Is a 100% Commission Real Estate Brokerage Right for You?

Posted by Lisa Logan on Dec 27, 2018 2:53:05 PM
Lisa Logan

100 BlogMost people think the 100% commission business model is new to the real estate industry, but it’s not. The 100% commission model has been around since 1965 when Realty Executives International created it. However, Re/Max founder Dave Liniger made it popular when he launched the model in 1973. It has been an effective business model for Re/Max, however, the realty chain has changed the commission to a 95% model due to lack of revenue in the past.

Other 100% agencies have arrived on scene in the last ten years, making traditional brokerages uneasy. UNiQ Realty has joined the ranks of other 100% agencies, offering free E&O (errors and omissions) insurance, 24-hour direct deposit commission, a website, technical tools, and broker support for an affordable monthly fee. Lower priced UNiQ plans starting at $40 per month require a $499 per transaction fee, but that’s still a huge savings compared to the 50/50 commission split of traditional brokerages.

Who is a good candidate?

Who is the 100% business plan for?

  • Small independent real estate brokerages
  • Established agents with proven sales records

So many real estate agents fresh out of school believe that the best brokerage to join is the one that offers the highest commission. Some 100% real estate agencies are not best for new, inexperienced agents. The reason for that is the amount you may have to pay in monthly fees to be a member of that agency and the fact that new agents make very little in their first year. Also, some 100% commission agencies offer little to no training for new agents. UNiQ Realty has helped many new agents start and grow their businesses from scratch. UNiQ University is an outstanding resource for new agents looking for direction. New agents can also take advantage of the mentorship program.

At UNiQ Realty, we have plans starting at $40 per month, and that includes everything you need to start and maintain a real estate business. You get free access and use of our modern offices, free E&O insurance, free Digi Sign account, free website, and free access to automated CRM. That’s virtually everything you need to run your real estate business.

Other 100% real estate agencies may charge more and offer you less, so be aware of this when you choose an agency to work for. Make sure you find out exactly what you’ll get as an agent and how much you’ll have to pay per month. Some 100% agencies offer nothing to agents through their memberships other than a place to park their licenses. UNiQ Realty provides everything you need to be successful.

article2_newThe 100% business model is ideal for established agents who have completed many sales in the past and have reason to believe that they will achieve many more in the coming year. These seasoned agents know how many sales they tend to complete per month, so they can effectively gauge how much profit they’ll bring in each month despite monthly agency fees.

It’s not to say that new agents should not consider using a 100% commission agency. It’s that they should be careful in doing so because they have not established an accomplished sales record yet. If you’re a new real estate agent, and you believe you’ve got what it takes, then by all means, give it a try.

Different Types of 100% Commission Agencies

Not all agencies claiming to offer 100% commission are alike. Some are scrupulous, and others not so much. The traditional brokerage model pays half of the commission and spends most of the overhead expenses for the real estate agent. Under the 100% brokerage model, the agency pays 100% commission, however, they may collect from you in another way such as E&O insurance premiums, desk fees, and transaction fees. These agencies are notorious for offering little to no support and training. When considering an agency, make sure you know exactly what you are going to get for the monthly fees you pay.

The Way of the Future

The 100% model is here to stay no matter what variety you choose. This type of agency has become a considerable part of the real estate field accounting for around 15 to 25 percent of the industry according to Steve Murray, Real Trends’ president. (source: Inman)

This, of course, infuriates traditional brokerages because of the possible loss in revenue for them. Traditional brokerages often refer to this new breed of brokers as “flat-fee scumbags,” but this hasn’t stopped the 100% brokerages from gaining popularity among agents and their clients.

To learn more about UNiQ Realty’s benefits and pricing plans, call (949) 607-8004, or visit

Topics: Brokerage

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