Educational guide. This page describes common brokerage business models in general terms so agents can compare them. It does not name, describe, recommend or rank any particular brokerage. Every firm sets its own terms, and many mix features of several models. We do not refer agents to brokerages.
The models at a glance
Most brokerages fall into, or blend, the structures below. Descriptions are deliberately general. Use them to know what to ask, then get the actual terms in writing.
1. Money: splits, caps and fees
| Model | Typical split structure | Caps | Fees you may pay |
|---|---|---|---|
| Traditional graduated split | Brokerage keeps a share of each commission. The agent's share often improves at production tiers. | Sometimes none. Some reset tiers annually. | Fewer monthly fees in some offices. Desk or admin fees vary. |
| Luxury or legacy brand firm | Agent share often lower than high-split models in exchange for brand and services. | Varies. Some have none. | May include marketing, royalty or admin fees. |
| Franchise office | Set by the independent owner. Often a split plus a franchise royalty. | Many use caps on the company share and/or royalty. | Royalty or franchise fee, plus local office fees. |
| High-split with cap | Agent keeps a large share until the company's annual cap is reached, then more. | Yes. An annual cap is the defining feature. Check the reset date. | Post-cap transaction fees, annual fees, E&O. |
| 100% commission (fee-based) | Agent keeps the commission and pays the broker fixed fees. | Not applicable. Cost is fees, not a split. | Per-transaction fee and/or monthly or annual fee. |
| Cloud or virtual (often with revenue share) | Typically a split until a cap, then reduced fees. | Usually yes. | Annual and post-cap fees, E&O, technology fees. |
| Boutique independent | Negotiated by the owner-broker. Ranges widely. | Varies. | Varies. Often few formal fees. |
| Team within a brokerage | Team keeps a share of members' commissions on top of the brokerage's share. More on team-generated leads. | Team share may or may not count toward the brokerage cap. | Team fees, marketing contributions, sometimes desk costs. |
2. Support: training, leads, brand, tech and culture
| Model | Training & mentorship | Lead generation | Brand | Tech | Culture & support |
|---|---|---|---|---|---|
| Traditional graduated split | Often in-office training and managers on site. | Floor time, sign calls, relocation or company leads in some offices, at a higher company share. | Local or regional name recognition. | Brokerage-provided CRM and transaction system, varies. | Office-centered. Managers and peers nearby. |
| Luxury or legacy brand firm | Structured programs and marketing support are common. | Brand-driven inquiries, referral networks, and listing leads at higher price points in some firms. | Strong recognized brand. Often a major draw for listing clients. | Polished marketing tools and print or digital production. | Prestige-oriented. Office and marketing staff support. |
| Franchise office | Franchisor curriculum plus local office training. | National referral network, plus whatever the local owner provides. | National brand, locally owned office. | Franchisor platform, sometimes with local add-ons. | Varies widely by owner. Visit the specific office. |
| High-split with cap | Varies from robust to self-directed. | Limited company leads. Lead programs often carry a separate share. | Varies. | Often a standardized platform. | Ranges from office-based to largely remote. |
| 100% commission (fee-based) | Usually limited. Built for self-sufficient agents. | Generally self-generated. | Agent's personal brand is primary. | Basic tools. Agents often bring their own. | Independent. Little day-to-day oversight beyond compliance. |
| Cloud or virtual (often with revenue share) | Online training and peer communities, quality varies. | Mostly self-generated. Some offer lead programs. | National or online brand. | Cloud platform at the center of the model. | Remote. Support through online channels. Revenue share or equity programs common. |
| Boutique independent | Hands-on mentoring by the broker is possible. | Broker's own network and listings, sometimes niche or neighborhood focus. | Local reputation, often in a niche. | Varies. Sometimes lean. | Small, close-knit. Direct access to the broker. |
| Team within a brokerage | Daily coaching from the team leader and senior members. | Team leads and appointments, often the main benefit. | Team brand alongside the brokerage name. | Team CRM, inside sales, transaction coordination. | Production-focused with set expectations. |
3. Who each model is often considered by
This is a starting point, not a rule. Plenty of new agents thrive in fee-based models and plenty of top producers stay with traditional firms.
| Model | New licensee | Mid-career producer | Top producer | Luxury specialist | Team leader |
|---|---|---|---|---|---|
| Traditional graduated split | Often considered | Often considered | Sometimes | Sometimes | Sometimes |
| Luxury or legacy brand firm | Sometimes | Sometimes | Often considered | Often considered | Sometimes |
| Franchise office | Often considered | Often considered | Sometimes | Sometimes | Often considered |
| High-split with cap | Sometimes | Often considered | Often considered | Sometimes | Often considered |
| 100% commission (fee-based) | Less common | Sometimes | Often considered | Sometimes | Sometimes |
| Cloud or virtual (often with revenue share) | Sometimes | Often considered | Often considered | Sometimes | Often considered |
| Boutique independent | Sometimes | Sometimes | Sometimes | Often considered | Sometimes |
| Team within a brokerage | Often considered | Sometimes | Sometimes | Sometimes | — |
How to compare total cost: your effective split
A headline split describes one check. What matters is what you keep over a year:
Effective split = (gross commission income − everything paid to the brokerage, team or lead sources) ÷ gross commission income
Include the company split, caps and post-cap fees, transaction fees, monthly and annual fees, royalties, E&O, and any lead or team share. Then run the numbers at three production levels: a slow year, your expected year and a strong year. Models that look similar at one level can diverge sharply at another.
Worked example
Hypothetical numbers, for illustration only. These plans and figures are invented to show the math. They don't represent any brokerage, model or market rate. Every side is assumed to earn $10,000 in commission, and all business is self-sourced.
- Plan 1 (split, no cap): agent keeps 70%, company 30%, plus $50 per month.
- Plan 2 (split with cap): agent keeps 80% until the company has collected $16,000 for the year, then 100% less a $300 fee per side, plus a $1,000 annual fee.
- Plan 3 (100% commission): agent keeps 100% and pays $500 per side plus $200 per month.
| Production | Plan 1: agent keeps | Plan 2: agent keeps | Plan 3: agent keeps |
|---|---|---|---|
| $40,000 GCI (4 sides) | $27,400 68.5% | $31,000 77.5% | $35,600 89.0% |
| $120,000 GCI (12 sides) | $83,400 69.5% | $101,800 84.8% | $111,600 93.0% |
| $300,000 GCI (30 sides) | $209,400 69.8% | $276,400 92.1% | $282,600 94.2% |
The percentages are the effective split. In this example the fee-based plan keeps the most at every level, and the capped plan narrows the gap as production rises. But the plans differ in what they include. If Plan 1 came with leads that produced deals you wouldn't otherwise have, or training that shortened your ramp-up, it could still be the better choice. A deeper walk-through, including lead fees, is in Caps and fees: calculating your true split.
Questions to ask a broker before joining
Money
- What is the split, and is it per transaction, graduated or capped? When does the cap year reset?
- List every fee: transaction, monthly, annual, technology, E&O, royalty, marketing, post-cap. Which are charged in months with no closings?
- What share applies to company or team leads, and does it count toward the cap?
- When and how am I paid after closing? Can I be paid through my professional entity?
Support
- What training is there for my experience level, and who delivers it?
- Who reviews contracts and files, and how quickly can I reach the broker or a manager?
- Is transaction coordination, marketing or listing support included or extra?
- What technology is provided, and can I bring my own CRM and data with me if I leave?
Leads and brand
- Where do company leads come from, how are they distributed, and what did a typical agent receive last year?
- How will my name appear with the brokerage brand in advertising?
Agreements and leaving
- Can I see the independent contractor agreement and any policy manual before signing?
- What happens to my pending deals, listings and commissions if I leave? Are there departure fees or non-solicitation terms?
- If there is a revenue-share or equity program, can I see the written plan, and how can it be changed?
Culture and compliance
- How does the brokerage handle escrow deposits and disputes?
- Can I talk to agents at my production level who joined in the last two years, and to someone who left?
Florida rules that apply whichever model you choose
- You must be registered under a broker. A sales associate acts "under the direction, control, or management of another person" and may not operate as a sales associate for anyone not registered as their employer (§ 475.01(1)(b), (j), Fla. Stat. (broker associate; sales associate definitions); § 475.42(1)(a)–(d), Fla. Stat. (sales associate may work only for registered employer; compensation only through employer)). A broker who works under another broker is a broker associate.
- Compensation flows through your broker. A sales associate may collect money in a brokerage transaction only in the employer's name and with the employer's consent, and may sue for a commission only against the person registered as their employer when the work was done (§ 475.42(1)(a)–(d), Fla. Stat. (sales associate may work only for registered employer; compensation only through employer)). You can be licensed through a professional corporation or LLC (§ 475.161, Fla. Stat. (licensing as a PA, LLC or PLLC)).
- Changing brokers. A sales associate's license ceases to be in force on a change of employer, and the Commission must be notified within 10 days on its form (§ 475.23, Fla. Stat. (license ceases on change of employer; notice within 10 days)). DBPR handles this as a Form RE 11 change of broker/employer. A broker adding you online does so in real time (DBPR Division of Real Estate: Manage My License (Form RE 11, change of broker/employer; post-license education)). Step-by-step: changing brokerages in Florida.
- Independent contractor status. Federal tax law treats a licensed real estate agent as a non-employee when substantially all pay relates to sales rather than hours and a written contract says the agent won't be treated as an employee for federal tax purposes (26 U.S.C. § 3508 (qualified real estate agents treated as non-employees for federal tax)). Florida's workers' compensation law excludes a real estate licensee who agrees in writing to be paid solely by commission (§ 440.02(18)(d)2., Fla. Stat. (workers' compensation: commission-only real estate licensees)), and its reemployment assistance law exempts commission-only real estate salespersons (§ 443.1216(13)(n), Fla. Stat. (reemployment assistance: commission-only real estate salespersons)). Salaried or hourly roles, such as some team positions, may be treated differently.
- Advertising. Every ad, including team and personal branding, must include the brokerage's licensed name, and online ads must place it next to the contact information (Fla. Admin. Code R. 61J2-10.025 (advertising must include the licensed brokerage name)).
- The broker's office. Each active broker must maintain an office with a sign identifying the broker (§ 475.22, Fla. Stat. (broker office and sign)). Remote-first models still have a registered broker and office. Ask how you reach them.
- Revenue-share programs. Florida prohibits paying compensation to unlicensed persons for referrals or brokerage services (§ 475.25(1)(h), Fla. Stat. (sharing compensation with unlicensed persons)). Ask how any program is structured and whether you must stay licensed and active to be paid. See how revenue share works.
- New licensees. Complete 45 hours of post-licensing education before your first renewal, or the license becomes null and void (§ 475.17(3), Fla. Stat. (45-hour sales associate post-licensing education)). See what a new licensee should look for.
More on choosing a brokerage
- Caps and fees: how to calculate your true commission split
- How revenue share works at a real estate brokerage
- Joining a real estate team vs. going solo
- What a new Florida licensee should look for in a first brokerage
- Changing brokerages in Florida: the license transfer steps
Frequently asked questions
Which brokerage model is best?
There's no single best model. The right fit depends on your production, how much training and lead support you need, the brand your clients respond to, and how you like to work. Compare effective cost and support side by side.
Do I have to be with a broker to work as a Florida sales associate?
Yes. A sales associate works under the direction of a registered employer and may not operate for anyone else (section 475.42(1)(b), Florida Statutes).
Are Florida real estate agents employees or independent contractors?
It depends on the facts and the written agreement. Federal tax law treats licensed agents paid substantially by sales under a written contract as non-employees, and Florida's workers' compensation and reemployment assistance laws have commission-only provisions. Read your brokerage agreement.
How do I compare a capped split with a 100% fee model?
Compute your effective split, which is what you keep after all fees divided by gross commission income, at a low, expected and high production level. Then weigh what each model includes in training, leads, brand and support.
This guide is general information, not legal, tax or business advice. Brokerage terms change and vary by office. Get every term in writing and review agreements with your own adviser.
Sources
- § 475.01(1)(b), (j), Fla. Stat. (broker associate; sales associate definitions)
- § 475.42(1)(a)–(d), Fla. Stat. (sales associate may work only for registered employer; compensation only through employer)
- § 475.161, Fla. Stat. (licensing as a PA, LLC or PLLC)
- § 475.23, Fla. Stat. (license ceases on change of employer; notice within 10 days)
- DBPR Division of Real Estate: Manage My License (Form RE 11, change of broker/employer; post-license education)
- 26 U.S.C. § 3508 (qualified real estate agents treated as non-employees for federal tax)
- § 440.02(18)(d)2., Fla. Stat. (workers' compensation: commission-only real estate licensees)
- § 443.1216(13)(n), Fla. Stat. (reemployment assistance: commission-only real estate salespersons)
- Fla. Admin. Code R. 61J2-10.025 (advertising must include the licensed brokerage name)
- § 475.22, Fla. Stat. (broker office and sign)
- § 475.25(1)(h), Fla. Stat. (sharing compensation with unlicensed persons)
- § 475.17(3), Fla. Stat. (45-hour sales associate post-licensing education)
Last reviewed October 2026. Laws change; confirm current law before relying on this page.