100% Commission Real Estate Sponsorship

A guide for realtors on how to receive 100% of the commission when selling a property.

As a real estate agent, you undoubtedly recognize the effort required to secure commissions. From collaborating with sellers to prepare their property for the market, hosting open houses, and engaging prospective buyers, most real estate agents work tirelessly to succeed, mainly if they operate their own businesses.

It becomes even more frustrating when broker-imposed commission splits do not work in your favor, resulting in relinquishing 20-30% of your hard-earned income with each sale.

For instance, while the median gross commission for realtors rose from $43,000 to $54,300 in 2020, these figures could be significantly higher if not constrained by sharing commissions with brokers. Although brokers often have noble intentions, it’s still disheartening to lose out on potential revenue that could be reinvested in your business.

Thankfully, by leveraging a 100% commission real estate sponsorship through a cutting-edge virtual real estate brokerage, you can optimize your earning potential and thrive in your real estate career. Brokerage as a Service (BaaS) platforms provides an innovative solution, offering the best cloud-based real estate brokerage experience for agents seeking to maximize their income. 

Online real estate brokerages or agent-first brokerage prioritizes your needs and equip you with proprietary software, lightning-fast support, and a subscription-based pricing model that empowers you to build your own brand, move your team, and grow your business. A real estate commission calculator can further demonstrate the value of 100% commission structures by illustrating how much realtors can make when freed from traditional commission splits.

In this article, we’ll explore the advantages of partnering with a virtual, online real estate brokerage, as well as how embracing this revolutionary model can drive your success in the ever-evolving world of real estate.

What are the most common forms of commission splits in real estate?

Various commission structures exist for dividing earnings between a broker and a real estate agent, typically agreed upon at the beginning of your collaboration. These arrangements consist of:

Split commission icon Split commission
Referral fees icon Referral fees
Tiered commission splits icon Tiered commission splits
100% commission icon 100% commission

To determine the most suitable commission structure for you, it’s crucial to comprehend the implications of each option.

Split Commission

A split commission is prevalent in conventional broker-agent relationships and is widely adopted by real estate agents. For instance, your brokerage may consent to a 50/50 commission split between the broker and the agent. In this case, if you earned $10,000 in commission, you’d receive $5,000.

Alternatively, the brokerage might charge a flat rate, typically around 30% but occasionally even higher, for each commission you earn. The percentage claimed by brokers can depend on various factors, such as the broker’s workload or geographic location. As mentioned earlier, your negotiation skills may also influence the final rate.

As you gain experience in the real estate industry, your confidence in negotiating with brokers will likely increase. However, newly licensed professionals might agree to unfavorable commission splits due to their eagerness to start working and building their careers, which can result in not reaping the rewards they deserve.

Referral fees

In some cases, a brokerage may charge a ‘referral’ fee on top of the commission each time you close a sale. This is a standard business practice intended to cover the brokerage’s expenses for sourcing buyers or sellers. However, these fees can significantly impact your annual income.

According to the National Association of Realtors (NAR), referral fees can range between 20-35% of the commission. While it’s a common practice, it’s essential to weigh the cost versus the potential benefits to your business.

Additional monthly fees may include desk rental or technology/software fees. These charges apply if you utilize your broker’s office space and technology resources. While this arrangement may seem cost-effective since you don’t have to invest in equipment yourself, it can gradually diminish your earning potential, particularly if you can complete most tasks from your own home or through a virtual real estate brokerage.

With the rise of cloud-based real estate brokerages, agents can now access proprietary software and resources without incurring additional costs. Access to a virtual brokerage platform allows you to optimize your earnings while leveraging modern tools and support while paying only for what you want! 

Tiered Commission Splits

Some brokerage firms offer real estate professionals a tiered commission split structure. In this arrangement, agents receive a higher percentage of the commission as they achieve specific milestones within the company.

This approach has several advantages. For instance, many agents find that this type of agreement serves as an incentive to work harder, potentially driving them to sell more properties or expand their client base. As a result, tiered commission splits can boost productivity and efficiency, ultimately improving your performance in the industry.

However, one drawback is that during the early stages of your career, your commission share might be considerably lower than it would be with a different broker arrangement, such as a 100% commission real estate sponsorship. Consequently, you could miss out on significant earnings while striving to advance within the company’s tiered structure).

By considering a 100% commission real estate sponsorship with an agent-first, cloud-based brokerage, you can optimize your income while still enjoying the benefits of support and access to resources. Broker sponsorship platforms, such as virtual real estate brokerages, empower agents to retain their hard-earned commissions and start/invest in their own brand. This alternative allows you to bypass the limitations of tiered commission splits and focus on growing your business from the outset

A 100% Commission Structure

In a 100% commission structure, real estate agents retain the entire commission they earn when selling a property, minus a small flat fee payable to the brokerage. This fee may be a one-time charge or part of a monthly subscription, but it is generally much lower than the amounts deducted in traditional split fee agreements or sponsorships

The 100% commission model is highly sought-after, as it allows real estate agents to significantly increase their earning potential without operating independently (by acting as their own broker). In essence, it offers the best of both worlds: you can benefit from the dedicated support of a skilled broker without compromising your income. 

By partnering with an agent-first, cloud-based real estate brokerage like Pinnacle Realty Advisors, you can maximize your earnings while enjoying the advantages of broker sponsorship and state-of-the-art resources.best commission structure for realtors

What are the benefits of a 100% commission split or real estate sponsorship?

There are numerous advantages to securing a 100% commission real estate sponsorship with your broker.

A real estate sponsorship is often required for activating your real estate license, regardless of the state in which you plan to do business. The most apparent benefit is the potential to significantly increase your earnings, allowing you to live more comfortably or reinvest in the growth of your business. In the current economic climate, this arrangement is especially appealing, as every penny counts!

The flat fee taken by the brokerage in this scenario is typically less than $500 overall. When you sell multiple properties a year and receive the full commission, this fee becomes almost negligible. For instance, if you were to receive 100% of a $10,000 commission, the $500 fee would seem relatively inconsequential. After all, you would be taking home $9,500, whereas with a 70/30 split, you would only have $7,000 to show for your hard work.

Moreover, engaging in this style of real estate sponsorship can also provide you with additional support throughout the year. For example, your broker may grant you access to a wealth of resources that help you elevate your real estate career and your business. This includes:

Access to a virtual office. With a virtual office, you can ensure your business stays on track, no matter where you may be in the world. Proprietary software allows quick and easy access to important documents, contracts, and company information as and when needed. This is particularly beneficial when you consider that many real estate agents must carry out work on the go as they move from meeting to meeting or at open houses.

Marketing services. The biggest challenge you will face when working as a real estate agent is generating new leads, whether they are looking to buy or sell properties. Fortunately, when working with a brokerage, you’ll receive support when it comes to launching effective digital marketing campaigns. This is particularly important when you consider the fact that “In 2021, 97% of buyers used the internet to search for a home,” meaning that the majority of sales were initiated by strong marketing campaigns and a powerful online presence.

Dedicated broker support. The support (and sponsorship) of a dedicated broker is essential when it comes to running an effective real estate business. This is because they’ll provide invaluable advice on every step of your journey, whether you’re dealing with administrative woes or struggling with conversions. Pinnacle Realty Advisors brokers are the best in the biz, click here to learn about some of our agents success stories.

Training/continuous education credits. There’s no denying that the more skills and qualifications you have, the easier it will be for you to succeed. After all, not only does continuous education enable you to stay on top of industry trends and complete all tasks to a high standard, but it also demonstrates a level of professionalism and commitment that clients are sure to love.

Brand-building opportunities. As brokers have a deep understanding of both your industry and locality, they’ll be able to provide you with guidance and support that will enable you to build (and grow) your brand. This, coupled with more money in your pocket, means this kind of sponsorship is a win-win scenario.

Do you want to remain in control of your business?

Do you want to increase your earning potential?

Do you require the support of a real estate broker to achieve your full potential?

How do I know if 100% Commission sponsorship is right for me?

100 Commission sponsorship

If the answer to any (or all) of these questions is a resounding yes, then it’s likely that a 100% commission sponsorship is right for you and your ambitions as a real estate agent. And, considering that more than 30 million people moved house in 2022, it’s clear that with the right earning sponsorship in place, you have the opportunity to earn big in 2023. As a result, now may be the time to start looking for a new sponsor.

When you receive 100% of your commission, you are likely partnered with a company that offers BaaS or Brokerage as a Service.

What is Brokerage as a Service?

Brokerage as a Service (BaaS) is the new way for real estate agents to maximize their income without sacrificing the support they need from a broker. In many ways, this is a form of outsourcing that allows you to receive the support you need without harming your bottom line by letting someone else dictate how you run your company. 

After all, while traditional partnerships require the real estate agent to relinquish control (and a hefty % of commission) when paying for Brokerage as a Service, you remain in the driver’s seat. Therefore, you can decide how your business operates and the goals that you are working toward each and every day.

100% Commission Split With Pinnacle Realty Advisors

At Pinnacle Realty Advisors, our mission is to provide real estate agents with the best of both worlds – the ability to keep 100% of their commission earned when selling properties and the tools they need to develop their own brand. We understand the challenges that come with working in a competitive industry and strive to offer our real estate professionals the support they need to thrive.

Unlike other brokerages, we do not charge additional fees for desk space, technology, transaction broker reviews, or franchise fees. Instead, we offer a monthly subscription model that grants you full access to our real estate brokerage support. With Pinnacle Realty Advisors, there are no hidden fees; you pay your subscription fee and receive 100% commission every time.

For as few as $249 a month, our real estate professionals receive the following benefits:

  1. An on-demand agent success and support team to answer any questions related to the housing market or administrative tasks.
  2. Unlimited access to the PinnacleHQ dashboard, which includes vetted home-service vendors, marketing tools, services, and exclusive deals for you and your clients.
  3. A variety of marketing services to help you develop a unique brand identity, including logo design, website management, and social media resources.
  4. The opportunity to enhance cybersecurity practices through partnerships with NordVPN and NordPass, ensuring the safety of your data and appealing to security-conscious clients.
  5. Easy enrollment in Continuous Education (CE), Salesperson Apprentice Education (SAE), and Post licensing courses from top schools in your state, regardless of your location.
  6. Access to time-saving technology that improves efficiency, productivity, and client relationships, such as Skyslope, AFrame Software, Pipedrive, Nethunt CRM, RealCloud, and more.
  7. Software like Google Workspace, Ring Central, and Slack to streamline daily business operations and enhance collaboration with clients, staff, and other collaborators.
  8. Tools to assist with lead generation, addressing a major pain point for real estate agents in today’s market.

With Pinnacle Realty Advisors’ sponsorship, you can achieve great success in the real estate industry while maintaining complete control over your business. Our comprehensive support and tools will help you grow your business and stand out in a competitive market.

Get in touch today to find out more.

If you’d like to find out more, please do not hesitate to get in touch today. We’ll schedule a free, no-commitment call that talks you through every step of the process – and can even have your business set up and ready to go within just 24 hours!

We look forward to hearing from you and taking your business to the next level together!

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