When a new agent signs with a traditional brokerage, the conversation about splits usually goes something like this: "You're on a 70/30 until you hit your CAP, then you keep everything." It sounds reasonable. It is not. Let's do the math that most brokerages hope you never do.
What does a 70/30 split actually mean in dollars?
A 70/30 split means for every dollar you earn in commission, you keep 70 cents and your broker takes 30 cents. On a $10,000 commission check, you receive $7,000. Your broker receives $3,000 — for what, exactly? In most cases: the use of their license, a company email address, and access to a transaction coordinator you may or may not use.
Now scale that across a year. If you close $100,000 in gross commission income (GCI) — roughly 8–10 residential transactions at median Texas home prices — you are writing your broker a check for $30,000 annually. That is not a fee. That is a business partner taking nearly a third of your revenue without bearing any of your operating costs.
"A 30% split on $100,000 GCI is a $30,000 annual expense. Most agents never write it down that way. They should."
How much does a commission split cost over a 10-year and 20-year career?
Let's use a conservative but realistic scenario: an agent producing $80,000 in GCI per year on a 70/30 split. That agent pays $24,000 per year to their broker. Here is what that looks like compounded over time:
| Timeframe | Total Paid to Broker | Lost Investment Value (7%) |
|---|---|---|
| 1 year | $24,000 | $24,000 |
| 5 years | $120,000 | $138,000 |
| 10 years | $240,000 | $331,000 |
| 20 years | $480,000 | $1,044,000 |
Assumes $80,000 GCI/year, 30% broker split ($24,000/year), 7% average annual investment return. For illustrative purposes only.
Over 20 years, this agent has paid $480,000 to their broker. Had that money been invested instead — in an index fund, a rental property, or even a high-yield savings account — it would have grown to over $1 million at a modest 7% annual return. That is the real cost of a split. Not $30 per deal. Not $300 per month. One million dollars.
How does a 70/30 compare to 80/20 and 85/15?
Some agents negotiate a better split — 80/20 or even 85/15 — and believe they have solved the problem. They have not. They have merely reduced the size of the check they write to their broker every year. Here is what each model actually costs on $100,000 in annual GCI, based on each company's publicly documented base split (before additional franchise fees, desk fees, and transaction fees that vary by office):
| Brokerage | Base Split (Agent/Broker) | Additional Published Fees | Split Cost / Year ($100K GCI) | Split Cost Over 20 Years |
|---|---|---|---|---|
| Keller Williams | 70/30 (standard entry) | 6% royalty fee (capped ~$3K/yr) + desk fee $75–$100/mo + transaction fee $50–$400/deal | $30,000 | $600,000 |
| Century 21 | 70/30 (Kickstart) to 90/10 (Relentless) | 6–8% royalty fee + monthly fee $100–$350 + transaction fee $95–$295/deal | $30,000 (at 70/30) | $600,000 |
| Coldwell Banker | 50/50 (new agents) to 90/10 (experienced) | 6% franchise fee + desk/tech fee ~$110/mo + transaction fees vary by office | $50,000 (at 50/50) | $1,000,000 |
| RE/MAX (RAPP) | 60/40 (new) → 80/20 → 95/5 (after $23K cap) | No desk fee on RAPP; $125–$165/mo royalty + $95–$162/mo ad royalty passed through by some offices | $40,000 (at 60/40) / $20,000 (at 80/20) | $400,000–$800,000 |
| eXp Realty | 80/20 until $16,000 annual CAP, then 100% | $85/mo tech fee; $250/deal post-cap; $40 E&O/deal; $25/mo healthcare (optional); no desk fee | $20,000 (at 80/20) | $400,000 |
| Real Broker (REAL) | 85/15 until $12,000 annual CAP, then 100% | $249 sign-up; $750 annual brokerage fee (first 3 deals); $285/deal post-cap; $40 CBR/deal; no monthly fee | $15,000 (at 85/15) | $300,000 |
| Realty of America | 60/40 (first 3 deals) then 85/15 | No monthly fee; $750 tech fee (first 3 deals); $14K annual CAP; $250/deal after CAP; $50 E&O/file | $15,000 (at 85/15) | $300,000 |
| Texas Broker Sponsor™ | 100% — No split | Flat broker transaction fee only — no monthly fees, no royalties, no desk fees | See pricing sheet | Dramatically less |
Sources: Keller Williams, Century 21, Coldwell Banker, RE/MAX (listwithclever.com, Sept 2025); Realty of America (blog.realtyofamerica.com/faqs); eXp Realty (exprealty.com/income, sa.exprealty.com); Real Broker (support.therealbrokerage.com, Jan 2026). Split structures, fees, and caps vary by office, market, and individual agent agreement. All figures shown reflect each company's publicly documented base programs. This table is for illustrative educational purposes only. Contact each brokerage directly for current terms.
Even the most competitive split on the market — 85/15 — still costs an agent $15,000 per year in split costs alone on $100,000 GCI, before accounting for monthly fees, royalty fees, and per-transaction charges that many franchise brokerages layer on top. The only model that removes the percentage entirely is a flat broker transaction fee — where you pay a fixed dollar amount per closed deal, regardless of the commission size.
Calculate your own split cost
Enter your actual GCI, your broker's split percentage, and your career horizon to see your personal number.
Run Your Own Numbers
Investment projection assumes annual split amount invested at 7% average annual return. For illustrative purposes only.
What about the CAP? Doesn't that fix the problem?
The CAP is one of the most misunderstood concepts in residential real estate. Here is how it actually works: a CAP is the maximum amount you pay in splits per year before your split drops to zero for the remainder of that year. At most major brokerages, the CAP is between $12,000 and $20,000 per year.
The problem is threefold. First, you still have to pay the entire CAP before you benefit from it. Second, the CAP resets every year — so you start paying again on January 1st. Third, agents who do not produce enough volume to hit their CAP never benefit from it at all, yet still pay splits on every single transaction they close.
The CAP is not a solution to the split problem. It is a ceiling on the split problem — and one that resets annually, ensuring the brokerage collects its share year after year.
What is the alternative to a commission split?
The alternative is a flat broker transaction fee model. Instead of surrendering a percentage of every commission, the agent pays a fixed dollar amount per closed transaction — regardless of the commission size. On a $15,000 commission check, the fee is the same as on a $5,000 commission check.
This model fundamentally changes the economics of being an agent. The more productive you become — the higher your average sales price, the larger your deals — the more the flat fee model works in your favor. A $500 transaction fee on a $20,000 commission is a 2.5% effective rate. A 30% split on that same commission is $6,000. The math is not subtle.
| Commission Earned | 30% Split Cost | Flat Transaction Fee* | You Save |
|---|---|---|---|
| $3,000 | $900 | See pricing sheet | Significant |
| $6,000 | $1,800 | See pricing sheet | Significant |
| $10,000 | $3,000 | See pricing sheet | Significant |
| $15,000 | $4,500 | See pricing sheet | Significant |
| $20,000 | $6,000 | See pricing sheet | Significant |
*Exact transaction fee amounts are disclosed in the Broker Pricing Sheet Addendum, available to verified agents. Request yours below.
Frequently asked questions
Is a 70/30 split standard in Texas real estate?
70/30 splits are common at traditional brokerages in Texas, though some offer 80/20 or 90/10 splits — typically paired with higher monthly desk fees. Independent broker sponsorship companies like Texas Broker Sponsor™ offer a flat transaction fee model with no percentage split at all.
What is the difference between a commission split and a broker transaction fee?
A commission split is a percentage of every commission check paid to your broker, regardless of deal size. A broker transaction fee is a flat dollar amount per closed transaction, regardless of the commission amount. On high-value deals, a flat transaction fee is dramatically less expensive than a percentage split.
Does hitting my CAP mean I keep 100% of my commission?
After hitting your CAP, you keep 100% of your commission rate for the remainder of the year — but only until the year resets. The CAP itself (typically $12,000–$20,000) must be paid first, and it resets every January. Agents who don't close enough volume to hit their CAP never benefit from it.
How much does a real estate agent lose to splits over a 20-year career?
An agent on a 70/30 split earning $80,000 in GCI per year pays $24,000 annually to their broker. Over 20 years, that is $480,000 in lost income. At a 7% annual investment return, that money could have grown to over $1 million in a retirement account.
What is the cheapest way for a Texas real estate agent to keep more commission?
The most cost-effective model for productive Texas agents is a flat broker transaction fee with no monthly fees and no commission splits. Under this model, agents pay a set fee per closed transaction regardless of the commission amount, keeping 100% of their commission rate on every deal.
The Bottom Line
A commission split is not a small administrative fee. Over a career, it is one of the largest financial decisions you will make as a real estate professional. The agents who understand this early — and choose their brokerage model accordingly — retire with dramatically more wealth than those who don't.
Texas Broker Sponsor™ was built on a single premise: agents should keep what they earn. No splits. No caps. No monthly fees. Just a simple flat transaction fee — you only pay when you get paid.