The promise of "100% commission" sounds like a dream come true, but for many agents, it feels just out of reach. You do all the work, so why does your brokerage keep such a large cut? The truth is, not all brokerage models are created equal. Old-school, franchise brokerages often leave agents feeling like they're just another cog in the machine. But what if there was a better way?
The Problem with Traditional Splits
For decades, the standard has been the 70/30 or 80/20 split. You, the agent, take home the majority of the commission, but a significant portion goes directly to the brokerage. On a $10,000 commission check, that's $2,000-$3,000 straight off the top. Over a year, this can add up to tens of thousands of dollars that you've earned but will never see.
This model is a relic of a pre-internet era, where brokerages had to cover massive overhead for brick-and-mortar offices, extensive administrative staff, and old-fashioned marketing. In today's digital world, these costs are no longer a necessity. So, why are you still paying for them?
The "100% Commission" Myth vs. Reality
Many brokerages advertise a 100% commission model, but it often comes with a catch. You might be required to pay high monthly desk fees, transaction fees, or franchise fees that eat into your earnings. It's a numbers game, and the house usually wins.
But there's a new model that's disrupting the industry: the commission cap.
How Commission Caps Put You in Control
A commission cap is a limit on the amount of money a brokerage can take from your commissions each year. Once you've paid that capped amount, you take home 100% of your commission for the rest of your anniversary year. No more splits. No more ambiguity.
Let's look at a real-world example. At eXp Realty, the commission cap is just $16,000. This means that once your total commission paid to the brokerage for the year reaches $16,000, every single dollar you earn after that is yours. For a high-producing agent, this can mean an extra $20,000, $50,000, or even $100,000 in your pocket each year.
See What You’ll Net
Run your numbers through our Commission Calculator before you sign anything. Add up all the misc fees including monthly dues and put them in the calculator.
Why a Cap is Better Than a High Split
A 90/10 split at a traditional brokerage might sound good, but if you're a top performer, you'll be paying that 10% all year long. With a cap, your contribution to the brokerage is finite. You're not penalized for being successful; you're rewarded for it.
This model aligns the interests of the agent and the brokerage. The brokerage provides the tools, technology, and support to help you succeed, and once you've reached your cap, they're incentivized to help you close even more deals because it doesn't cost them anything. It's a true partnership.
Stop leaving money on the table. It's time to find a brokerage that believes in your potential and gives you the financial freedom you deserve. A commission cap isn't just a different way of doing business—it's a better way.
Still Weighing Options?
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