CanZell Realty Revenue Share: Everything You Need To Know
CanZell Realty revenue share is an exciting opportunity for real estate agents nationwide to earn and build an additional revenue stream in addition to the commissions they earn in real estate.
CanZell Realty is a virtually based real estate company that has technology to power its agents, instead of traditional brick and mortal real estate offices. Because they are based virtually, they have very little overhead. They have used these cost savings to pay their agents a portion of the revenue generated from each agent they sponsor into the company.
This model allows agents to have the opportunity to build wealth and generate additional streams of income, and not just be limited to selling homes. The best news is that it is paid monthly meaning they don't have to wait quarterly or yearly for the payment and this can help supplement their income if they have a slower month in commissions.
What is Revenue Share?
CanZell Realty revenue share is a percentage of the company dollar that an agent they sponsored brings in to the company through their commissions. All of the agents at CanZell Realty are on an 80/20 commission split. Once the deal closes, the agent pays 20% of the commission to the company. Of that 20%, based on the sponsorship tier that the sponsoring agent is currently in, they will receive anywhere between 10%-25% of the company dollar in their payout.
This is paid from CanZell Realty's portion of the commission. It is paid out on every deal until and agent caps for their anniversary year and there is no more company dollar paid.
The cap is $14,000 in company dollar paid to CanZell Realty. This totals $70,000 in total commissions. $70,000 x 20% = $14,000 paid to CanZell Realty. Once this happens, the the agent is at 100% for the rest of their anniversary year until their cap resets. Once their anniversary year comes around, their cap resets and they start over again.
Why is Revenue Share Important?
For most real estate agents, they work their entire life selling commissions and using it to pay their daily life expenses - with nothing put aside for retirement.
CanZell Realty Revenue share is different. If and agent ever decides they want to stop selling real estate, as long as they keep an active license with CanZell Realty, they will continue to earn and collect money from the Revenue Share program.
There isn't a vesting requirement, but these are paid just like a real estate commission. In order to be paid, you must have an active real estate license with our company.
Diversify/Multiple Income Streams
CanZell Realty Revenue Share is so important for real estate agents is that it allows agents to begin to diversify their income.
We all know that as real estate agents and brokers we have bad months from time to time. Even months where we may make no income at all.
Revenue Share helps to smooth out the off months and make the good months even better!
Who Can Earn Revenue Share?
Revenue Share is paid to any real estate agent or broker that has an active real estate license held by CanZell Realty. It doesn’t matter if you have only been licensed for 1 month or 20 years. You can begin earning Revenue Share immediately.
In most real estate brokerage models, a share of the earnings are only given to the broker-owner, franchise or regional manager, or paid recruiters and team leaders.
CanZell Realty is not a franchise model and there are no territories for sale. CanZell Realty is one very large real estate brokerage that spans nationwide, from coast to coast.
Also, there is no production requirement to earn Revenue Share. You can sell as many or as few homes a year as you would like.
Perhaps you are trying to compare the Revenue Share model to other income-earning opportunities within real estate. There are a few other models that get commonly compared to CanZell's.
Keller Williams Profit Share
One of the most commonly compared models to Revenue Share is Keller-Williams profit share.
Profit share is paid in a 7-tiered system, but the major difference is that the money paid is off the bottom after expenses have been paid for that market center.
The problem with this is two-fold. First, whenever you sponsor an agent, you are getting paid less per transaction because it’s based on profit rather than revenue.
Second, every market center is independently owned and operated, meaning that profit is not even guaranteed. There are many circumstances where a sponsor may not earn any profit share for a sponsored agent if the market center is unprofitable.
Owning an Independent Brokerage
Many independent brokers look at the CanZell Realty business model and wonder why they would merge their brokerage into CanZell Realty when they can already recruit and earn income from sponsoring agents.
While this is true, there are many reasons why CanZell Realty may be a better option. Here are two main reasons to consider CanZell Realty over building an independent brokerage.
First, is scalability. With CanZell Realty’s model, you can scale your business nationwide and you do not need to join a single MLS, except for the one you already belong to.
The benefit here is that not only can you personally sponsor agents from wherever you may meet or know them, but your sponsored agents can also tap into their networks all over the country which will help build your organization that much faster.
Next, is leverage. With most independent brokerage models, the broker-owner is responsible for doing so many jobs. Recruiting, retention, creating systems and tools, accounting, training, transaction management, operations, and many more.
At CanZell Realty, you get to leverage all the support from the corporate employees that handle most of these tasks for you so you can focus on doing what you as an independent broker-owner most likely do best, recruiting and sales.
Additionally, you will see a massive increase in leverage on the recruiting side.
In most independent brokerages, the broker is responsible for 90% or more of the agents that are paying into the brokerage. At CanZell Realty, it’s not uncommon for agents to attract a handful of agents personally but have an organization of many more agents, sometimes hundreds or even thousands of agents.
This is all because agents at CanZell Realty get paid Revenue Share on up to 5-tiers down. This means that even when you sponsor an agent, it doesn’t stop with them. Eventually, that agent you sponsored will likely sponsor someone and you’ll earn Revenue Share from that agent as well. This continues to happen as agents sponsor agents, 5-tiers down.
Another firm that offers revenue to agents who recruit is Exit Realty. However, the two business models couldn’t be more different.
Exit Realty is a franchise business model where broker-owners buy into a territory and grow an office locally. Additionally, they offer their agents a share of the commission generated from agents they sponsor but it stops at only 1 tier. This means only the agents they personally sponsor earn them income.
This takes away all the leverage that we talked about above from the 5-tiers and basically forces agents to constantly be recruiting to make any money from the opportunity.
Another firm that offers revenue to agents who recruit is eXp Realty. they have 7 tiers of revenue share that cuts into revenue each tier. In order to unlock a new tier, the agent has to sell 2 homes in 6 months or $5000 in commissions.
They lack the leadership bonuses as well as higher amounts in their tier 1. They also lack leadership. They only have 1 Broker for the entire state and there is no Circle Leader and Managing Partner.
How Revenue Share Works
Now let's talk about how the CanZell Realty Revenue Share works.
Any agent that you personally sponsor will be on your Base 1.
Within your Base 1, you have the opportunity to unlock 3 tiers: Silver, Gold, and Diamond.
Once you sponsor your first agent, you are able to receive 10% of the company dollar for each of their closings until they cap. This tier payout is applicable when you have between 1-4 active* agents within your sponsor.
Once you have 5-25 active* agents in your Base 1, your revenue share payout percentage increases to 15% of the company dollar on each transaction they close until they cap.
Once you have 26+ active* agents in your Base 1, your revenue share payout percentage increases to 25% of the company dollar on each transaction they close until they cap.
*In order to be considered an active agent, they must have closed 2 transactions within the last 12 months.
Base 2 -5
Once an agent that you sponsored that is in your Base 1, sponsors an agent, that agent is now in your Base 2. In Base 2, you always earn 5% of the company dollar on any closing they have until they cap.
Once an agent in your Base 2 sponsors and agent, they agent is now in your base 3. In Base 3, you always earn 5% of the company dollar on any closing they have until they cap.
There is no unlocking needed to collect revenue share in Base 2 and 3.
Base 4 and 5, will unlock when you reach tier 3 in Base 1, and you will earn 5% in each of those tiers.
Revenue Share Examples
So the charts are great and all… and now it’s maybe making a little more sense but let’s put this into real-world numbers so you can see how Revenue Share works as an income stream.
Here are a couple of examples of Revenue Share in action.
5 by 5
Let’s use the example of an agent who goes out and sponsors 5 agents. Let’s say it took this agent 5 years to do this. They successfully bring over 1 agent per year.
This is an extremely passive example that just about anyone can do, even if they are only selling real estate part-time or new to the business.
Let’s also assume that we go out and help those 5 agents go out and do the same thing over the course of those five years.
What that looks like is 5 agents on your Base 1 and 25 agents on your Base 2. If you remember correctly, you earn $2100 for each capping agent on your tier 1 and $420 for each capping agent on your tier 2.
If we do the math, that equals $10,500 annually from the agents on your Base 1 and $10,500 for the agents on your Base 2. A total of $21,000 annually.
Now you’re probably thinking, what if some of the agents don’t cap? And that’s most likely going to be the case. From what we’ve seen the average is most agents are half cappers…
This means that we would conservatively say that in that scenario, the max is $21,000 if you know all high producing agents. But realistically, you will most likely see around $10,500 annually.
Either way, that’s nearly $1,000 / month for introducing CanZell Realty to 5 agents over 5 years and helping those agents do the same thing.
10 by 10
Let’s kick it up a notch. Let's say you have higher ambitions. Maybe you already run a team or brokerage and have over 10 agents.
In this example, I am going to show you how that starts to add up to a lot of money pretty quickly.
Let’s say you are gung-ho and go out and get 10 agents in 2 years. That’s 5 per year and totally doable. (Side note: There are agents at CanZell Realty that have attracted over 40 agents in their first 6 months!)
In the next 4 years, we help those 10 agents go out and get 10 each.... Wait a minute! You’re probably thinking, not everyone will go out and get 10 agents no matter how much help. And you’d be correct.
What does happen though is this. 1 to 2 agents get 0, 2 to 3 get around 5, 2 to 3 get around 10, and 2 take it all the way and get 25 or more. This averages out to 10 for each of your 10.
So then, what this looks like is now 10 agents on your Base 1 that equals $21,000 annually. 100 agents on your Base 2. That’s $42,000 annually. The total annual income is $63,000 with full capping agents. If we assume again that the average agent is a half capper, this scenario would produce $31,500 annually.