Commission Splits vs Flat Fee?

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In the year 1908, the National Association of Real Estate Exchanges was founded to bring agents and brokers together. In 1913, the first draft of the real estate agent code of ethics was written. In 1916, the National Association of Real Estate Boards (NAREB) was created, and the term “realtor” was coined for members who subscribed to the Code of Ethics. Until 1919, anyone could be a real estate broker and close deals. My guess is, this is probably when commission splits with brokers were introduced too. It has been 100+ years since commission splits have been around. It’s very difficult to change a format that has been around for so many years. But, like every other industry, this will get rewritten in real estate too. Here’s why!

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Declining Overall Commissions

The current average of commissions charged for a transaction is between 5.5% and 6%. There is no law saying that it should be a certain number but this is the norm, so everyone goes with it. This number has been steadily declining, with a lot of resistance over the recent few years. The reason for this decline is obvious. It’s because consumers can search for listings themselves and find their favorite listing or at the very least, do their research online about where to buy, what to buy, etc. Sellers still depend on agents to sell their homes at the best possible price. Buyers will still need an agent to help them with paperwork, help with mortgages, inspection, place offers etc. These requirements will never go away. With more tech introduced in real estate, agents are going to find it easier in the future to do all these things for their clients. As it gets easier, commissions will drop gradually. This will push agents to renegotiate their commission splits with their brokers.

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Dependency on Brokers

When you start your career as a real estate agent, you probably don’t know much. You have so many questions, right? How do we talk to clients? Where do we generate leads? What’s the script to use when I am cold calling? Where will I get my marketing budget? How do I stage a home? What’s the paperwork involved? Who will audit my files? So many questions. You need an experienced broker or an agent to guide you. This mentorship comes at a cost. As you gain experience, this cost is less and less justified. You might have started with a 70/30 split but at some point, you can be independent enough to make it a flat fee commission structure with your broker.

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Agent Brand vs Broker Brand

The agent brand is already becoming more important than the broker brand. Most consumers choose to work with an agent because they have been referred by a friend, heard of the agent, or seen their profile on a yard sign/postcard/social media/Zillow. Very few consumers actually call a Sothebys or a Remax or Keller Williams office asking for help in finding a property. This way of getting in touch with an agent is declining sharply.

Building a brand for yourself is not a short-term project. It takes months, sometimes years to build an online/offline presence. Start working on it now before it gets too competitive 5 years from now. As an agent, you have to be where the consumers are. This makes it very important for you to choose your channels, whether it’s social media or local events or zillow and double down on making your brand strong there. Don’t worry, this is not rocket science. You can easily get marketing teams to help you with this. Join a brokerage that can help you with branding without them pushing their brand. This service shouldn’t come at a commission split as it’s the same service for all agents, regardless of listing price or buying price. So, make sure you join a flat fee brokerage that can help you with branding.

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Re-invest in Marketing

You will notice that after you move to a flat fee brokerage, you will end up saving a lot more money than normal. Now, you have extra income to re-invest in marketing and building your brand. This will get you more leads and suddenly a simple decision such as moving from a commission split to a flat fee structure will start giving you exponential returns. When you make a decision to switch to a flat fee brokerage, don’t just count the additional income you will make on the number of deals you currently make. Think about the additional income you will be making with all the extra leads that you got from re-investing those extra profits. If your brokerage can help you with this marketing too, it’s a no-brainer to choose them.

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Why Pay Different Amounts for the Same Service?

This is the easiest argument for why you should always have a flat fee structure with your broker. Whether it’s a listing worth $300K or $1M, the support you get from your broker is the same, unless your broker is spending more for you on marketing the more expensive listing. So why should you pay different amounts simply because it’s a commission split. This is why flat fee structures are going to be the future.

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On every deal you are closing on a commission split, ask yourself if the commission split you are paying is justified. Are you still learning something? If yes, should you be joining a team in a flat fee brokerage instead? If you are not learning anything, can you go independent at a flat fee brokerage that can support you in marketing and branding? These are questions only you can answer, but something to think about to set yourself up for success in the future in a fast-evolving real estate industry.

We are a flat fee full-service premium brokerage with a monthly subscription. If you are serious about this profession you can either start a team, join a team or be independent with Radius Agent Realty. We will support you and help you be even more successful than you are today.

We prioritize agents’ needs and profitability. We provide the tools, training, and support you need to be successful. Join our community to check us out for free. Start using some of our tools. When you want to, you can join our brokerage as well!

Radius, a Real Estate Agent Community First, Brokerage Second

Real estate agents are the largest and the most influential sales force in the world. Rightfully, so. They help families find their home, a decision that influences many people’s lives. Despite helping others find their homes, real estate agents are ironically always looking for a home when it comes to their careers. Agents are always seeking a brokerage that supports them better than their current one.

A dream brokerage would help them with everything they need to be successful:

  • A strong family of agents to rely on
  • Branding support that makes them stand out in their neighborhoods
  • Design and marketing support to be on point with their marketing and assets.Technology that makes their lives easier
  • Leads and referrals that convert
  • A concierge team that helps with lead management and database cleanup
  • Listing management support that makes it easy to manage multiple listings
  • Transaction coordination support so that they never have to deal with paperwork
  • Training as needed for all the new tech, best practices, inspirational events, coaching, etc

Why Radius Agent Realty? 


We are a real estate agent community first, brokerage second. We have the largest community of agents (75,000), from different brokerage firms from across the country, helping each other out with referrals, advice, and market insights. Build your network on Radius Community: a space to help you connect, share insights, and send or receive leads. Community is key to growing your real estate brand.

Agent Branding Before Brokerage Branding

People don’t just hire a brokerage; they hire the agent. Your brand should be as memorable as you. We guide you through the development of your brand personality, logo, and marketing materials to complement your realtor personality and expertise. 

We will work with you to build or revamp your logo, decide on which hashtags to use, develop a recognizable brand identity, create a social media strategy for consistency across platforms, design yard signs, and more. From personality and font recognition to logo selection, we’ll be there to guide you every step of the way. We help build your personal brand and push your identity before our own.

Help with Design and Marketing

Effective marketing starts with a multi-touch approach to keep you top of mind to future and past clients. We have everything you need to get you in front of the right audience. You don’t have to ever hire a designer or a marketing company ever again. We will help you design brochures, newsletters, postcards, social media posts, and more. High-quality content is fundamental in real estate and we have streamlined the process for you. We make sure you’re visible and provide digital and print solutions that grow and reinforce your value to your clients.

Top of the Line Tech

We use cutting-edge technology to provide you with lead generation services, CRM (customer relationship management systems), transaction management, and beyond. We curate the best-in-class technology and train you on the tools you’ll need to be successful. Get discounted rates on local vendors and have our team workout the tedious details. 

Tech resources include a referral marketplace, Radius Agent, KV Kore CRM, Highnote, Skyslope, BrokerSumo, Zipform, Disclosures, Canva, Google G-Suite and Slack. We listen and we’re always here to help. 

Radius Academy

In the Radius Academy, our agents get access to events, webinars, courses on new tech, best practices, branding and marketing, leadership, and more by industry leaders, coaches, tech experts. We train our agents and keep them up to date on things that are happening in the real estate world. All of our training courses and live events are virtual, so you can attend from home and easily get up to speed.

Leads, Leads, and More Leads

Our community offers referrals from the network, as well as partnerships with Zillow and and more, and even leads from Facebook and Google ads.

All leads are qualified through our Radius Assist. Allow our team to save you time. We’ll call, text, and email your leads and set warm appointments You have your lead pipelines, let us add another to ensure you’re kept busy. 

Radius Assist

Radius Assist is a concierge team that always has your back for calling and texting your leads so that you don’t have to waste your time on dead leads.

Transaction Coordination

You’ll never have to worry about transaction coordination again with our services. 

We have Transaction Coordinators who are the best in the business and who will go that extra mile to help you with coordinating paperwork with your clients, vendors, and agents. With our experienced Transaction Coordinators (in Colorado and California) nothing will fall through the cracks and you won’t get bogged down by the administrative parts of the real estate transaction.

Your Transaction Coordinator will help with every step of the process from contract to closing, including:

  • Opening escrow
  • Coordinating inspections, repair negotiations, and completion of repairs
  • Communicating updates to clients, agents, lenders, and other people involved in the transaction
  • Monitoring the contingency period
  • Ensuring that all documentation is submitted
  • Coordinating the closing process
  • Scheduling client follow-up calls (after close) to check-in and ask for referrals.

Our Transaction Coordinators are always ready to help. They are organized and their processes are streamlined on skyslope. All files are audited by our Compliance Manager, for peace of mind.

100% Commissions

We are a flat fee full-service premium brokerage with a monthly subscription. If you are serious about this profession you can either start a team, join a team or be independent with Radius Agent Realty. We will support you and help you be even more successful than you are today.


Radius Agent Realty is a full-service brokerage that prioritizes agents’ needs and profitability. We provide the tools, training, and support you need to be successful.

Join our community to check us out for free. Start using some of our tools. When you want to, you can join our brokerage as well!

How Uber is helping startup founders and they don’t even know about it

that $15 is worth it
that $15 is worth it

I just moved to San Francisco and obviously I am dependent on buses, trains and Uber for the last mile.  Almost every uber driver I have met so far has had a deep understanding of the technology scene in San Francisco.  One of them even told me that they have read about Agentdesks somewhere and was gracious enough to recommend features that we might implement.

Here are some amazing ways in which they help Founders

1)  Recruiting

One driver in the city (his name was Alex) said he meets at least 10 software engineers every day.  When they are going to office in the morning, out for lunch, getting to late night parties.  He just rambled on names of tech giants and how each of these engineers hated working there and are looking for new jobs.  So, I asked him recommend Agentdesks to the next iOS developer who comes in and gave my card.  He said, he will do it.  What if all the drivers were recruiting officers for startups.  Think about it!

2)  Client acquisition

Another driver in San Mateo, has a lot of real estate agent friends.  He took 10 of my business cards so that he can pass it on to his friends.  Perfect, right?  Context – I run Agentdesks.  Agentdesks is a sales application for real estate agents.

3)  Ideas

When you discuss with San Francisco drivers, it’s usually productive.  Some great ideas came out of a conversation I had with a driver this week.  He said, I should think about providing our agents with insurance plans and make that part of their lives easy.  That will create loyalty as well.  And many more ideas!

4)  Fund raising

You pick an uber driver in Menlo park.  Rest assured, he has dropped 2 other founders in the same day at different VCs.  You can expect questions like “what’s your cap?” / “what are your biggest costs?”  /  “who is your target audience” from your driver.  Great practice!  Also, they recommend more VCs that you can meet.

5)   Uber pool

When you are in the city, always Uber pool.  9/10 you will meet another software engineer.  He/She could be your next engineer.

So, do it.  Uber everywhere.  Don’t buy a car.