Ever wondered if your real estate agent fees are helping or hurting your income? Commission structures can significantly impact your earnings, yet many agents continue to operate under traditional splits, unaware of the alternatives. Whether you’re a new or seasoned agent, understanding your broker splits is crucial to protecting your bottom line. Here, we explain what average real estate broker commission splits look like, how they cost you, and why an alternative structure may be more beneficial to achieve greater financial freedom.
What Are Commission Splits?
Real estate broker commission split is an agreement between you (the agent) and your brokerage on how the commission you earn from a transaction will be divided between you two. When you sell a property, you earn a percentage of the sale price, typically around 3%. From there, you share a portion of that commission with the brokerage, and that share varies widely across brokerages. The difference between a generous and restrictive split can impact your yearly income.
Common Split Structures
Every broker firm can have its own split structure, but most fall under a few familiar categories: 50/50, 70/30, 80/20, and 90/10.
50/50 is a common split structure for new agents, allowing them to keep half of their earnings while splitting the other half with the brokerage for necessary training and mentorship. 70/30 is popular in mid-sized brokerages, where agents keep 70% of their profits and share 30% with the brokerage. However, high-producing agents can lose tens of thousands of dollars every year.
Under the 80/20 structure, the split is more competitive and better suited to experienced agents. However, high-volume agents experience substantial income losses over the years. The 90/10 structure is designed for top performers but may come with higher additional expenses.
The split structure has always been present in the industry. But agents are now exploring alternatives to traditional splits, which can have hidden charges, caps, and substantial fees that affect your actual take-home income, leaving you disappointed.
How Do Traditional Splits Impact Your Take-Home Pay?
To help you understand the cost of a commission split, here’s a simple example.
Let’s say you close 5 deals of $500k at a 3% commission rate (per side). Your gross commission per deal will be $15k. If you’re working under a 70/30 commission split structure, your brokerage takes away 30% of your earnings, i.e., $4,500 per transaction. Across 5 deals, you’ll have to give out around $22,500 to your broker.
If you’re operating under a 50/50 brokerage, your splits can be even more steep. Over 5 deals, you’ll lose around $37,500 ($7,500 per deal). Even in an 80/20 structure, you would still lose $15,000 ($3,000 per deal).
These figures don’t even include additional expenses such as desk, technology, and office fees. When you look at the final total, you’ll realize its financial impact on your earnings. Traditional splits are great if you’re just starting and need thorough assistance, but these also limit you from excelling in your career.
Experience NB Elite Realty’s One Fee Model
At NB Elite Realty, we do things differently. We have developed a model that specifically benefits agents seeking to maximize their income potential. Instead of split-based pricing, we have a straightforward transaction fee (E&O included) structure, allowing our agents to keep nearly all of their hard-earned income.
Our residential transaction fee structure is designed like a sliding scale. For transactions up to $200,000, we have a flat fee of $249. For every additional $50,000 in sale price, we add $50 to the transaction fee: no limit, no cap, and no unreasonable percentage split.
For instance, at a sale price of $500k, you’ll pay only a nominal transaction fee of $549. Instead of losing around $4,500–$7,500 on a traditional split, you can keep nearly all of your commission. This way, whether you choose a handful of deals or operate at higher volumes, you’ll be able to grow your income rather than being cut down by percentages.
We also keep our membership fees affordable and simple. You can view our full structure on our membership renewal page. Many of our agents appreciate the transparency and predictability we offer.
The NB Elite Realty’s One Fee model is built by investors and high-producing agents themselves. They recognize the importance of long-term financial independence and aim to share the benefits of their expertise with the entire team. Our goal isn’t to take your income but to empower you to take control of and scale your business
Stop Splitting Commissions. Join NB Elite Realty.
If you’re tired of unreasonable real estate broker commission splits, NB Elite Realty can offer a smarter and more financially rewarding pathway to success. With us, you can keep more of your earnings, grow your business on your terms, and build long-term wealth. Call us at (844) 444-6237 to know how you can join NB Elite Realty and start keeping, not shrinking, your commissions.