Whether an associate transfers from one market center to another, or is active in multiple market centers, it is necessary for the MCAs of both offices to communicate and track the amount of royalty and company dollar in both market centers to ensure the associate does not overpay on either of their caps.
In an Associate transfer situation, please consult the KWRI Policies & Guidelines 18.104.22.168 Transferring regarding the cap amount owed to the originating market center from the receiving market center.
The tracking system described below will facilitate confirmation of
WinMORE does not have visibility into what is paid in another market center. For this reason both MCAs are responsible for ensuring that the cap amounts reflect an accurate amount based on what has been paid between the multiple market centers and the amounts paid in total do not exceed their cap amount. The caps in the Associate record will have to be managed as closings occur in either market center to accomplish this.
Assume a Royalty Base of $50,000 (6% = $3000) and Company Dollar Cap of $20,000:
(Sample Spreadsheet image below completed using this example for tracking)
- Bob transfers from Plano to Dallas and has paid in $1410 toward his royalty cap and $7,050 toward his company dollar cap before transferring.
- The Dallas MCA adds Bob to WinMORE.
Bob’s cap in Dallas is set so that only another $1590 will be collected
- Dallas Royalty Base: $26,500
- Dallas Company Dollar: $12,950.
Weeks later, Bob closes a transaction in Plano and pays another $585 in royalty and $2,925 in company dollar. The MCA in Dallas now needs to adjust the cap amounts to account for the additional closing.
Bob’s cap in Dallas is now:
- Dallas Royalty Base: $16,750
- Dallas Company Dollar: $10,025.
2 days later Bob closes a transaction in Dallas for another $540 in Royalty. Now the MCA in Plano must adjust the cap amount.
- Plano Royalty Base: $41,000
- Plano Company Dollar: $17,300
The cap in each market center should be the amount of royalty base paid in the respective market center plus the amount of royalty base remaining.
NOTE: This applies to company dollar caps in the same manner. The agent caps when the total paid between the multiple market centers equals the total royalty due for the region, and the cap amounts added together between the multiple market centers equals a full cap.
NOTE: All closed transactions, including transfer of company dollar should be taken into consideration
Cap Tracking Spreadsheet
As you can see both MCA’s have to make adjustments based on the TOTAL amount closed, not just what is their market center. The recommended method for keeping the royalty caps set correctly is to set up a shared spreadsheet (Google Sheet) to track the closings. Each MCA updates the shared document as closings occur. This spreadsheet should be consulted before each closing to ensure closings from the other market center(s) are accounted for. Properly tracked and accounted for, transferring associates should not create the need for Royalty Adjustments.
If you have multiple associates, you can create one document with multiple tabs. Label each tab with the appropriate associate name.