Sales commissions remain at the core of real estate agents’ livelihoods but other compensation models are coming into play.  This multi-part series looks at pay models and how to maximize your financial options within the real estate industry.

Part I of “How Agents Are Getting Paid in 2022” focuses on the commission model itself.

URGENT: Are You Worried About Having A Slower Start To The Year? Don’t Hit The Panic Button, Learn How To Have Massive Success In A Shifting Market. When You Attend This Exclusive Training You Will Learn 17 Surprising Secrets Of The Top 100 $ Millionaire Agents. Claim Your FREE Spot Now. After You Have Attended This Event You Will Experience A Huge Feeling Of Relief Knowing You Will FINALLY Laugh At Your Money Worries – You Will Have Your Own Personalized 2022 Step-By-Step Business And Lead Generation Plan. Learn Now How To Generate 100’s of Motivated Leads for FREE, Without Coming Off As A Pushy Salesperson and Losing Your Soul. You Will Soon Know How To Become One of the 1000s of Agents Making HUGE Money In This Changing Market. Claim your FREE spot now. YES, I Want To Attend The FREE Webinar! <——Click To Register

P.S. Free Webinar, Limited Space. Less Than 300 Spots Still Available. 

Evolution of Commission Model in Real Estate Industry

Back in the day, brokers and agents split commissions pretty evenly at around 50/50 until RE/MAX came onto the real estate scene in the 1970’s.  RE/MAX’s founders Dave and Gail Liniger “…put ownership in the hands of the agent,” said Russ Cofano, former president of eXp Realty and current CEO with Collabra Technology.

Nick Bailey, RE/MAX’s president and CEO, said that the RE/MAX concept “…really did change the landscape for real estate agents.”

The philosophical shift in thinking towards agents being seen as the controlling factor in the business was accelerated when Keller Williams arrived in the 1980’s.

Today’s agent-centric commission split model reinforces the concept that agents, not brokers/brokerages, control the real estate business.

Current Commission Models

There are as many commission split models as there are ice cream flavors.

RE/MAX, according to Bailey, recommends that its franchisees offer 95% of the commission to the agent with 5% going to the brokerage.  However, because RE/MAX is a franchisor, each individually operating franchisee can customize its own respective commission program.

Agents with eXp Realty begin with a split that offers them 80% of their commission with the remaining 20% going to the company, according to CEO Jason Gesing.  Once that eXp agent reaches a cap of $16,000 going to the company per year, the agent then collects the total 100% of the commission.

Ryan Rodenbeck, owner of Spyglass Realty in Austin TX, uses a tiered or graduated split model.  Translated, agents doing up to $3M in volume have a 75/25 split; agents doing between $3M-$4M have an 80/20 split; and agents doing $5M+ have a 90/10 commission split.

Tiffany McQuaid, president of McQuaid & Company in and around Naples FL, also uses a tiered or graduated split model but did not offer any specifics.  Basically, agents earn more as agents do more deals.

Money Not Everything

According to survey data from Inman, it’s common for agents to keep 70% or more of their commission split.  Likewise, agents working with teams or team-like firms often “share a sizable portion of their split with a team leader…” however Inman did not offer any definitions of what a “sizable portion” of a commission split actually is.

Inman indicated that most agents appear to be satisfied with their commission splits likely because agents are satisfied with the tools and support offered to them by their brokerage.  McQuaid, for example, said, “I believe compensation goes beyond dollar vale, and I believe you really have to factor that in.”

Some rewards are intangible such company culture, camaraderie, tech tools and services, branding, etc.

Are you ready to learn what your DISC personality style is? You know it’s critical that you understand what your natural personality style is. Once you have obtained this knowledge everything in your business and personal life will change for the better. Tim and Julie Harris are making it super simple for you to have this powerful info. Now, text the word YOU to 47372, and when you do you will instantly receive a special exclusive text link. Next, you will complete your own DISC personality test.. the results will be shared with you instantly once you complete the simple and fun test, no strings attached. Simply text the word YOU to 47372 and click the link.

P.S. (Limited time: no charge to take the complete test)

* 4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy:

Thanks to Inman.

Claim Your FREE Real Estate Treasure Map!