Determinants of Real Estate Agent Compensation Choice

This research seeks to determine what factors are decisive when an agent chooses between a 100% payout and the more traditional split-commission arrangement. In addition to the expected positive relationship between income and the 100% payout election, a tolerance for risk, a complementary sales force, and experience also influence the choice of compensation arrangement of agents. These finding suggest that compensation arrangements may not always be effective markers of agent productivity and that compensation incentives alone may not elicit greater effort and output.