How broker splits work, what the most common structures cost you, and when to negotiate a better deal. With examples for every split type.
| Split Type | Agent Keeps | Broker Gets | Best For |
|---|---|---|---|
| 70/30 Split | 70% | 30% | New agents, full-service brokerages |
| 80/20 Split | 80% | 20% | Mid-career agents with track record |
| 90/10 Split | 90% | 10% | High producers, experienced agents |
| 100% Commission | 100% | $0 per deal | Independent agents (pay desk fee/month) |
| Tiered Split (capped) | Escalates to 100% | Reduces to 0% at cap | Volume-focused agents |
Let's say you generate $150,000 in gross commission per year. Here is your take-home at each split:
| Split | You Keep (of $150K gross) | Broker Gets | Annual Difference vs 70/30 |
|---|---|---|---|
| 70/30 | $105,000 | $45,000 | Baseline |
| 80/20 | $120,000 | $30,000 | +$15,000 |
| 90/10 | $135,000 | $15,000 | +$30,000 |
| 100% (with $600/mo desk fee) | $142,800 | $7,200 (desk fees) | +$37,800 |
Many brokerages offer a split that escalates as you produce more volume. A common structure: 70/30 until you pay the broker $20,000 in a calendar year (the "cap"), then 100% commission for the remainder of that year. Once you reset at the start of the next year, you return to the base split.
Example: Agent generating $250,000 gross commission annually. At 70/30, broker cap is reached when the agent pays $20,000, which occurs at $66,667 in gross commission. The remaining $183,333 in gross is kept at 100%. Total take-home: $46,667 (70% of first $66,667) + $183,333 = $230,000.
100% commission plans sound attractive but come with fixed costs regardless of production. Typical fee structures include monthly desk fees ($400–$1,500/month depending on the brokerage and market), per-transaction fees ($200–$500 per closed deal), technology and MLS access fees, and errors and omissions (E&O) insurance premiums. For agents closing fewer than 10 deals per year, these fixed costs may exceed what they would pay at a traditional split. High producers (20+ deals per year) almost always benefit from 100% plans.
Negotiation Tip: The best time to negotiate your split is after a strong production year. Arrive with your gross commission total, unit count, and average sale price for the past 12 months. Most brokers will negotiate when presented with data. A 5-point improvement in your split (from 75% to 80%) on $100,000 gross saves you $5,000 annually with zero extra work.