Brokers don't pay agents a salary — they split commissions. But the structure varies enormously between traditional, cap-based, and flat-fee brokerages. Here's how to evaluate any compensation plan.
"Do brokers pay real estate agents?" is one of the most common questions from people considering a real estate career. The short answer: not in the way most jobs work. Real estate agents in Florida are typically independent contractors, not employees — meaning they don't receive a salary, health insurance, or benefits from their broker. Instead, they earn a portion of each commission when a transaction closes. Understanding how this works — and how different brokerages structure it — is essential before you choose where to hang your license.
The Commission Split Model
When a transaction closes, the total commission (typically 2.5–3% per side post-NAR settlement) flows first to the broker. The broker then pays the agent their contractually agreed share. This split is negotiated when the agent joins the brokerage and can be renegotiated over time as the agent's production grows.
Common split structures in South Florida:
- 50/50 — Traditional model for newer agents or those on heavily supported platforms. You keep 50% of each commission earned.
- 70/30 — Common at mid-tier brokerages. You keep 70%, broker keeps 30%.
- 80/20 or 90/10 — Higher splits for experienced or high-producing agents.
- 100% commission with desk fee — Agent keeps all commission but pays a monthly desk fee ($200–$600/month) to the broker.
- Cap model — Agent pays a split (typically 80/20) until reaching an annual cap (often $16,000–$30,000 paid to broker), then keeps 100% for the rest of the year. Made famous by KW, this model is now widespread.
What Brokers Provide in Exchange for the Split
In exchange for their portion, brokers typically provide: Florida broker supervision (required by law), errors & omissions (E&O) insurance coverage, MLS access, office space (at some brokerages), training and mentorship, brand recognition, transaction management support, and lead generation systems. The value of these contributions varies dramatically between brokerages.
High-split or 100% commission brokerages typically offer less infrastructure and support — trading margin for autonomy. Traditional brokerages offer more support but take a larger cut. The right choice depends on your experience level and business model.
The Reality of Net Income After Splits and Expenses
When evaluating a compensation plan, the question isn't just what split percentage you'll receive — it's what you'll net after all costs. A 90% split at a brokerage that charges $1,500/month in fees may net less than a 70% split at a no-fee brokerage if your transaction volume is modest.
Build a simple model: estimate your projected transaction volume and average commission per transaction, apply the split, subtract all brokerage fees and your personal business expenses, and compare across options. The highest-percentage split doesn't always produce the most take-home income.
At Pure Equity Realty, our compensation structure is designed to reward production while providing the infrastructure agents need to build sustainable careers in South Florida. Contact us to learn about agent opportunities across our six-county service area.
