100% Commission Structures in Real Estate | Are these too good to be true?

Real Estate Professionals work off of commission, so it is important to know how different commission structures work, after all it is what pays the bills.  Most traditional brokerages work off some sort of commission split where the agent will take a percentage and the brokerage will take a percentage of each transaction.  Then, what is a 100% commission structure?

Let’s talk about 100% Commission Structures.  How do they work?

Is a 100% commission model as literal as it sounds? Technically, yes.  When an agent joins a brokerage with a 100% commission model, they receive 100% of the commission with each transaction.  Typically, there is a monthly fee attached with being a part of that brokerage as well as some sort of transaction fee with each transaction. It is important to consider, as a real estate professional, what your business looks like and if it is better for your business to be on a more traditional split or a 100% commission model. 

100% Commission Real Estate Companies

There are a number of different companies in the industry that claim to have a 100% Commission Model.  There are only a few companies that have managed to do it successfully.  Realty ONE Group is ONE of the leading 100% Commission companies in real estate.  With a philosophy of encouraging agents to reinvest in their own business by putting more money in their pocket, it creates success across all avenues.  Realty ONE Group has experienced incredible growth and expansion because agents across the globe are realizing this 100% model actually works.  The monthly fee is a small sacrifice that also comes with an incredible amount of resources including:

• incredible marketing & branding with an in-house creative agency 
• Learning Management System with the best training and education in the industry 
• the latest tech and tools designed to streamline the real estate process 

Let’s discuss fees

It is important to consider that agents create their own business.  If an agent is not selling any homes, then they are not making any commission and if they are with a brokerage with a 100% model, then they are likely paying fees each month.  These monthly fees, transaction fees, and broker fees can be a lot if an agent is not compensating them with the commission from a transaction.  These fees do typically come with tools, education, and resources from the brokerage. This model is not for everyone, but for those that want to make real estate a career, have a determined attitude, passion for success, and want more money in their pocket, the 100% commission model might be the right choice.