As Agent-Owners bring more people to their company they begin to build their business "tree". That tree pays them immediately and in the future.
The money used to pay the sponsoring Agent-Owners does not come from the real estate commissions of those they brought to the company. Rather, it is possible because of the revenue generated by the Sister Companies.
Even though the Sister Companies make the Estate Plan possible, it does not vary with the monthly ups and downs of them. Rather it is guaranteed to be specific calculated amount by the AOR Service Company.
All the money due to the sponsors is paid to them quarterly. There are no personal production requirements so there is no need to "retire", you can retire anytime and still be paid from the Estate Plan. There are only two ways to stop the money. One, work for a competing real estate firm, or two, the plan stops payments two years after your death.
The Estate Plan looks at several variables in determining that amount, but it is always calculable. Commission income generated in a sponsor's business "tree" or downline prompts the plan to determine a payment for the next quarter.
The plan weighs several variables in it's equation. The sponsor's Sister Company usage, the "tree's" Sister Company usage, the business that the "tree" is generating, and other factors.
If a sponsor and their "tree" has never used the Sister Companies there is a minimum amount that they will collect. The current amount due to a sponsor from $6000 in commission income from their "tree" is $216 with no Sister Company usage.
As the sponsor's and their "tree's" usage of the Sister Companies increases and their sales increase, the amount they will be paid from the Estate Plan increases.
As the revenue from the Sister Companies increases, the amounts paid through the Estate Plan will increase to deliver the money back to the Sponsoring Agent-Owners.
It is structured in such a way that the income from it increases exponentially. If an Agent-Owner sponsors one person per year for six years and they do the same, at the end of the sixth year alone, the sponsor would be paid over $1,118,000 (based on each completing 4 sales that year at an average of $6000 commission income).
For more information or a personal explanation of how it all works in more depth, email Liza Valero,
Ownership Director for AgentOwned Realty.