How to explain a full commission to someone?
Hello,

I am a commercial broker in NY and NJ.

In NJ I seek a full commission (5%) where the lessee's broker may take 2-2.5%.

In this instance, the owner's daughter just became an agent.

She cannot seem to understand/grasp this.

I have not been able to properly explain why this is the case somehow.

Of course this is always negotiable, but its the way it goes.

Where are you from?  Do you receive full commissions?

How would you explain it?

Thank you.
[{"id": "do9zwir", "text": "Maybe don't call it \"full commission.\" That probably makes the owner rep feel like they are getting half commission.\n\nIn reality you're getting a full market commission for a tenant rep and she is getting a full market commission for an owner rep.\n\nI work for a large company and have seen deals in lots of different markets and, for the most part, a tenant rep broker will earn more than what the owner rep broker gets. The percentages vary market to market, but the owner rep/tenant rep ratio is usually 2:1", "replies": [{"id": "doa0tp3", "text": "thanks, I shall try to word it slightly different and use the ratio.\n\nI am curious, what state?\n\nThank you!!", "replies": [{"id": "doa2y5n", "text": "Many states. Tennessee, Texas, California, Illinois, Florida, Georgia are some of the states we operate in.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "doa9wur", "text": "I'm confused. What is the commission? \n\n\n\n5% that you're splitting, and the other broker is getting 2.5%\n\nor \n\n7.5% where you're taking 5%, and the cooperating broker is taking 2.5%?", "replies": [], "depth": 1}, {"id": "doav0sz", "text": "Residential broker from Oregon.  I would probably explain it something like this..\n\"So we charge the owner a service fee of 5%.  If we broker both sides of the deal then we would keep all 5%.  However, if another broker brings a lessee to the table then we pay their brokerage 2.5%.\"\nThis is of course bypassing the chain of pay and the roles of Brokers.", "replies": [], "depth": 1}]