How Much Does RE/MAX Pay Compared To A 100 Percent Commission Broker ?
- www.KeepAllYourCommission.com
- Dec 28, 2015
- 5 min read
Updated: Mar 6
But, but I thought Re/Max paid the highest commission ?
Many agents believe that RE/MAX pays the highest commission in the industry. The brand is widely associated with top producers and high commission splits. But does that mean agents actually keep 100% of their earnings?
In this detailed breakdown, we compare RE/MAX with a 100 commission real estate brokerage operating under a virtual flat-fee model. If you’re evaluating your options as an agent, this guide will help you clearly understand the numbers, fees, and long-term impact on your real estate agent earnings.
Understanding the RE/MAX Commission Model
Let’s begin with the basics.
While many agents assume RE/MAX operates as a 100% commission brokerage, that is not entirely accurate. RE/MAX typically offers a higher commission split compared to traditional brokerages, but agents still pay several fees.
Typical Commission Structure
New agents often start at a 50/50 split
Experienced agents may reach 95/5 splits
Commission caps may apply
Desk fees are common
Franchise fees are standard
Marketing and advertising fees may be additional
Each RE/MAX office operates independently, so exact numbers vary. However, the key point is this:
Agents do not automatically keep 100% of their commission.
Real Estate Commission Percentage Explained
To evaluate any brokerage, you must understand how the real estate commission percentage works.
When a home sells, the commission (often 5–6%) is split:
Between listing and buyer agents
Between the agent and their broker
For example:
$500,000 home
6% commission = $30,000
3% to buyer side = $15,000
If agent is on 95/5 split → agent keeps $14,250
Broker keeps $750
That may sound favorable. But what happens when annual desk fees and franchise fees enter the picture?
RE/MAX Fees: The Real Cost
Let’s use a real-world example frequently cited by agents:
“My desk fee is $14,000 a year and my split is 95/5. It costs me about $19,000 for the first $100,000 I make.”
Here’s how that breaks down:
Annual Costs
Desk fee: $14,000
Commission split (5% of $100,000): $5,000
Total: $19,000
And this does not include:
Advertising fees
Technology fees
Franchise fees
Office fees
Errors & omissions insurance
That means before you truly “keep” your income, you must first cover substantial overhead.
What Is a Desk Fee?
A desk fee brokerage charges agents a fixed monthly or yearly fee to operate under the brokerage brand. The fee covers office space and brand affiliation.
But in today’s digital world, many agents work remotely. That raises an important question:
Does a physical desk justify $14,000 per year?
What Is a 100% Commission Real Estate Brokerage?
A 100% commission real estate brokerage allows agents to keep 100% of their commission. Instead of a percentage split, agents usually pay:
A flat transaction fee
Or a low monthly fee
Or no desk fee at all
In many virtual models, overhead is minimal because there is no brick-and-mortar office expense.
Example of a Flat Fee Structure
Desk fee: $0
Franchise fee: $0
Advertising fee: $0
Commission split: 100% to agent
This model is often referred to as:
Flat rate real estate agent model
Online brokerage
No desk fee brokerage
Flat Rate Real Estate Agent Model: Why It’s Growing
The industry has evolved.
Technology now handles:
MLS access
Digital signatures
Virtual showings
Online marketing
CRM systems
As a result, many agents no longer need:
Expensive office space
In-house admin staff
Traditional advertising packages
This shift has made the online brokerage model increasingly attractive.
Agents who operate independently often prefer to control their expenses rather than pay high fixed costs.
Side-by-Side Comparison: RE/MAX vs 100% Brokerage
Category | RE/MAX | 100% Commission Brokerage |
Commission Split | 50/50 to 95/5 | 100% |
Desk Fee | Often $10,000–$15,000+ annually | $0 (in many cases) |
Franchise Fee | Yes | No |
Advertising Fee | Often additional | Often optional |
Office Requirement | Usually yes | Virtual |
Overhead Risk | High | Low |
Scalability | Limited by costs | Highly scalable |
The numbers clearly show the structural difference.
Real Estate Agent Earnings: Which Model Pays More?
Let’s compare a $150,000 annual producer.
Scenario 1: RE/MAX Agent (95/5 Split)
5% split = $7,500
Desk fee = $14,000
Total cost = $21,500
Net before expenses = $128,500
Scenario 2: 100% Commission Brokerage
Commission split = $0
Desk fee = $0
Flat transaction fees (example) = $5,000 total
Net before expenses = $145,000
Difference: $16,500 more kept by the agent.
Over 5 years, that equals $82,500.
That is significant.
Real Estate Brokerage Fee Structure: What Matters Most
When choosing a brokerage, focus on:
Total annual cost
Flexibility
Scalability
Brand value
Support systems
Long-term earning potential
High splits sound impressive, but fixed fees dramatically impact profitability.
Always calculate:
Total brokerage fee ÷ Gross commission income = true cost percentage
Common Misconception: “RE/MAX Pays the Highest Commission”
RE/MAX offers strong brand recognition and competitive splits. However, it is not automatically a 100% commission real estate brokerage.
High-producing agents may negotiate strong splits, but desk fees and franchise fees remain part of the equation.
The key is not the split alone.
The key is what you actually keep.
Which Business Model Works Best for You?
Choose RE/MAX if you value:
National brand exposure
Office environment
Traditional brokerage structure
Built-in support system
Choose a 100% commission brokerage if you value:
Lower overhead
Higher net income
Flexibility
Remote operations
Entrepreneurial control
There is no universal answer. The best model depends on your production level and business goals.
Key Takeaways
RE/MAX does not automatically equal 100% commission.
Desk fees can exceed $14,000 annually.
Commission splits significantly affect real estate agent earnings.
Online brokerage models reduce overhead.
Always calculate total costs before choosing a brokerage.
In today’s market, smart agents analyze profitability, not just branding.
FAQs
1. Does RE/MAX offer 100% commission?
Not typically. While agents may reach high splits like 95/5, they still pay desk fees and other brokerage fees.
2. What is a 100% commission real estate brokerage?
It is a brokerage where agents keep 100% of their commission and typically pay flat or transaction-based fees instead of percentage splits.
3. What is a desk fee in real estate?
A desk fee is a fixed monthly or annual fee agents pay to operate under a brokerage, often covering office space and branding.
4. Are flat rate real estate agents profitable?
Yes. Many agents increase their net earnings by reducing brokerage fees and keeping more commission per transaction.
5. How do I calculate my real estate earnings after brokerage fees?
Subtract commission splits, desk fees, franchise fees, and transaction fees from your gross commission income to determine your true net earnings.
Ronny Santana - Broker / Owner
CURB
Tennessee's Premier 100% Commission Brokerage
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