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Old 09-15-2019, 10:31 PM   #12
BandB
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City: Fort Lauderdale
Country: USA
Join Date: Jan 2014
Posts: 17,704
Quote:
Originally Posted by Nomad Willy View Post
How many boats does a broker sell in a year? 15?
If they cost 150,000 average .. that would be 45,000 commission per boat X 15 = $675,000 per year. That’s more than my SS.
So, using your numbers but not your "modern" math. At 10%, the broker gets 5% for one side of the deal. That's $7,500 and times 15 is $112,500. Sounds fine, but the median income of boat brokers is far less than that. If I had to guess, and this is strictly a guess, the median is likely in the $40-50k range as many brokers make nothing or nearly nothing with one or two sales a year. At the other end you have brokers selling multi-million dollar yachts and making well into six figures. So, the average is likely more in the $80-100k range.

Zip recruiter shows average for yacht brokers of $69k with range from $20k to $157k. Indeed shows income between $120k and $140k. That all ties to numbers from the Yacht Sales Academy which says 10% of the brokers make 87% of the sales. While I think that's a bit high, I would say that I would bet 80% of the income is concentrated in no more than 15% of all brokers.

As to 15 sales per year, I'd think the average broker does much fewer.

I think 10% is reasonable for doing a professional sales job as a boat broker. Wanting one of the brokers to take less than 5% really bothers me. I see a dangerous trend right now in Real Estate designed to circumvent the typical Real Estate Agent. I don't argue with the assertion that some don't need an agent, I just hope it isn't taken to the extreme and eliminates a resource many need. I still remember the full service travel agency, something now eliminated.
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