What are the benefits for Realtors® working with a 100% commission real estate brokerage?  

The biggest advantage of 100% commission model is more money in your pocket. 

Higher Income

Traditional real estate agents have to share (split) their commission with their broker (company) who provides an office, the agent’s desk, phone, mail and courier services, company advertisements, signage, client leads, and free coffee.  

Today, most splits are an even 50/50.  New agents find security by not paying for any of these amenities.  Simply complete (close) a sale and collect a commission split.  

A 100% commission office lets the agent keep the entire commission.  However, in order to stay in business the office charges a fee for renting a desk and for using the office amenities.  These fees can start at $100 a month just for the desk along with an additional fee for using the office phones, facilities, and services.  

Some agents prefer to work from home and do not need an office where they may pay the broker a set “per transaction” fee for each completed (closed) sale.  These fees can start at $500 and up.

The more successful agents prefer a 100% commission model because they earn more money than the annual costs resulting in greater income than a traditional model.  For example, if a 100% commission agent pays a broker $10,000 a year in fees and earns a $25,000 commission, this results in a profit of $15,000.  Additional commissions in the same year increases income.  

My Palm Beach Post reports that while an agent sacrifices real estate company brand recognition, company leads, and office space; hanging their license with a bare-bones brokerage puts more money in the agent’s pocket.

Why has 100% commission real estate companies become a mainstream brokerage model?  

100% Commission Opportunity

Simply put, opportunity and technology.  

Years ago, property listings were not available online.  Then the Multiple Listing Service (MLS) model came allowing only member licensed real estate brokers and agents access to thousands of listings online.  Over the years, other real estate professionals sought access to the MLS database.

 MLS data is now available online from numerous websites allowing public access.  This resulted in the ability for agents to meet clients anywhere with online access to view MLS listings rather than at a real estate office.  

In addition, electronic scanning of real estate transaction documents sent through email allowing digital signatures through services like DocuSign further made meeting at real estate offices obsolete.  

Work From Home

100% Commission Benefits

Home offices are now so popular with real estate agents that traditional commission sharing models are out of date.  Why split commissions with your broker when you no longer need his/her office amenities?

The convenience and comfort of working at home far outweighs the commute, office distractions, and bad coffee.  In addition, the agent can now spring for gourmet coffee and have a kitchen with an espresso/cappuccino maker.  

Conclusion

The advantages for Realtors® working with a 100% commission real estate brokerage include potential for greater income than traditional commission splits with the comfort and convenience of working at home.  

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Guest Blogger: Steven Rich, MBA