Last Monday, while having dinner with a good friend who's been in the real estate sector for about two years, I felt a mixture of admiration and sadness. Admiration for her tenacity in carving out a niche in such a competitive market, attracting clients, and building a solid network of referrals. And sadness upon hearing her lament when she confessed that, despite all that effort, she's still struggling financially. The reason? The instability and significant delays in commission payments.
The most regrettable thing is that, in numerous conversations, other advisors have confided in me that they are experiencing the same situation. And what's most painful is that this delay doesn't stem from the construction companies, as many might assume, but from the real estate agencies themselves. Countless agents have shared similar experiences with me: stories of months of waiting, broken promises, and persistent financial uncertainty, even after closing significant sales and fulfilling every stage of the invoicing and payment process.
This situation not only hits them hard financially; it also takes a toll on the emotional well-being, motivation, and dignity of those who have made real estate advisors a true profession of service. It's incomprehensible that those who shoulder the burden of companies' commercial operations are the last to receive their pay, sometimes even for transactions the developer has already settled.
From this platform, I make a direct appeal to the CEOs and executives of real estate firms: honor the work of your sales force. Paying commissions on time is not a favor; it is an unavoidable ethical and contractual responsibility. Punctual payments not only strengthen the organizational culture but also foster trust, build commitment, and significantly reduce employee turnover. These talented individuals often leave not due to a lack of passion or results, but out of sheer frustration and pressing need.
It's time for the industry to reflect on the human and financial cost of this practice. When a commission is delayed, the agent must cover unforeseen expenses: transportation, food, promotion, ongoing training, and even maintaining their online presence. This chain of obligations, if not supported by a stable income, becomes a bottomless pit of debt that jeopardizes not only their professional performance but also their personal and family stability.
It's no coincidence that many advisors ultimately choose independence or venture into founding their own real estate agency. They do so, to a large extent, driven by the disappointment of feeling undervalued. And while starting a business is never easy, for many it represents the only escape from a system that neither recognizes nor respects the time and effort invested with such dedication.
However, it is also fair to provide agents with some tools to navigate this reality while the expected change takes shape:
- Keep impeccable records: Detail each transaction and its estimated payment dates. Clarity is your best ally.
- Boost your financial literacy: Learn to differentiate between gross and net income, create an emergency fund, and always prioritize your financial education.
- Formalize your agreements: Always demand written contracts with perfectly clear dates and payment terms. A document is your protection.
- Value your time and effort: If a company consistently fails to deliver, calmly consider whether it truly deserves your loyalty and your valuable time.
This sector has immense potential to generate profound social, economic, and personal transformation. But for that to happen, all stakeholders must assume their roles with the utmost responsibility. Sales don't flourish by magic. Behind every successful firm is an advisor who has knocked on countless doors, ingeniously resolved objections, empathetically nurtured dreams, and poured their heart and soul into every transaction.
Paying on time is not only fair. It's simply the bare minimum.
The opinions expressed in this article are the sole responsibility of the author.
