Real estate agents work under a licensed broker but operate as independent contractors. Some join companies; others choose flat-fee brokerages to maximize income. Agents can also work referral-only or open their own brokerage with experience.
For new or experienced agents, the bigger question becomes: what kind of brokerage structure gives you the freedom, income, and control you’re looking for?
Traditional brokerages often require agents to give up 20% to 50% of their commission, pay franchise fees, cover office costs, and follow strict quotas. For many, those fees and restrictions become the biggest obstacle to earning a livable income, especially in the first year.
At Realty Hub, we built a model that eliminates these burdens. With a simple flat-fee structure, just $100 per year and $100 per transaction, you keep 100% of your hard-earned commission.
If you’re ready to break free from outdated brokerage models, this article will show you exactly how today’s real estate world works, and which model can help you build a business on your own terms.
If you want the full breakdown, keep reading.
Are Agents Employees or Independent Contractors?
Real estate agents are not company employees in the traditional sense. Legally, every agent must operate under the supervision of a licensed real estate broker, but they do so as independent contractors. This means agents:
- Set their own hours
- Source their own clients
- Pay their own taxes and expenses
- Control how and where they work
The broker’s role is to provide oversight, ensure legal compliance, and step in when issues arise. For everything else, from marketing and lead generation to client negotiations, the agent is entirely self-driven.
That’s why choosing the right brokerage model is critical. It can determine how much autonomy you really have, how much money you keep, and how sustainable your real estate career becomes.
The 3 Models of How Agents Work
1. Traditional Brokerage Employment Model
The traditional model, still used by many national brands, revolves around commission splits, usually 70/30 or 80/20, sometimes even less favorable for new agents. Here’s how it works:
- You split your commission with the brokerage.
- You may pay additional franchise, desk, or tech fees.
- In return, you get access to branded tools, formal in-person training, and sometimes office space.
This model can work well for agents who are just starting and want heavy mentorship, but many quickly find the high overhead and split fees unsustainable as they grow.
2. Flat-Fee or 100% Commission Brokerages
This model flips the script. Instead of giving away a percentage of every sale, you:
- Keep 100% of your commission
- Pay a low flat fee per year and per transaction
- Operate with full independence, while staying legally compliant
At Realty Hub, our agents pay just $100/year and $100/transaction. There are no hidden fees, no quotas, and no unnecessary meetings. You decide how much you want to work, and you keep what you earn. This model is ideal for experienced agents, part-timers, and even high producers who want a leaner business structure.
3. Referral-Only and Part-Time Options
Some agents want to keep their license active without actively working deals. That’s where the referral-only or part-time path comes in:
- Stay licensed and earn passive income by referring clients to active agents
- No MLS or association dues in many cases
- Perfect for semi-retired agents, investors, or those focused on other careers
At Realty Hub, we support this model with full flexibility, no restrictions, no pressure. Just the ability to use your license your way.
Broker vs. Agent vs. Realtor: What’s the Difference?
Let’s break down three often-confused terms:
- Agent: A licensed real estate professional who must operate under a broker.
- Broker: Holds a higher-level license and can supervise agents or run their own independent firm.
- Realtor: A member of the National Association of Realtors (NAR), which is optional in many states and markets.
At Realty Hub, our agents are not required to join NAR unless they choose to. That flexibility saves hundreds, sometimes thousands, per year, especially for part-time or referral-only license holders.
Where Do Real Estate Agents Make the Most Money?
Your income as an agent depends more on market volume and your business model than location alone. That said, agents in high-value markets, like New York, California, Florida, and Texas, often earn more due to:
- Higher home prices (same commission %, bigger checks)
- Greater transaction volume in hot metro areas
- Faster-growing networks and referral opportunities
However, how much you keep matters just as much as how much you sell. Agents at traditional brokerages may give away 30-50% of every check. Flat-fee agents, like those at Realty Hub, maximize every transaction by keeping their full commission.
Can You Work on Your Own as an Agent?
Short answer: not unless you’re a broker.
To legally handle real estate transactions, every licensed agent must affiliate with a brokerage. But this doesn’t mean giving up your independence. As an agent, you:
- Must operate under a broker’s license
- Cannot conduct deals fully solo
- Can choose a brokerage model that gives you freedom without hand-holding
If you want to work entirely on your own, with no broker involved, you’ll need to get your broker license, which comes with additional education, testing, and legal responsibility.
At Realty Hub, we bridge the gap. Our flat-fee structure offers full autonomy, legal compliance, and low overhead, no office quotas, no forced branding, and no commission splits.
Tips & Tricks for BuildingYour Real Estate Business
- Choose a brokerage with real support, not just a brand. Look for availability, clarity, and a culture of responsiveness.
- Think creatively about lead generation. Uber passengers, local events, small business partnerships, your next deal could be a handshake away.
- Treat taxes seriously. As a 1099 contractor, you’ll want to set aside 25–30% of your earnings and track every deduction.
- Invest in smart tools early. A reliable CRM and e-signature software can save hours, and headaches.
- Don’t ignore referral work. You don’t need to close every deal yourself to earn. A referral network can provide steady, passive income.
Which Business Model Fits You?
There’s no universal “best” brokerage, only the one that aligns with your goals.
- Want strong branding and structured training? Start with a traditional brokerage.
- Want control, low fees, and full income? Go with a flat-fee model like Realty Hub.
- Just want to stay licensed for occasional referrals? A referral-only path is ideal.
The beauty of modern real estate is you have options. And at Realty Hub, we’re proud to support all three paths, without pressure, quotas, or surprise fees.
Stop Splitting Your Commission. Start Building Your Business.
Most agents sign with a brokerage because they think they have to. But here’s the truth: you are the business. You find the clients. You close the deals. You do the work—so why give away a cut of your commission?
At Realty Hub, you don’t.
We built our flat-fee model for agents who want freedom, not hand-holding. Here’s what you get:
- 100% Commission: Just $100/year and $100/closing. No splits. No surprises.
- No Desk Time. No Meetings. No NAR Dues: Stay active without the politics or pressure.
- Broker Support, On Your Terms: Help when you need it, space when you don’t.
Full-time, part-time, or just getting started—if you’re ready to run your business your way, Realty Hub has your back.
👉 Join Realty Hub today and keep more of what you earn.
FAQ: Common Questions New Real Estate Agents Ask
Can I negotiate my first commission split?
Absolutely. While many brokerages advertise fixed splits, there’s often room to negotiate, especially if you bring potential volume or prior experience. Don’t just accept the first offer. Ask what support they include in return.
Do I need to join a Realtor association?
It depends on the brokerage. Some require NAR membership (and its associated fees). Realty Hub doesn’t. We support agents whether or not they join NAR, saving you hundreds per year and giving you flexibility.
Will my brokerage give me leads?
In most cases, no. Lead promises are often sales tactics. Brokerages may offer lead systems, but these are typically recycled, low-quality, or tied to aggressive upcharges. Building your own pipeline is more sustainable.
What about legal liability?
Your broker provides oversight and ensures your transactions meet state standards. But make no mistake, if you botch a contract or miss a disclosure, you could still be liable. That’s why Realty Hub emphasizes “compliance first” and offers responsive broker support when you need it.
Will I make enough in year one?
Many agents don’t. Between license fees, MLS dues, startup marketing, and long closing cycles, your first year is about survival and momentum. That’s why it’s critical to keep more of your commission and reduce overhead where you can.
