Why Brokers’ Commissions Are More Than Just a “Dirty” Subject — They’re a Justified Investment in Your Deal by ANGELA COLLINS
Let’s be real: When you hear the word “broker,” what comes to mind? A slick salesperson trying to make a quick buck at your expense? Someone sitting back and raking in commission while you do all the heavy lifting? If that’s your perception, it’s time to wake up. Because you have no idea what goes into making a sale happen — especially in yacht brokerage.
Let me break it down for you.
Brokers Don’t Get Paid Unless the Deal Closes
Unlike many industries, brokers only earn when there’s a successful deal. We’re not on a salary. We don’t get a dime until you, the buyer or seller, close a deal. That means everything we do—every phone call, every viewing, every meeting—is completely unpaid until we get that contract signed. Nothing upfront. Zero guarantees.
Now, you might think brokers just sit around waiting for someone to come to them, but let’s talk reality: we invest serious time and serious money up front, often for weeks or months, just to get a single sale off the ground.
What Are Brokers Really Doing for Their Commission?
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Hours of Time Spent with Clients Who May Never Buy
Every broker knows what it’s like to invest hours (sometimes days) talking to potential buyers—buyers who may end up doing nothing more than taking your time. We’ve worked with clients who’ve wasted weeks, then turned around and either couldn’t afford the boat or simply changed their mind. But we’ve already spent countless hours showing them listings, answering questions, taking them on trips, and offering advice. All of that for free, with zero guarantee of a sale.
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Thousands of Dollars/ rands in Marketing
Think we just throw a few photos on a website and call it a day? Wrong. In yacht brokerage, we’re talking high-quality photography, videos, online listings, magazine ads, events, and much more. And who’s footing the bill for all of that? The broker. Not the seller. For every boat we market, we are the ones sinking thousands of dollars into making sure it gets the attention it deserves—attention that ultimately benefits the buyer, even if they don’t appreciate it.
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Expenses That Add Up Quickly
I’m talking hotel rooms, flights, transport, meals—all of it—just to help the buyer get a true sense of the boat in person. And this is all before the sale is anywhere close to happening. Recently, we spent R30,000 on just two trips to show a potential buyer a boat. A buyer who, at the end of the day, couldn’t even afford it. So that money? Gone. The hours spent? Gone. And what do we have to show for it? Absolutely nothing.
Why Do Some Buyers and Sellers Think the Broker Should Cut Their Commission?
Now here’s where it gets frustrating. After we’ve invested our time, money, and energy—often to the point of exhaustion—some buyers and sellers have the gall to ask for a commission reduction. I get it. Everyone wants to get a good deal. But when you ask a broker to lower their commission, you’re not just asking for a discount on a service. You’re asking us to slash the value of the time and resources we’ve already poured into making your sale happen.
If you can’t understand that, then maybe you need to rethink what you’re asking for when it comes to closing a deal. A commission is not a gift—it’s a reflection of what goes into the sale.
Brokers Are the Ones Doing the Hard Work
Bottom line: brokers don’t get paid unless the deal goes through. We aren’t sitting back and waiting for a paycheck to drop into our lap. We’re working, constantly hustling, to find buyers for sellers and sellers for buyers. And if we don’t close the deal, we walk away empty-handed—no salary, no bonus. Just a whole lot of time and money wasted.
So next time you want to complain about a broker’s commission, remember this: that broker is the one who invested months of work, hours of time, and thousands of dollars to get you where you are. And if that commission offends you, then maybe you don’t truly understand the value of the work that went into making that sale happen.
