Does anyone know the revenue generation levels of people of different titles at the large brokerages? For instance, at let's say CBRE, is one an associate until they generate $200,000 in revenue per year, then a senior associate until $500,000, and so on? Does anyone know or have any experience with where one will get promoted to Vice President, First Vice President, Senior Vice President, and Vice Chairman? Does anyone have any info on any of the other large firms such as JLL or Cushman and Wakefield? I am just curious on how much a person is generating. I did read in an article, that to get promoted to Senior VP, one must generate 5 million dollars in revenue. But does anyone know of what the other levels are?
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So this isn't about titles like you were looking for, but titles are relativly useless in brokerage anyways. Below is a piece of an employment contract for a mid sized brokerage in NYC. the different levels equate to certain titles in the company but more importantly, the more you bill the better your split.
Compensation. The Company and the Contractor shall split gross brokerage commissions derived by the Contractor’s efforts on the basis as follows in each calendar year:
$0 - $100,000 50/50
$101,000 - $375,000 60/40
$376,000 - $600,000 65/35
$601,000 - $999,000 70/30
$1 million and up 75/25
3 years consecutively billing over $100,000Contractor maintains a 60/40 split status. In the event Contractor fails to meet a minimum of $100,000 in billing in 18 consecutive months then Contractor will revert back to a 50/50 status and must requalify.
Thank you SHB. I appreciate the insight greatly. Would you be able to comment on progression in terms of building one's business? Obviously, everyone is different, however, from a person's start date, how quickly will one usually be able to get business and start making money? I know it is usually said 1 - 2 years, but what has your experience been seeing junior brokers? Thank you.
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Brokerage has a high attrition rate. Something like 50% in the first year, 70% in the second and 90% by the fifth. So most either don't make money or are not making enough for it to be worth the (very heavy) pains. The general rule of thumb is those who are going to "make it" generally make 100k+ by the end of their third year. From anecdotal evidence that seems about right but remember by that time 75%-80% of everyone who entered the business failed to get there.
All that being said, I am one of the ones who left after my second year. I made $0 (outside of a draw) my first year (my first deal actually came in month 13) and while I put a chunk of change in my pocket at the end of my second year, for me, it was an exhausting rat race. After a lot of reflection I knew brokerage wasn't for me. Luckily I was able to leverage my previous experience into an analyst position at a large family real estate firm.
Specifically for your question; how quickly will one be able to start making money. Its all risk vs reward, some, a lot, most, who enter the business never really do. Some few go on to make a lot. By the end of the second year you'll know whether its the business for you or not.
One parting piece of advice, unless you come from family money or one that has a web of connections stay away from the small and mid sized brokerages. If you're just starting out don't do it unless you are at CBRE, JLL or CW (and Newmark if you're in NYC) and which team you're on really does matter.
Good luck
Thank you for everyone's responses. I really appreciate it. SHB, can you comment on an average that most junior brokers may take home after year 2, 3, 4, and 5? What did you see within your firm? I realize that everyone is different, but are there averages out there? Also, SHB, since you put Newmark in parentheses, do they compete with CBRE, JLL, and CW within NY? Or are they still a step down?
The split figures quoted are pretty aggressive. At a top shop that provides it agents with significant resources, the most successful agents are not taking home more than 65-35 in many cases. As far as titles go, most shops require their agents to maintain minimum revenue averages over a 3-5 year period to advance...say 500,000 gross for an SVP and escalating as you increase title.
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