COMMON MISCONCEPTIONS
ABOUT 100% COMMISSION REAL ESTATE BROKERAGES

100% commission real estate brokerages offer a great way for realtors to keep their entire commission for themselves. But apart from this fact, there is a lot more to know about the 100% commission model. By debunking common misconceptions about it and the brokerage firms using them, you can have a clearer understanding of what it really is and what it is not.


  • Misconception #1: The 100% commission model is “new.”

This model has only gained popularity with realtors in commercial and residential industries in the last 10 years or so, but it was actually designed many decades ago. Now that newer technologies have been developed, brokerages are more willing and able to implement a 100% commission model effectively for their agents. They can do almost all transactions online, minimizing the office-related overhead.

  • Misconception #2: You don't really get 100% of your commission.

This is true in a sense, especially if you are using your commission money for paying the monthly or annual membership fees and transaction fees. However, technically speaking, this is a misconception. You get 100% of your commission because there is no split.

  • Misconception #3: Brokerage firms provide lesser support to real estate agents.

Another common misconception is that brokerage firms charge monthly fees and transaction fees to let you use their names—and provide nothing more. This is only true for opportunistic brokerages that just want to get money from realtors. It’s certainly not true for reputable firms. That's why it is necessary to look into the policies of the agency before signing up. The best ones let you access tools and resources that will help boost your sales. While they function differently from traditional brokerages, they can provide training and assistance to you.

  • Misconception #4: The 100% commission model is suitable for every realtor.

The growing number of successful agents is one of the reasons why 100% commission brokerage firms became popular. Nevertheless, it is not an option for every realtor. If you are not willing to take initiative and use the educational tools provided to you by your broker, then this model may not be for you. Even if you are new to real estate, if you are willing to put in some time to talk with your broker and figure out how you want to promote yourself, this model will work for you.