A traditional brokerage has broker splits that range from 10% to 60 or 70%. That is a big chunk of the commission that you earn on a transaction that you provide. There are broker solutions available for agents who want to keep ALL of the commission.
Is there a catch?… Yes
A traditional brokerage normally has a lot of overhead costs and will often provide extensive training and even leads in some cases; whereas, a 100% commission brokerage will have much lower office and overhead expenses, and will most likely not provide you leads at 100%.
So how do they make money? It is all in the numbers.
In most cases a 100% commission brokerage will be accompanied with a fixed rate for the sponsorship. Spirit Real Estate Group for example is $99 per month.
They will also at times have a nominal transaction fee($15 for example) to help with additional expenses.
If you multiply these numbers over 100’s of agents then you can see there can be a steady amount of good income.
Not all 100% commission brokerages are created equal though. If you are interested in joining one there are some things to consider:
- What kind of support is offered?
- Do they let you do other areas of real estate?
- Do they cover E&O insurance?
- Do they provide leads? If so, what is the split on them?
- Will they support your career goals?
A 100% commission brokerage is great for a side job because there are lower expenses than a traditional brokerage, and they do not have quotas. It is also great for that senior agent who no longer needs the regular support of a broker and is tired of splitting the commission with one.
If you would like to know more about how our 100% commission sponsorship program works. Call us at 214-396-7998 or contact us and we will provide you with a free information packet.