A Recent Study Shows Why Commission Splits are Gross and How Our 100%-Commission Model Always Wins Out


It’s our time to shine. And we knew it was coming.

A recent study by AccountTECH, reported by HousingWire, found that 79% of brokerages won’t be profitable if real estate professionals’ commissions drop as low as 2% – a point still widely debated – if the terms of the recent NAR settlement does result in dropping commissions. Why is that? Because so many brokerages are built on commission splits with their agents and if those commissions take a hit, so does the brokerage.

By building this company with the real estate professional as customer No. ONE and a 100%-commission model, we created a model for every market. And it wasn’t an accident. 

When you put people first, you win. 

I wanted real estate professionals to live in a COOLTURE-filled office without sacrificing support, tools and tech while still taking home 100% of their commission. A novel concept at the time, we’re proving today that this is why Realty ONE Group continues to grow calmly, strategically but ferociously no matter the market.

HousingWire says in their article, “According to the (AccountTECH) report, the study calculated the future net profit for brokerages while assuming that sales volume, company overhead and agent split percentages remain at current levels. It found that even a minor decrease in the commission rates charged to sellers made the companies in the study unprofitable.”

Other real estate brands never banked on commissions fluctuating, too busy focused on collecting part of an agent’s paycheck and racking up more and more agents to be profitable. And as is typical when the real estate market gets challenging, the number of active real estate agents has dropped as the discouraged leave the business.

The savings in commissions compared to other brokerages with splits allows our ambitious real estate professionals to reinvest their hard-earned commissions back into their own business and real estate career to serve clients more effectively.

What happens next according to HousingWire and AccountTECH?

When it comes to agent count, the study found that for firms with 100 to 5,000 agents, 88% will be unprofitable if the average agent commission drops to 2%.”

 No wonder they’re worried. No wonder we’re not. 

We’re here to support not only the real estate professional – letting them keep all of their commission, whatever that percentage of the transaction is – AND our entrepreneurs who have opened ONE locations all over the world. We always say that you achieve greater success faster at Realty ONE Group and now, more than ever, we’re seeing that happen as more professionals join us, more offices open and we organically attract more independents, team leaders and aspiring agents who want to franchise with us. They don’t want more fear or more turbulence. They want calm. They want 100% of their commission and they want to succeed. 

I’d like to say we’ve never been more confident about building this international brand but that wouldn’t be true. We’re just seeing the fruits of our model, purpose, values and also our belief that if everyONE matters and everyONE has a voice, everyONE wins.