Brokerage Costs

What Does It Cost to Join a Brokerage?

Share this:

New agents have to do a lot of work to get their real estate business up off the ground, work that can get expensive quickly. Concern over costs and income means that many new agents take only one thing into consideration when picking a brokerage: fees. While obviously important, choosing a brokerage only because it charges the lowest fees is shortsighted and often damages new agents in the long-term.

What Do Real Estate Brokers Offer Agents?

Or in other words: what do agents get in exchange for a percentage of their commission? This is a crucial question, especially for newer agents, because a good brokerage provides many value-added services that improve an agent’s skills and increase their professional mobility.

Training is perhaps the most important of these services. The classes required to get a real estate license do not teach new agents how sell houses; they teach agents to how obey the law and treat customers ethically. While crucial, this knowledge does not automatically translate into successful sales techniques. The best way to become a talented sales person is a combination of classes and working with experienced professionals. A good brokerage will give you both.

In addition to training, good brokerages also provide important, concrete things an agent requires to build their business and network like:

  • Office Space
  • Marketing and Advertising Materials
  • Networking Opportunities
  • Office Lead Gen
  • Social Media Presence
  • Administrative Staff
  • Open House Assistance

Some brokerages will offer all of these things, other offices will have a few, and some will have none. Though all these services are not required for a new agent to be successful, a combination of them gives agents the support and background they need to thrive. Before writing off a brokerage or office because of high fees, find out what that money pays for—and if it can help you.

How Much Do Brokers Charge Their Agents?

Brokers charge their agents everything from a flat fee (say $200) per commission and no monthly fees to 50 percent or more per commission plus monthly fees. If they employ different kinds of agents or a mixture of part- and full-time ones, some offices even have a few different fee structures. Let’s break this down with some real numbers.

An agent sells a $100,000 house and earns a $3,000 commission.

Here’s what the agent owes the broker in a high-split scenario:

  • 50% of $3,000 = $1,500
  • $300/month in desk fees.
  • The agent pays $1800 and takes home $1,200

This is a very high commission split and desk fee scenario. A more likely one would be a broker that takes 50 percent but pays the agent’s desk fees and provides a good amount of training or institutional support. Again, if the fees or split scenario is high, investigate how much of that money comes back to agents through value-added services.

Here’s what the agent owes with the common 70/30 split:

  • 30% of $3,000 = $900
  • $300/month in desk fees.
  • The agent pays $1,200 and takes home $1,800.

At first glance, this is a much more attractive offer than the higher split scenario above, and for some agents it will make more sense. Perhaps you excel at social media or already have previous sales experience; office advertising support might be less important to you, and you’d rather walk away with more money.

But if that higher split brings you valuable support and training, consider it. If the agent working at the 70/30 office—and one taking home more money per deal—sells five houses in a year, they earn $9,000. If the agent making less per deal sells eight, they earn $9,600. If they sell 10, they earn $12,000.

 

Bottom Line: If a broker’s fees seem high upfront, look for the kinds of value-added services that office gives its agents. If those services will help you hone your skills and build your business, it might well be worth the higher fee.

 

Stay tuned to the ZipperAgent blog for more tips and advice about building your real estate business.

Looking for a Complete Real Estate Marketing & Sales Solution?

Start For Free Book A Demo

 

Share this:
PREV

Online Ads That Get You Appointments

NEXT

5 Places Online You Need to List Your Real Estate Business

  • Hello! I just wish to offer you a huge thumbs up for your great info you have right here on this post. I am returning to your blog for more soon.

    April 28, 2020
    • Ray Stockwell
      REPLY

      Carly,

      Thank you. I hope all agents can find an agency where get rewarded for their work,

      Ray Stockwell

      July 8, 2020
  • Hi there! This article couldn’t be written any better! Going through this article reminds me of my previous roommate! He continually kept talking about this. I am going to send this article to him. Fairly certain he will have a very good read. Thank you for sharing!

    April 28, 2020
    • Ray Stockwell
      REPLY

      Rigoberto,

      Thank you for your kind words

      Ray Stockwell

      July 8, 2020
  • I simply want to tell you that I’m very new to blogs and definitely savored your web site. Probably I’m likely to bookmark your website . You surely come with beneficial stories. With thanks for sharing your website page.

    November 9, 2020
  • Whoa! This blog looks exactly like my old one! It’s on a entirely different topic but it has pretty much the same page layout and design. Excellent choice of colors!

    November 16, 2020
  • I enjoy you because of your entire hard work on this blog. My mom takes pleasure in carrying out investigations and it’s easy to see why. Many of us learn all regarding the dynamic means you create precious items by means of your web site and therefore recommend participation from other people on that concern and our own child has been discovering a lot of things. Have fun with the rest of the new year. You’re the one conducting a really good job.

    November 16, 2020
  • Very efficiently written story. It will be useful to everyone who utilizes it, including me. Keep up the good work – i will definitely read more posts.

    November 16, 2020
  • Thank you for sharing superb informations. Your site is so cool. I’m impressed by the details that you have on this site. It reveals how nicely you perceive this subject. Bookmarked this web page, will come back for extra articles. You, my pal, ROCK! I found just the information I already searched everywhere and just could not come across. What a great site.

    November 17, 2020
  • Hi are using WordPress for your blog platform? I’m new to the blog world but I’m trying to get started and create my own. Do you require any html coding expertise to make your own blog? Any help would be really appreciated!

    November 17, 2020
  • I simply want to mention I’m all new to blogging and site-building and honestly liked you’re web page. Probably I’m want to bookmark your site . You definitely come with outstanding stories. Many thanks for revealing your blog.

    November 18, 2020
  • Hello, I think your blog might be having browser compatibility issues. When I look at your website in Chrome, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, great blog!

    November 18, 2020
  • There is evidently a bunch to know about this. I assume you made certain nice points in features also.

    November 18, 2020
  • You made some decent points there. I looked on the internet for the subject matter and found most individuals will approve with your website.

    November 18, 2020
  • Awsome site! I am loving it!! Will be back later to read some more. I am bookmarking your feeds also

    November 18, 2020
  • I know this if off topic but I’m looking into starting my own weblog and was curious what all is needed to get setup? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web smart so I’m not 100 certain. Any tips or advice would be greatly appreciated. Many thanks

    November 18, 2020
  • I would like to show some appreciation to this writer just for bailing me out of such a circumstance. Just after browsing throughout the online world and finding ideas that were not productive, I was thinking my life was done. Being alive without the presence of answers to the problems you have sorted out through your entire website is a serious case, and the kind which may have in a negative way damaged my entire career if I had not noticed your blog post. Your good knowledge and kindness in controlling a lot of stuff was valuable. I am not sure what I would have done if I hadn’t discovered such a stuff like this. I can at this time relish my future. Thanks for your time so much for this high quality and sensible help. I won’t think twice to propose your site to any person who would need care on this area.

    November 19, 2020
  • Would you be excited by exchanging links?

    November 19, 2020
  • I’m really enjoying the theme/design of your website. Do you ever run into any browser compatibility problems? A number of my blog visitors have complained about my site not working correctly in Explorer but looks great in Chrome. Do you have any tips to help fix this issue?

    November 19, 2020
  • Hello there! This blog post could not be written much better! Looking through this post reminds me of my previous roommate! He always kept talking about this. I will send this article to him. Pretty sure he’s going to have a great read. Thanks for sharing!

    November 20, 2020
  • Kudos to you, We discovered something new. Thank an individual so much. I seem forward to nearby.

    November 20, 2020
  • hello!,I like your writing very much! share we communicate more about your post on AOL? I need an expert on this area to solve my problem. Maybe that’s you! Looking forward to see you.

    November 20, 2020
  • Best view i have ever seen !

    November 20, 2020
  • Can I just say what a relief to search out someone who actually is aware of what theyre talking about on the internet. You undoubtedly know the best way to carry a difficulty to gentle and make it important. Extra folks need to learn this and perceive this aspect of the story. I cant imagine youre no more standard because you undoubtedly have the gift.

    November 20, 2020
  • Best view i have ever seen !

    November 20, 2020
  • Thanks for every one of your efforts on this web site. Kim take interest in doing investigations and it’s really simple to grasp why. My partner and i know all of the lively tactic you create rewarding ideas on the blog and welcome participation from the others on that article while our princess has been being taught a whole lot. Have fun with the rest of the year. You have been conducting a glorious job.

    November 20, 2020
  • I was recommended this website by my cousin. I’m not sure whether this post is written by him as no one else know such detailed about my trouble. You’re wonderful! Thanks!

    November 20, 2020
  • I simply want to tell you that I’m new to blogging and site-building and honestly enjoyed you’re web page. Likely I’m going to bookmark your website . You certainly come with good well written articles. Cheers for sharing with us your website.

    November 20, 2020
  • Excellent and really informative blog. I really like blogs that have to do with getting ripped, so this is important to me to see what you have here. Keep it going! force factor

    November 21, 2020
  • I have been browsing on-line more than three hours these days, yet I never discovered any interesting article like yours. It is pretty worth sufficient for me. Personally, if all site owners and bloggers made just right content as you probably did, the web might be much more useful than ever before. “No one has the right to destroy another person’s belief by demanding empirical evidence.” by Ann Landers.

    November 21, 2020
  • Best view i have ever seen !

    November 21, 2020
  • Best view i have ever seen !

    November 21, 2020
  • Real informative and great complex body part of articles, now that’s user friendly (:.

    November 21, 2020
  • Best view i have ever seen !

    November 21, 2020
  • The when Someone said a blog, I am hoping that this doesnt disappoint me approximately this place. Come on, man, Yes, it was my choice to read, but I just thought youd have something fascinating to mention. All I hear is a bunch of whining about something you could fix in the event you werent too busy interested in attention.

    November 22, 2020
  • Hi there, I do think your blog could be having web browser compatibility problems. Whenever I look at your website in Safari, it looks fine but when opening in I.E., it has some overlapping issues. I simply wanted to provide you with a quick heads up! Aside from that, fantastic site.

    November 22, 2020
  • I’d always want to be update on new blog posts on this site, bookmarked ! .

    November 23, 2020
  • Good post. I learn something more difficult on completely different blogs everyday. It’s going to always be stimulating to read content material from different writers and follow a little something from their store. I’d choose to use some with the content on my blog whether you don’t mind. Natually I’ll provide you with a hyperlink in your web blog. Thanks for sharing.

    November 23, 2020
  • Nice Post. It’s really a very good article. I noticed all your important points. Thanks

    November 23, 2020
  • There is definately a great deal to learn about this topic. I really like all the points you have made.

    November 23, 2020
  • I used to be recommended this website through my cousin. I am no longer certain whether this put up is written by him as no one else realize such exact about my difficulty. You are amazing! Thanks!

    November 23, 2020
  • Keep functioning ,terrific job!

    November 23, 2020
  • I got what you intend, appreciate it for posting .Woh I am delighted to find this website through google. “Don’t be afraid of opposition. Remember, a kite rises against not with the wind.” by Hamilton Mabie.

    November 23, 2020
  • I really loved this blog post. I’ll return to see more! Thanks!

    November 24, 2020
  • of course like your website but you need to check the spelling on several of your posts. A number of them are rife with spelling problems and I find it very troublesome to tell the truth nevertheless I will certainly come back again.

    November 24, 2020
  • Having read this I believed it was very enlightening. I appreciate you spending some time and effort to put this short article together. I once again find myself personally spending a significant amount of time both reading and leaving comments. But so what, it was still worthwhile.

    November 24, 2020
  • After exploring a number of the articles on your website, I seriously appreciate your way of blogging. I saved it to my bookmark site list and will be checking back soon. Please visit my website as well and let me know how you feel.

    November 24, 2020
  • This excellent website definitely has all of the information I wanted concerning this subject and didn챠t know who to ask.

    November 24, 2020
  • Hello very nice blog!! Guy .. Beautiful .. Amazing .. I’ll bookmark your blog and take the feeds also…I am happy to find so many useful information here in the post, we want work out more techniques in this regard, thanks for sharing.

    November 24, 2020
  • Thanks for your whole hard work on this site. My daughter takes pleasure in getting into internet research and it’s really easy to see why. Most of us hear all relating to the powerful way you create advantageous guidelines through the website and as well recommend response from other ones on the topic then my child is without question understanding a great deal. Have fun with the remaining portion of the year. You have been doing a remarkable job.

    November 24, 2020
  • Hello, Neat post. There is a problem along with your website in internet explorer, could test this¡K IE nonetheless is the market leader and a good component to other people will leave out your wonderful writing because of this problem.

    November 24, 2020
  • I am interested in more information. How can I contact you? I love sucking dick btw hmu

    November 24, 2020
  • I am curious to find out what blog system you happen to be using? I’m experiencing some minor security issues with my latest website and I would like to find something more secure. Do you have any suggestions?

    November 24, 2020
  • you’re really a good webmaster. The website loading speed is amazing. It seems that you’re doing any unique trick. In addition, The contents are masterwork. you’ve done a wonderful job on this topic!

    November 25, 2020
  • I have been examinating out some of your articles and i can state pretty good stuff. I will definitely bookmark your blog.

    November 25, 2020
  • This website was… how do you say it? Relevant!! Finally I’ve found something which helped me. Kudos!

    November 25, 2020
  • Outstanding post but I was wondering if you could write a litte more on this subject? I’d be very grateful if you could elaborate a little bit further. Thanks!

    November 25, 2020
  • I needed to create you this little bit of note in order to say thanks as before for your remarkable views you’ve shown in this article. It is certainly surprisingly open-handed of people like you to deliver openly exactly what a few people could have supplied for an ebook to make some profit for their own end, mostly considering that you might well have tried it in case you decided. These principles additionally served as a good way to understand that the rest have the identical desire like my personal own to know many more with regard to this problem. Certainly there are a lot more pleasant times in the future for people who discover your blog post.

    November 25, 2020
  • I do consider all the ideas you have presented in your post. They’re really convincing and can certainly work. Nonetheless, the posts are too brief for newbies. May you please prolong them a little from next time? Thanks for the post.

    November 25, 2020
  • I enjoyed this article. I hope you continue to create more content.

    November 25, 2020
  • I haven’t checked in here for a while as I thought it was getting boring, but the last several posts are good quality so I guess I’ll add you back to my everyday bloglist. You deserve it my friend 🙂

    November 26, 2020
  • I have recently started a blog, the info you offer on this website has helped me greatly. Thank you for all of your time & work. “The very ink with which history is written is merely fluid prejudice.” by Mark Twain.

    November 26, 2020
  • Hello there, I do think your blog could possibly be having internet browser compatibility issues. Whenever I look at your blog in Safari, it looks fine however, when opening in I.E., it’s got some overlapping issues. I simply wanted to give you a quick heads up! Besides that, fantastic blog.

    November 26, 2020
  • I like what you guys are up also. Such clever work and reporting! Keep up the excellent works guys I’ve incorporated you guys to my blogroll. I think it’ll improve the value of my site 🙂

    November 26, 2020
  • I enjoy you because of your whole labor on this site. Gloria enjoys doing internet research and it’s really simple to grasp why. All of us hear all concerning the powerful form you convey great secrets through the web blog and in addition strongly encourage participation from some other people on the content and my daughter is actually understanding a great deal. Have fun with the rest of the new year. You are performing a really great job.

    November 26, 2020
  • I simply wanted to send a note so as to express gratitude to you for all of the magnificent ways you are placing here. My time consuming internet search has finally been honored with reputable information to exchange with my two friends. I ‘d mention that we visitors actually are very much endowed to dwell in a remarkable place with very many perfect individuals with good secrets. I feel pretty lucky to have used the website and look forward to many more cool times reading here. Thanks again for a lot of things.

    November 26, 2020
  • Aw, this was an exceptionally good post. Spending some time and actual effort to generate a top notch article… but what can I say… I procrastinate a lot and never manage to get nearly anything done.

    November 26, 2020
  • I’ve been exploring for a little for any high-quality articles or weblog posts on this sort of house . Exploring in Yahoo I at last stumbled upon this site. Reading this information So i am satisfied to express that I have a very good uncanny feeling I discovered just what I needed. I such a lot indubitably will make sure to don’t omit this website and give it a glance on a continuing basis.

    November 26, 2020
  • Can I simply say what a relief to uncover an individual who genuinely understands what they’re talking about on the net. You certainly realize how to bring an issue to light and make it important. A lot more people really need to check this out and understand this side of the story. I can’t believe you are not more popular because you surely have the gift.

    November 26, 2020
  • I do agree with all of the ideas you have presented in your post. They are very convincing and will definitely work. Still, the posts are too short for novices. Could you please extend them a little from next time? Thanks for the post.

    November 26, 2020
  • I will immediately grab your rss as I can’t find your email subscription link or newsletter service. Do you have any? Kindly let me know in order that I could subscribe. Thanks.

    November 27, 2020
  • You made some good points there. I looked on the internet for the issue and found most guys will consent with your blog.

    November 27, 2020
  • Hello, you used to write great, but the last several posts have been kinda boring¡K I miss your super writings. Past several posts are just a little bit out of track! come on! Pristina Hotels

    November 27, 2020
  • We are a group of volunteers and opening a new scheme in our community. Your website provided us with valuable info to work on. You have done a formidable job and our whole community will be thankful to you.

    November 27, 2020
  • hey there and thank you for your information – I’ve definitely picked up something new from right here. I did however expertise a few technical points using this site, as I experienced to reload the web site many times previous to I could get it to load properly. I had been wondering if your web host is OK? Not that I’m complaining, but slow loading instances times will often affect your placement in google and can damage your high-quality score if advertising and marketing with Adwords. Anyway I’m adding this RSS to my email and can look out for a lot more of your respective fascinating content. Ensure that you update this again very soon..

    November 27, 2020
  • I’m really enjoying the design and layout of your site. It’s a very easy on the eyes which makes it much more pleasant for me to come here and visit more often. Did you hire out a developer to create your theme? Exceptional work!

    November 27, 2020
  • Hey there! This post couldn’t be written any better! Reading through this post reminds me of my previous room mate! He always kept chatting about this. I will forward this write-up to him. Pretty sure he will have a good read. Thank you for sharing!

    November 27, 2020
  • Dreamin. I love blogging. You all express your feelings the right way, because they are your feeling, focus on your blog it is great.

    November 27, 2020
  • Nice post. I learn something totally new and challenging on blogs I stumbleupon everyday. It’s always useful to read through content from other authors and practice something from their web sites.

    November 27, 2020
  • Good – I should certainly pronounce, impressed with your web site. I had no trouble navigating through all tabs and related information ended up being truly easy to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, site theme . a tones way for your customer to communicate. Nice task..

    November 27, 2020
  • You really make it seem so easy along with your presentation however I in finding this topic to be actually one thing that I feel I might never understand. It seems too complicated and extremely large for me. I’m looking ahead for your subsequent submit, I will attempt to get the cling of it!

    November 27, 2020

LEAVE A COMMENT

Need More Information?

If you are looking for the Optimum experience on ZipperAgent, we would love to hear from you. Reach out below to discuss pricing options.

    Request For A Free Trial

    Experience for free how you can grow your business using the power of an all-in-one marketing and sales platform.

      Request For A Free Trial

      Experience for free how you can grow your business using the power of an all-in-one marketing and sales platform.