Conway’s Cutting-Edge Compensation Plan Jack Conway & Co.’s philosophy is to compensate its agents based on earnings. After referral fees and the 3.5% Support Fee have been deducted from the gross amount paid to the company, agents will be paid for residential and commercial transactions according to the following schedule for all sales that close on January 1, 2012 or later: Commission Schedule Step 1 $0-$25,000 Step 2 $25,001-$35,000 Step 3 $35,001-$50,000 Step 4 $50,001-$75000 Step 5 $75,001-$100,000 Step 6 $100,001-$150,000 Step 7 $150,001+
50% 55% 60% 65% 68% 73% 78%
Silver Club Gold Club Platinum Club Diamond Club
Longevity Bonus Conway recognizes the value of loyalty and longevity among its associates, and offers a Longevity Bonus of 2% added to the earned step of agents who earn a minimum of $30,000 each year and have been a Conway associate for at least three full years. Commission Schedule with Longevity Bonus Step 1 $0-$25,000 50% None Step 2 $25,001-$35,000 55% 57% - Only those above $30K Step 3 $35,001-$50,000 60% 62% Step 4 $50,001-$75000 65% 67% Silver Club Step 5 $75,001-$100,000 68% 70% Gold Club Step 6 $100,001-$150,000 73% 75% Platinum Club Step 7 $150,001+ 78% 80% Diamond Club
Notes: 1. Agent earnings are reviewed (“trued up”) on December 31 of each year to determine their commission step for the following year. Agents are not rolled back to Step 1, but instead will be paid at their “true” earnings step based on the previous year’s earnings on above schedule. 2. Eligibility for the Longevity Bonus will be reviewed on December 31 of each year, beginning this year.
Effective Date: January 1, 2012
Compensation Plan Frequently Asked Questions Q: When does this plan take effect? A: January 1, 2012 is the effective date. All closings occurring after that date will be paid according to the schedule above. Q: How will my step be determined? A: Your earnings as of December 31 will determine your step for the following 12 months. The Longevity Bonus qualifications also will be reviewed on an annual basis each December 31. Q: My 2011 earnings are less than last year. Will my step decrease in 2012? A: No. No current Conway agents will see their earned commission split decrease next year. What? No current Conway agents will see their earned commission split decrease next year. Agents who earn enough to move into a higher bracket will be paid at their earned step for 2012. All other agents will have their current commission steps frozen for all of 2012. Q: What is a “true up” – is this the same as a rollback? A: No – a “true up” is a much fairer way to compensate agents. Many real estate companies, including some of our largest competitors, have a rollback built into their commission plans, which simply means that every agent, from the highest producer to the newest sales associate, is rolled back to Step 1 on January 1 of each year, and must earn their way back to the top of the schedule. The Conway philosophy is to reward our agents by paying them on a scale that recognizes their past achievements. Beginning on December 31, 2012, our compensation plan will “true up” agents for 2013 based on a year’s worth of earnings, so agents will know exactly where they fit into the commission schedule. Q: What is the 3.5% Support Fee? A: This is an administrative fee that is deducted from the listing or the selling side of the gross commission before the agent’s split is determined. This amount provides agents with access to a consistent menu of tangible and intangible products and services, whether you are a top-producing veteran or brand new to the industry. These support items range from use of the company’s lead-management dashboard to the benefits of the Conway brand. At Conway, it is deducted from the commission before it is split with the agent, so the company is, in effect, sharing this expense with the agent. Q: What is the Longevity Bonus? A: This is a program that rewards agents who stay with Conway. As in the past, it adds a 2% bonus to the agent’s earned commission step, as long as the agent has earned at least $30,000 in the preceding calendar year. As of December 31, 2011, the qualifications for this bonus have been expanded – with the time requirement reduced from a minimum of five years with Conway to a minimum of three years.