Real estate brokers: Earn more revenue by investing more in agents

Many brokerages were built for a different market — one where recruiting more agents, adding more leads or offering a bigger split could mask deeper operational issues.

But today’s market is exposing those cracks.

When a brokerage doesn’t have the right systems, support and accountability in place, everyone feels it. Brokers see lower revenue and higher churn. Agents feel unsupported or unclear on how to grow. And what should be a scalable business becomes a source of constant frustration.

I’ve seen this firsthand while building two successful brokerages with more than 1,200 active agents each. My previous brokerage ranked among the top 100 U.S. brokerages by sales volume. I launched my current brokerage this year, and based on early performance trends, we are projecting similar transaction volume by year-end.

Our internal data also shows that our agents close more transactions, generate more revenue and earn more repeat business than the industry average.

That experience has shaped how I think about brokerage growth. The strongest companies are not simply recruiting more agents or chasing more leads. They are building the systems, support and accountability that help agents produce consistently — and help the brokerage grow sustainably.

With that in mind, here are three areas brokers should rethink if they want to build a stronger, more scalable business.

Training and support

Some brokers see agent training and support as just another cost. On one hand, I understand their thinking — agents tend to hop from brokerage to brokerage throughout their career, so it may seem to be a waste of capital. On top of that, it often takes a while before the impact of training and support starts to show up in the bottom line.

I see this from a very different perspective though.

My agents are the foundation of my business, and because of that, I see their training and support as an investment in them and in my own brokerage.

Throughout my own career, I’ve consistently offered comprehensive training and support for my agents, because in my experience, I’ve found that it helps them start closing deals sooner and more consistently. It can also help them to close the tougher deals that other agents shy away from and to earn more repeat business.

As a result, our internal data shows that they tend to stay with me longer than the industry average because they feel supported and valued in their career here.

That typically means more revenue for my agents, and it also means more revenue, fewer HR headaches and lower recruiting and marketing costs for my brokerage.

Commission model

There isn’t a single source of data on commission models, but most industry data indicates that a majority of brokerages follow the traditional broker/agent commission split.

My brokerage runs on a different model. Agents pay a flat monthly fee and keep 100% of their commissions. For us, that structure works because it creates a clear, predictable business model for both the brokerage and the agent.

From the agent’s perspective, their costs are capped. No matter how many transactions they close, they know what they will pay each month while still having access to the brokerage’s full infrastructure, including training and support, document management and administrative services.

From the brokerage side, it also creates clarity. Rather than building the business around taking a percentage of each agent’s production, we focus on providing the systems, support and accountability that help agents become more productive. The model only works if agents see enough value in the platform to stay, grow and produce.

That is why it fits the way I run my company. I want agents to think like business owners. When they have a fixed cost to cover each month and know they will keep the commission they earn after that, the incentives become very clear. The more productive they are, the more upside they keep.

It also changes the relationship between the brokerage and the agent. Instead of the brokerage benefiting more every time an agent closes another deal, the brokerage has to earn its value by helping agents build consistent, sustainable production.

In my experience, that alignment matters. It rewards agents for growth, gives them more control over their income and pushes us as a brokerage to keep improving the infrastructure around them.

Work environment

Income is just part of what attracts top performers.

Most people want to enjoy their time at work, and for many, this is more important than their income. There are a lot of factors that go into creating an empowering work environment.

Training and support plays a big part because it helps your team become more effective and make more money. Respect and acknowledgment does too, because people want to feel like their efforts are recognized. And opportunity is critical because it gives your agents a path to bigger achievements.

There are also things you need to identify and ruthlessly remove from your brokerage.

Negativity is a big one because that spreads like wildfire. This means squashing gossip, complaining, and infighting. A common mistake brokers make is keeping agents around who cause internal conflict just because they close a lot of transactions.

You have to be highly intentional about building and nurturing a culture that aligns with your vision.

Derek Carlson is the president and managing broker of Realty ONE Group MVP, a Florida based real estate brokerage firm with over 1,100 real estate agents.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

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