Not all commission models are created equal. This guide breaks down how each model works, the real math behind them, and what to watch for.
In a traditional split model, your broker takes a percentage of every commission you earn. Common splits range from 50/50 (new agents) to 80/20 (experienced agents). The first number is the agent's share; the second is the broker's.
$400,000 sale price x 3% commission = $12,000 gross
Agent keeps 70%: $12,000 x 0.70 = $8,400
Broker takes 30%: $12,000 x 0.30 = $3,600
Instead of taking a percentage of your commission, flat fee brokerages charge a fixed monthly fee. You keep 100% of every commission check. The more deals you close, the more you save compared to a split model.
$400,000 sale price x 3% commission = $12,000 gross
Agent keeps 100%: $12,000 - $99 monthly fee = $11,901
Savings vs 70/30 split: $11,901 - $8,400 = $3,501 more per deal
Even at just one deal per year, the flat fee model comes out ahead. The gap grows wider with each additional transaction.
Based on $400,000 average sale price at 3% commission ($12,000 per deal)
| Deals/Year | Gross Commission | 70/30 Split (You Keep) | $99/Mo Flat Fee (You Keep) | Your Savings |
|---|---|---|---|---|
| 1 | $12,000 | $8,400 | $10,812 | +$2,412 |
| 5 | $60,000 | $42,000 | $58,812 | +$16,812 |
| 10 | $120,000 | $84,000 | $118,812 | +$34,812 |
| 15 | $180,000 | $126,000 | $178,812 | +$52,812 |
| 20 | $240,000 | $168,000 | $238,812 | +$70,812 |
70/30 split: agent keeps 70% of gross commission. Flat fee: agent keeps 100% minus $99/month ($1,188/year).
Plug in your actual numbers to see exactly what you'd keep.
With a cap model, you pay a commission split until you hit a predetermined annual cap (often $12,000–$25,000). After reaching the cap, you keep 100% of commission for the rest of the year. The cap resets annually.
Some brokerages charge a per-transaction fee on top of (or instead of) a commission split. These fees typically range from $100 to $500+ per closed deal. They can be charged in addition to a monthly fee, a commission split, or both.
Transaction fees may seem small individually, but they add up quickly. An agent closing 15 deals per year at $395 per transaction is paying $5,925 in transaction fees alone — on top of any monthly fees or commission splits.
75/25 split + $395/transaction fee + $100/month
$400K sale at 3%: $12,000 x 0.75 = $9,000 - $395 = $8,605 per deal
Annual cost on 10 deals: $3,000 split + $3,950 tx fees + $1,200 monthly = $8,150 in fees
When evaluating any brokerage, look beyond the headline commission split. These are the fees and costs that can significantly impact your take-home pay.
Add up every fee you'd pay over a year at your expected deal volume. That total — not just the commission split percentage — is the true cost of your brokerage.
Use our commission calculator to compare what you'd keep across different models with your actual numbers.