Commissions Concentrate into Fewer Hands

The 80/20 rule (Pareto Principle), or some variation thereof, most certainly applies to real estate sales. Few agents are responsible for a large portion of all real estate sales. In a recent book titled 80/20 Sales and Marketing, author Perry Marshall takes the Pareto Principle to the next level. This can also be expanded such that the 80/20 rule also exists within the top 20 percent. Meaning that the top 20 percent of the top 20 percent (or the top 4 percent overall) represent 64 percent of sales.

As the industry successfully adapts to an ever increasing amount of technology, there are agents that have learned to create systems that leverage themselves to even higher levels, with a number of closed transactions not previously achieved. And there are a rapidly growing number of rookies that are also finding success much quicker and at a higher level than has previously been the case.