I've been working on the capital markets team of the top broker (CBRE/JLL/Eastdil) in a secondary market for the past year earning minimum wage and no commission. That's been ok of course because of the learning opportunities and the company name cache. But after a year I'm ready for more. So they're finally offering an entry level broker position, but it looks like shit to me - tiny (admin-level) salary, no commissions, and a few thousand$$ for sourcing deals that close. I totally get paying my dues, but there also has to be enough incentive there too. Am I getting screwed? I want to renegotiate, but I have no idea what is acceptable for entry level brokers - splits? salary? deal sourcing incentive? I would be so grateful if anyone could give me some specific guidance. Totally confidential if you don't want to make it public. Oh, if it matters - I have a non-target MBA and 6 years post undergrad experience.
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Maybe I should try and jump ship for PERE, which is my end goal anyway.
I think you are getting screwed my man! I'm a second year analyst at a smaller brokerage house than what you referenced. Recently I have been promoted to what we call an "Associate Producer". In terms of comp, I get a comfortable salary for my market, a YE bonus (35% this past year) and am now getting commissions ranging from 10-50% depending on how much of the deal I contributed to.
For instance, I get 10% if I do only the analytical work (modeling, packaging, obtaining quotes from lenders, negotiating third parties, etc.) However, if I originate a deal I get 50/50 split. This fee split increases in my favor depending on the amount of fees I bring in. I realize my gig is pretty damn good, but I've talked with peers from other shops and they say they have a similar structure.
Based on the brief experienced you wrote, I think that you have immense leverage in terms of the restructure of your comp package. If they don't bite, get the hell out and move somewhere else, that simply is not fair.
I suspected as much, thank you. I think they're just taking advantage of their position as the market leader (by a huge margin with something like 80% market share). I'll definitely renegotiate.
I should've mentioned that I am in Debt Placement.
Oh jesus this is giving me flashbacks. My background is incredibly similar to yours. Worked for a top brokerage firm in a secondary market, started as a Market Analyst, and then got bumped up to brokerage. I was "lucky" enough to keep my middling salary (think welfare level) and had commission potential. Still, I was getting screwed, and in your case, without even the chance to make a commission (aka the only reason to ever do brokerage) you're getting screwed even harder.
My recommendation is to find out what you want to do in the industry and bust ass until you get it. You have a good name on your resume now, good experience, and some market knowledge. Now's the time to jump ship. The exception of course is if you actually want to do brokerage, but even then you should be grabbing drinks with your buddies at other top firms and prodding them for information.
"So they're finally bumping me up to brokerage." "Nice, man." "Not letting me get a commission though." "Dude, what?" "Yeah, I know" "That's complete bullshit." "Might have to look around." "...you know, my boss said the other day that he's swamped but doesn't have the time to spend on finding someone."
Thank you @CRE - I love all your responses. What did you end up doing? I just wonder is it worth it to "pay my dues", for 18 months (when they've promised full commission)? Problem is, we're the only top firm in the market. The other thing is that while I have the skills and personality, I'm not a stereotypical desirable candidate - older than most entry level guys and crappy schools (both undergrad and MBA).
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