "replies": [], "depth": 1}, {"id": "ij6rl5s", "text": "I think CRE brokerages should be operated like law firms. Equity paths for retaining top talent is the main one, but it also has the advantage of making the practice something that the owner can transfer at retirement. Instead of just stopping, you can sell your stake.", "replies": [{"id": "ij6vo6z", "text": "Lee &amp; Associates, my brokerage, is one of the few that I know of which operates this way. Opportunity to become partner and get equity/profit sharing if you reach a certain GCI earnings threshold consistently for a number of years.", "replies": [{"id": "ij70dfh", "text": "Do you know of any others that do this?  I would love to learn more about this model.", "replies": [{"id": "ij72wvf", "text": "I don't know of any other CRE brokerages that do this. I know the big ones (CBRE, Cushwake, JLL, Colliers, etc) do not have this model. Lee is very unique that way, each office is completely broker owned.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ij77dv8", "text": "Instead of equity, you can offer a better graduated split of revenue, start your next year at a better split, $ for additional resources (admin/analyst), additional marketing, higher t&amp;e budget, etc.", "replies": [], "depth": 1}]