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Methods of Compensating Real Estate Agents

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The Traditional Broker/Agent Commission Split
The vast majority of real estate agents are compensated by a broker via sharing the gross commission amount that the broker collects. We're not discussing percentages charged to the client here, only the way the agent is compensated. Here's an example:

1. Gross commission amount of a transaction = $12,000.

2. Broker/Agent split of 50% broker/50% agent = $6000 to the broker and the same to the agent.

3. The percentage split is an amount agreed to by the broker and the agent and usually reflects the amount of services and support the broker provides. It can also reflect the volume of business the agent brings in.

4. If you're in the process of choosing a broker to hold your license, the split is important, but should be balanced with the services and leads provided by the broker.

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