How Do Real Estate Teams Split Commission? A complete guide

If you’re thinking about joining a real estate team, or starting one, you’re probably wondering: how do real estate teams split commission?

It’s a big question! And an important one. Whether you’re a new agent looking for support, or an experienced pro thinking about building a team, understanding real estate team commission splits can make a huge difference to your bottom line.

In this guide, we’ll break everything down in a simple, no-nonsense way. We’ll cover common commission split models, examples of how they work, tips for negotiating, and even the pros and cons of joining a team.

Let’s dive in!

What Is a Real Estate Team?

Before we get into commission splits, let’s get clear on what a real estate team is. A real estate team is a group of agents who work together under one team leader. The team often shares resources like:

• Lead generation systems
• Administrative support
• Marketing and advertising
• Training and mentorship

Teams help agents close more deals by giving them support and leads. But in exchange, agents usually agree to a commission split with the team.

How Do Real Estate Teams Split Commission?

The short answer: it depends! But we’ll walk you through the most common ways teams split commissions, so you can get a clear picture. There’s no one size fits all with this, so here’s a good baseline.

1. Traditional Split (The Classic 50/50 or 60/40)

This is the most common real estate team commission split model. Here’s how it works:

• The agent and the team leader split the commission after the deal closes.
• A common split is 50/50, but some teams offer 60/40 (with 60% going to the agent).
• The team often provides leads, admin support, and covers some costs.

Example:

The commission on a home sale is $10,000.

• Agent keeps $5,000 (50%).
• Team leader keeps $5,000 (50%).
  The team leader uses their share to cover expenses like marketing, transaction coordinators, and office space.

2. Graduated Split (Earn More As You Sell More)

This split rewards agents to keep selling as it rewards those who close more deals.

• The split improves as the agent sells more homes.
• You might start at 50/50, but once you hit certain sales milestones, it can move to 60/40, 70/30, or even higher.

Example:

• First $100,000 in commission = 50/50 split
• Next $100,000 = 60/40 split
• After $200,000 = 70/30 split

3. Team Leader Takes a Larger Share (Because They Do More)

Sometimes the team leader provides all the leads, marketing, training, and admin support.

• In this case, they might take 60% to 70% of the commission.
• The agent gets the smaller portion, usually 30% to 40%.
• Agents often like this because they don’t have to spend time finding clients.

Example:

• Commission = $10,000
• Team leader takes $7,000
• Agent gets $3,000, but they had zero expenses and no lead generation stress.

4. Salaried Agents + Bonuses

Some teams offer salaried positions instead of commission splits.

• Agents get a steady paycheck.
• They may also earn bonuses for closing deals or hitting targets.
• This works well for new agents who want stability.
  
  

What’s Usually Included in a Team’s Split?

When you join a team, you’re not just giving away part of your commission for fun. You’re getting real value in return. Here’s what many teams offer:

• Leads (so you don’t have to find clients yourself)
• Marketing (flyers, online ads, social media promotion)
• Administrative help (transaction coordinators, paperwork)
• Training and coaching
• Office space and tools
• Brand reputation (being part of a trusted team)

The more the team provides, the higher the leader’s share of the real estate team commission split might be.

Pros and Cons of Real Estate Team Commission Splits

Let’s keep it real. There are upsides and downsides to every commission model. So just to sum it all up, we’ve put together a quick pros and cons list for you.

Pros:

• Steady flow of leads
• Admin and marketing support
• Coaching and Training
• Teams reputation helps build trust

Cons:

• You share commission
• Less independence
• May have quotas or expectations
• Team policies can limit flexibility
  
  

How to Negotiate Your Commission Split (If You’re an Agent)

If you’re joining a real estate team, it’s totally fair to ask about the commission split. Your skills are valuable, so it's important to understand that. To negotiate the best commission split, here are some tips:

• Ask what’s included: Do they provide leads? Cover marketing?
• Understand their expectations: How many deals are you expected to close?
• Look at the long-term potential: Some teams offer better splits as you gain experience.
• Don’t be afraid to shop around: Talk to different teams and compare.
  
  

Real-World Example of a Team Commission Split

Let’s imagine you join a real estate team, here’s how the commission split might look:

• New agents get 50/50 splits with leads, coaching, and admin support.
• After closing $150,000 in GCI (Gross Commission Income), agents move to a 60/40 split.
• Agents who bring their own leads get 70/30 on those deals.
• The team covers all marketing and transaction coordination.

This is a very basic example, but it's the most common type of situation that you’d be most likely to encounter. This type of structure rewards growth and allows team members to earn more as they do more.

Final Thoughts on Real Estate Commission Splits

Knowing how real estate teams split commission is key whether you’re joining a team or building one. Teams can help you grow faster, but you’ll be sharing your commissions.

New agents: Look for a team with solid support and fair splits.
Team leaders: Offer value and stay competitive to attract top talent.

And remember, no two teams are exactly the same. Take your time, ask questions, and make sure the commission split works for YOU.  And keep in mind teams are not the right fit for everyone.  Another option to consider - communities like The Powerhouse Partners where there are no team splits..

To learn more about why you should choose The Powerhouse Partners & what makes us different, click here!

FAQ: Real Estate Team Commission Splits

Do real estate teams share commission?

Yes, real estate teams typically share commission between the team leader and the agents on the team. After a property sale closes, the commission earned is divided according to an agreed-upon split. For example, a team might split commissions 50/50 or 60/40.

What is the most common commission split in real estate?

The most common commission split in real estate teams is 50/50. This means the agent and the team leader each receive 50% of the commission earned from a sale. However, some teams offer different splits like 60/40 or even 70/30, especially if the agent brings in their own clients or closes a higher volume of sales.

How does a team structure work in real estate?

In real estate, a team structure usually includes a team leader, buyer agents, listing agents, and administrative staff. The team leader often provides leads, marketing, and support services, while agents focus on working with clients to buy or sell homes.

Is a 70/30 commission split good?

A 70/30 commission split is considered good for many real estate agents, especially if they receive strong support from the team. In this split, the agent keeps 70% of the commission, and the team leader takes 30%.

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