In 2021 we paid Berkshire Hathaway HomeServices $122,248 in commissions to sell homes under the BHHS brand.
That particular year, The Julie Hall Group negotiated a team commission cap of $27,500, but the 6% franchise fee removed ANOTHER $94,748 from our wallets.
It’s a ridiculous number. So ridiculous, in fact, I’m almost embarrassed to share it.
I remember being sick to my stomach when I saw the final amount. But what stands out even further in my memory is MY WIFE’S REACTION:
“Honey… THIS IS DUMB! Big brokerages compensation models are a RIPOFF! We aren’t using a single BHHS product or service other than what’s required by law, but we’re paying them OVER $122,000 a YEAR!”
And then she said, “I need YOU to create something better.”
…so I did. 😀
Over the past year, I've examined and analyzed all the different brokerage models currently available to real estate agents in Northeastern Indiana.
I've always known Patton Hall would eventually hire independent agents, but in doing so, I wanted to offer something COMPLETELY DIFFERENT from anything currently available to real estate agents in our area. A model that offers REAL VALUE for a FAIR PRICE.
Say it with me…
BIG BROKERAGES HAVE CHARGED AGENTS WAY TOO MUCH FOR FAR TOO LONG!
Big Brokerage commission caps in Northern Indiana range (on average) from $11,900 to $17,400. Most offices then charge a FRANCHISE FEE ON TOP OF THIS CAP RANGING FROM 5 - 6.5% PER TRANSACTION.
This is nonsense…
Most Big Brokerages bundle all their products and services into a SINGLE, BLOATED, ONE-SIZE-FITS-ALL PLAN, and expect their agents to conform to the plan instead of creating plans that conform to the agents.
Why should ALL AGENTS be boxed into a single, uniform commission structure?
Every agent’s situation is unique. From the brand new agent just getting started, to the seasoned professional thriving in their peak years, to the senior agent enjoying the later stages of their career.
IT ISN’T LOGICAL TO APPLY THE EXACT SAME STANDARD ACROSS SUCH DIVERSE CAREER PATHS!
A MORE PERSONALIZED approach to commission plans is needed. One that respects and adapts to each agent’s unique journey and needs.
So this left me asking the question…
Why hasn’t someone created a PRODUCTION-BASED, TIERED APPROACH to commission splits?
A system that makes sense to EVERY AGENT regardless of where they are in their career.
A system that provides all the essential services and software necessary for an agent to thrive and also keeps commission caps low.
A system that offers all other services and software “ala carte” (at deep discounts) allowing the agent to only pay for the items they feel are absolutely necessary for their business.
So I created one from scratch… and it’s called FLEXCAP™.
NO FRANCHISE FEES, NO UNNECESSARY COSTS, NO RIGID PLANS, just a personalized approach to support your growth.
Below is a graphic detailing the 2025 FLEXCAP™.
Here’s an example…
In 2024, Jill sells 7 houses while working for XYZ Brokerage. She decides to join PATTON HALL in January 2025 to take advantage of their FLEXCAP™ system. Based on her previous year's sales, Jill's 2025 commission cap is set at $3,995, plus $59 per month for E&O and File Compliance.
Here's where FLEXCAP™ shines: Once Jill pays $3,995 in commissions, she keeps 100% of her remaining commissions for the rest of the year. NO FRANCHISE FEES, no extra costs!
Let's say Jill has an exceptional year in 2025, selling 19 homes. As a result, her FLEXCAP™ for 2026 will adjust to $4,995 (plus the monthly $59 fee). This reflects FLEXCAP's responsiveness to an agent's performance.
The best part? THESE RATES ARE GUARANTEED TO NEVER INCREASE. As long as Jill remains affiliated with Patton Hall, she's grandfathered under the 2025 FLEXCAP™ schedule. This system rewards Jill's growth while providing long-term financial stability.
FLEXCAP™ adapts to your success, eliminates franchise fees, and offers a guaranteed rate structure – giving you more control over your earnings as your career flourishes.
The 2026 FLEXCAP™ schedule will follow agents hired in 2026.
The 2027 FLEXCAP™ schedule will follow agents hired in 2027.
…you get the idea.
In a team scenario, the team lead would take advantage of the regular FLEXCAP™ schedule with each additional team member adding $995 to the Team Leader’s cap.
How the Team Lead chooses to structure compensation is up to them.
Each additional team member would also be charged $59/month for E&O and File Compliance.
WHAT ABOUT TEAMS?
TWO MORE UNIQUE BENEFITS WE OFFER:
✔ AGENT-FOCUSED PERSONAL BRANDING placing the agent in the forefront and PATTON HALL in the background.
✔ An INNOVATIVE CO-WORKING ENVIRONMENT that fosters collaboration and innovation amongst our agents.
…but I’ll explain these ideas in more detail later.
If you find any of this appealing, I would encourage you to email me today at: jason@pattonhall.com. If you’re more comfortable reaching out to Julie, her email is julie@juliehallgroup.com.
Best Regards,
Jason Patton
Principal Broker/Owner
Patton Hall Real Estate
P.S. Just like 2024, we are only offering FLEXCAP to 5 agents in 2025. Once these positions have been filled, we will close recruiting until 2026.
