Executive Summary
Most agents understand brokerage splits.
Very few understand team splits.
And almost no one calculates how both stack together.
If you are on a team and at a traditional brokerage, you are likely getting split twice.
Once by your team lead
Once by your broker
This article breaks down where the money actually goes and how much you are really keeping.
Key Takeaways
- Team splits and brokerage splits stack on top of each other
- Most agents calculate only one, not both
- Your effective split is usually far worse than advertised
- High-producing agents often give up the most income
- Understanding your true split is the first step to fixing it
What Is a Brokerage Split?
This is what most agents already know.
It is the percentage you pay to your brokerage in exchange for:
- License supervision
- Compliance
- Branding
- Basic infrastructure
Common brokerage splits:
- 70/30
- 80/20
- 85/15
If you earn $10,000 on a deal at an 80/20 split:
- You keep $8,000
- The brokerage gets $2,000
Simple.
But that is only part of the picture.
What Is a Team Split?
If you are on a team, you are also paying your team lead.
In exchange for:
- Leads
- Coaching
- Systems
- Admin support
- Brand positioning
Common team splits:
- 50/50
- 60/40
- 70/30
And here is where things get misunderstood.
The team split usually happens before or alongside the brokerage split.
Which means you are not keeping what you think you are.
How the Double Split Actually Works
Let’s walk through a simple example:
- Commission: $10,000
- Team split: 50/50
- Brokerage split: 80/20
Step 1: Team takes their split
- You: $5,000
- Team: $5,000
Step 2: Brokerage takes its split (from your side)
- You keep 80% of $5,000 = $4,000
- Brokerage takes $1,000
Final result:
- You: $4,000
- Team: $5,000
- Brokerage: $1,000
You wrote the deal.
You ended up with 40%.
Team Split vs Brokerage Split Comparison Table
Here is where it becomes clear.
Assume:
- $10,000 commission
- 80/20 brokerage split
| Team Split | Amount to You After Team | Final You Keep After Brokerage | Effective Split You Keep |
|---|---|---|---|
| No Team | $10,000 | $8,000 | 80% |
| 70/30 | $7,000 | $5,600 | 56% |
| 60/40 | $6,000 | $4,800 | 48% |
| 50/50 | $5,000 | $4,000 | 40% |
This is what most agents never see.
A “70/30 team split” is not 70%.
It becomes 56%.
A “50/50 team split” is not 50%.
It becomes 40%.
And that is before any additional fees.
Where the Money Actually Goes
Once both splits apply, your commission is distributed across multiple layers:
- Team lead
- Brokerage
- Franchise fees (if applicable)
- Transaction fees
- E&O fees
Your deal is not being split once.
It is being fragmented.
And every layer takes a percentage or a fee.
Why This Model Exists
There is a reason this structure is so common.
It benefits:
- Team leaders building leverage
- Brokerages scaling revenue
- Franchise systems maintaining margins
It does not optimize for the agent.
Especially the producing agent.
The more deals you close, the more money moves up the chain.
When a Team Actually Makes Sense
Teams are not inherently bad.
They can be extremely valuable when:
- You are new and need structure
- You need lead flow immediately
- You want accountability and coaching
- You are building confidence
In those cases, the tradeoff can make sense.
But the mistake most agents make is staying too long.
The Real Question You Should Be Asking
It is not:
“What is my split?”
It is:
“What percentage of my commission do I actually keep?”
Because those are two very different answers.
What to Look At Right Now
If you are on a team, calculate this immediately:
- Your average commission per deal
- Your team split
- Your brokerage split
- Your transaction fees
- Your annual totals
Then ask:
Is the value I am receiving worth the percentage I am giving up?
If the answer is no, it is time to restructure.
FAQs
Do team splits always stack with brokerage splits?
In most cases, yes. Some teams have unique structures, but double-layer splits are extremely common.
Can I negotiate team splits?
Sometimes. It depends on your production and leverage within the team.
Is it better to leave a team or change brokerages first?
That depends on what is costing you more. In many cases, both need to be addressed.
Why don’t agents calculate their true split?
Because the industry presents splits separately instead of showing the combined impact.
Are teams worth it long term?
They can be early in your career. Long term, most producing agents outgrow the structure.
Final Thought
Most agents believe they are on a 70/30 or 80/20 split.
Very few realize they are actually keeping 40% to 55%.
If you are closing deals consistently, this is not a small difference.
It is the difference between building a business and funding someone else’s.
About the Author
Stu Hill is the Chief Innovation Officer at Easy Realty and CEO of MNKY Agency. He helps agents and brokers remove unnecessary layers so they can close more deals and keep more of what they earn.
