You can negotiate your commission
Many agents accept the first commission rate they are offered without question. But in most cases, commission rates are negotiable, especially once you have proven your ability to deliver results.
Negotiating a better rate is one of the fastest ways to increase your income without making a single additional sale.
When to negotiate
The best times to negotiate are:
- Before you sign. You have the most leverage before committing to a principal. This is when they want you most.
- After hitting a milestone. When you have consistently delivered above expectations, use your results as leverage.
- During contract renewal. Annual or semi annual renewals are natural negotiation points.
- When the market shifts. If competitors are offering better rates, mention this.
Building your case
Before entering a negotiation, gather your evidence:
- Your sales numbers. Revenue generated, deals closed, conversion rates.
- Customer retention. If your customers stay longer than average, that is valuable to the principal.
- Market rates. Know what other principals are paying for similar products. Platforms like Zepys make it easy to compare commission structures across different products.
- Your pipeline. A strong pipeline shows you have the capacity to deliver even more.
How to structure the conversation
Start with value
Do not lead with "I want more money." Lead with the value you have delivered.
"Over the past six months, I have brought in $150,000 in revenue and my customers have a 95% retention rate. I would like to discuss adjusting my commission to better reflect the results I am delivering."
Be specific
Ask for a specific number or structure. "I would like to move from 15% to 20%" is better than "I think I deserve more."
Offer something in return
Negotiation works best when both sides win. Consider offering:
- Higher volume commitments
- Exclusivity in a particular territory
- Marketing or promotional support
- Longer contract terms
Have alternatives
The best negotiation position is when you have other options. If you sell for multiple principals, you can reallocate your time to the ones that pay better. This is not a threat; it is a reality that principals understand.
What if they say no?
If the principal cannot increase your percentage, explore other options:
- Performance bonuses for hitting targets
- Higher rates on upsells or renewals
- Faster payment terms
- Access to better leads or territories
Not every negotiation results in a higher percentage, but there are many ways to increase the total value of your arrangement.