Agent Income

There are several models for broker/agent compensation plans, but the most common is some sort of commission split schedule. In some plans, the agent may have a monthly fee payable (desk fee) to the office in return for a set commission split on all agent generated business. Most of the franchise companies (Prudential, Century 21, Coldwell Banker, ERA, etc.) use graduated commission schedules where the agent’s split is based on the agent’s level of production, although some may also offer desk fee arrangements.

The majority of brokers are members of a Multiple Listing Service through which they offer to share earned commission with other broker members who cooperate in the sale. Most transactions have two sides with a listing broker and selling broker, as well as agents working under each. So, in a very simplified example, if a transaction resulted in a $6,000 total fee, the listing broker and his agent would split $3,000 and the selling broker and his agent would split $3,000. For an slightly more detailed description see prudentcareers.com.