70/30 vs. 80/20 vs. 100% Commission: Which Real Estate Brokerage Model Makes You More Money?

Compare 70/30, 80/20, and 100% real estate commission models. See how different brokerage structures affect what agents actually keep.

When choosing a real estate brokerage, one of the biggest decisions you'll make is how your commission is divided.

Some brokerages operate on a 70/30 split. Others offer 80/20 arrangements, commission caps, or a 100% commission model with transaction fees.

At first glance, the differences seem straightforward. But when you look at how those percentages affect your earnings over an entire year, the numbers can become much more meaningful.

So which structure makes the most financial sense for your business?

How Traditional Real Estate Commission Splits Work

Under a percentage-based brokerage model, an agent shares a predetermined portion of their commission with their brokerage.

For example, imagine earning a $10,000 commission on a closed transaction.

Here's how that money would be divided under three different models:

Under a 100% commission model, the brokerage typically earns revenue through transaction fees, monthly fees, or another established fee structure instead of a percentage split.

That means agents may retain significantly more of each commission, depending on their production and the applicable fees.

What Happens When You Close 10 Transactions?

One transaction tells part of the story. A year of production tells much more.

Let's assume an agent generates $100,000 in gross commission income through 10 transactions, with each closing producing an average of $10,000 in commission.

Here's how the annual figures compare.

Under a 70/30 arrangement, the brokerage receives $30,000. Under an 80/20 split, that amount drops to $20,000.

With 100% commission, there is no percentage split, but brokerage fees still apply.

If the 100% brokerage hypothetically charges $350 per transaction and $100 monthly, that would total $4,700 annually. The agent would retain $95,300 before other expenses.

In this example, that is $15,300 more than an 80/20 model and $25,300 more than a 70/30 model, assuming the percentage-based brokerages charge no additional fees.

These comparisons are illustrative, and actual brokerage fees and services may differ.

What About Commission Caps?

Some traditional brokerages offer commission caps.

A cap establishes the amount an agent contributes through commission splits before moving to a different compensation arrangement, often with additional transaction or administrative fees.

For example, a brokerage might cap an agent's annual split contributions at $20,000.

That can make a meaningful difference for higher-producing agents. However, it's important to understand when the cap resets, which transactions count toward it, and what fees remain after reaching it.

A capped model can be competitive. It simply needs to be evaluated using the full annual cost instead of the advertised split.

Is 100% Commission Always the Best Option?

Not necessarily.

A new agent receiving hands-on mentorship, company-generated leads, or extensive transaction support might find value in a traditional split, particularly when those services help them generate business they wouldn't otherwise have.

An established agent generating most of their own leads may evaluate that equation differently.

If you're already building your own database, finding your own clients, and managing much of your business independently, sharing a percentage of every commission may become a significant expense.

The best commission structure is the one that supports both your financial goals and the way you actually operate.

What Makes Homestead Realty Different?

At Homestead Realty, our 100% commission structure is built around a straightforward philosophy: agents should have the freedom to grow their businesses without giving up an ongoing percentage of every commission.

We pair that independence with resources designed to help agents succeed, including broker accessibility, continuing education and training opportunities, marketing services, and technology options.

You don't have to choose between retaining your commission and having a brokerage behind you.

We believe you can have both.

Compare Your Numbers Before Your Next Closing

Your commission split is one of the most important financial arrangements in your real estate career.

Before accepting another year of the same fee structure, calculate what you paid your brokerage last year.

Then ask whether another arrangement could provide the services you need at a more sustainable cost.

Your production deserves a compensation structure that works for you.

Curious how your current split compares to Homestead Realty?

Explore our 100% commission model and connect with our team for a personalized look at the numbers.

Learn More About Joining Homestead

Examples are hypothetical and exclude taxes, referral fees, business expenses, and any additional charges not identified. Commission rates paid by clients are independently negotiable and are not set by law.