Here's a good deal for Salespersons
QUESTION: Rltr. John, what is your deal for the Salespersons? ANSWER: Under the Garapata Regime, Salesperson pays around 15,000 for 120 hours Salesperson Seminar, and still has to find a Broker with whom he will share the percentage commission. There will soon be reforms. Under the IPORESP system, Salesperson pays P3,000 for the required seminar because we will reduce it to 16 hours. Then Salesperson pays his/her own Broker P12,000 per year as Professional Fee compensation for the independent Salesperson Supervision and Management Contract. Under the Realter Society JSA, the developer is co-supervisor on the Salesperson and will have a free-hand on the deployment of the salesperson. Salesperson gets 100% of the commission from his/her developer of choice. A Broker with 20 Salesperson can survive as the Professional Fee for Salesperson Supervision will generate a sure bread-and-butter of P240,000 a year. QUESTION: Bersabe Asis: do you man the broker will have no share on the sale of thier salesperson only 12,000 per year? ANSWER: Under the Independent Salesperson scheme, the Salesperson gets 100% of the commission. If the Broker wants share of the commission, there is another scheme called employment scheme wherein the Salesperson is an employee of the Broker. The Broker have a choice on how to "diversify" his Salesperson portfolio. It depends on the Broker how many Salesperson employee he wants and how many independent salespersons he wants. If I were to make a portfolio for myself, I would want to have 18 Independent Salespersons, one salesperson assigned to one Developer. And then I want to have 2 Salespersons working in my office on anything from errand, book keeping, secretary, documentation, and special brokerage operations. The commission is theirs, 100%, but I need the 18 Independent Salesperson to bring in to my office all clients and customers so I will earn PROFESSIONAL FEES. QUESTION: Sir John, how do you make sure the Broker actually supervise the salesperson? ANSWER: That is very simple question. You read the Professional Fees. The Broker need to stamp clearance on Reservation Form, Contract to Sell, Deed of Sale, etc. Before a Broker stamps on the document, there is a strict IPORESP Due-Diligence Procedure. Any consummated transaction of Salespersons will end up into documents that would need a Broker's Stamp and so supervision will naturally come along with it. Of course there is Professional Fee for every stamping -- the customers will pay for that. QUESTION: Is that Professional Fee rates fixed and mandatory? Could that go any higher or lower? ANSWER: That is the minimum. It can go higher but never lower. For example, a Broker whose office is located in the Ortigas Business District is more accessible compared to a Broker with office in a far residential area somewhere in the mountains of Antipolo. Accessibility has a premium, so the Broker in Ortigas Business District may command a higher Professional Fees. We let the Salesperson choose. Brokers pays for rent, overhead, electricity, water, VAT, business permits, license requirements, and daily work in office. The business risk is too high if the Broker's office will depend only on commissions. That is why Professional Fees are incorporated in the new set-up to ensure bread-and-butter and survival of Broker offices. Survival of the Broker, at the minimum, is one of the primary concern of IPORESP. On how to become rich, that's the Broker's free-hand to play the game of managing his Salesperson portfolio over and above the minimum survival line. SHARING SOME THOUGHTS FROM EMAIL PREVIOUSLY COLORUM, NOW A LICENSED. CHAT MESSAGE: "Dear John, I used to be a colorum for over 11 years. I studied and passed the exam and now I am licensed. Few years back you were my enemy when I read your crusade statement against colorum. But things change already. Now, I already feel the same way as you, irritated withso many colorum around. But I hate my colorum boss, she fired me immediately after I got my license. Out of pride, I started my own realty business, income is very low because there is no bread and butter, no professional fees. So I have to shut down my realty business and I'll go back to my old business as car dealer. The licensing strike that you are commanding is is good for all of us, hence I will obey. My wife says I will only go back to real estate when you succeed in pushing the professional fees. God bless!" PROFESSIONAL FEES FOR SALESPERSONS?Question: Rltr. John, ako po si ____, salesperson lang po asawa ko, apat po anak namin. Colorum kami dalawa noon, ngayon salesperson na asawa ko. Nagbayad kami ng malaki para sa 120 hours na Salesperson seminar, pero okay lang kasi binigyan siya ng certificate kahit hindi na siya pumapasok sa Seminar, so nakatipid pamasahe. Pero masaklap kasi taon-taon daw ang Seminar so bayad kami ng malaki taon-taon para sa certificate. Ako housewife lang. Noon meron silang natatanggap na P150 allowance galing kay maam (developer) kada araw na mag manning sila doon sa gate ng subdivision. Ngayon po na madalang na po ang benta, natigil po ang allowance nila. Paano nyo po matutulungan ang mga Salesperson na magkaroon naman sila ng source ng bread and butter katulad ng Professional Fees? ANSWER: Ang salesperson ay hindi "lang". Without Salespersons, walang mabebenta na real estate. Wow, okay yan, apwn na biyaya ng Dyos. Mabuti naman at legal na angpag bebenta ng asawa mo, hindi na colorum. Yan pong FRAUD sa seminar attendence ay source po yan ng hanap-buhay ng mga garapata na seminar providers, mga corrupt na nagpapahirap sa bayan natin. Kahit anong profession, kailangan merong source ng bread and butter, aka Professional Fees. I will think it over kung papano i-insert sa Joint Supervision Agreement [JSA®] ang Salesperson Sales Presentation Fee na kailangan bayaran ng Developer sa Salesperson everytime na makarating sa point ng formal sales presentation ang Salesperson sa isang customer na naka-lista sa JSA®. Anyway, sa JSA®, 100% ng commission ay mapupunta na sa Salesperson. Ibababa din natin ang entry-level Seminar to 16 hours. Ang initial thoughts ko, kung nag train naman ang Salesperson on formal sales presentation ng project, I think we can include P2,000 Professional Fee na babayaran ni Developer to the Salesperson pag makapag actual na Sales Presentation siya sa customer na officially listed sa JSA® Booklet. So, 56x2000=P112,000 a year ay pwede na siguro. Iisipin ko pa eto ng maayos. QUESTION: Sir John, magiging isang beses lang ba ang PF ng Salesperson kahit dalawang beses siya mag present? First time sa bahay/office ng buyer and second time sa tripping project site or show-room. Saka lang ba babayaran ang PF pag maka-benta? ANSWER: Good question. The Developer will pay PF in each presentation. Maybe the rate will be P2,000 for regular and P3,000 for presentation during tripping. Salesperson's PF has time, effort, and execution of trained skill, so it will have to be paid by the Developer/Seller whether the buyer signs a reservation or not. QUESTION: Sir John, what can a salesperson sell and not sell? ANSWER: I will answer that in a separate blog, titled: "The Three Types of Broker-Salesperson Agreements".
If there is anything else important that I forgot to include in this article, or if you experienced a real estate transaction that is anomalous, scam, fraudulent scheme that you want me to document and expose for others to be warned, or if you want to donate to the war chest of real estate consumer rights advocacy, please feel free to email me at JohnPetalcorin@Gmail.Com. If you want to comment about this article, there is a provision for this purpose that you can find below.
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