To add a referral fee, within your transaction page go to the Commissions tab and select the side your brokerage represents. Once there, choose the type of deduction needed (pre-split or post-split) and specify the amount or percentage. Refer to the details of the transaction to ensure accurate input.
BoldTrail BackOffice gives two options of adding a Referral fee and it depends on who's paying it:
If it's coming off the top it would be a pre-split deduction, which is subtracted from the total commission pool before any split calculations. An example would be a referral fee of 25%, taken before the application of any sliding scale splits or transaction fees.
If it's coming from the agent after they've received their split, it would be a post-split deduction applied after the commission distribution to the agent.
If you are tracking your referral fees, do not forget to add your tag, enter the amount or percentage of the referral, and fill in the name of the payee.
How to Arrange Deductions in BoldTrail BackOffice
To correctly set up referral fees and other deductions, follow the steps below:
Create a Pre-Split Deduction for the Referral Fee: Configure the referral fee as a pre-split deduction by defining the percentage of the commission basis (e.g., 25%).
Apply Other Deductions Sequentially: After processing the pre-split deduction, input deductions for any transaction fees. Processing in this order ensures accurate calculations and record-keeping.
Why Is the Order of Deductions Important?
Processing deductions in the correct order prevents miscalculations in commission payouts. If the order is incorrect, the final amounts might be inaccurate, leading to potential discrepancies in transaction records. Proper organization ensures all fees and splits are transparent and error-free.