Pros & Cons of a 100% Commission Brokerage?

100% commission may sounds like a pipe dream but it’s becoming a reality for more & more Realtors in America. The traditional model was a fantastic model in the past, when buyers sought out a big brokerage name as they began their home search.  Therefore in the past, a brokerage could justify charging high fees due to the money spent marketing the brokerage name and the necessity for an agent to be affiliated with that name.

In today’s world, buyers are shopping for individual agents and the brokerage doesn’t typically factor into their decisions.  However traditional brokerages are still charging the same fees that they charged 40 years ago.  Until recently, agents didn’t have much choice but to keep paying those fees.  Now the 100% commission model is offering a new option!  

To learn more about what 100% commission models mean, please click here.  If you’ve already decided that 100% commission is right for your real estate career then keep reading to learn a bit about what to look for when choosing your next brokerage.

What Should You Look For In Your New Brokerage?

1. Costs

Most 100% commission real estate brokers charge a version of similar fees.  Typically you will find an annual fee and a transaction fee per closing.  If you’re a high producer, then the transaction fee will be most relevant – you’ll want to make sure it’s either low enough to make sense for you, or has a “cap”.  If you’re newer in the business, then the annual (or sometimes monthly) fee will be most relevant. 


How much money does 100% commission really save me?

Let’s compare a typical 60/40 split model with 100% commission. We’ll assume you sell 1 average priced house and the commission is $7,500.

Traditional Model

  • 60/40 commission split = $3000
  • Transaction Fee ($295/closing) = $295
  • Your Take Home = $4250

100% Commission Model

  • Transaction Fee ($250/closing) = $250
  • Your Take Home = $7250

Now let’s compare if you sell 8 of those homes per year, for a total of $60,000 in commissions.

Traditional Model

  • Monthly fee ($150/mth) = $1800/yr
  • 60/40 commission split = $24,000
  • E&O Insurance = $595
  • Transaction fees ($295/closing) = $2360
  • Total Fees = $28,755
  • Your Take Home = $31,245

100% Commission Model

  • Affiliation fee = $3,000/yr
  • Commission split = 0
  • E&O Insurance = $395
  • Transaction Fees ($250/closing) = $2,000
  • Total Fees = $5,395
  • Your Take Home = $54,605

What About Teams?

Many team leaders struggle to find a successful model which does not overcharge AND which allows them to recruit and retain good agents. In a traditional brokerage model, the brokerage has a disincentive to build teams. They make 2-4x more money from single agents than team agents.  

With the 100% commission model, the brokerage nets the same amount regardless of whether an agent is team or individual. Therefore the brokerage will help teams recruit if requested and will suggest that prospective new agents join a team when it appears to be a good fit for both.

All 100% Commission models are not created equal.

Other 100% commission brokerages may run on a bare-bones platform. They don’t offer any support, services or training and have a philosophy that “we don’t charge you much, you don’t ask us for much.” They often charge a high monthly fee and/or a high transaction fee which doesn’t cap.

Big Block Midwest’s Philosophy

At Big Block Midwest, we believe a 100% commission model should also provide 100% of the support you want, 100% of the training you need and 100% great people to work with!  Our dedicated Agent Concierge will help you getting your business set up & running, schedule showings, input & maintain your listings, help order signs, troubleshoot technical issues and generally do whatever they can to help you succeed.

Rather than provide a one-size-fits-all technology package of what we think you should use, we provide the essentials and then work with you to determine what avenue you will take with your career and find tools that match your strengths and abilities.

Monthly brokerage meetings always include breakfast and a great speaker to be sure you stay up to date with the market.  For newer agents, we have a comprehensive mentoring program to help you get started.  And of course, we like to have fun! Whether that’s grilling out on the office patio or taking a cruise on the lakes in summer.   


100% Commission is a model which is successful for brand new agents, for established, consistent producers and for high-producing teams.  New agents typically choose the “per transaction” plan and then join a team or enroll in the mentoring program until they are comfortable in the business. Established agents who know they will close more than 3-4 closings in a year tend to prefer the monthly or annual plan.  Team Leaders choose the annual plan and love our model because the brokerage will help to recruit for your team when you’re ready to grow.

Have Questions?

Let us know, we’d love to help!

Call: 608-665-2040

Email: careers@bigblockmidwest.com

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