Compensation for a Managing Broker building out a brokerage function
Hello! I am working to figure out a compensation structure for a person who will build out a brokerage function at a growing commercial real estate firm. This person will build out a team of brokers and lead them as well as obtaining new and retaining clients. Should this role be a base + commission? If so what number for base would one expect and what type of commission structure would one expect?
[{"id": "eye7l9x", "text": "Look at glassdoor salaries at large firms to give you an idea. It's all over the map. Equity stake is usually important. \n\nYou have to ask yourself why someone would build the business for you when they can do it themselves and reap the rewards.  Usually that reason is a large guranteed salary.", "replies": [], "depth": 1}, {"id": "eyeayx2", "text": "10%of profit", "replies": [{"id": "eyfhn39", "text": "I personally know 10 people including myself who have done or current do exactly this. This is the right answer. Everyone I know pays a 5-10% profit share and maybe a tiny base if there will be admin work. Note that profit share is not ownership and therefore it wouldn't be paying 10% of the losses in the beginning. To be clear on the base pay I mean tiny like $35-50k.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eyetvv1", "text": "Do you have estimates of the cash flow that you\u2019ll reasonably generate/grow?", "replies": [], "depth": 1}]