Real estate business is forced to waste a lot of time and energy for agent`s commision calculation because this business operation is done manually at many companies even in the digital era. Despite constantly improving of CRM systems functionality, commission calculation question remains unresolved, because the out of box features of existing systems don`t allow to operate with agents` commission without any manual effort almost in all CRM.
Therefore, many real estate companies require the accurate calculation of agents` commission on a timely basis, because agent performance depends on transparency system of earning the commision. A lot of mistakes happen, as much as the manual processes of calculation don`t work as expected.
Why you should avoid old solutions for tracking agents`compensation
Nowadays, many companies use Excel spreadsheet or legacy (self-written) systems for tracking the agents` commission calculations. However, doing data entry in Excel or even in the CRM system manually, brings with it the real risk of inaccuracies because of human mistake.
Nevertheless the legacy systems for commission management are threat to real estate business since outdated applications can be hard to maintain, improve, and expand, because the staff, who knows this system, can retire or lose control of the legacy system. That`s why business world should keep up with the times and use cutting-edge technologies which develop constantly and have the future.
Commission calculation add-on to MS Dynamics CRM which can organize agents` compensation process
Understanding real estate business needs, our team has build application for those who do not earn a fixed income and work only for commission. This solution can be integrated with Dynamics CRM and provides all nessesary features for fully automated calculation of estate agent’s commission.
To solve this problem we explored how bookkeepers pay out commission to the estate agent after the closing deals. There are two kind of commission calculation, for example, commission on sale property, paid to the agency, is calculated as a percentage of the selling price of the property when object has successfully been sold; commission on a rental property based on fixed percentage of the monthly amount of rental income achieved for the landlord over the period of the lease and it is splitted into monthly payments.
Also it is necessary take into account that commission can be splitted between outside broker and inside broker. It depends on the conditions of the concluded deals. Marketing expenses (advertising on social media, property portals, electronic, print media etc) for sale/lease property, general administrative costs should be excluded from agency gross income and after this inside broker will be paid commission.
Manually calculation process of agent commission is able to cause a lot of mistakes that may inflict pain on your real estate agency, for instance it’s increase the probability of delays with payments and incorrect ammounts paid. For example, agent`s commission must paid after the payment is received, but client payment can be splitted into a few invoices. If the outside broker share and marketing costs for particular deal will not have been excluded from received invoices company would lost their money. Efficient commission calculation system has to keep track concluded deals, incomes, expenses and provides accurate tool for paying share to outside parthers and inside agents.
Based on our research in real estate business needs we have built own add-on for MS Dynamics in order to simplify a complex process of commission calculation mangement that would usually take a week is slimmed down to a matter of hours. Thanks to this functionality brokers get their compensation faster which is accurate calculated directly into Dynamics CRM and the accountant who was responsible for doing these calculations breathes a sigh of relief. As a result all deal participants are satisfied, getting their money accurate and in time, without manual keeping track of client invoices.
This module can be integrated with any ERP as well as accounting systems such as MS Dynamics AX and QuickBooks or other financial management solution, providing real-time control and visibility into invoice processing. This application allows to you to see what was paid for each deals and what income company received just directly from one place.
If you have a mess with your payments and you want to increase the productivity of your staff we would like to help you to integrate this add-on that will save a lot of time and money for your real estate agency.
Dynamica Labs is one of the oldest Dynamics CRM Partners and one of a very few companies with ISO 9001 Quality Management System certification for Dynamics CRM project delivery services.
For over 15 years we have been focused on 3 key CRM project goals: delivering measurable business results, following a cost-effective approach, providing the highest quality standards. Over the course of these years, we've taken part in hundreds of projects from SMEs to blue-chip global companies.