Two Types of Real Estate Brokerage Commission Splits Every Realtor Should Know
For newly licensed real estate agents, the very first step in their career is to find a real estate brokerage to partner with. Besides the brokerage’s values, integrity, and the various types of benefits they can offer you (e.g., industry recognition, office space, recurring leads, etc.), the commission split between you and your brokerage should be a top concern.
The two types of commission splits in a real estate brokerage are percentage-based and flat fee.
A reminder: A real estate agent acts as a representative of a real estate brokerage. Real estate agents can’t be directly paid or benefited by a client, as it’s the brokerage and broker who collect all payments. Based on the broker-agent agreement, the broker disburses payments to their associates.
Percentage-Based Commission Split
This is a percentage of the 100% commission, with the broker keeping a portion. Typically, the more benefits a real estate brokerage provides to an agent, the higher the broker’s commission percentage will be. This is the most popular type of commission split in South Florida as of 2025.
It’s common to see 90/10 (90% Agent, 10% Brokerage), 85/15 (85% Agent, 15% Brokerage), and 80/20 (80% Agent, 20% Brokerage) commission splits in Miami and Fort Lauderdale real estate brokerages.
Benefits
- Office space: Having an office space to work and hold business meetings is always convenient.
- Recurring leads: Most agents struggle to find clients. A recurring stream of new clients is one of the most secure ways to achieve success in the real estate industry. Not many brokerages offer this, and when they do, their commission split is typically higher.
- In-person/online classes: Classes are always welcome, especially for new agents joining the real estate market. Brokerages typically repeat the same classes every 3–6 months and occasionally introduce new ones.
- Direct broker guidance: Most brokerages have their broker available in the office to assist with any questions a real estate associate may have.
- Online tools for real estate agents: Many brokerages offer online tools to their agents at no or low cost. Tools like Form Simplicity, Matrix, Dotloop, and DocuSign are must-haves for any real estate agent.
It’s important to note that many brokerages with a percentage-based commission split have a goal or cap. Once an agent reaches that goal, the brokerage’s percentage drastically reduces.
Flat Fee-Based Commission Split
This is a predetermined fixed amount the broker charges per transaction. It varies depending on the type of transaction — rental or sale. Brokerages offering this type of commission split typically provide fewer benefits to agents compared to percentage-based models and may also charge a small recurring monthly fee. The business model focuses on volume — both in terms of agents and transactions.
Benefits
- Lower brokerage charges: With a flat fee commission split, your broker sets a fixed amount per rental and sale transaction, which typically doesn’t change based on the transaction size.
In South Florida, it’s common to see $500–$800 brokerage fees for a sale transaction and $150–$200 for a rental. Some brokerages may require agents to pay a monthly fee of $100–$300.
Which Type of Brokerage Is Better?
For a new real estate agent starting out and struggling to find clients, a percentage-based commission brokerage is typically better, as they may provide in-person classes, a steady stream of clients, and an office to work from.
If you’re a seasoned real estate agent who knows the ins and outs of the industry and has built a network of clients (investors, landlords, sellers, renters), then a flat fee commission split may be more beneficial, as you likely won’t need the extra benefits a percentage-based brokerage offers.
According to John from John goodman real estate, whichever decision you make, make sure the brokerage’s values and integrity align with yours.
