The compensation model you choose dictates your brokerage's culture, recruiting power, and ultimate profitability.
The Traditional Split (e.g., 70/30)
The house takes a percentage of every transaction. This aligns the broker's incentives with the agent's—the house only makes money when the agent does.
The 100% Commission (Desk Fee) Model
The agent pays a flat monthly fee (e.g., $1,000/mo) and a small transaction fee, keeping 100% of their commission. This shifts the risk entirely to the agent but is highly attractive to top producers.
Find the Breakeven
Every model has a mathematical inflection point. Find out exactly when an agent should switch models.
Run Desk Fee Analyzer