How to Choose the Right Brokerage
Answer 5 quick questions about your priorities, and we'll recommend the brokerage type that fits your career goals. Plus a full comparison table and interview checklist.
Find Your Best Brokerage Fit
Answer 5 questions to get a personalized recommendation based on your priorities.
Brokerage Fit Assessment
This quick 5-question assessment evaluates your priorities across training, commission, work style, experience level, and budget to recommend the best brokerage type for you.
Side-by-Side Brokerage Comparison
Compare franchise, boutique, virtual, and flat-fee brokerages across 8 key dimensions.
| Dimension | Franchise | Boutique | Virtual | Flat-Fee |
|---|---|---|---|---|
| Commission Split | 50/50 to 70/30 | 70/30 to 90/10 | 80/20 to 100% | Salary or flat fee |
| Training Programs | Extensive | Varies | Online courses | Company-provided |
| Technology | Proprietary CRM & tools | Basic to moderate | Cloud-first platforms | Company platforms |
| Monthly Desk Fees | $100-$500+ | $0-$300 | $0-$85 | None (W-2) |
| Brand Recognition | Very high | Local only | Growing | Company brand |
| Flexibility | Moderate | High | Very high | Low |
| Lead Generation | Office leads + systems | Self-generated | Self-generated | Company-provided |
| Mentorship | In-person mentors | Broker access | Virtual mentors | Team leads |
10 Questions to Ask Before Joining a Brokerage
Print this checklist and bring it to your brokerage interviews. These questions will help you make an informed decision.
What is the commission split, and does it change over time?
What training programs do you offer for new agents?
Are there monthly desk fees, technology fees, or transaction fees?
Do you provide leads, or am I expected to generate my own?
What marketing support and materials do you offer?
What CRM and technology tools are included?
Is there a minimum production requirement?
What is the culture like — collaborative or independent?
Do you offer E&O insurance, or do I need my own?
What is the process for leaving if I want to switch brokerages?
Understanding Commission Splits
Your commission split determines how much of each transaction's commission you keep versus what goes to your brokerage. Here are the most common structures:
Agent keeps 50%, brokerage keeps 50%. Common for brand-new agents at franchise brokerages. Often includes full training and mentorship.
Typical at: Entry-level at large franchises
Agent keeps 70%, brokerage keeps 30%. Typical for agents with 1-2 years experience at franchises, or starting splits at boutique firms.
Typical at: Mid-level franchise or new boutique
Agent keeps 80%, brokerage keeps 20%. Common for experienced agents at traditional brokerages or starting splits at virtual brokerages.
Typical at: Experienced franchise or virtual entry
Agent keeps 100% after reaching a cap (e.g., $12,000-$16,000/year to brokerage). Popular at virtual brokerages like eXp and Real.
Typical at: Virtual / cloud brokerages
The Complete Guide to Choosing a Brokerage
Choosing the right brokerage is one of the most impactful decisions you'll make as a new real estate agent. The brokerage you join affects your training, earning potential, brand identity, and long-term career trajectory.
Why Your First Brokerage Matters
According to the National Association of Realtors, 87% of new agents fail within their first five years. The right brokerage can dramatically improve your odds by providing training, mentorship, and systems that help you build a sustainable business. A brokerage with strong onboarding can cut your ramp-up time from 12 months to 3-6 months.
Your brokerage choice should align with your current experience level, financial situation, and career goals. A new agent who joins a 100% commission virtual brokerage without proper training may save on fees but struggle to close their first deal. Conversely, an experienced agent at a 50/50 franchise may be leaving significant income on the table.
For New Agents
Prioritize training and mentorship over commission splits. A great training program at a franchise brokerage will help you earn more in the long run than a high split at a brokerage with no support. Look for brokerages that pair you with an experienced mentor for your first 5-10 transactions.
For Experienced Agents
Focus on commission splits, technology, and brand flexibility. If you have your own lead generation systems and client base, a virtual or boutique brokerage can let you keep more of your hard-earned commission while maintaining full control over your brand and marketing.
The Hidden Costs of a Brokerage
Beyond the commission split, watch for hidden costs that can eat into your income. Some brokerages charge technology fees ($50-$200/month), transaction fees ($100-$500 per deal), franchise fees (3-8% of your commission), and mandatory training fees. A brokerage advertising an "80/20 split" with $400/month in fees and 6% franchise fees may actually net you less than a clean 70/30 split with no additional costs.
Always ask for a complete fee schedule before signing. Calculate your estimated annual cost at different production levels (6, 12, and 24 transactions per year) to compare brokerages on an apples-to-apples basis. The best brokerage for you is the one that maximizes your net income while providing the support you need at your current stage.
Frequently Asked Questions
What is the best brokerage for new real estate agents?
What is a typical real estate commission split?
Should I join a virtual brokerage or a traditional office?
What fees do real estate brokerages charge?
Can I switch brokerages after joining one?
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