A commission structure that’s allowing City Connections Realty to remain among New York’s high-split firms while eliminating monthly desk fees is paying off, according to founder David Schlamm.
Since launching the new program in June, the brokerage has attracted 21 new agents and is well on its way to its goal of recruiting 100 new agents by the end of the new plan’s first year.
“We’ve gotten a lot of response from agents who want to know more,” said Schlamm. “Even if they ultimately don’t choose us as their firm, I’m excited that people are taking notice and actively inquiring about the new model.”
The new commission plan allows agents to start at a 70-80% split, eventually reaching 100% after a certain amount grossed. Called a “cap”, the plan affords an agent to keep all of their commission earned once the firm has collected a predetermined amount from their transactions.
Virtual agents must reach a cap of $25,000 (an estimated $83,500 gross commission income) before reaching the full 100% split.
The new structure has been credited with the recent recruitment boom, particularly among agents from firms with more traditional commission plans.
Desiree Gould and Emilia Issakova joined from Prudential Douglas Elliman; agents Joseph Namdar, Mike Salvo and Christiana Jackson from CitiHabitats; Nick Colvin joined from Barak and Claudie Harari from Rand Realty.
Associate broker Sean Futterman, a 20 year veteran of the business who previously ran his own firm is also among the new hires.
As a new development agent at Halstead Property, Futterman sold one quarter of the units at 2280 Frederick Douglass Boulevard before joining the downtown brokerage Platinum Properties.