Why Choose A Split Brokerage Over A Fees-Based Brokerage?
When deciding which type of real estate brokerage to join in British Columbia, understanding the difference between a split and a fees-based brokerage is important in making the right choice for your career. Each model offers its own set of advantages, but a split brokerage might be the better option for many real estate agents. Here’s why:
Limit your monthly outgoings: With a split model, you minimize your monthly fees and then share a portion of the commissions you earn with the brokerage when you are paid out on your sales, so it is a success-based model where the brokerage is fully incentivized to help you grow your business.
More Support: Split brokerages often provide deeper resources, training, and mentorship to help you succeed in the industry. The fees you pay to a brokerage should be commensurate with the value of the services and support provided. Ask to find out what services are included.
Less Financial Pressure: Instead of fixed monthly fees, you pay a commission split (often on a sliding scale that benefits you as you do more business), reducing financial pressure, especially in slower months.
Incentive to Succeed: Your income is essentially tied to your performance, encouraging hard work and helping you grow your business. Your brokerage only really earns when you do, so it’s more like a philosophical partnership in that regard.
Team Plans: Macdonald Realty offers an attractive team program that allows real estate teams to pool their commission within the split structure, reaching the upper tiers and lower split more quickly. Team fees apply based on number of licensed team members and the team plans can be an attractive option for those agents’ running teams.
Choosing a split brokerage over a fees-based brokerage can offer real estate agents in BC a model that works well for agents who want a performance-based structure where fees paid are tied directly to success. If you’re driven and committed to growing your business, a split brokerage may be the best choice for your career. Look into both models, as every brokerage will offer something different and it’s about you making your best decision.
Macdonald Realty offers a split option with at least two tiers, and a hybrid split-fee option, which allows you to choose the best structure for you. Book a call with us to learn more about what we offer and our structure.