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CHOOSING THE BEST 100% COMMISSION REAL ESTATE BROKERAGE

GULF STREAM SEARCH

“Unlock Your Earnings Potential: The Ultimate Guide to Choosing the Best 100% Commission Real Estate Brokerage – Skyrocket Your Real Estate Agent Income”

Gulf Stream Search’s definitive guide to choosing the right 100% commission real estate broker to work for and tips for real estate agents to boost their agent commissions, net profit and agent production.

Are you feeling overwhelmed by the plethora of information on 100% commission brokerages, struggling to separate the facts from the hype? 

Frustrated trying to decipher which brokerage is genuinely the best fit for you amidst the sea of conflicting advice? 

Worried about making the wrong choice and ending up in a brokerage that doesn’t align with your career aspirations and needs?

You’re not alone.

When I speak with agents thinking about transferring their license to a 100% commission brokerage, agents cite hidden costs, inadequate training and support and fear of feeling “lost on an island” as the most common reasons for not making the jump to a 100% commission real estate broker from a traditional real estate franchise or company.

Fear and lack of accurate, up to date information about 100% commission brokerage companies keeps many agents back from moving further in the process.

That’s why I’ve built this comprehensive guide, which covers all the criteria to consider that I recommend to real estate agents who are deciding which 100% commission real estate brokers to join.

In this guide, we’ll address the most common concerns head-on, guide you through the key factors to consider, and help you navigate this decision with confidence, whether you’re a new, experienced or high producing Top 1% real estate agent.

We will demystify brokerage fee structures, evaluate training and support, and uncover the true costs of joining a 100% commission brokerage. 

By the end of this guide, you will be well-equipped with the knowledge and insights needed to confidently choose a brokerage that aligns with your professional goals, supports your growth, and maximizes your earnings potential. 

Say goodbye to confusion and anxiety, and let’s embark on this journey towards a more lucrative and fulfilling real estate career together.

Real estate brokerage business models explained

100% commission real estate brokerages have existed for a long time, but they rarely if ever provided anywhere near the level of agent support that traditional brokers provide.

Since many top producing and experienced agents will be moving from a traditional brokerage model to a modern hybrid brokerage platform, it’s important for all types of agents to understand all the different models available.

 

The real estate industry has a rich history of diverse brokerage models that have evolved over time to meet the ever-changing needs of clients and agents.

 

Traditional brick and mortar real estate brokerages have long been the standard for agents to conduct their business.

 

These brokerages typically include real estate franchise models, independently owned brokers, corporately owned brokerages, and other conventional business structures.

 

In this section, we’ll show you the unique features of each traditional real estate brokerage model, providing insights into their operations and key differentiators.

Real estate franchise business model explained

The real estate franchise model is a popular choice for many entrepreneurs looking to enter the real estate industry. 

This model involves a franchisor granting the franchisee the rights to use their established brand name, systems, and resources in exchange for a franchise fee and ongoing royalty payments. 

Examples of real estate franchises include RE/MAX, Century 21, and Keller Williams.

 

What you need to know about real estate brokerage franchises

Joining a real estate franchise as an agent can offer numerous advantages.

One significant benefit is the established brand recognition and reputation of the franchise.

Real estate franchises contend that it is easier for their agents to attract clients because of the franchise brand’s reputation.

The franchise also provides access to franchise-specific resources such as marketing materials, training programs, and technology platforms.

This allows agents to market themselves more effectively and improve their overall performance.

Franchise chains like Keller Williams believe that a  key advantage of joining a real estate franchise is the ongoing support and guidance provided by the franchisor and the corporate training that may be available. 

The real estate industry can be complex, and navigating it can be challenging for agents. With the help of a franchise, agents can receive valuable guidance and support to help them succeed, which may make it easier for them “pick a lane” and find the training and support they need.

Additionally, joining a franchise gives access to a network of franchisees who can share best practices, provide referrals, and collaborate on various initiatives.

This network can be beneficial to agents, especially those who are new to the industry, as it provides them with the opportunity to learn from more experienced agents and gain valuable insights.

Many skeptics believe that the franchise model is outdated and not adaptive to today’s real estate industry.

Franchise fees and ongoing royalty payments can be substantial, requiring a significant initial investment and potentially impacting the profitability of the brokerage.

When franchisors have to cover their fixed costs during down cycles when less homes are sold, they may be forced to cut agents and/or change the agent’s commission structure to recoup more of the agent’s commission on each sale.

Critics also contend that franchisees may have limited autonomy, as they are required to adhere to the franchisor’s guidelines, systems, and policies.  

With these restrictions, it’s very difficult for an agent to elevate and differentiate their personal brand above the franchisor name.  

Corporate owned real estate brokers explained


Corporate owned brokerages are owned and operated by a parent company, which may have multiple subsidiary brokerages or brands.

These brokerages benefit from the resources, support, and stability provided by the parent company.

Examples of corporately owned brokerages include Coldwell Banker and Sotheby’s International Realty.

What you need to know about corporate owned real estate brokers

Joining a corporate-owned real estate brokerage as an agent can offer several advantages, including access to the parent company’s resources, systems, and support.

A corporate-owned real estate brokerage is most similar to a franchise brokerage model.

This means that agents can benefit from the established systems and support of the parent company, reducing the need to develop their own in-house solutions.

Proponents of corporate-owned brokerages point to the advantage of having greater stability due to the financial backing and established reputation of the parent company.

Agents may feel they have security working for a corporate owned entity, believing they are part of a financially stable and reputable organization.

In addition, joining a corporate-owned real estate brokerage provides access to a network of other corporately owned brokerages.

This network provides opportunities for collaboration and referrals, which can be beneficial for agents looking to expand their business and build their client base.

Similar to franchise brokers, critics point out there are also some challenges associated with joining a corporate-owned real estate brokerage.

One of the main challenges is limited autonomy, as corporately owned brokerages must adhere to the parent company’s guidelines, systems, and policies.

This means that agents may have less control over their business operations and decision-making processes.

Much like in a franchise where the company name trumps the agent’s brand, agents may feel stifled in this model, especially if their reputation is on par with or better than the broker in the community and with clients.

Independently owned real estate brokerages explained

Independently owned brokerages are owned and operated by an individual or a group of partners.

These brokerages are not affiliated with any franchise or corporate structure, allowing for greater flexibility in decision-making and operations.

Independent brokerages range from small, boutique agencies to larger operations with multiple offices.

What you need to know about independently owned real estate brokerages

Joining an independently owned real estate brokerage as an agent can provide several advantages, including greater autonomy and control over business decisions.

Independent brokers can adapt quickly to market changes and implement innovative strategies to meet their clients’ needs, without being constrained by corporate policies or restrictions that a franchise or corporate-owned brokerage works under.

This flexibility allows agents to provide a unique service and differentiate themselves from larger, more established brokerages.

Another advantage of joining an independently owned real estate brokerage is the ability to establish a unique brand identity and tailor marketing efforts to target specific niches.

Independent brokers can develop their branding and marketing strategies to appeal to a specific target audience, allowing them to stand out in a crowded market.

In addition, joining an independently owned real estate brokerage may also offer potential for lower overhead costs as there are no franchise fees or ongoing royalty payments.

Tavbvvbavvbcvbbccscccccbvbvcsbvvbbvscsvbsbsscvbsvbcsvbbvscbvshis can provide agents with more financial flexibility and allow them to reinvest in their business.

There are also some challenges associated with joining an independently owned real estate brokerage.

One of the main challenges is limited brand recognition, requiring more effort to build a reputation and attract clients and agents.

Independent brokers may also need to develop their systems, processes, and resources, which can be time-consuming and costly.

Independently owned brokerages are as varied as any type of brokerage model.  

An agent’s satisfaction working for an independent brokerage is highly dependent on the broker-owner’s business acumen, willingness to invest in the agents and how well they create, manage and adapt their systems in an ever-changing market.

100% commission real estate brokerages explained

A 100% commission real estate brokerage model is a business model where agents keep 100% of the commission they earn from their real estate transactions.

 

The real estate agent may pay a small annual and/or monthly fee plus a transaction fee on closed sales. The transaction fee is typically a flat fee regardless the sale price of the home or townhome.


In other words brokerage does not take a percentage of their commission as a split.

 

The brokerage earns revenue by charging a small fee for access to these resources and by collecting a transaction fee on closed sales.

 

Everything you need to know about 100% commission real estate brokerages

The 100% commission real estate brokerage model has gained popularity in recent years, attracting agents of all experience levels seeking to maximize their income potential. 

This innovative model operates differently from traditional brokerage models, offering numerous benefits for new, experienced, and high-producing agents alike.

In this section, we’ll provide a comprehensive explanation of how the 100% commission model works, highlighting its features, benefits, and why many consider it an attractive choice for agents in today’s competitive real estate market.

Higher income potential for agents in a 100% commission real estate brokerage

With no commission cap and no brokerage split, agents can significantly increase their income by retaining a larger portion of their commission.

This financial incentive is one of the main reasons agents choose to work with 100% commission real estate companies.

One of the primary benefits of a 100% commission real estate brokerage model is the unlimited earning potential for agents.

Because they are not sharing their commission with the brokerage, they can keep more of their hard-earned money.

This allows them to reinvest in their business, pay for marketing and advertising, and increase their overall income.

100% commission real estate calculation

With no commission cap and no brokerage split, agents can significantly increase their income by retaining a larger portion of their commission.

This financial incentive is one of the main reasons agents choose to work with 100% commission real estate companies.

One of the primary benefits of a 100% commission real estate brokerage model is the unlimited earning potential for agents.

Because they are not sharing their commission with the brokerage, they can keep more of their hard-earned money.

This allows them to reinvest in their business, pay for marketing and advertising, and increase their overall income.

In this example, this real estate agent works for a 100% commission real estate broker who charges the following:

$500 per transaction, regardless of the sale price of the home

$100 annual fee

This agent does not have to pay a monthly fee to the broker, just the $100 annual fee and then IF they sell a home, the transaction fee comes out of the agent commission.

In a 100% commission real estate model, this real estate agent is keeping an estimated $1,500 to $4,500 more than another agent working for a independent, franchise or corporate-owned real estate brokerage.



Image of 100% commission real estate brokerage commission calculator for a real estate agent Higher Income Potential: With no commission cap and no brokerage split, agents can significantly increase their income by retaining a larger portion of their commission. This financial incentive is one of the main reasons agents choose to work with 100% commission real estate companies. One of the primary benefits of a 100% commission real estate brokerage model is the unlimited earning potential for agents. Because they are not sharing their commission with the brokerage, they can keep more of their hard-earned money. This allows them to reinvest in their business, pay for marketing and advertising, and increase their overall income. In this example below, this real estate agent works for a 100% commission real estate broker who charges the following: $500 per transaction, regardless of the sale price of the home. $100 annual fee This agent does not have to pay a monthly fee to the broker, just the $100 annual fee and then IF they sell a home, the transaction fee comes out of the agent commission.

More advantages to joining a 100% commission real estate broker

One of the most appealing aspects of this model is its transparency. 

Agents know upfront what fees they’ll pay, including the annual or monthly fee and the transaction fee on closed sales. 

This makes it easier for agents to budget and plan for their expenses.

Flexibility and Independence: 

100% commission brokerages often offer more autonomy to agents, allowing them to operate their business as they see fit. 

This empowers agents to make decisions that best suit their individual goals and work styles.

As critics of franchise brokers and corporate owned real estate brokers, self-sufficient, technically savvy and highly motivated real estate agents can quickly feel stifled in a highly regulated corporate brand-centric brokerage.

Are 100% commission brokerages good for new agents?

New agents who are just starting their real estate careers can flourish in a 100% commission real estate brokerage model under certain conditions.

The brokerage should have excellent back-office systems in place as well as an agent support staff that’s available for questions and mentoring.

Most importantly, the brokerage must have “cradle to grave”, on-demand training available for agents new to the business, or else it’s easy for a new agent to flounder.

Today’s 100% commission real estate brokers are so advanced with learning and development and their technology infrastructure, that the argument new agents will flounder in this type of model doesn’t hold water the way it did in the past.

Additionally, because the enrollment fee for a new agent is so low and the monthly expenses are limited, the new agent has a lower “nut” to cover each month, and can gradually work into their business while in college, holding down a full-time job or supporting a successful full-time agent.

because they can keep more of their commission while still receiving the support and resources they need to succeed. 

This can be especially important in the early stages of their career when they may not have a large client base or a steady stream of income.

Should an experienced agent join a 100% commission broker?

Experienced agents can definitely benefit from 100% commission broker.

You’ll notice that many of the benefits of joining a 100% commission broker boil down to how much money an agent keeps or how low the expenses are.

Critics might argue that “deciding which broker to join is not just about money.”

In a way they are correct, absolutely.

However, the single greatest benefit is not how much money you can make at a 100% commission broker.  

It’s how much you keep and how low the overhead is.

An experienced agent, with the right 100% commission broker, has access to training and support that’s as good or better than what they have where they are at now.

If an experienced agent is moving to a new market, which often happens with real estate agents moving to Florida or Texas or Colorado from another state, transferring to a 100% commission broker will have lower overhead during their start-up in the new market, when they are building up their new customer base in a new market.

The biggest reason why top producing agents join 100% commission brokers

Top 1% real estate agents, teamed with the right 100% commission broker, fare the best in this business model.

They’re not subject to a cap or even a 90/10 or even a 95/5 commission split.

As a top producer, they’ll naturally receive consistent support from the broker and the support staff due to the number of transactions they generate.

They’ll have full control over hiring a team, whether that be a personal social media assistant or a buyer’s agent.

They’ll have full control over how they structure their business, yet have the back office in place to keep them in front of customers where they are most effective and successful.

Top producers have the most to gain, and the right 100% commission broker will work with an agent or super-team to structure systems around that team to ensure they maintain the continuity and flow they had previously at their previous agency.

 

100% commission brokers and real estate agent marketing

Critics point out the inherent conflict and tension that exists for real estate agents that work for franchises or for corporate-owned real estate brokers.

The home office and headquarters and brand always are the priority over the individual self-interests of the agent.

The trade-off is the agent’s decision.

However, agents who leave these brokers often do so because they believe that their customers do business with them because of their skills and expertise versus the company name and reputation.

When agents transfer to a 100% commission broker, they have the freedom to build their personal brand the way they see fit.

They’ll still have basic restrictions that are association or state regulations, but in the majority of cases, the broker actually encourages the agent to build their business around their skills and personality.

In a 100% commission model, the broker devotes its energy to processing transactions and supporting the agent. 

The best brokers have in-house marketing support and programs for agents interested in elevating their brand or developing a luxury agent persona.

The key difference is that in a 100% commission broker environment is NOT restrained and has the flexibility to differentiate themselves how they see fit.

In a franchise, corporate-owned and even independently owned brokerages, this is not the case.

Part-time real estate agents & 100% commission brokers

Real estate agents who are looking for flexibility in their schedule but want to succeed as an agent are best suited in a 100% commission real estate brokerage model.

The best 100% commission brokers have on demand training libraries available for agents, which becomes critical when part-time agents work off-hour schedules and need support.

The low cost to join and the limited monthly expenses are also an enormous benefit for part-time agents whose production may be more spotty and inconsistent than a full-time agent.

If they project 1-3 sales per year, they will have a limited downside.  

For most part-time agents or agents deciding between pausing their license to inactive or maintaining their license as active, a 100% commission brokerage with a per transaction expense model is typically viewed favorably over pausing their license.

15 different criteria to consider when switching real estate brokerages

Frustrated trying to decipher which brokerage is genuinely the best fit for you amidst the sea of conflicting advice? 

Worried about making the wrong choice and ending up in a brokerage that doesn’t align with your career aspirations and needs? 

The next step to determining what real estate brokerage is right for you are to consider ALL the potential criteria that you should be aware of.

Here are the top 20 criteria that you, as a real estate agent considering a change, should consider.  

Later in the guide, we’ll suggest how you can prioritize these criteria based on your tenure and production level in the industry.

But let’s start here with the top criteria real estate agents should consider when switching their license to a new real estate brokerage.

What is the real estate split commission at the brokerage?

The real estate commission split is the percentage of commission shared between the agent and the brokerage. 

In the real estate industry, some companies offer a commission split with what’s called a cap, while others only offer a commission split. 

A commission cap is a limit on the amount of commission an agent must pay their brokerage during a specific period. 

Once the agent reaches the commission cap, they are no longer required to pay their brokerage a commission split on any additional transactions for the rest of the period.

Commission caps can vary between brokerages and can range from a few thousand dollars to tens of thousands of dollars.

Commission splits for real estate agents can range from 50/50 to 90/10, with 80/20 and 70/30 being common splits. 

The commission split offered by a brokerage can depend on factors such as location, market conditions, and property type. 

In residential real estate, commission splits can vary greatly, with some brokerages offering a 90/10 split to top-performing agents. 

In the example below, we compare in table form a real estate agent who produced $10,000 in sales in a year via 20 transactions. 

We plug these numbers into 3 different, common real estate commission plans and you can see the differences.

In the above table, the first example has an 80/20 split with a $16,000 cap and $10,000,000 in sales on 20 transactions. 

The broker fees total $1,980, leaving the agent earnings at $148,020. 

The second example has a 90/10 split with a $16,000 cap and $10,000,000 in sales on 20 transactions. 

The broker fees are the same as the first example, leaving the agent earnings at $170,020. 

The third example offers a 100% commission to the agent with no cap but a transaction fee of $99 per transaction and a $99 monthly fee to the broker.

In the case of the 100% commission agent, the broker fees are $2,970 (due to a $99 transaction fee on each of the 20 transactions plus a $99 monthly fee to the broker), and the agent earnings are $197,030.

The results are quite different.

A 10% cut in the commission split(90/10 to 80/20) results in a ~19% dip in income for the agent.

Most dramatically, an 80/20 agent makes ~25% less than a 100% commission agent with the same production level.

This alone points to a strong argument for agents to move their license to a 100% commission brokerage, but there are obviously other criteria that are personal to each agent.

 

Real estate commission split comparison between 100% commission brokerage, franchise brokerage at 80/20, independent broker at 90/10 and the take-home net commission to agent differences

Real estate commission split FAQs

Here are some additional related and common questions regarding real estate commission splits

How is real estate commission split when a home is sold?

Real estate commission is split between the listing agent and the buyer’s agent based on the agreed-upon percentage in the transaction contract.

How do real estate teams split commission?

Real estate teams can split commission in a variety of ways, such as evenly among team members or based on the role each team member played in the transaction.

What is a typical commission split for real estate agents?

The typical commission split for real estate agents ranges from 50/50 all the way to 100% commission in favor of the agent.

What is a good commission split in real estate?

The more the better for the real estate agent!

A good commission split in real estate provides a balance between commission earned by the agent and support provided by the brokerage.

A “fair” commission is what a brokerage offers and what a real estate agent is willing to accept.

How do I calculate a commission split in real estate?

Commission split in real estate is calculated based on the agreed-upon percentage in the transaction contract between the listing agent and the buyer’s agent, which more often than not will be an equal split between 4 and 6% of the eventual sale price of the home.

Consider the reputation of the real estate brand

When considering a real estate brokerage to work for, it’s a good idea to evaluate the real estate company’s brand recognition and reputation.

Think of an real estate company’s brand equity and reputation as weak neutral or strong

A brokerage with a strong brand recognition can provide benefits such as increased credibility and trust with potential clients for you.

In this case, the concept of “rising tides raise all boats applies.”

But consider for a moment who benefits the least in this case – it’s the individual real estate agent who is a top performer and has an equally strong personal brand in the market.

In this scenario, that agent may not enjoy additional benefits from a brokerage with a stellar reputation.  

It’s more likely and more common in this scenario that a real estate agent with a stellar reputation has MORE value to a broker with a neutral or weak brand.  The weak brand will want to elevate its company brand and views the reputation of the agent as a means to get there.  

But still, in general, a brokerage with a neutral or strong brand will view favorably on an agent’s personal brand.

Consider the local reputation in your market as well as the reputation elsewhere.

Is one better than the other?  Do things happen at the corporate level that shine a poor light on the local brokerage and the agents?

So the question is – how do I evaluate a real estate company’s brand?

Research online and offline – here are some things you can do.

Agents can check online reviews on websites such as Google, Yelp, and the Better Business Bureau to see what others are saying about the brokerage.

Follow industry trade magazines on Twitter or set up Google Alerts from Inman, The Real Deal, RIS Media, etc and set up alerts or subscribe.

These publications are more likely to provide objective reporting or analysis and these are the ones I track.

If I come across negative news about a company’s brand via a news report, I’ll look for other sources of the report and give the story time to play out.  

Look at the brokerage’s website, including both the local website as well as the national brand if they are different.

Agents can look at the website’s design, content, and search engine optimization (SEO) to get an idea of how visible the brokerage is online.

This analysis may seem overdone, but a company’s ability to show up on the first page of Google or Bing can be of benefit to an agent who can be the recipient of those leads.

Attend industry events and observe and listen.

If you can’t attend, make sure to watch the replays of the conference or the webinar.

Keep in mind these events can be more promotion than sources of objective insight for you.  As you consider a move to a new brokerage, it’s critical you don’t get swept up in the emotion of the moment or caught in the middle of a positive or negative feedback loop on Twitter.  

Make sure you’re connected and checking in with other agents – they can be a source(not good, not bad, but a source of information) get a sense of the brokerage’s reputation and market presence.

This can provide valuable insights into the culture, resources, and support provided by the brokerage.

As an executive recruiter for over 20 years, I’ve been on the receiving end of thousands and thousands of stories and anecdotes of poor company culture, gossip and other wild stories that would make most people blush.

It’s been beneficial for me to not jump to conclusions or accept what I’m hearing as fact right away.  But rather, to continue to learn more and let time pass, or, if necessary and time is of the essence, get on the phone and call some other sources to confirm or invalidate what I’m hearing.

Look at which brokers and agents are doing the most deals in a market – this doesn’t necessarily result in determining the actual brand value of a broker, but it does give you insight into what brokers manage their brand well enough to not hinder sales.

In more cases though, the broker is doing things right, has excellent agents and is respected enough by buyers and sellers for them to not say, “I don’t want that company sign in my yard.”

In the MLS, agents can look at market data, such as the brokerage’s sales volume, market share, and number of transactions to get a feel for how they weigh in the market.

Evaluating a real estate brokerage training program

Depending on your skill level, niche and years in the industry, you’ll want to view and evaluate a broker’s training resources in an appropriate light.

Understanding where you need to improve is also helpful, as you’ll want to be associated with a broker who’ll look to offer you ways to improve.

One factor to also consider that is often overlooked.  

The real estate association is the most, if not the top 2-3 resources the real estate agents can leverage for the own personal and professional development.

Often times brokers take a bad rap from their agents for lacking training in particular subjects.  Often, the resources are available at the association level, which is more a reflection on the agent not seeking out what they need from the right party than it is a shortcoming of the broker.

In fairness to both sides, a great broker recognizes these communication gaps in the industry and can get out ahead of the issue by adding association events and training events to the broker calendar.  

How else can an agent or realtor evaluate a real estate broker’s training program?

Look to see what you can learn from the broker’s website or their recruiting page – can you view their training calendar?

Determine whether or not the broker provides online, on demand training.  Training on demand is critical now that more agents are working outside of office and it’s especially important for agents who are in front of clients all day and can only set time aside for professional development and continuing education late at night.

As mentioned previously, speak with other agents.

They’ll give you a sense of the training, who’s delivering it, what’s available online and how helpful it’s been for them.

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