March 11


What Is a 100% Commission Sponsorship?

When a real estate agent is ready to take the next step, this is where you select a broker to sponsor you. By law, realtors need to work on behalf of a broker. Having a real estate broker is a very important component because it can make a big impact on your career direction, growth rates, and gets you paid!

The Traditional Model vs the 100% Commission Sponsorship

Many brokerages hire agents but it's important to make the most of sponsorship by picking the right model. A traditional model would involve the brokerage listing the property in the MLS and sharing the commission with any MLS broker that brings a buyer to complete the purchase.

The other model involves 100% commission. A traditional brokerage business has broker splits that range from 10% to 60 or 70%, which is a big chunk of the commission that you earn on a transaction. Sponsored agents working on 100% commission splits can be a major boon, but what are they, and how do they help?

What Is a 100 Commission Sponorship?

When an agent gets sponsorship from a brokerage, they receive 100% of the commission with every transaction. There is also a monthly fee attached by being part of the brokerage and a transaction fee.

The 100% commission brokerage would be accompanied by a fixed rate for the sponsorship. The fees will depend on the brokerages themselves. It's important to note that not every 100% commission brokerage is equal.

Make More Money With More Commissions

What Do Real Estate Agents Need To Consider Before Joining a 100% Commission Brokerage? 

If you are interested in getting brokerage sponsorship, there are a number of things you will need to consider:

  • The type of support they offer to their own agents. 

  • If they let you work in other real estate areas. 

  • The overall cost and fees (including hidden fees) and if they are viable. 

  • Will the broker sponsorship allow you to pursue your career goals? 

  • Does the broker provide leads? If so, what are the fees and splits? 

  • If the broker is reputable, for example, if they are an LLC brokerage or if they comply with the appropriate rules and regulations (for example, the Fair Housing Act).

How Do 100% Commission Brokers Make Money?

Earn 100% Commission

There are a number of ways a brokerage structures this model. Many will choose to not provide support services to a real estate agent so they can keep their expenses down. This means they would be able to pay out 100% commission on every sale while also passing the benefits onto their own team, by charging their agents lower monthly fees for use of the services, for example, cheaper desk fees.

What Is a Reasonable Real Estate Commission?

The typical commission real estate agents charge will vary between the states and areas. The average charge is approximately 2% to 2.5% of the sale price of a property or between $10,000 to $12,500 when selling a $500,000 property.

How Do 100% Commission Jobs Work?

Any professional working on 100% commission jobs will typically earn more than those that are doing jobs that pay a regular salary. When there is an increase in sales, the commission agent will sell more and they will get a higher income which can be a lot more in comparison with someone who makes a regular salary or base wage.

What Are the Benefits of a Broker Sponsorship?

100% commission models will differ according to the broker. However, many brokers offer additional support beyond the basics. For example, many 100% commission model brokerages provide marketing programs that can help to generate leads at a much lower cost in comparison if the agent was to conduct the work by themselves. This works to ensure that rather than creating a healthy competition between real estate agents it can build bridges and foster more effective working relationships which benefits both sides. 

Is It Possible To Earn 100% Commission as a Real Estate Agent?

The real estate industry is almost unrecognizable from 20 years ago, but this means there is a higher likelihood of earning 100% commission despite the large commission splits agents will pay to their brokerages every year.


The benefits a real estate broker can get from broker sponsorship are many. Realtors can benefit from a broker company. If you have seen other agents benefit from a broker sponsor, it can prove to really help some elevate their practice, going from an amateur agent to an experienced agent in a very short space of time!

posted March 11, 2022

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