Within EagleCRM the Contracts area enables users to manage offers on their for sale listings from contract acceptance through to settlement.
In the Contracts module, there is a tab dedicated to the Commission on the sale, which contains the total commission, deductions, salesperson commission and GST.
This help article is broken into 4 sections:
1. Gross Commission
The gross commission will automatically be pulled from the commission set when setting up the contract within Eagle. This can be set as a dollar value ($) or as a percentage (%) value of the sale price. These can be modified by hovering your mouse over either value and then selecting the edit icon
This can be switched between Excluding GST and Including GST by using the right-hand corner toggle.
This gives us a commission of $15,000 excluding GST that is going to now be divided up.
Expenses are for items that need to be deducted off the TOP of the commission. Meaning that the item(s) is paid for by both the salesperson AND the agency before their commission is divided up.
An example would be the office and salesperson had agreed to pay for the feature upgrade on the listing for $1000 excluding GST for one of the portal websites. This will come from the commission before it is divided up between the salespeople and the office. We are still charging the client $15,000 ex GST but the commission to be divided up is now $14,000 ex GST.
Another example could be a referral fee, that is coming off the total of the commission. In this example, the referrer wasn't GST registered. So we would select in the GST rate dropdown that this was GST Free.
After $1,375 excluding GST has been held for expenses to be paid.
This gives us a commission of $13,635 excluding GST that is now going to be divided up between the agency and agent(s).
3. Agent Allocation
There are three steps we need to follow when applying the agent allocation. Some agencies think of this logic differently. So first an explanation of how the logic works in EagleCRM.
Step 1: Agent Split
Step 2: Office Split
Step 3: Agent Deductions
Step 1: We start with 100% of the commission and which agent(s) played a role in the sale of this property/contract. If we have 1 agent, they get 100% of the commission attributed to their role of the sale (we will do their split with the agency in a moment). If we have 2 agents, then it is based on what % their role played in the sale.
For example: At this agency, the lister gets 60% of the commission attributed to them and the selling agent gets 40% attributed to them.
In the agent allocation we are selecting:
What role did they play in the sale
Their roles split of the commission
When their commission should be paid out
Step 2: After setting the split that each agent's role is attributed of the disbursable commission, we now set what each of those agents' splits are with the office/agency.
In this example, we are going to say that Jordan is on a deal with the principal where he gets 50% of the commission and the office gets the other 50%.
Trevor is on a deal as one of their senior salespeople that he gets 60% of the commission and the office gets the other 40%.
To do this, we select the Agent Split % value (or you can select the toggle on the Agent Amount value to switch to a set dollar value) and enter in the percentage.
This gives us $4,087.50 that is assigned to Jordan and $4,087.50 that is assigned to the office for the listing portion under a 50/50 split.
This also gives us $3,270 that is assigned to Trevor and $2,180 that is assigned to the office for the selling portion under a 60/40 split.
Step 3: Lastly, we can now assign any deductions from the agents commission. This differs from the general Expenses that are deducted off the total commission, as these agent deductions don't deduct anything from the office/agencies commission.
An example could be that the agent agreed to pay for some Just Listed & Just Sold mailbox droppers with his branding on them.
Trevor didn't have any deductions from his commission, so retains his $3,270. Jordan has had $200 including GST deducted from his commission, leaving $3,887.50 remaining.
Please Note: You can set if each agent is GST registered and their default % split via their Profile. This is found via Settings > Profiles > Agent Profiles > Select a profile > Financials tab
If you were keeping track of the figures at each stage. We end up with the breakdown shown in the summary screenshot below.
In summary, we started with $15,000 ex GST, minus $1,375 ex GST for expenses off the top of the commission. This left us with $13,625 ex GST to be divided by each of the roles within the sale.
The lister got $8,175 ex GST and of which Jordan got 50% of this, and then had deductions off his commission, leaving a total of $3,887.50.
The seller got $5,450 ex GST and of which Trevor got 60% of this being $3,270.00.
Totaling $7,157.50 in agent commissions.
There was a total of $181.82 of ex GST deductions PLUS $18.18 of GST on those deductions (being Jordans' $200 including GST for the Mailbox droppers).
This gives us a grand total of $6,267.50 in office/agency commission.