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March-August 2024
“In the competitive world of real estate, many firms opt for a commission-only model, hiring junior agents without a basic salary. This practice often leaves new agents struggling to close deals in the initial months, pushing them into difficult situations and fostering a high-pressure “push marketing” environment.
“It is usual to hire a lot of junior agents without a basic salary and on commission only. Not closing deals in the first months is quite common, which puts these agents in difficult situations. This impacts the service offered,” said Soufien Haddad, Co-Founder, SweetcHome.
SweetcHome stands out in this landscape by offering agents a basic salary unless they prefer a commission-only scheme. “This limits our recruitment capacity but ensures care is at the heart of the service we offer,” Haddad explains.
The company’s approach is designed to foster a secure and supportive work environment where agents can prioritise personalised service and customer care without the constant pressure of survival mode.
While many in the industry stick to commission-based pay, SweetcHome aims to set a new standard. “Providing fixed salaries is important when you want to build a secure team where your team members can offer customers personalized service and great customer care. This is particularly important if you want to prevent your salespeople from being in constant survival and push mode,” Haddad added.
This strategy is particularly crucial for preventing the high turnover and burnout often seen in commission-only setups, they explain. Of course, some salespeople, especially those with financial stability, thrive on commission-based positions, targeting high commissions through significant deals. Recognising this, SweetcHome adopts a flexible approach, offering various compensation schemes tailored to different needs and profiles.
“There is no one-size-fits-all solution,” Haddad notes, “but a balanced approach is required to offer the right compensation and benefits based on different needs and profiles.” By prioritising their agents’ financial security and well-being, SweetcHome aims to revolutionise real estate sales, promoting a more sustainable and customer-focused service model.
The evolving landscape of sales compensation models reflects a broader trend towards balancing financial stability with performance incentives. SweetcHome’s innovative approach underscores the importance of adapting to meet both agent needs and market demands, ultimately fostering a more sustainable and customer-centric business model.”
| Scope | Regional |
|---|---|
| Domain authority | 34 /100 |
| Domain authority rank | Good |
| Market | Business |
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