How much you earn depends on how many producing agents you sponsor, how much revenue each agent contributes to Real; whether you unlock tiers. Read below to understand each component in more detail.
How to Earn Revenue Share:
You can earn revenue share in two ways:
- Sponsor an Agent. Sponsor means you build a relationship with a licensed agent, work with them to understand our business model and potential benefits, and are listed on their ICA as the person who was most influential in their decision to join Real. Every agent you Sponsor will be listed as your Tier 1
- Unlock Tiers. If you Sponsor 5+ agents, you can unlock additional Tiers, which means you can start to earn income if your Tier 1 agent sponsors another agent. We will explain this more below.
Don't forget: you must be producing to be eligible for Revenue Share. Read all the details here: Canada Producing Agent Policy
Sponsor an Agent Directly
Every agent you directly Sponsor will be listed as a Tier 1 agent in your downline. You will earn 5% Revenue Share for every Tier 1 agent. That means you could earn up to $4,000 CAD for every Tier 1 agent.
- Why $4,000 CAD? Once the agent caps, they stop paying a split to Real. This means there is no revenue available to share.
- Similar with above, personal deals, transaction fees, and other transactions that don't generate revenue will not produce Revenue Share.
- Please note: agents on a lower cap plan will stop paying revenue to Real earlier and will therefore no longer provide revenue share after they hit their cap. $4,000 is a maximum, not a guarantee.
Revenue Share Example: How Sponsoring Works
- Jani has been at Real for a year. She loves the company, she knows the model, and she feels passionately about this company.
- Jani starts to talk to her friends (who are also Realtors) about Real. During these conversations, she goes through the model at Real, the benefits of Real, and she talks about how she could really help to grow and develop other agents at Real. She might even use the 8 Ways to Earn Deck to run through these benefits.
- Let's say during these conversations, Mike and Barbara decide to join Real.
- Mike and Barbara list Jani on their ICAs because, in their opinion, Jani was the most helpful in making the decision to join Real - and they believe Jani is going to help make them successful here.
In the scenario above, Jani just unlocked a Revenue Share Opportunity! Once Mike and Barbara join Real, they will be listed in Jani's Downline on her Tier 1.
This means: when Mike and Barbara earn Commission Income, Jani will receive 5% of the Commission Income.
Once you have 5 producing agents in your Tier 1, you are eligible to unlock Tier 2. This means you can start to earn income if your Tier 1 agents sponsor another agent.
Anyone your Tier 1 agent sponsors, will appear as a Tier 2 agent in your Downline (a downline is the list of all the agents you have attracted directly or indirectly).
And guess what... if anyone in your Tier 2 Sponsors an agent, that agent will appear in your Downline as Tier 3.
Here's a quick example of how it works:
- Jani sponsors Mike and Barbara
- Barbara Sponsors Christy
- Christy Sponsors Oliver
- Mike and Barbara is on Jani's Tier 1
- Christy is on Jani's Tier 2 (and Barbara's Tier 1)
- Oliver is on Jani's Tier 3 (and Barbara's Tier 2)
Below is a visual of Jani's Downline. This is sometimes called a Revenue Share Tree.
Remember: Jani can only earn Revenue Share from Tier 2 once it is unlocked. Jani will need to have 5 agents in her Tier 1 before Tier 2 is unlocked and she can start to earn Revenue Share from Christy.
Once Tier 2 is unlocked, you will earn 4% Revenue Share for every Tier 2 agent. This means you could earn up to $3,200 for every Tier 2 agent that caps.
Now, there are some things to keep in mind:
- You can only unlock Tier 2 if you have 5 producing agents on Tier 1. Check out the Canada Producing Agent Policy if you want to know exactly what you need to qualify.
- If a member of your Tier 1 becomes non-producing, then Tier 2 will be closed until a producing agent is added to Tier 1 (or producing status is reobtained).
- Just like Tier 1, you only earn revenue share if there is Revenue to Share. This means when the agent caps (and is no longer paying a split to Real), you will not earn revenue Share. Personal deals will not qualify for Revenue Share.
You can continue to unlock Tiers up to 5 Tiers. Just like Tier 2, you need to have a certain number of agents on your Tier 1 to unlock additional Tiers:
- You must sponsor at least 5 producing Tier 1 agents to unlock Tier 2
- You must sponsor at least 15 producing Tier 1 agents to unlock Tier 3
- You must sponsor at least 20 producing Tier 1 agents to unlock Tier 4
- You must sponsor at least 25 producing Tier 1 agents to unlock Tier 5
And just like Tier 2, the amount you earn at every Tier changes:
- Tier 1: 5%
- Tier 2: 4%
- Tier 3: 3%
- Tier 4: 2%
- Tier 5: 1%
Revenue Share Example: How Calculations Work
Let's return to Jani, Barbara, and Mike. As a reminder, here is Jani's Revenue Share Tree:
Now, let's assume:
- Mike closes a $500,000 deal. He's the buyer agent and earns 3% commission - so $15,000 commission!
- Mike did pay a referral on the deal, so after the referral, he's at $11,250.
- Of that amount:
- 15% goes to Real, so $1,688
- 85% goes to Mike $9,653
How Revenue Share works:
- Because of Revenue Share, Real gives 5% of the revenue to Real back to Jani, who sponsored Mike. So:
- 5% of the GCI goes to Jani: $563
- Real only keeps 10%: $1,125.
Nice work, Jani!
As you saw in this example, Revenue Share is calculated from the net commission available to Mike. The referral fee was not included in the Revenue Share calculation because it was paid to another agent and Real never collected 15% of that revenue.
Pulling it all together: the total opportunity...
How much you earn depends on:
- How many producing agents you Sponsor;
- How much revenue each agent contributes to Real;
- Whether you unlock Tiers.
Pulling this all together, here is the annual income opportunity:
- You will earn 5% of revenue paid to Real for each agent you directly sponsor.
- For every full capping agent you bring to the company, you earn a maximum of $4,000.
- Once you sponsor 5 producing agents, you will unlock Tier 2.
- You will earn 4% of revenue paid to Real for every Tier 2 agent (Sponsored by someone you Sponsored).
- Every full capping agent on Tier 2, earns you a maximum of $3,200
- Once you sponsor 15 producing agents, you will unlock Tier 3 and earn 3% of revenue paid to Real for every Tier 3 agent.
- Every full capping agent on Tier 3, earns you a maximum of $2,400
- Once you sponsor 20 producing agents, you will unlock Tier 4 and earn 2% of revenue paid to Real for every Tier 3 agent.
- Every full capping agent on Tier 4, earns you a maximum of $1,600
- Once you sponsor 25 producing agents, you will unlock Tier 5 and earn 1% of revenue paid to Real for every Tier 3 agent.
- Every full capping agent on Tier 5, earns you a maximum of $800
Let’s say you bring 5 capping agents to Real. That’s $20,000 in extra income each year.
All 5 of these people are on Tier 1. Person 5 unlocks your ability to access Tier 2.
Now let’s imagine that each one of the 5 people you brought on also brings on 5 capping agents. That’s 25 people at the $3,200 level, meaning you could stand to make $20,000 from your Tier 1 plus $80,000 for a total of $100,000.
Even if each one of the original 5 only brought 1 capping agent, that’s still $20,000 plus $16,000 for a total of $36,000.
That’s impressive for the revenue you’ve earned apart from what you’re working on as a producing agent! This is part of that wealth-building model we referenced earlier. It’s a new way to think and act. Supporting the agents you invite to the company, helping them problem solve, encouraging their success is rewarded by the company.
Want to Learn More About Revenue Share?
- How to Attract Prospective Agents
- How do I know who is in my Downline / Network?
- When will I receive Revenue Share?
- How do I track and manage my Revenue Share Payments?
Note: all dollar figures in CAD.