What Commission Structure Do
You Use for Your Licensed Agents?
There is no single answer to this question, as commission structures vary widely among real estate companies. A newly licensed real estate agent typically begins with a 50/50 commission split. Some brokerages may offer a higher split but offset it with “desk” fees or other charges.
Agents who affiliate with DMS Properties, LLC Residential Real Estate Services can expect to start with a 50/50 split and minimal expenses. We do not charge any desk fees or transaction fees. As an agent’s production increases, the commission split adjusts accordingly.
Our research shows that many real estate companies calculate commission splits based on a calendar-year, 12-month period. In contrast, we use a graduated scale based on production over a rolling 12-month period. This means an agent’s production does not reset to zero at the end of the year. In addition, commissions earned from rental transactions are included in overall production totals and are calculated using a 2.5% commission on the rental amount.
We are also developing an alternative program that offers a higher commission split in exchange for a monthly desk fee. This option allows agents to effectively “buy up” their commission split if they choose. Production for this program is also calculated using the same rolling 12-month period.
Experienced agents may be eligible to begin at a higher split based on verified production at their previous brokerage. We review total production, including listings, buyer representation, rentals, and tenant placements, over the prior 12 months to determine the appropriate commission split, without requiring a buy-up.
Ideally, we expect our agents to generate at least $1 million in production during any rolling 12-month period, including rental transactions. One of our primary goals at DMS Properties, LLC Residential Real Estate Services is to support agents in building successful, sustainable careers. According to the National Association of Realtors, approximately 80% of newly licensed real estate agents leave the industry within their first two years.
DMS Properties, LLC Residential Real Estate Services charges a 3% commission on most resale listings for homes and land, though this typically does not apply to REO properties. Beginning in October 2025, sellers and landlords determine how much, if any, commission they will offer to a buyer’s agent through an Exclusive Right to Represent the Buyer/Tenant Agreement.
On a 3% listing, a real estate agent earns 1.5% per side of the transaction before the broker split. At $1 million in production, this results in $15,000 in pre-tax, pre-expense income. As an agent’s production exceeds $1 million, commission splits increase in $500,000 increments, reaching up to a 90% split at $5 million in annual production.