Trainee Compensation

[sketcher]

I am a registered assistant working for a fee appraiser and will be getting my license soon. I have been working for the last two years for 60/40 split (I get the 40). The first year I'm sure she put way more time... and money into me than she got back. I have received, in my opinion, great training and the plan along is to continue working together after I get my license. The question is what is fair compensation from here on out. I am responsible for my own computer, software, E and O insurance, and any other expenses that comes up. I split time between my own home office and an office in her home. She pays for fax and phone- no other office employees. I am currently her employee, but we both agree to be self-employed once I get my license. I pull in a small amount of new business, however the bulk of my work will be with splitting orders with her from her past clients. Many of these clients will require her to sign off as my supervisor for at least a short amount of time. Any ideas on an equitable split?

 

[OSU Beavers]

How much of the report were you doing on your own for the 60/40 split? Interior inspection, measuring, sales research selecting comps, comp photos, report write up and reconciliation. Did part of your split include her paying your FICO? We need more info before we can answer. Oh and welcome to the forum.

 

[sketcher]

Thanks for your questions...Yes, she is paying FICO currently, however we have agreed that once I get my license I will be self-employed and responsible for my own taxes. This give me the benefit of being able to be more creative with my health insurance and I can set up a SEP. As far as reports- we go on all inspections together and then divide files once we get back to the office. At that point I do everything start to finish. When I finish we sit down and review it together before sending it out. These are the reports that we split fees on. Obviously as my training has progressed this review time has diminished. On average I finish 3-4 complete appraisals a week depending on complexity. The plan is that I will pay for everything business related, with her providing phone, fax, occasional desk area, and most importantly client leads. Is it fair to split those orders that she has to supervise on and orders from her client leads, but to keep all of the fee from orders from my own contacts? I am getting my license soon and we both agree that we need to change the compensation package. I hope that answers your questions. GO DUCKS!

 

[Michigan CG]

From what you have described you have an excellent mentor. That being said, on appraisal orders supplied by her, in what you describe, it is common from people I know that a 45-55% split would be acceptable. For the clients you bring in it would be 60-70%. But that is only from what I know about other local people. Compensation (like markets) may be different in your area.

 

[sketcher]

That is consistent with what we have found here. The only problem is that the people we have talked to who do a 50/50 or 60/40 split are with companies that provide office space, secretary, and they are employees, which is not our situation.

 

[PLCG]

MLS is usually a larger expense, who pays for that?

 

[PropertyEconomics]

Thanks for your questions...Yes, she is paying FICO currently, however we have agreed that once I get my license I will be self-employed and responsible for my own taxes. This give me the benefit of being able to be more creative with my health insurance and I can set up a SEP. As far as reports- we go on all inspections together and then divide files once we get back to the office. At that point I do everything start to finish. When I finish we sit down and review it together before sending it out. These are the reports that we split fees on. Obviously as my training has progressed this review time has diminished. On average I finish 3-4 complete appraisals a week depending on complexity. The plan is that I will pay for everything business related, with her providing phone, fax, occasional desk area, and most importantly client leads. Is it fair to split those orders that she has to supervise on and orders from her client leads, but to keep all of the fee from orders from my own contacts? I am getting my license soon and we both agree that we need to change the compensation package. I hope that answers your questions. GO DUCKS!

NO ... this thinking of a trainee is poorly thought out. I will let you tell me why.

 

[Dan/Fla]

The split will most likely be determined by many factors, Like stated above, do you have your own MLS and other data services, do you are will you maintain your own E & O? Do you or will you have your own Forms service such as Alamode or ACI? Do you maintain your own Computer and other office supplies? If not what have you decided to pay soon to be former supervisor, for clients you develop?

 

[Abester]

NO ... this thinking of a trainee is poorly thought out. I will let you tell me why.

Another mentor wondering why she trained her competition?

 

[lizhorvath]

I agree with Tim - excellent mentoring practices. Glad to hear it.

Good question about the MLS though - here in MI, the local MLS requires each associate to have their own account.