That’s Right, 100%. You keep all of the commissions you earn while only paying $250/mo to the brokerage. That’s a cap of only $3,000 per year!
But Jon, how can you afford to pay a 100% split?
The answer, by reducing overhead. The day for the brick & mortar brokerages is coming to an end. Don’t get me wrong, they will still be around for years to come, but the industry is changing and they will either adapt or die. According to the National Association of Realtors 93% of buyers start their search online before ever contacting a Realtor.
When I first started in 2005 I worked for a legacy brokerage that has been in the business for three generations. This was back in the days where there was no MLS and we all shared listings by faxing them to each other and keeping paper copies in a three ring binder. I was the low man on the totem pole when I started. I did the best I could but it became apparent real quick that my career was not going to advance unless I made a change. I went to go work at another brokerage where I was a little higher up the totem pole and I finally met the requirements to get my own broker’s license.
I started my own brokerage in 2011 because I was tired of paying a 50/50 split to my previous brokerages for little if any real value being provided by them. All I was doing was making my brokers a lot of money.