Real estate team commission splits vary but often follow a 50/50 model for team-sourced leads and 70/30 or better when agents bring their own. Agents typically share commission with both their team and brokerage, which can leave them with just 30–40% of the total.
Know what you’re giving up.
If you’re on a real estate team, you’ve probably asked that more than once. And if you’re not, you’re likely wondering whether joining one is worth it. Commission splits are often presented as standard, unavoidable, or somehow “the cost of doing business.”
But what most agents don’t realize is how much control they actually have over the structure, and the alternatives. This article breaks down exactly how commission splits work on real estate teams in 2025, what’s typical, what’s negotiable, and how to make a model work for your income, not against it.
Let’s start with how the money actually moves.
What Is a Commission Split on a Real Estate Team?
Commission splits define how the money from a real estate transaction is divided between all the players involved. When you’re part of a team, this means your share of the commission is split not just with the brokerage, but also with the team leader.
Here’s a simplified breakdown of how commission flows:
- Gross Commission Earned: Let’s say the total commission is $12,000.
- Brokerage Split: The brokerage may take a cut, often between 20%–30%.
Example: 25% brokerage split = $3,000. - Team Leader Cut: If you’re on a 50/50 team split, half of the remaining commission goes to the team.
$9,000 left → $4,500 to the agent, $4,500 to the team. - Agent Net Pay: After all the cuts, you walk away with just $4,500 on a $12,000 transaction.
If you sourced the lead yourself, or handled every part of the transaction independently, this can sting. Many agents accept it without realizing there are other models available that don’t require giving up the lion’s share.
Common Commission Split Structures in 2025
Most Popular Team Splits (And Why They Exist)
The type of split you’re offered usually reflects the value the team claims to bring:
- 50/50 Split: Standard when the team provides the lead, branding, and backend support.
- 70/30 or 80/20 Split: Common when the agent generates the lead independently. You do the heavy lifting, you get a bigger cut.
- Tiered or Graduated Splits: Some teams reward productivity. For example, agents may start at 50/50, then shift to 70/30 after 10 deals.
- 100% Commission + Flat Fees: At brokerages like Realty Hub, agents keep their entire commission and just pay a flat rate: $100/year and $100/closing. No percentages. No surprises.
What Determines the Split?
- Who provides the lead: Leads cost money. If the team generates them, they’ll take more.
- Level of mentorship and support: Coaching, accountability, and hands-on training typically reduce your share.
- Systems and tech stack: Access to CRMs, listing platforms, and automation tools can justify a higher team take.
- Marketing and branding efforts: If the team is building your reputation for you, they’ll want a piece of the action.
- Admin and transaction support: From open house scheduling to compliance management, more support = lower net.
That’s why split percentages alone don’t tell the full story. The key is what you’re getting in exchange.
What Does the Team Provide in Exchange for Their Cut?
Support That Justifies a Lower Take-Home
In theory, teams reduce your workload and increase deal flow. Here’s what they may offer:
- Lead generation through ads or paid platforms (e.g., Zillow Flex)
- Mentorship, shadowing, and real-world sales coaching
- CRM access, email automation, and listing management
- Branding, signage, and social media design
- In-house or contracted transaction coordinators
- Admin staff to handle compliance and documentation
Agent Tip: Don’t just accept a split because it sounds standard. Ask for a full breakdown of what you’re getting, and how often it’s delivered.
Because here’s the reality: Some agents pay 50% of their earnings for “support” they never actually use. Others are splitting their commission with a team leader who barely knows their clients’ names.
How Do Brokerages Factor Into Team Splits?
Team splits are only part of the equation. If your brokerage takes a cut too, you could be losing more than you think.
- Brokerage Split: Many brokerages take 20–30% of every deal, even if your team leader takes another 30–50%.
- Stacked Splits = Less for You: It’s not uncommon for agents to walk away with just 30–35% of the total commission once brokerage and team fees are deducted.
- Hidden Fees Add Up: Tech subscriptions, franchise fees, desk fees, and E&O insurance can shrink your check even further.
Key Questions to Ask Before Joining a Real Estate Team
Before joining any team, you need more than a handshake and a split percentage. You need clarity. These are the questions we encourage every agent to ask before signing on:
- Who owns the leads, you or the team? If you leave, will your pipeline come with you or stay behind?
- What happens if I want to leave mid-year? Some teams have exit fees, clawbacks, or policies that limit future independence.
- Will I still owe a split on deals I generate myself? Many agents are shocked to learn that even self-sourced business is subject to full team splits.
- How are leads distributed? Is it merit-based, round-robin, or dependent on internal politics? Be cautious if it’s unclear.
- Can I keep my personal branding? Some teams insist on unified branding, which can dilute your identity and restrict future growth.
- Are there hidden fees? Ask specifically about transaction coordination, tech stacks, E&O insurance, and marketing charges.
Should You Join a Team, Go Solo, or Use a Flat-Fee Brokerage?
| Model | Pros | Cons |
| Team | Training, leads, systems | Split commissions, limited autonomy |
| Solo Agent at Brokerage | Branding control, more freedom | High broker splits (30% or more) |
| Flat-Fee Brokerage (e.g., Realty Hub) | Keep 100% commission, total freedom | Must self-source leads |
When a Team Makes Sense
- You’re brand new and want structured mentorship
- You value external accountability and team systems
- You’re not yet ready to handle transaction logistics solo
When a Flat-Fee Brokerage Wins
- You’re generating your own business or referrals
- You want to keep more of your earnings on every deal
- You’re tired of splitting your income with people who aren’t involved in the transaction
- You want support when needed, but not forced oversight
How to Negotiate a Better Team Split (Or Leave Gracefully)
- Bring your production numbers: Data speaks louder than potential. Show what you’ve closed and what you’re on track to do.
- Ask for tiered splits based on volume: Propose earning a higher split after a certain number of closings. Performance should be rewarded.
- Clarify self-sourced vs. team-generated deals: Don’t accept full team splits on deals you’ve earned through your own network.
- Push for full transparency: Get clear on all fees, tech stacks, admin charges, E&O, marketing contributions. You need the full picture.
Planning an Exit Strategy
If the team no longer aligns with your business goals, you’re allowed to walk away. The key is doing it professionally, and protecting your business in the process.
- Back up your CRM and client database: Make sure your pipeline doesn’t stay behind when you go.
- Review listing and closing obligations: Know what you’re contractually responsible for finishing.
- Communicate in writing: Be respectful but firm. This is your business, own it.
The Best Commission Split Is the One That Works for You
There’s no universal answer to what a “fair” split looks like. It all depends on how you run your business, and how much control you want over your income.
Your split should reflect:
- How much support you actually receive
- How much risk you take on
- What kind of freedom you want as an agent
Challenge the idea that “this is just how it works.” Because it doesn’t have to.
Ready to Stop Splitting Your Commission?
If you’ve made it this far, one thing is clear, you’re not looking to settle for less. You want to keep more of what you earn. You want systems that work, without layers of red tape. You want your business to be yours.
That’s exactly why Realty Hub exists. Our model:
- 100% Commission Model: You keep every dollar. You only pay $100 per year and $100 per closing.
- No Franchise Fees, No Splits, No Quotas: You’ll never give up a percentage of your check, ever.
- Support When You Need It, Freedom When You Don’t: Get access to tools, compliance help, and broker support without micromanagement.
Realty Hub is perfect for:
- Agents tired of giving up commissions for leads they don’t receive
- Professionals ready to own their brand and business
- Referral agents and part-timers looking for maximum flexibility
- Experienced agents who want to reduce overhead and scale profit
Isn’t it time you kept what you earned? 👉 Explore how Realty Hub works