Steps to Renegotiating your Title Sales Compensation Plan

I’ve spoken to well over 100 Title sales reps and there is one thing many of them have in common, their compensation plans are not too desirable. I believe this because Title Company owners don’t put a lot of stock value into the sales rep. They know they are needed, so they pay them enough to make it somewhat attractive but not as well as they should for what is required in the job to grow the company’s bottom line. If you want to renegotiate your Title sales compensation plan, it will take some proof and planning. It can be accomplished with the right steps and strategy.

The Proof

First, if you want to renegotiate your compensation plan, you better have your numbers ready. You have earned the right to renegotiate by proving your value and closing revenue to the company. If you confront your boss and ask for a change in your comp plan without a valid case, it will get shot down. Have your year-to-date numbers, and new customer acquisitions, and if you are on a team of Title reps, show how much further in production you are than other members.

A good metric to use is “Cost of Sales.” Add up your total cost as an employee, which would be salary, commissions, expenses, etc., and divide that number into your total revenue generated. For example, if you cost $100,000 a year as an employee and you closed $700,000 in revenue, your cost of sales is 14.3%. That is a low number. Title Companies don’t want you over 30%-35%. You have a lot of room in the middle, so going from 10% to 15% commission per transaction closed would still keep you in the 20% range. Well within profitable means. I would learn to speak in management speak when you present your case.

Planning and Ask

Reach out to the decision maker, and let them know you want to set up a time to speak face to face. You don’t need to spill the beans right there and tell them why, but if they ask, let them know it’s about your performance. Be confident when you meet and remember you are there advocating for your value. The Title company isn’t going to approach you and offer a raise in your compensation plan. Have your numbers ready and your case laid out. Explain your value to the company, and the exact reasons why you have earned the increase in your compensation plan.

If the owner states they want to keep your commission the same but offer a salary raise, do not fall for this. As high-performing salespeople, we want an increase in the commission split. This is where we make our money! A $10K raise in salary is nothing compared to a 5%-10% raise in your split per file. Explain to the decision maker that the raise in commission means you have to bring in more business to earn it vs a salary that is given. Also, it will motivate you to work harder to bring in more files which will benefit the company even more.

What If??

What if you lay it all out and the decision maker either drags their feet or says no? Loyalty goes a long way and the decision maker needs to see that is what you are also doing. You are asking they be loyal to you for all the hard work and revenue you have brought to the company and rewarding your performance. If the company says no or drags their feet about making a decision, then you know where you stand. Either you accept your situation or you can do something about it.

Take some coffees and lunches with competitors and see what else is out there. It doesn’t hurt to “play the field” and see what other opportunities present themselves. There are others that will see your value and offer you the compensation plan you desire. I also understand it has to also be a great culture fit along with the right escrow and closing team so don’t abandon ship without proper vetting.

The last resort is to re-approach the decision maker and state your case again, and this time provide hints that you need to re-think your current situation or even provide them an offer letter from a competitor. That seems to make any decision maker who is dragging their feet, sit straight up pretty quickly and address the issue right away.

Fight for your Value

I wrote this article because there are too many times I speak to a hard working Title rep who has a terrible Title sales compensation plan. The owners want to underpay yet want outstanding results. You need to fight for you value but be ready to back it up. State your case with confidence, and explain how you have earned this opportunity. Be prepared for pushback or even a flat out NO but as a strong  Title rep who knows their value, I know you will be ready to get what you deserve! Good luck!

Need Title Sales Coaching?

I’ve helped three of my past coaching clients successfully renegotiate their Title sales compensation plans. Coaching is about helping you achieve your goals and learning proven strategies that will make you more money and grow your business. I offer 20-minute Title sales coaching exploratory Zoom’s to see if coaching is right for you. Just fill out the form below or email me at dctitleguy@gmail.com.