1. Money

Methods of Compensating Real Estate Agents

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The 100% Commission Split Model
In this compensation model, the agent gets the entire commission. This model can pay 100% to the agent because the agent is paying a "desk fee" or monthly office fee. This can be a significant amount per month, but experienced producers prefer it because their costs are capped while their income is not.

1. The example from above would pay the full $12,000 to the agent.

2. In this model, the agent might be paying anywhere from a few hundred dollars to more than a thousand dollars per month for a desk fee. This fee is frequently based on the type and size of the office space the agent is given.

3. New agents generally are not interested in this model because of the fixed cost they must pay monthly. Not having any idea at the beginning of their commission income, new agents would find this method stressful. Also, few brokerages using this model want to take a new agent for these reasons.

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