Understanding the Tiered Commission

Quick Answer

The Real Estate Referral Program uses a loyalty-based tiered commission structure: 30% for your first successful closing (trial), 25% for closings 2-5, and 20% for all subsequent closings. This decreasing rate rewards long-term partnerships and high performance while applying to both residential and commercial transactions.

Overview

The tiered structure aligns interests between agents and Heritage Web, rewarding proven performance with better rates over time. As you demonstrate reliability and build trust through successful transactions, your cost per lead decreases, improving your ROI while maintaining sustainable program economics.

Commission Structure Details

The Three Tiers

Tier	Closings	Commission Rate	Your Keep	Purpose
Trial	1st closing	30%	70%	Build trust, prove capability
Growth	2nd-5th closings	25%	75%	Establish partnership
Partner	6+ closings	20%	80%	Long-term relationship

How It Works in Practice

Example: $500,000 Home Sale

Assuming 3% listing commission ($15,000):

Closing #	Referral Fee	You Keep
1st	$4,500 (30%)	$10,500
3rd	$3,750 (25%)	$11,250
10th	$3,000 (20%)	$12,000

Understanding Each Tier

Tier 1: Trial Period (30%)

Purpose: Mutual evaluation period
Duration: First successful closing only
Requirements:
- Complete application process
- Sign referral agreement
- Demonstrate 2-hour response
- Successfully close transaction
Next Step: Post-closing interview

Tier 2: Growth Phase (25%)

Purpose: Building consistent partnership
Duration: Closings 2 through 5
Benefits:
- Regular lead flow begins
- 5% commission reduction
- Established communication rhythm
- Performance tracking starts
Focus: Consistency and reliability

Tier 3: Partner Level (20%)

Purpose: Long-term partnership
Duration: All closings after 5th
Benefits:
- Lowest commission rate
- Priority for high-value leads
- Established trust relationship
- Potential for higher volume
Recognition: Proven partner status

What Counts as a Closing

Qualifying Transactions

Residential Sales: Buyer or seller representation
Commercial Sales: All property types
New Construction: Developer referrals
Land Sales: Vacant land transactions
Successful Rentals: If negotiated in agreement

What Doesn't Count

Failed transactions (no closing)
Referrals you pass to others
Direct clients (not from Heritage Web)
Withdrawn or expired leads

Payment Process

At Each Closing

Transaction closes successfully
Commission paid to your brokerage
Referral fee percentage calculated
Check issued to referral agent
You receive remaining percentage

Important Payment Notes

Referral fee paid from your commission only
No upfront costs ever
Payment due at closing table
Clear documentation provided
Same process for all tiers

Tracking Your Tier Status

Your Responsibility

Since there's no dashboard for commission program:

Keep record of all Heritage Web referrals
Track closing dates and amounts
Note your current tier level
Calculate correct commission rate
Verify payments match tier

Heritage Web Tracking

The program team maintains:

Complete referral history
Closing confirmations
Current tier status
Commission calculations
Performance metrics

FAQs

Q: Do commercial and residential closings count the same toward tiers? A: Yes, each successful closing counts as one regardless of property type or value.

Q: If I take a break and return, do I start over at 30%? A: Typically your tier status is maintained, but extended inactivity may require discussion with your account manager.

Q: Are the tiers based on calendar year or lifetime? A: Lifetime. Once you reach 20%, you stay there unless the program terms change or you have extended inactivity.

Q: Can commission rates ever increase after decreasing? A: Under current terms, rates only decrease. You won't go backward unless there are program changes or agreement violations.

Q: How do I know when I've moved to the next tier? A: Heritage Web notifies you when you progress tiers. Keep your own records to verify.