A complete guide to how commission splits work, the most common structures, where the hidden costs hide — and how flat-fee brokerages have changed the math.
A real estate commission split is the agreement between an individual agent and their brokerage that defines how the commission earned on each closed transaction is divided between them. The brokerage takes a percentage; the agent keeps the rest.
Splits are written as two numbers — for example, 70/30 means the agent keeps 70% and the brokerage keeps 30%. The first number is always the agent’s share.
Common for brand new agents. The brokerage takes 40%–50% of every commission to cover training and supervision costs.
The most common range for mid-career agents at traditional brokerages. Brokerage takes 20%–30% of every commission.
Reserved for experienced, high-volume agents — often requires hitting a transaction count or revenue threshold.
You pay a split (e.g., 80/20) until you hit an annual cap (e.g., $16,000 paid to brokerage), then you keep 100% for the rest of the year. Resets each year.
Your split improves as you close more deals during the year — e.g., 70/30 for the first 5 deals, 80/20 for the next 5, 90/10 after that.
No split at all. You keep 100% of every commission and pay the brokerage a fixed flat fee per transaction. Gromadzki: $499/deal.
Splits sound straightforward, but the math compounds quickly. Here’s what 70/30 looks like over a real year of production:
| Deal # | Gross Commission | 70/30 Split (Agent Keeps) | Gromadzki $499 (Agent Keeps) |
|---|---|---|---|
| 1 | $8,000 | $5,600 | $7,501 |
| 2 | $12,000 | $8,400 | $11,501 |
| 3 | $15,000 | $10,500 | $14,501 |
| 4 | $22,000 | $15,400 | $21,501 |
| 5 | $9,000 | $6,300 | $8,501 |
| 6 | $18,000 | $12,600 | $17,501 |
| 7 | $11,000 | $7,700 | $10,501 |
| 8 | $14,000 | $9,800 | $13,501 |
| 9 | $25,000 | $17,500 | $24,501 |
| 10 | $10,000 | $7,000 | $9,501 |
| Year Total | $144,000 | $100,800 | $139,010 |
Difference: $38,210 kept in the agent’s pocket over a single year. Run your own numbers in the calculator.
Commission splits originated when brokerages were physical operations with real estate offices, in-house transaction coordinators, paper file rooms, and salaried managing brokers. The split funded the brokerage’s overhead — rent, signage, secretaries, advertising — in exchange for letting agents operate under the brokerage’s license.
Modern brokerages don’t need most of that overhead. A flat fee covers compliance, broker oversight, technology, and support — without the physical office costs that drove the original split model.
Many traditional brokerages advertise a cap: “Pay 30% until you’ve given us $16,000, then keep 100% for the rest of the year.” This sounds agent-friendly, but it has three big catches:
At Gromadzki Real Estate, there is no cap — because there is no split. You pay $499 per closed deal and keep 100% of everything else, from deal one of the year through deal one hundred.
Honest take: a traditional split brokerage may make sense if:
For everyone else, a flat-fee 100% commission brokerage is usually the better math.
Join Gromadzki Real Estate — Florida's 100% commission brokerage. $499 per closed deal. $0 monthly. Zero splits.
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