More experience means more money when it comes to splits

What is the Average Commission Split for a Real Estate Agent?

Compensation plans vary, but the average commission split for a real estate agent is 50%. Both Travis Robertson and Claudi Restrpo, real estate specialists recommend 40%. As a broker, you have to determine what’s fair and affordable for your business.

An average commission split for a real estate agent is determined by their education, services provided, volume of business the agent provides, and qualifications. The broker pays expenses and fees to run the business, while the agent generate revenue. The broker provides training and tools for the agent to be successful. Often time success is determined by the willingness to put in the work.

More means more

The more highly productive and proactive agents often generate higher commission splits. Ultimately, the more he or she advertise, promote and convert leads to appointments, the higher their chances of generating a greater commission split. The average commission split of 50% ensures each party is getting equal pay.

Moreover, the 40% mentioned by Robertson and Restrepo is a great number.  You have to think about it this way: the broker has all the responsibilities and expenses. By the time all their expenses are paid for, their revenue isn’t going to be equal. It will be less. In my opinion, the average commission split for a real estate agent should be 40%. They are responsible for their own success and failures. The platform and training is already provided for them. All the agent has to do is be attentive, optimistic, and a team player.

Sticking with brokers

Strangely enough, the broker is responsible for paying the listing specialists, managers, and other advertising tools to the run the business. The agent could get 100% if they work independently without the broker, but that would require them to do all the work, pay all expenses, and close the deal. All of that can be overwhelming, that’s why most people prefer to work in with a broker.