Brokers: How to tell if you are getting a good commission split?
I am switching companies after a few years at a large shop. I worked for a top 10 sized brokerage, and our splits were 50/50. I have the opportunity to join a boutique brokerage with the same split, but I am also interviewing with Colliers and JLL. Does anyone have any insight on splits at Colliers/JLL? I reviewed some listings from the teams I am meeting with, and it appears many of their listings have 3-5 brokers on the deal. Any insight on the large firms would be appreciated!
[{"id": "fybah1h", "text": "Why would you go smaller for the same splits?", "replies": [{"id": "fybb63t", "text": "Smaller doesn't mean worse. Their volume is almost the same annually as where I left, but with half the brokers. They do big deals and are growing.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fybb5b0", "text": "It sounds low unless they provides the leads and pay for big signs.", "replies": [], "depth": 1}, {"id": "fybcvy5", "text": "Splits with the company differ from splits within teams.", "replies": [], "depth": 1}, {"id": "fyblgtj", "text": "NY Broker here. Used to work for CBRE years ago. Retail brokers got a 60/40 split with the house. Moved over to a boutique firm some time ago and got the same, 60/40 broker/house. Splits internally with other brokers for a tenant or listing can vary depending on experience or production, but generally if I team up with 1 other broker we do 50/50 unless he/she is very junior and isn\u2019t bringing much to the table", "replies": [{"id": "fyd1vtv", "text": "Thanks for sharing! It is interesting to see CBRE have a 60/40 retail split. Back in the day I interviewed at a retail focused firm that offered 25-75! \n\nAt my last firm, every listing I got was on my own, but I am curious, at a big shop like CBRE - did you all get many inbound leads? I am curious if bigger firms have greater presence of repeat business/people seeking them out.", "replies": [{"id": "fyd8si3", "text": "At CBRE you can get assignments from corporate, like their transaction management division, but you give up a decent size cut of the fee to them. For example, CBRE used to handle the USPS renewals for a good part of the country. I worked on a few, and had to give corporate 50% off the top for getting the assignment. THEN I had to give 40% of what was left to my home office (just like the normal 60/40 split). So I was really working for 30% of the fee instead of 60%, AND at the time I had a partner so it was really 15%. You\u2019re essentially internally cobrokering deals. There were other accounts where corporate wanted 40% or 60%. You didn\u2019t have to taken on the assignment but you also didn\u2019t really have much ability to negotiate the split. For some guys it\u2019s worth taking on the assignments they didn\u2019t have to work to get to collect a smaller fee. Wasn\u2019t worth it for me.\n\nEdit: wanted to include that the local brokers who get those assignments are up to the manager of that office. So you\u2019d have to work on having a good relationship with that manager. \n\nFurthermore, some assignments aren\u2019t renewals but new business, so at least half the time you\u2019ve got an outside broker you\u2019d split with too, further reducing your fee. CBRE does Bank of America\u2019s work in NY. If a sole CBRE broker has to deal with a listing agent, that CBRE broker\u2019s fee would be 15% of the total fee (50/50 split with listing agent, then 50/50 with corporate CBRE, then 60/40 with local CBRE office). Landlords complain about big fees all the time and would say \u201cyou\u2019re making so much on this deal, what value did you bring?\u201d And we\u2019d say \u201clook we\u2019re only making $15K on this $100K fee\u201d", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fybui8p", "text": "I believe a buddy of mine told me that collier's has a  50/50 split unless you're a big dog", "replies": [{"id": "fyd1icr", "text": "Thanks!", "replies": [], "depth": 2}], "depth": 1}, {"id": "fydfamd", "text": "House/broker splits average 50/50 in all the big brokerages. Internal teams split vary, and the terms are generally negotiated among peers. If you are working with a team where lots of deals are coming in from senior brokers, you will be fine with something between 20 to 30%. Otherwise, only go for 50/50. Corporate assignments, as someone stated in the comments, are generally poorly remunerated and only worth if you are craving for money.\n\nEDIT: If the boutique is well-established and respected in your market AND if you are not looking to move in the future, you probably can get better conditions, hours, and relationships there.", "replies": [], "depth": 1}]