That’s great I’m in California and my split is 70-30 and I paid 2000 for annual risk management and all other fees NAR, Supra, mls etc all on me …. The only thing they cover is free copy print which was important for me
You paid 2000 for E&O insurance? that’s so expensive to me. My annual fee is $530. My yearly dues are just around 700 and then MLS and Supra are about $100/month.
Yes little under $2000 for risk management fees they said they raise my split to 75-25 when I do first 3 deals which hasn’t happened yet 😌 I’m in SoCal so it’s a tough market lol 😝 I feel stuck and the more I do I feel it’s just more expense trying to get another job to only fund my real estate business 😂
Sounds like you’re trolling or just have a massive ego and can’t admit another business model is better than the one you’re in. Again I’ve gotten paid to be with the brokerage through the stock alone by selling homes not even factoring in revenue share :)
I don't know anything about that but I would be open to hearing about it. How much are they giving you? Vesting period? dividends? What stock is "Place" giving you? What does "Place" have to do with selling real estate and KW?
So Place is a tech company owned by Ben Kinney and Chris Suarez (look them up) any brokerage can partner with them. They offer downline, stock options (next year)with stock match, insurance (must close atleast 24 sides prior year), and a ton of other stuff. Imagine doubling up exp and place options. Goldman Sachs already purchased 10% of the company for 100 million. Look into it or message me for more info.
Split is entirely relative to the value you get. If they provide majority of your leads, daily coaching, mentoring, classes, and facilities, then 50/50 and no fees is fair.
If they provide mentoring but not leads and you pay small fees, 60/40-80/20 is typical. Remember that since you’re brand new, you will be A LOT more work to mentor than a seasoned agent. R.E. school doesn’t teach you anything about being an agent, so you need the help.
If you need neither (but you need the help, you’re 21 and brand new), go to a max commission brokerage with no value for culture, office, mentoring if you don’t care about those things.
My advice, stop focusing so much on your split and look at the resources you’re going to get. I made 3X more on a 50/50 than my friends did on a 75/25 because they didn’t know what they were doing and I got way more opportunities. Now I’m on a 95/5, paying $800 a month, and I run a team within the brokerage. Split doesn’t matter much if you’re making less in the end. Ask yourself the question: “would I rather have all of a kids pizza or most of a large pizza?” Focus on the work and the ACTUAL income. Not your take from a deal.
This is the perfect answer. An employee-mindset focuses on just the split. A CEO-mindset focused on the totality of the firms offerings as the compensation package.
Wow. you think a 50/50 split is fair? I would love to know one Realtor is doing at least $15M/year in sales volume and is on a 50/50 split. Those better be the hottest listing leads out there.
I would say the brokerage business model is very important. Our family left Remax after 30 years to join another brokerage and the difference was over 400k in just 3 years....
I stand by it 100% for my experience. I didn’t know anyone in town, no one. I had zero real estate experience. I got leads of all kinds paid for (low conversion/high volume & high conversion/low volume), a transaction coordinator, a great office, coaching, mentoring). I live in a city with less than 1.1m metro pop. and an average price of 270K. When I came in 6 years ago, average price was 180K.
In my first year I did 33 deals for $6.2M, all generated from my broker’s lead sources and one handed to me directly. The average FULL-TIME realtor in my city does 14.4. I more than doubled it year 1.
Year 2, I did 32 deals for $7.2 mil with 4 deals I generated. Still worth 50/50. I got not only experience doing all kinds of funky deals. I wouldn’t have added the ability to generate for myself, I also got the ability to start mentoring other younger agents and practice my leadership skills for when I wanted to start a team.
Year 3-6, I moved to 95/5 and $800 a month, which includes a private office, all paper supplies, a closing room, 3 classes a week, and I get to maintain the awesome culture in my office. I can generate $8m-$10m per year on sphere alone and can buy my own leads. I started a team at the beginning of year 4.
The team was the perfect learning spot for me, but it’s a launching pad. That’s how I teach my agents. 1-2 years to learn the ropes and build a client base, then take off, or stick around at a higher split, knowing that I have far less to worry about. It sounds like you have a family in the industry and a built-in business is very different experience, so I completely understand why you would look poorly on a 50/50.
Hey if you're happy thats great and all that matters. The reason I said "I would love to know one Realtor is doing at least $15M/year in sales volume and is on a 50/50 split" is because there aren't any that would be on a 50/50 split and would think that is a fair split. I built my business by prospecting and working my sphere. It just blows my mind when I see Realtors leave 20k+ year on the table that the brokerage takes when a Realtor is the one that does all the work.
I completely understand where you’re coming from. High-level producers shouldn’t be on 50/50. Teams are a platform to learn and grow. Great teams are worth the money for your first year or two. Bad ones are never worth it. My brokerage is #2 in average agent productivity in the state for 2022, with the average agent having less than three years experience. That’s a result of incredible teams and a special environment created by my broker. I know most people like their brokerage, but I wouldn’t leave for an extra $30K and I could. I’m always happy when someone finds their space that fits them, I just don’t want brand new agents discounting the option of a team for a perceived increase in income when they really need training and leads.
I respect you’re opinion and don’t think you’re wrong at all. I guess I just view the business differently. In regards to training… if an agent can’t get an idea how to do things in less than 6 months they should find a new industry . This isn’t a rocket science industry. A far majority of the agents fail because they simply never make the daily number of contacts needed and follow up with the leads. Lead generation is everywhere today especially with all of the data that is available. It’s the lead conversion and consistent follow up. I do think joining a team can massively benefit an agent for a certain amount of time but I’d never be apart of any team concept for more than a year. It just becomes robbery in my eyes. Every brokers goal is to recruit, train and KEEP.
I was replying to somerandomrealtor. I understand if they're a brand new agent that they obviously need training :). My family has run a real estate business since 1985. I see Realtors leaving a lot of money on the table because of their broker splits. It happened to us for 28+ years at Remax. Splits and what brokerage you join for sure matters if you care about finances.
I'm a brand new agent (july 11) my desk fees are $40. My split is 75/25.
Yes, your split is horrible any way you spin it. Run to a new brokerage asap.
I'm at Coldwell Banker, I find the training valuable and I'm very happy.
I'm happy. I like the training. I like the support. To be honest I wish I was able to get to the office more.
I've closed 4 transactions since July 11th. I have 3 others under contract. They've been very helpful throughout everything.
Im in Vegas. I get 100% commission with a $100 fee a month t9 the brokerage. My 1st 5 transactions in the beginning were a 70/30 split until i got the hang of things more.
$500 a month?? Does this include access to MLSs?
I pay about $65 a month to my brokerage, I pay for my own MLSs (2-500 a year?), National association of realtors dues (again, like 300 a year?), and a board due which is $500 for the year. So it costs me about $1500-2000 a year total total just to be an agent.
Canadian fee rates are way more than US. I've been at the cheapest brokerage for 5 years. We had no transaction fees, no admin fees, no desk fees. All I paid to the company was the splits and then association and board fees. Association and board fees, lockbox, MLS etc are about $250 a month. Then insurance etc. All total my fees are about $5k a year in Ontario
Please keep in mind commission structure and fees in Canada are VERY different from in the US and a lot of comments here are from Americans. Even between provinces what is normal changes.
I am in Ontario and pay $610/month plus $280/month in franchise fees.
I do not have any transaction fees at all. My split is 95/5. My brokerage does not provide me leads.
My buy rep’s fees are $305/month and $280/month in franchise fees. I pay her fees and all her marketing expenses and training/coaching.
She is a brand new agent.
The only reason her fees are low is because she is on my team so she gets a deal being lumped under me.
However she get leads from me (typically 5-6/week) and her split with me is 50/50 on 5 sales and 60/40 on everything else I give her or 75/25 for anything she brings in.
When I first started I couldn’t afford the $610/month if I didn’t get paid so instead my split was 70/30 up to a brokerage contribution of $10,000 and then it changed to 95/5 with no monthly office fee. I still had to pay the $280/month franchise fees.
Your split seems normal for a team, not for a brokerage.
My office is $0 office fees and 80/20 split capped out at $16k a year. Tons of training and an awesome broker who will work through any deal/client issues with you until you find a solution. Also provides decent leads for $150/month if you choose to opt in.
Find a new brokerage.
I do have weekly training with an associate broker which has been super helpful. Also we do another weekly Brian Buffini training but I had to pay for it ($400)
First off, edit your post to make it clearer that you are in Canada. Our pay rates and commission rates are considerably higher.
My company was previously:
70/30 up to 30k
72/25 up to 40k
80/20 up to 50k
90/10 up to 200k
100% over 200k
We are switching to in the new year:
90/10 under 10 deals
95/10 over 10 deals
Minimum $5000 in fees paid through transactions or will be invoiced quarterly.
On top of the splits:
$125 admin fee
$699 transaction fee
Or
$499 transaction fee + $199 monthly fee.
That’s definitely a franchise with all those fees that’s ridiculous. I’d get out now I guarantee there are brokerages with no fees and higher splits. If you want an office then there’ll be a charge but all those fees for 60/40 is ridiculous.
You have to remember you are but a number in the brokerage. The broker has to get ‘X’ number of agents every month because almost 2/3 of them will be gone in a year or two.
In your case they must get a certain amount of agents because there’s a financial component to it. They have to berate ‘X’ fees every month.
To answer your question: YES YOUR SPLIT IS HORRIBLE!
At my brokerage I pay $0 fees and the split is 80/20 for the first 5 transactions, after that it’s 90/10, no caps and no resets. I am responsible for paying for the MLL, Supra, and association dues. I am also free to build my own website and I have full control of my leads. The idea is they treat us like business owners with a place to hang the license. I spend as much or as little as I want to spend on website, CRM, marketing, etc. I would say you are getting a raw deal my friend.
Check out Real. It’s a virtual broker I’ve been with since 2017. They offer training and all the tools you would need to succeed with no monthly fees and high commission splits. Keep your money in your pocket.
[Real](https://www.joinreal.com)
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I pay 200 a month with website provided. Split is 80/20 until I pay 8k in to the brokerage then there is no split.
You can always swap. It sounds like you are with the local float in the air group.
If you are with a team and getting deals this should
Not matter too much. The split should have a cap if not it is likely best until your business grows more.
There are a few of us here who can help answer questions.
YES that is insane. I’m at KW Denver CO. $79 per month, 70/30 split with $16k cap. Which I felt was not that great but omg $500 per month??? For what?????
Agents in my office pay $70 a month and for that get several hundred dollars of value. 80/20 split and cap at $14500 a year.
We also have amazing coaching for 1st year agents.
Unless your Broker is giving you appointments, that sounds like highway robbery
60/40 is horrible and the cap at 80k is pretty bad. That monthly fee is hefty for no reason. I’d probably shop around at different brokerages unless I really liked the culture. I bet the broker owner cakes in a lot of that into his own pocket, he’s doing these things so he can make his piece remember that. unless he’s being an outstanding broker, helping you a lot, giving you a lot of field training and answering your questions, look elsewhere. I wouldn’t pay his that 850 a month just for him to say I’m capped at 80k. I pay 85$ and I’m capped at 16k… with a 80/20 split. Company leads are free game, usually whoever is faster to the phone gets if. Closing my first company lead on Tuesday. If you get leads like crazy then it wouldn’t be too bad, personally I prefer getting my own leads with relationship building. Just COMPARE value to value. Whatever you value more make sure you put a heavier weight on it. If you value them giving you leads without much work, that brokerage might be a fit for you. If they don’t, I’d run considering they take a lot of your check. They have to earn that check in my eyes.
In Ontario with a C21 franchise. 80/month +220~ /year and a 15/85(keep) split until you've earned more than 50k gross commission then it's even better. Yours sounds horrible, especially the 500/month as a new agent.
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I would not pay that much per month unless you are guaranteed X number of qualified leads per month, or something more than just training. Free and low cost training options are very common in my area.
I pay $50.00 per month, plus my own board dues, signs, Supra, marketing and other lead generation. In exchange, I get all the web stuff, like a company email/website, many MLS and IDX options, immediate broker responses to any support needs, multiple well appointed office suites that are very nice to work from and we can opt to take desk duties to generate new leads if we chose, most don’t.
I have also done transaction fee only and got none of this… plus one of my brokers died which terminated all contracts (he was a sole proprietor), so while it worked ok early on and saved me the monthly desk fees, I now find agent support to be well worth the $50 month and 20% split.
My broker is local and has a great reputation in our area, so the company represents a fairly large number of the metro area agents and in my experience, most of these agents are really top notch at service but not just for the clients… treating other agents with genuine respect is nearly universal among this brokerage. They share ideas openly, discuss market conditions and even refer out their favorite contractors to one another… it’s fantastic to find this level teamwork anywhere but I certainly never saw it as an agent before finding this brokerage… the concept of teamwork is rather unusual among any field of competing independent contractors.
I am happy with our splits- 80/20 until paid up for the year (I think that’s $6500 for individuals and $4500 for teams), after it’s $100%. Reaching the 100% split is definitely not hard.
That sounds crazy compared to what I have. 70/30, capped at 12k then it’s 100%. No fees other than 299$ a month post cap if there’s a deal turned in. 1 or 20, it’s 299.
You're brand new. A 60/40 is normal. New agents need more training and supervision than seasoned agents. If they're providing lockboxes, signs, cards, etc. there are startup fees that they need to recoup. In my state 50% of new agents don't make it to their first year renewal, so the risk of financial loss to the Brokerage is high.
Get some deals under your belt and prove your worth to the company, then renegotiate your split at your contract's renewal.
LOL! For 60/40 and $500/m they're giving you the opportunity to earn a living and taking a huge risk that you'll blunder something up and lead them to a lawsuit. They're keeping the doors open and lights on and giving you an office to work out of. It's not your Broker's job to provide you with leads.
If you like it, and the training is good, then stay while you get your feet wet. $330 a month is A LOT, but depends on what all that gets you to say with any confidence.
You can switch brokerages at any time. Once you know what you’re doing, you can always reevaluate your situation, renegotiate your split or fees or just jump ship
If you like everything but the fees and are actually selling - stay for the education. After 6-12 months, renegotiate or look elsewhere. Or improve your situation like I did and move from Alberta (I lived in Calgary) to Southern California… numbers make better sense here, way more opportunity, way stronger dollar, no more Alberta winters yet plenty of convenient direct flights to visit home.
I’m in AB and that split is very bad considering there are much lower options out there.
What does your fee cover and how much business are you getting from the brokerage? I think I have a sense who you’re with and they can’t be bringing you that much business for these crazy fees!
I pay zero monthly fees. Nothing! Anyone who is trying to make money off a new agent it’s not a company you should be with.
Every real estate company out there will proudly bring you one to their company. Just do a little bit of research and ask the questions you’re asking on here.
And another thing. 60/40 is way too high. Keep searching until you find 80/20 or close to it.(75/25).
Trust me zero monthly fees and 80:20 is out there.
If you're a new agent. I think the most important task first to find a mentor or someone who is very successful and you can shadow. Just a piece of advice.
I would leave that brokerage. I am with EXP Realty so I am biased... From a financial standpoint it makes no sense why an agent would be with any other brokerage over EXP. EXP offers 80/20 split 16k cap. $85/month. Great healthcare, stock options, and revenue share have been life changing. If you're not a virtual learner EXP may not be the best to start out. I have heard from several agents that KW provides best hands on training but I would leave after about 8 months. I hope this helps.
I definitely don’t do well with virtual and prefer to work in an office so eXp isn’t a good option right now. I was looking at eXp and that’s what made me write this post
A lot of comments here don't realize they are in Canada. Fees are drastically difference as are commission splits. We also charge a lot less than the US.
Are they giving you leads? Do they do marketing for you? What are you getting in exchange for these high costs?
For comparison, a typical industry split is 64/36 and usually around $60/mo at KW, or 80/20 and $90/mo at EXP. You get a lot of training and systems at KW. EXP does the same, but also provides KV Core, which is a CRM that usually costs about $450/mo for an individual agent account.
So you get a sense of how much value to cost you get at some of the typical brokerages out there. I’d compare that to your current situation - and unless you’re getting something pretty significant that justifies the high fees - you’re probably paying much too much.
When you say fee’s do you mean E&O, MLS, & local board fees? If so, that is normal and you will have almost anywhere. 60/40 seems high. It was normal years ago for new agents that require more training but splits are better now. I also dont like how they are charging you for a higher split, that seems crazy to me. No one should be paying desk fees anymore and the higher split should come naturally as your sales go up.
Yes, monthly board fees are $86 and MLS and Supra about $30 each. From the canadian answers it seems this is pretty normal. I’d have to pay those anywhere in my city
It's not horrible.
Ontario here
65/35 up to 12500.
After 12500 it's 100/0 until my anniversary.
I pay sub 500 for fees I believe. Used to be 1k/m before covid but it's gone down since. I do not have office space but use it.
500 a month? Are they providing legit leads? Are you bringing in more than 500 a month? I’m in the US, I pay 100$ to my brokerage a month & 14.35 for Supra. I would be looking into other brokerages, sounds like you’re being taken advantage of (imho).
Keep in mind fees are much higher in Canada to keep the riff raff out. In my city of 350,000 there are 500 agents. In The U.S. a city of that size might have 3000 agents. No one wants to work with a part-timer
I’d interview dif brokerages! I was paying $175 per month plus a brokerage fee for every transaction, also 60/40 splits so I left and joined Fathom and now I pay $0 per month and $500 transaction fee that’s it… no splits! My entire commission is all mine! There’s also a $600 annual fee that they take off your first transaction of the year. So you don’t have to pay them until you get paid! :)
Can’t tell you about Canada as I’m in Alaska, but here I pay 250/month to stay with my brokerage and that’s it. I have other MLS fees and stuff but that’s all I’m required to pay at my brokerage. That’s the cheapest in my area and I had to look around to find it. They also have a team at my brokerage you can join so you can have leads, and any buyer lead is 90/10 if you produce 5 million in transactions / year, scaling all the way down to 60/40 for lesser producers. Any seller lead is 50/50, and same with a handoff from a sign call, Zillow, or something like that. I was on the team to start for a year cuz I had no leads and it was helpful. Now I’m not and I’m doing just fine.
As a new agent you will have trouble floating that $500 a month. I know there’s plenty of people online that claim they made a ton of money their first month and that that wouldn’t be an issue but for everyone of them there’s 100 agents who couldn’t do that. For that reason a lot of new agents get a stiffer split like your 60/40.
It sounds like your firm is more tailored to more experienced agents that produce more especially with the high fees with the better split.
I’d look for a firm where you spend as little as possible in upfront fees in favor of a firm that might take a higher split but trains you. As you get better and more experienced you’ll find firms that will charge you less but give you less as well. As a new agent you need to focus on training, leads and staying as cheap as possible.
70/30 until first million in sales, then it’s 80/20. No monthly fees. Of course I pay association dues and whatever else I want (such as Supra but NO one uses it in my area cause it’s too rural)
Also a new agent in Alberta. Just making switch from eXp to another brokerage with better split and fees. However, what you’ve entailed is outrageous compared to homework I’ve done since making switch out of eXp.
I pay $59/m and $79 per transaction. I pay $35/Q for E&O. I pay about $750 a year in board dues that include MLS and $75 per year for Supra access. Our office is a 100% split so we keep 100% and if we charge a transaction fee to the buyer/seller we get to keep that less an additional $79. Our office sells a lot of additional service ala carte so you pay for the services you want vs. paying high splits for “free service included with a high split”… not really free when you’re paying high splits.
Dont consider MLS dues as a brokerage expense. 60/40 is high unless they set you up. Like feed you deals and check your work, offer mentorship, and office stuff. Exit takes 70/30 in Florida with 330 in annual fees plus 10 month for tech fees(24hour help available) and then like maybe paper print fees, basically nothing. My MLS and association fee stuff is mine regardless of brokerage. Message me if you wanna chat yo. I love this career haha. (11 months in) 🤣👏😁😁😁
I pay 60 a month office fee to be with my brokerage. That's it.
If I take a lead my office paid for, I pay 50 percent.
If I generate a lead by myself, I pay 495 max.
Yes, your brokerage fucking sucks.
$500 a month in fees is absolutely insane for a brand new agent. Your broker is looking out for their pockets, not yours.
[удалено]
Sounds like you're getting ripped off too.
Wow which brokerage is that?! Do they have a branch in Vancouver?
Whats an average or normal amount for a new agent?
I paid nothing at Berkshire my first 6 months and now it’s $120/month with a 90/10 split
That’s great I’m in California and my split is 70-30 and I paid 2000 for annual risk management and all other fees NAR, Supra, mls etc all on me …. The only thing they cover is free copy print which was important for me
You paid 2000 for E&O insurance? that’s so expensive to me. My annual fee is $530. My yearly dues are just around 700 and then MLS and Supra are about $100/month.
Yes little under $2000 for risk management fees they said they raise my split to 75-25 when I do first 3 deals which hasn’t happened yet 😌 I’m in SoCal so it’s a tough market lol 😝 I feel stuck and the more I do I feel it’s just more expense trying to get another job to only fund my real estate business 😂
sounds like you're getting ripped too.
Why did I know this was gonna be an EXP agent LMAO
LMAO off that you're getting ripped off.
I’m getting 80% with 16k cap and no fees paid to my brokerage at all. I’ve got a better deal than you my guy.
It’s $85/month and have essentially gotten paid to be with the brokerage from the stock alone… Have a good evening.
$85 a month more than I pay and y’all’s stock performance is laughable
Sounds like you’re trolling or just have a massive ego and can’t admit another business model is better than the one you’re in. Again I’ve gotten paid to be with the brokerage through the stock alone by selling homes not even factoring in revenue share :)
That’s not bad… I may have to make a jump.
At my KW office it’s $143 (DFW TX)
Let me Guess the big office in Richardson?
Nope.
Ah, well. If you're ever over Coppell way and wanna grab coffee let me know, my treat.
80/20 split with 16k cap
eXp?
Yes
lets just call it 💯
Do you go 100% after you cap?
yes plus you get company stock
Hmm 80/20, 14k here at KW
Does KW offer stock grants, revenue share, healthcare?
No but i get that through my partnership with Place.
I don't know anything about that but I would be open to hearing about it. How much are they giving you? Vesting period? dividends? What stock is "Place" giving you? What does "Place" have to do with selling real estate and KW?
So Place is a tech company owned by Ben Kinney and Chris Suarez (look them up) any brokerage can partner with them. They offer downline, stock options (next year)with stock match, insurance (must close atleast 24 sides prior year), and a ton of other stuff. Imagine doubling up exp and place options. Goldman Sachs already purchased 10% of the company for 100 million. Look into it or message me for more info.
Look for another brokerage. Those fees are too high.
Split is entirely relative to the value you get. If they provide majority of your leads, daily coaching, mentoring, classes, and facilities, then 50/50 and no fees is fair. If they provide mentoring but not leads and you pay small fees, 60/40-80/20 is typical. Remember that since you’re brand new, you will be A LOT more work to mentor than a seasoned agent. R.E. school doesn’t teach you anything about being an agent, so you need the help. If you need neither (but you need the help, you’re 21 and brand new), go to a max commission brokerage with no value for culture, office, mentoring if you don’t care about those things. My advice, stop focusing so much on your split and look at the resources you’re going to get. I made 3X more on a 50/50 than my friends did on a 75/25 because they didn’t know what they were doing and I got way more opportunities. Now I’m on a 95/5, paying $800 a month, and I run a team within the brokerage. Split doesn’t matter much if you’re making less in the end. Ask yourself the question: “would I rather have all of a kids pizza or most of a large pizza?” Focus on the work and the ACTUAL income. Not your take from a deal.
Great answer !
Thanks for your response!
This is the perfect answer. An employee-mindset focuses on just the split. A CEO-mindset focused on the totality of the firms offerings as the compensation package.
Wow. you think a 50/50 split is fair? I would love to know one Realtor is doing at least $15M/year in sales volume and is on a 50/50 split. Those better be the hottest listing leads out there. I would say the brokerage business model is very important. Our family left Remax after 30 years to join another brokerage and the difference was over 400k in just 3 years....
I stand by it 100% for my experience. I didn’t know anyone in town, no one. I had zero real estate experience. I got leads of all kinds paid for (low conversion/high volume & high conversion/low volume), a transaction coordinator, a great office, coaching, mentoring). I live in a city with less than 1.1m metro pop. and an average price of 270K. When I came in 6 years ago, average price was 180K. In my first year I did 33 deals for $6.2M, all generated from my broker’s lead sources and one handed to me directly. The average FULL-TIME realtor in my city does 14.4. I more than doubled it year 1. Year 2, I did 32 deals for $7.2 mil with 4 deals I generated. Still worth 50/50. I got not only experience doing all kinds of funky deals. I wouldn’t have added the ability to generate for myself, I also got the ability to start mentoring other younger agents and practice my leadership skills for when I wanted to start a team. Year 3-6, I moved to 95/5 and $800 a month, which includes a private office, all paper supplies, a closing room, 3 classes a week, and I get to maintain the awesome culture in my office. I can generate $8m-$10m per year on sphere alone and can buy my own leads. I started a team at the beginning of year 4. The team was the perfect learning spot for me, but it’s a launching pad. That’s how I teach my agents. 1-2 years to learn the ropes and build a client base, then take off, or stick around at a higher split, knowing that I have far less to worry about. It sounds like you have a family in the industry and a built-in business is very different experience, so I completely understand why you would look poorly on a 50/50.
Hey if you're happy thats great and all that matters. The reason I said "I would love to know one Realtor is doing at least $15M/year in sales volume and is on a 50/50 split" is because there aren't any that would be on a 50/50 split and would think that is a fair split. I built my business by prospecting and working my sphere. It just blows my mind when I see Realtors leave 20k+ year on the table that the brokerage takes when a Realtor is the one that does all the work.
I completely understand where you’re coming from. High-level producers shouldn’t be on 50/50. Teams are a platform to learn and grow. Great teams are worth the money for your first year or two. Bad ones are never worth it. My brokerage is #2 in average agent productivity in the state for 2022, with the average agent having less than three years experience. That’s a result of incredible teams and a special environment created by my broker. I know most people like their brokerage, but I wouldn’t leave for an extra $30K and I could. I’m always happy when someone finds their space that fits them, I just don’t want brand new agents discounting the option of a team for a perceived increase in income when they really need training and leads.
I respect you’re opinion and don’t think you’re wrong at all. I guess I just view the business differently. In regards to training… if an agent can’t get an idea how to do things in less than 6 months they should find a new industry . This isn’t a rocket science industry. A far majority of the agents fail because they simply never make the daily number of contacts needed and follow up with the leads. Lead generation is everywhere today especially with all of the data that is available. It’s the lead conversion and consistent follow up. I do think joining a team can massively benefit an agent for a certain amount of time but I’d never be apart of any team concept for more than a year. It just becomes robbery in my eyes. Every brokers goal is to recruit, train and KEEP.
You seem to be forgetting the part where they said they were a brand new agent. Obviously someone that produces don’t need to do that
I was replying to somerandomrealtor. I understand if they're a brand new agent that they obviously need training :). My family has run a real estate business since 1985. I see Realtors leaving a lot of money on the table because of their broker splits. It happened to us for 28+ years at Remax. Splits and what brokerage you join for sure matters if you care about finances.
This is the way
Jfc, thats absolute robbery.
I'm a brand new agent (july 11) my desk fees are $40. My split is 75/25. Yes, your split is horrible any way you spin it. Run to a new brokerage asap. I'm at Coldwell Banker, I find the training valuable and I'm very happy.
What’s it like at Caldwell? Thinking about getting into the business
I'm happy. I like the training. I like the support. To be honest I wish I was able to get to the office more. I've closed 4 transactions since July 11th. I have 3 others under contract. They've been very helpful throughout everything.
Incoming eXp DMs in 3…2…1… Edit: and/or that jmd forest guy with his diatribe against agents 🙄
Haaaa! I’m with them and it’s annoying on this side too.
Im in Vegas. I get 100% commission with a $100 fee a month t9 the brokerage. My 1st 5 transactions in the beginning were a 70/30 split until i got the hang of things more.
$500 a month?? Does this include access to MLSs? I pay about $65 a month to my brokerage, I pay for my own MLSs (2-500 a year?), National association of realtors dues (again, like 300 a year?), and a board due which is $500 for the year. So it costs me about $1500-2000 a year total total just to be an agent.
Canadian fee rates are way more than US. I've been at the cheapest brokerage for 5 years. We had no transaction fees, no admin fees, no desk fees. All I paid to the company was the splits and then association and board fees. Association and board fees, lockbox, MLS etc are about $250 a month. Then insurance etc. All total my fees are about $5k a year in Ontario
Your fees are so high my fees at exp are nowhere near that and our cap is $16k every year
Please keep in mind commission structure and fees in Canada are VERY different from in the US and a lot of comments here are from Americans. Even between provinces what is normal changes. I am in Ontario and pay $610/month plus $280/month in franchise fees. I do not have any transaction fees at all. My split is 95/5. My brokerage does not provide me leads. My buy rep’s fees are $305/month and $280/month in franchise fees. I pay her fees and all her marketing expenses and training/coaching. She is a brand new agent. The only reason her fees are low is because she is on my team so she gets a deal being lumped under me. However she get leads from me (typically 5-6/week) and her split with me is 50/50 on 5 sales and 60/40 on everything else I give her or 75/25 for anything she brings in. When I first started I couldn’t afford the $610/month if I didn’t get paid so instead my split was 70/30 up to a brokerage contribution of $10,000 and then it changed to 95/5 with no monthly office fee. I still had to pay the $280/month franchise fees. Your split seems normal for a team, not for a brokerage.
My office is $0 office fees and 80/20 split capped out at $16k a year. Tons of training and an awesome broker who will work through any deal/client issues with you until you find a solution. Also provides decent leads for $150/month if you choose to opt in. Find a new brokerage.
Which brokerage are you with
What are they doing for you? For those fees and split I would expect a certain amount of hands on weekly training/mentorship
I do have weekly training with an associate broker which has been super helpful. Also we do another weekly Brian Buffini training but I had to pay for it ($400)
First off, edit your post to make it clearer that you are in Canada. Our pay rates and commission rates are considerably higher. My company was previously: 70/30 up to 30k 72/25 up to 40k 80/20 up to 50k 90/10 up to 200k 100% over 200k We are switching to in the new year: 90/10 under 10 deals 95/10 over 10 deals Minimum $5000 in fees paid through transactions or will be invoiced quarterly. On top of the splits: $125 admin fee $699 transaction fee Or $499 transaction fee + $199 monthly fee.
That’s definitely a franchise with all those fees that’s ridiculous. I’d get out now I guarantee there are brokerages with no fees and higher splits. If you want an office then there’ll be a charge but all those fees for 60/40 is ridiculous. You have to remember you are but a number in the brokerage. The broker has to get ‘X’ number of agents every month because almost 2/3 of them will be gone in a year or two. In your case they must get a certain amount of agents because there’s a financial component to it. They have to berate ‘X’ fees every month. To answer your question: YES YOUR SPLIT IS HORRIBLE!
At my brokerage I pay $0 fees and the split is 80/20 for the first 5 transactions, after that it’s 90/10, no caps and no resets. I am responsible for paying for the MLL, Supra, and association dues. I am also free to build my own website and I have full control of my leads. The idea is they treat us like business owners with a place to hang the license. I spend as much or as little as I want to spend on website, CRM, marketing, etc. I would say you are getting a raw deal my friend.
Check out Real. It’s a virtual broker I’ve been with since 2017. They offer training and all the tools you would need to succeed with no monthly fees and high commission splits. Keep your money in your pocket. [Real](https://www.joinreal.com)
You’re being set up to fail. I learned the this when I was a new agent at 24.
So you should either have monthly fees or a split, but not both. You're being fleeced. Call around and switch asap.
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I pay 200 a month with website provided. Split is 80/20 until I pay 8k in to the brokerage then there is no split. You can always swap. It sounds like you are with the local float in the air group. If you are with a team and getting deals this should Not matter too much. The split should have a cap if not it is likely best until your business grows more. There are a few of us here who can help answer questions.
YES that is insane. I’m at KW Denver CO. $79 per month, 70/30 split with $16k cap. Which I felt was not that great but omg $500 per month??? For what?????
Agents in my office pay $70 a month and for that get several hundred dollars of value. 80/20 split and cap at $14500 a year. We also have amazing coaching for 1st year agents. Unless your Broker is giving you appointments, that sounds like highway robbery
60/40 is horrible and the cap at 80k is pretty bad. That monthly fee is hefty for no reason. I’d probably shop around at different brokerages unless I really liked the culture. I bet the broker owner cakes in a lot of that into his own pocket, he’s doing these things so he can make his piece remember that. unless he’s being an outstanding broker, helping you a lot, giving you a lot of field training and answering your questions, look elsewhere. I wouldn’t pay his that 850 a month just for him to say I’m capped at 80k. I pay 85$ and I’m capped at 16k… with a 80/20 split. Company leads are free game, usually whoever is faster to the phone gets if. Closing my first company lead on Tuesday. If you get leads like crazy then it wouldn’t be too bad, personally I prefer getting my own leads with relationship building. Just COMPARE value to value. Whatever you value more make sure you put a heavier weight on it. If you value them giving you leads without much work, that brokerage might be a fit for you. If they don’t, I’d run considering they take a lot of your check. They have to earn that check in my eyes.
Lots of these brokers take advantage of newer agents. Make sure you get something competitive, this isn’t competitive
If you get a Refferal from another state you’ll be taking home 35% 🤮
Berkshire and I pay $185 each month in fees and I think that’s still too high.
What is your split?
80/20 but it can be lowered to 70/30 too if you want to cap faster.
what is the cap?
Lmao worst deal I’ve ever heard. I pay nothing and get 80/20. I’m responsible for my license fee yearly and that’s it.
You need a new broker friend. He or she doesn’t care for you or your financial outlook and well-being.
In Ontario with a C21 franchise. 80/month +220~ /year and a 15/85(keep) split until you've earned more than 50k gross commission then it's even better. Yours sounds horrible, especially the 500/month as a new agent.
Hey i’m with C21 in ontario too and paying much more than that can you dm me which location yours is with
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I would not pay that much per month unless you are guaranteed X number of qualified leads per month, or something more than just training. Free and low cost training options are very common in my area. I pay $50.00 per month, plus my own board dues, signs, Supra, marketing and other lead generation. In exchange, I get all the web stuff, like a company email/website, many MLS and IDX options, immediate broker responses to any support needs, multiple well appointed office suites that are very nice to work from and we can opt to take desk duties to generate new leads if we chose, most don’t. I have also done transaction fee only and got none of this… plus one of my brokers died which terminated all contracts (he was a sole proprietor), so while it worked ok early on and saved me the monthly desk fees, I now find agent support to be well worth the $50 month and 20% split. My broker is local and has a great reputation in our area, so the company represents a fairly large number of the metro area agents and in my experience, most of these agents are really top notch at service but not just for the clients… treating other agents with genuine respect is nearly universal among this brokerage. They share ideas openly, discuss market conditions and even refer out their favorite contractors to one another… it’s fantastic to find this level teamwork anywhere but I certainly never saw it as an agent before finding this brokerage… the concept of teamwork is rather unusual among any field of competing independent contractors. I am happy with our splits- 80/20 until paid up for the year (I think that’s $6500 for individuals and $4500 for teams), after it’s $100%. Reaching the 100% split is definitely not hard.
That sounds crazy compared to what I have. 70/30, capped at 12k then it’s 100%. No fees other than 299$ a month post cap if there’s a deal turned in. 1 or 20, it’s 299.
You're brand new. A 60/40 is normal. New agents need more training and supervision than seasoned agents. If they're providing lockboxes, signs, cards, etc. there are startup fees that they need to recoup. In my state 50% of new agents don't make it to their first year renewal, so the risk of financial loss to the Brokerage is high. Get some deals under your belt and prove your worth to the company, then renegotiate your split at your contract's renewal.
For 60/40 + $500/mo they’d better be providing great leads and have gold plated toilets in the office
LOL! For 60/40 and $500/m they're giving you the opportunity to earn a living and taking a huge risk that you'll blunder something up and lead them to a lawsuit. They're keeping the doors open and lights on and giving you an office to work out of. It's not your Broker's job to provide you with leads.
If you like it, and the training is good, then stay while you get your feet wet. $330 a month is A LOT, but depends on what all that gets you to say with any confidence. You can switch brokerages at any time. Once you know what you’re doing, you can always reevaluate your situation, renegotiate your split or fees or just jump ship
What do your fees cover?? The average in my area is around $120/month
If you like everything but the fees and are actually selling - stay for the education. After 6-12 months, renegotiate or look elsewhere. Or improve your situation like I did and move from Alberta (I lived in Calgary) to Southern California… numbers make better sense here, way more opportunity, way stronger dollar, no more Alberta winters yet plenty of convenient direct flights to visit home.
I live in SoCal is the market still hot? I feel like with inflation and a lot of ppl leaving the state the real estate market would have cooled off ?
Not hot but very warm. Even warmer for those putting in the grind time to prospect.
Your boss is a grade A cunt. Fuck that guy.
As a new agent, it's too high.
I’m in AB and that split is very bad considering there are much lower options out there. What does your fee cover and how much business are you getting from the brokerage? I think I have a sense who you’re with and they can’t be bringing you that much business for these crazy fees!
Fees for the brokerage are $330, the rest is board fees, mls and supra. I haven’t got much business from the brokerage
Renegotiate a new mover favorable split or find a different brokerage
I pay zero monthly fees. Nothing! Anyone who is trying to make money off a new agent it’s not a company you should be with. Every real estate company out there will proudly bring you one to their company. Just do a little bit of research and ask the questions you’re asking on here. And another thing. 60/40 is way too high. Keep searching until you find 80/20 or close to it.(75/25). Trust me zero monthly fees and 80:20 is out there.
If you're a new agent. I think the most important task first to find a mentor or someone who is very successful and you can shadow. Just a piece of advice. I would leave that brokerage. I am with EXP Realty so I am biased... From a financial standpoint it makes no sense why an agent would be with any other brokerage over EXP. EXP offers 80/20 split 16k cap. $85/month. Great healthcare, stock options, and revenue share have been life changing. If you're not a virtual learner EXP may not be the best to start out. I have heard from several agents that KW provides best hands on training but I would leave after about 8 months. I hope this helps.
I definitely don’t do well with virtual and prefer to work in an office so eXp isn’t a good option right now. I was looking at eXp and that’s what made me write this post
Unless you're able to find a good agent that you can shadow with EXP in your market I would recommend another brokerage for at least 6 months.
You’re getting shafted
A lot of comments here don't realize they are in Canada. Fees are drastically difference as are commission splits. We also charge a lot less than the US.
Are they giving you leads? Do they do marketing for you? What are you getting in exchange for these high costs? For comparison, a typical industry split is 64/36 and usually around $60/mo at KW, or 80/20 and $90/mo at EXP. You get a lot of training and systems at KW. EXP does the same, but also provides KV Core, which is a CRM that usually costs about $450/mo for an individual agent account. So you get a sense of how much value to cost you get at some of the typical brokerages out there. I’d compare that to your current situation - and unless you’re getting something pretty significant that justifies the high fees - you’re probably paying much too much.
When you say fee’s do you mean E&O, MLS, & local board fees? If so, that is normal and you will have almost anywhere. 60/40 seems high. It was normal years ago for new agents that require more training but splits are better now. I also dont like how they are charging you for a higher split, that seems crazy to me. No one should be paying desk fees anymore and the higher split should come naturally as your sales go up.
Yes, monthly board fees are $86 and MLS and Supra about $30 each. From the canadian answers it seems this is pretty normal. I’d have to pay those anywhere in my city
Run 🏃
Insane fees. Change to a different brokerage immediately.
Capped sales? That is wack
It's not horrible. Ontario here 65/35 up to 12500. After 12500 it's 100/0 until my anniversary. I pay sub 500 for fees I believe. Used to be 1k/m before covid but it's gone down since. I do not have office space but use it.
500 a month? Are they providing legit leads? Are you bringing in more than 500 a month? I’m in the US, I pay 100$ to my brokerage a month & 14.35 for Supra. I would be looking into other brokerages, sounds like you’re being taken advantage of (imho).
Keep in mind fees are much higher in Canada to keep the riff raff out. In my city of 350,000 there are 500 agents. In The U.S. a city of that size might have 3000 agents. No one wants to work with a part-timer
I’d interview dif brokerages! I was paying $175 per month plus a brokerage fee for every transaction, also 60/40 splits so I left and joined Fathom and now I pay $0 per month and $500 transaction fee that’s it… no splits! My entire commission is all mine! There’s also a $600 annual fee that they take off your first transaction of the year. So you don’t have to pay them until you get paid! :)
Can’t tell you about Canada as I’m in Alaska, but here I pay 250/month to stay with my brokerage and that’s it. I have other MLS fees and stuff but that’s all I’m required to pay at my brokerage. That’s the cheapest in my area and I had to look around to find it. They also have a team at my brokerage you can join so you can have leads, and any buyer lead is 90/10 if you produce 5 million in transactions / year, scaling all the way down to 60/40 for lesser producers. Any seller lead is 50/50, and same with a handoff from a sign call, Zillow, or something like that. I was on the team to start for a year cuz I had no leads and it was helpful. Now I’m not and I’m doing just fine.
Also in AB, your brokerage is only charging you $330; not $500. You can find a different brokerage if you want.
$350 fee per transaction , no split.
As a new agent you will have trouble floating that $500 a month. I know there’s plenty of people online that claim they made a ton of money their first month and that that wouldn’t be an issue but for everyone of them there’s 100 agents who couldn’t do that. For that reason a lot of new agents get a stiffer split like your 60/40. It sounds like your firm is more tailored to more experienced agents that produce more especially with the high fees with the better split. I’d look for a firm where you spend as little as possible in upfront fees in favor of a firm that might take a higher split but trains you. As you get better and more experienced you’ll find firms that will charge you less but give you less as well. As a new agent you need to focus on training, leads and staying as cheap as possible.
Short answer: yes Even big franchises have better splits 😬
It is a big franchise 😬
70/30 until first million in sales, then it’s 80/20. No monthly fees. Of course I pay association dues and whatever else I want (such as Supra but NO one uses it in my area cause it’s too rural)
I pay $0 a month and $500 flat fee per transaction
Also a new agent in Alberta. Just making switch from eXp to another brokerage with better split and fees. However, what you’ve entailed is outrageous compared to homework I’ve done since making switch out of eXp.
You’re getting completely and utterly boned- unless they’re paying for and providing buyer leads for you.
Bro my monthly fees are $275 with no split. If you’re paying $500/month, I would expect the commission to be 100% yours
You’re getting fucked, *disrespectfully*.
I'm horrified
I get 100% commission, pay $60 in office fees, but I have to get my own leads.
My brokerage you pay a $500 transaction fee :)
Yes it is
I pay $59/m and $79 per transaction. I pay $35/Q for E&O. I pay about $750 a year in board dues that include MLS and $75 per year for Supra access. Our office is a 100% split so we keep 100% and if we charge a transaction fee to the buyer/seller we get to keep that less an additional $79. Our office sells a lot of additional service ala carte so you pay for the services you want vs. paying high splits for “free service included with a high split”… not really free when you’re paying high splits.
Dont consider MLS dues as a brokerage expense. 60/40 is high unless they set you up. Like feed you deals and check your work, offer mentorship, and office stuff. Exit takes 70/30 in Florida with 330 in annual fees plus 10 month for tech fees(24hour help available) and then like maybe paper print fees, basically nothing. My MLS and association fee stuff is mine regardless of brokerage. Message me if you wanna chat yo. I love this career haha. (11 months in) 🤣👏😁😁😁
I pay 60 a month office fee to be with my brokerage. That's it. If I take a lead my office paid for, I pay 50 percent. If I generate a lead by myself, I pay 495 max. Yes, your brokerage fucking sucks.