How to Apply a Transaction Fee After an Agent Reaches Their Agent Split Cap

How to Apply a Transaction Fee After an Agent Reaches Their Agent Split Cap

Currently, Loft47 cannot automatically trigger one deduction based on another deduction reaching its cap (for example, applying a transaction fee only after an agent split deduction reaches its commission cap).

What is the workaround if I want to trigger a transaction fee once an agent split reaches the cap?

The recommended workaround is to create a separate transaction fee deduction using Deduction Ranges based on the agent’s YTD gross commission earnings before deductions.

This allows the transaction fee to begin after the agent has likely reached their commission cap.

Example Setup

Goal:
An agent has an 80/20 split with a $13,500 commission cap. After reaching the cap, the agent should pay a $100 transaction fee per transaction until their anniversary date, when the split and cap reset.

Calculation:

  • Commission cap: $13,500

  • Brokerage split: 20%

  • $13,500 ÷ 20% = approximately $67,500 gross commission earnings

Since Loft47 uses gross commission earnings before deductions to determine deduction ranges, set the transaction fee threshold slightly higher (for example, around $70,000) to provide a buffer and ensure the cap has been reached before the transaction fee starts.

For the Transaction Fee deduction:

  • Set the deduction range based on the agent’s YTD gross commission earnings.

  • Set Roll Over to the agent’s anniversary date so the calculation resets when the agent’s split and cap reset.

  • Enable Prorate Level.



Note: The prorate level helps determine when the deduction threshold is reached. It does not prorate the transaction fee amount. Once triggered, the $100 transaction fee remains a flat charge.

After Setup

Continue monitoring when agents reach their commission cap and confirm that the transaction fee deduction begins at the expected point.

While deduction sequencing (triggering one deduction after another reaches a cap) would provide a more automated workflow, the deduction range workaround is the current solution available in Loft47. 

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