Quote:
Originally Posted by fotze
Does that include the 50% or whatever the brokerage takes off the top?
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Most brokerages don't take 50% (I can't think of any).
They tend to work on 1 of 2 models: heavy commission splits with very little upfront cost, or heavy upfront cost with smaller splits.
The first model is great for newer or part time agents cause they only have to pay when they make a sale. If you don't sell anything for 2 months, you're not covering large costs anyway.
The 2nd model attracts more active agents cause they know they'll be doing enough business to pay the monthly costs, and don't want to pay a lot more on every sale.
Re/Max is the most famous of the 2nd model, as they're very expensive in upfront monthly costs (at least $1000/month just to be there), but you keep most of your commission earned.
That's why a company like that tends to attract more experienced, and busier agents who can afford the monthly hit but still do enough business to justify it. Once you're doing 3-4 deals/month it makes a lot more sense to go this way.