For many agents, the phrase “100% commission” feels like winning the real estate lottery. The idea of keeping every dollar you earn from a deal, without splitting it with your broker, sounds too good to pass up. But while the concept is simple, the structure behind it isn’t always clear. This article breaks it all down, how it works, what it really costs, and whether a 100% commission model is the right fit for your business.
First, Let’s Define It: What Is 100% Commission?
A 100% commission brokerage allows agents to keep the full gross commission they earn from a real estate transaction. There’s no traditional split like 70/30 or 80/20 where a significant percentage of your commission goes back to the brokerage.
If you close a $10,000 deal, you keep all $10,000.
But that doesn’t mean it’s free to hang your license. Instead of taking a percentage, these brokerages charge a flat fee, commonly $100 to $500 per transaction, or a low monthly or annual fee to stay active under their brokerage. It’s a different way of covering the brokerage’s operating costs without cutting into your commissions.
How 100% Commission Brokerages Actually Make Money
The math might sound magical at first, but brokerages still need to generate revenue. Instead of collecting a slice of every deal, they make money in other ways:
- Flat transaction fees: This is the most common model. Agents pay a fixed fee per closing, often between $100 and $500.
- Annual or monthly brokerage fees: Some firms charge a small monthly or annual membership fee to keep your license active and cover ongoing overhead.
- Tech, admin, and insurance charges: Costs like transaction management platforms, CRM access, and Errors & Omissions (E&O) insurance may be billed separately or bundled in. It varies widely between firms.
This is where many agents get cautious.
What hidden fees should I watch for? It’s a smart question, and one that should always be asked before signing. Some brokerages tack on compliance fees, onboarding fees, marketing subscriptions, or processing charges that quickly add up. Transparency is key.
Common Fees You Might Still Pay
While 100% commission means you keep the full check, that doesn’t mean you won’t have costs. These brokerages still need to cover operations, just through flat-rate fees rather than percentage splits.
Transaction Fee
Each closed deal usually comes with a per-transaction fee. This can range from $100 to $500, depending on the brokerage. It’s a straightforward cost that replaces the traditional commission split, and can result in major savings for high-producing agents.
E&O Insurance
Errors and Omissions (E&O) coverage is required in every transaction. Some brokerages include this in your annual or transaction fee, while others charge it separately, sometimes even requiring full-year premiums upfront. Either way, this coverage protects you from legal and financial fallout if something goes wrong in a deal.
Monthly Desk or Admin Fees
Although less common in fully virtual firms, some brokerages still tack on monthly fees for admin support, tech access, or legacy systems, even if you’re not closing deals. It’s worth confirming whether you’ll be billed monthly or only per transaction.
Annual Membership Fee
This covers your ongoing affiliation with the brokerage. At Realty Hub, our model is simple and transparent: $100 per year to maintain your license, and $100 per closing, no surprises, and E&O insurance is included.
Who Is 100% Commission Really For?
This model isn’t for everyone, and that’s a good thing. It’s built to empower agents who already know how to manage their business, market themselves, and close deals without relying on corporate training programs or hand-holding.
- Independent, experienced agents who want to maximize income while minimizing overhead
- Referral-focused agents who do occasional deals and prefer to keep costs low
- Part-time agents or investors who don’t want to pay franchise or REALTOR® dues
- Agents building a personal brand, rather than promoting a brokerage name
New Agent? Read This Before You Join a 100% Firm
If you’re newly licensed and considering going straight into a 100% commission model, take a pause. While the earning potential is real, so are the gaps in support. Many firms in this space offer limited onboarding, inconsistent mentorship, and very little compliance coaching.
Some newer agents have joined thinking they’d receive step-by-step training, only to discover they were completely on their own after signing up.
If you’re new to real estate and still building confidence, consider pairing with a brokerage that offers hybrid options: a flat-fee model with real access to broker support, compliance review, and community. That’s exactly what we’ve built at Realty Hub.
Pros of the 100% Commission Model
Keep More of What You Earn
The most obvious benefit is right in the name: you keep the full commission. There are no recurring 70/30 or 80/20 splits siphoning away your income, and no franchise or desk fees stacked on top. This model is built for agents who want to keep what they’ve earned and grow their own business.
Greater Autonomy
You’re in charge of your branding, workflow, and client experience. That freedom can be empowering, especially for agents ready to build something that reflects their voice and vision, not their brokerage’s. You decide how you operate.
Flexibility for Part-Time or Referral Agents
Not every agent wants to chase volume. For referral-only or dual-career agents, the 100% commission model is a smart, low-cost way to stay licensed and generate income without being burdened by traditional brokerage obligations or REALTOR® association dues. At Realty Hub, we specifically support this kind of flexibility.
Scalable for High Producers
If you’re closing five or more deals a year, the math quickly works in your favor. The more you sell, the more you keep, and the flatter your effective cost becomes.
Potential Trade-Offs and Risks
Less Support for New Agents
Most 100% commission brokerages aren’t structured to train you from scratch. There’s no daily office presence or built-in mentorship program unless you seek it out, or pay extra. This can leave new agents navigating contracts, listings, and negotiations alone.
You’re on Your Own for Marketing
You’ll be responsible for your own website, CRM system, ads, business cards, and signage. Some brokerages offer tech tools à la carte, but they’re rarely included in your base fee. Think of it like this: you’re the CEO of your own company now.
Compliance Responsibility
Without regular compliance checks, the margin for error is bigger. It’s up to you to make sure contracts are correct, timelines are met, and all state requirements are followed. A good broker can help, but many aren’t proactive about catching issues unless you ask.
Lack of Office Culture or Broker Presence
If you’re motivated by collaboration or on-site accountability, the virtual model may feel isolating. You’ll be relying on email, Zoom, or agent-only Facebook groups instead of in-person office visits.
5 Red Flags to Watch Before Joining a 100% Brokerage
While the idea of keeping all your commission is appealing, not every brokerage delivers on that promise with transparency. Here are five warning signs to look for:
Lack of Transparency on Fees
If the brokerage can’t clearly explain their cost structure, or avoids putting it in writing, you may be facing hidden charges later. Always ask for a detailed fee breakdown before you sign.
No Access to a Broker or Compliance Help
A flat-fee model doesn’t excuse unresponsiveness. You should have access to a broker who can answer questions, review documents, and help you stay compliant. If the support feels distant now, it won’t magically improve later.
Hidden Tech Costs or E&O Premiums
Some brokerages offer “a la carte” tech, E&O insurance, or transaction tools, but don’t mention that they’ll charge extra until after you’ve joined. Confirm what’s included and what isn’t.
Poor Mentor Structure
If mentorship is offered, who provides it? Is it paid, voluntary, or required? Some brokerages assign mentors with little vetting or oversight, and it can do more harm than good.
Locked CRMs That the Broker Owns
If your leads and contacts live inside the brokerage’s tech platform, ask what happens if you leave.
Is 100% Commission Right for You?
The 100% commission model is powerful, but it’s not plug-and-play. You need to assess where you are in your career and what level of support you truly need.
- If you’re experienced, self-managing, and ready to grow your brand, this model can dramatically increase your income and independence.
- If you’re new to the business or prefer hands-on coaching, you may need to find a hybrid firm or team that can fill in the gaps.
If you’re ready to stop splitting your commission and take control of your business, Realty Hub’s flat-fee model might be your next move.