Why Commission Splits Don't Tell The Whole Story

A real estate team leader explains why commission splits alone don't determine what agents actually earn. Strong administrative support lets agents close more deals and make more money, even with lower splits than competitors.
The whole industry focuses on commission splits for the most part. And I think that's where the initial, the. I think it can go wrong, you know, just, just based on that being the only, the only measure. You know, the team that I ran before I exited, you know, real estate altogether last year, we had the lowest splits of any, any available option out there. You know, by, by like 15, 20%. You know, we were at about 73, 74% gross margin. After we paid our, our brokerage and paid our inside sales and outside sales and showing agents, everyone was paid, you know, about 24, 25% or so. And so how could you possibly run a business, you know, with, with those splits? And our agents were still taking home more money than most agents, you know, running an individual business for sure. But even in other team environments. And, you know, I think a lot of it comes down to the administrative support. You know, some of these traditional teams there, there's really not this level of administrative support. Where is there, you know, are there systems in place but, but actual administrators or even VAs that are responsible for taking off of the agent's place as much as possible that, you know, can be done for someone who's willing to make 20 to 25 bucks an hour. Most salespeople want to make, you know, anywhere from 60, 75 to 100 plus dollars per hour. You know, you work a 3000 or even 2500 hours in a year, you know, and you want to make multiple six figures, you better make sure that you're on a team that is providing those administrative services.










