What "Good" Actually Means

A good commission split is one that maximizes your net income — not your split percentage. An 80/20 split with zero leads, no training, and a $500/month desk fee can easily pay less than a 60/40 split at a brokerage that provides a full CRM, leads, marketing support, and transaction coordination.

The math: 80% of $0 in assisted deals is $0. 60% of $500,000 in brokerage-referred deals is $300,000 (before the split). The infrastructure a brokerage provides is worth real money — especially when you are new.

Split Benchmarks by Career Stage

New agents (0–2 years): A 50/50 or 60/40 split is normal and fair if the brokerage provides mentorship, leads, and transaction support. Do not leave a supportive brokerage for a better split until you can generate your own leads consistently.

Mid-career (2–5 years, 10+ deals/year): 70/30 is the benchmark. You should be negotiating toward this if you are at 60/40 and closing consistently. Bring your production numbers to the conversation.

Established producers (5+ years, $5M+/year GCI): 80/20 or a cap model is appropriate. At this level, consider fee-based brokerages like RE/MAX where you pay a flat desk fee and keep 95–100%.

Cap Models vs. Percentage Splits

A cap model (like KW or eXp) means you pay a percentage until a maximum dollar amount is reached, then keep 100%. This is almost always better than a pure percentage split for agents who close enough volume to hit the cap.

Example: KW's 70/30 with a $21,000 cap vs. a boutique brokerage's 80/20 with no cap. At $200,000 GCI, KW costs $21,000 (you hit the cap). The boutique brokerage costs $40,000 (20% of $200,000 forever). KW wins by $19,000.

Model this at your exact numbers using the side-by-side brokerage comparison.

What to Ask Before Signing

Before signing with any brokerage, get answers to: What is the split and cap? What are per-transaction fees after the cap? Is there a monthly desk fee? What leads or tools does the brokerage provide? What is the E&O insurance cost? Are there any franchise or royalty fees on top of the split?

Use the annual income projector to model the full-year impact of each answer before signing anything.