- Volume Closed: $5,000,000
- Average Commission (2.5%): $125,000 GCI
- Transactions: 15 deals
- Broker Split: 85/15 until $12,000 cap
- Transaction Fee (post-cap): $285 × 15 = $4,275
- You Net After Broker Fees:
- Pre-cap: $68,000
- Post-cap: $40,725
- Total before expenses: $108,725
🧾 Updated Expense Breakdown (15 Transactions)
ItemAmountListing photos ($350 × 15)$5,250Sign install/removal ($75 × 15)$1,125Yard signs ($40 × 15)$600Brochures/flyers ($50 × 15)$750Presentation folders ($10 × 15)$150Copies/CMAs ($10 × 15)$150Transaction Coordinator ($350 × 12)$4,200PLS Coordinator ($150 × 12)$1,800CRM System ($1,500 × 12)$18,000Office space ($300 × 12)$3,600
🔻AGENT STILL HAS TO PAY ALL GENERAL BUSINESS EXPENSES OF $35,652
✅ Final Agent Net Income at REAL BROKER
- After Real Fees: $108,725
- Minus business expenses: $35,635
- 💵 Final Net Income: ≈ $73,100
📊 Scenario Overview AT FABULOUS AIKEN HOMES LLC
- Closed Volume: $5,000,000
- Commission (2.5%): $125,000 GCI
- Split: 80/20 AGENT PAYS NO EXPENSES- EXCEPT BD DUES, GAS and PHONE
- Broker keeps 20% = $25,000
- You keep 80% = $100,000
- You pay $0 in business expenses
(broker covers everything: marketing, TC, photos, CRM, office, etc.)
✅ Final Net Income (All Expenses Covered)
CategoryAmountGross Commission$125,000Broker Split (20%)-$25,000Business Expenses$0Net Agent Income$100,000
🔁 Comparison Table
80/20 w/ broker-paid expenses$100,000 ✅
✅ Model Features:
- 80/20 split (you keep 80% of GCI)
- Broker pays all business expenses
- Leads provided by broker
- Flexible branding allowed (you can market under your own name/brand)
- No cap
- No desk/office fee to you
📊 Financial Breakdown (Based on $5M in Closed Volume)
1. Gross Commission (2.5%)
- $5,000,000 × 2.5% = $125,000 GCI
2. Commission Split
- 80% to agent = $100,000
- 20% to brokerage = $25,000
3. ALL Expenses (Paid by Brokerage) Items
BUSINESS CARDS, Listing photos$5,250 , Sign install/removal$1,125 , Yard signs$600, Brochures/flyers, $750 Presentation folders$150 *Copies/CMAs $150 *TC ($350 × 12 months)$4,200 , MLS Coordinator ($150/mo) $1,800CRM ($1,500/mo, )$18,000 Office space ($300/mo), $3,600, Total Paid by Broker$35,625
AGENTS PAYS ZERO $0 for these.
✅ Your Net Income
CategoryAmountGross Commission$125,000Broker’s 20% Cut-$25,000Expenses (broker-paid)$0Your Net Income$100,000 ✅
⚖️ Pros of This 80/20 Broker Model:
- ✅ High net income (no expenses)
- ✅ You keep 80% of commissions
- ✅ Flexible branding (personal logos, marketing freedom)
- ✅ Broker provides leads (great for scaling)
- ✅ All business expenses are covered
- ✅ You keep time/resources by not managing marketing, CRM, TCs, etc.