How Much Does RE/MAX Pay Compared To A 100 Percent Commission Broker ?
- Dec 28, 2015
- 4 min read
Updated: Mar 2
But, but I thought Re/Max paid the highest commission ?
Many agents entering the industry hear the same thing: “RE/MAX pays 100% commission.” It sounds great at first glance. Who wouldn’t want to keep 100% of their hard-earned income? But when you look a little closer, the numbers tell a more detailed story.
In this article, we’ll compare a traditional franchise brokerage model like RE/MAX with a modern 100% commission brokerage operating as a Virtual real estate brokerage under a California flat fee brokerage structure. If you’re evaluating your options—especially if you hold or are pursuing a California real estate license—this breakdown may help you decide which path aligns best with your goals.
Is RE/MAX Really a 100% Commission Brokerage?
The idea that RE/MAX is a “100 percent real estate brokerage” is a common misconception. While experienced agents can reach high splits such as 95/5, very few agents actually start there.
In many offices, new agents begin at a 50/50 split. As production increases, the split improves—but there are still fees to consider. One RE/MAX agent shared:
“My desk fee is $14,000 a year and my split is 95/5, so it costs me $19,000 for the first $100k I make.”
Let’s break that down:
$14,000 in annual real estate desk fees
5% commission split on transactions
Additional costs for marketing, franchise fees, and office-related expenses
Even at a 95/5 split, that agent pays significant overhead before keeping their earnings. So while technically you may “keep” 95% of commissions, the fixed and variable fees reduce your effective income considerably.
When evaluating real estate brokerage fees, it’s important to consider the total cost of doing business—not just the commission split.
Understanding the Franchise Model
Traditional brokerages like RE/MAX operate under a franchise structure. That means:
The local office pays franchise fees
Agents often contribute to brand advertising
Office space and support staff are funded by desk fees
These real estate franchise costs get passed down to agents in one way or another. While the brand recognition may provide value, it comes at a price.
For some agents, especially high producers who benefit from physical office space and brand marketing, the model can work. But for others—particularly independent, tech-savvy agents—the costs may outweigh the benefits.
The 100% Commission Virtual Brokerage Model
Now let’s compare that to a modern California flat fee brokerage operating virtually.
Under this model:
Desk fee: $0
Advertising fee: $0
Franchise fee: $0
Commission split: 100% to the agent
Instead of high overhead, agents typically pay a simple flat transaction fee. This structure dramatically reduces fixed expenses.
A Virtual real estate brokerage leverages technology rather than physical office space. Agents work remotely, manage their business independently, and keep their full commission minus a predictable flat fee per deal.
For agents focused on maximizing profit margins and maintaining autonomy, this model can be extremely attractive.
Comparing the Numbers
Let’s use a simple example.
Assume an agent closes $100,000 in gross commission income (GCI).
Traditional Franchise Model:
$14,000 annual desk fee
$5,000 (5% split on $100k)
Additional fees (marketing, franchise contributions, etc.)
Total potential cost: $19,000+
Net income before other business expenses: ~$81,000
Flat Fee 100% Model:
$0 desk fee
$0 advertising fee
Flat transaction fees only
If transaction fees totaled, for example, $5,000 for the year, the agent would retain $95,000.
That’s a significant difference.
When evaluating real estate brokerage fees, always calculate both fixed costs and variable costs.
What About New Agents?
If you’re newly licensed or working toward your california real estate license, understanding brokerage structure is critical.
Many new agents assume brand-name brokerages automatically provide more leads and better support. While that may be true in some offices, it varies widely.
A 100 percent real estate brokerage operating virtually may offer:
Online training
Transaction coordination
Broker support
CRM tools
Lower overhead
It’s also worth noting that agents who are parking your real estate license—keeping it active but not actively selling full-time—may find flat-fee models especially appealing because they avoid large annual desk obligations.
Licensing Considerations in California
If you plan to advance your career by earning a california real estate broker license, you’ll gain the flexibility to open your own brokerage or operate independently. Many agents eventually pursue this path to eliminate splits altogether.
However, not everyone wants the responsibility of running a full brokerage. That’s where a flat-fee, virtual model can serve as a middle ground—allowing you to retain maximum commission without the liability and overhead of owning a firm.
Which Model Works Best for You?
There is no universal answer. The best brokerage model depends on:
Your production level
Your need for in-person office support
Your comfort with technology
Your desire for autonomy
Your tolerance for fixed overhead
For high-producing agents who rarely use the office, paying $14,000 a year in real estate desk fees may not make sense.
For agents who value branding, in-office collaboration, and structured support, franchise models may justify the cost.
The key is understanding what you’re truly paying—and what you’re receiving in return.
FAQs
1. Is RE/MAX really a 100% commission brokerage?
Not exactly. While some agents may reach high splits like 95/5, most still pay significant real estate brokerage fees, including desk fees and franchise-related costs.
2. What is a 100% commission brokerage?
A 100% commission brokerage allows agents to keep all of their commission, typically charging a flat transaction fee instead of a percentage split.
3. What is a California flat fee brokerage?
A California flat fee brokerage charges agents a predictable flat fee per transaction rather than ongoing desk fees or high commission splits.
4. What are real estate desk fees?
Real estate desk fees are fixed annual or monthly fees agents pay to cover office space and overhead in traditional brokerages.
5. Is a virtual real estate brokerage right for new agents?
A Virtual real estate brokerage can be ideal for self-motivated agents who are comfortable working independently and want to minimize overhead while building their business.
Ronny Santana - Broker / Owner
CURB
California's Premier 100% Commission Brokerage
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