Team Splits vs. Brokerage Splits: Where Should You Start?

If you’re getting into real estate or rethinking your strategy in 2026, you’ve probably hit the biggest fork in the road: should you go it alone as a solo agent or join a team? Five years ago, this was a simpler choice. Today, with the cost of doing business rising and lead generation becoming more expensive, the decision carries a lot more weight.

At its core, there are two main paths. You can be a solo agent who hangs their license directly with a brokerage, or you can be a team member, working as part of a sub-group within that brokerage.

Many new agents get hung up on the percentages—“Why would I give away half my commission?”—but that’s the wrong question. It’s not about the percentage you keep; it’s about the net income you actually take home at the end of the year. Let’s grab a coffee and break down what these numbers really look like.

The Basics: How Commission Splits Actually Work

Before we get into the hypothetical dollars, we need to define the players. The flow of money in real estate can get complicated, and usually, there are two (or sometimes three) hands reaching into the pot before you get paid.

First, you have the Brokerage Split. This is the cut paid to the managing broker—the entity that holds your license, keeps you compliant with the state, and usually provides your office access. Every active agent has a broker of record, and they always get paid.

Then there is the Team Split. If you join a team, this is an additional cut paid to the team leader. In exchange, they typically provide you with leads, hands-on coaching, and administrative support.

Here is where it catches people off guard: The "Stacking" Effect. In most team agreements, you are paying both splits. The money comes off the top for the broker, then the team takes their share, and you get the remainder. Or, the team pays the broker from the gross, and you split the rest. Either way, multiple entities are getting paid from your production.

Everything starts with GCI (Gross Commission Income). This is the total fee generated by the sale before anyone touches it.

Show Me the Money: A Math Example (2026)

Let’s look at a real-world scenario to see how this shakes out. Imagine you just closed on a property in a nice community—say, one of those PGA Village homes for sale listed at $400,000.

If you negotiated a 3% commission side, the GCI is $12,000. Here is how that check looks in both models.

The Solo Agent Model (Example 80/20 Split)

In this scenario, you are on your own. You have an 80/20 split with your brokerage.

• GCI: $12,000

• Brokerage Cut (20%): -$2,400

• Agent Gross Check: $9,600

That looks great on paper. You have $9,600 in your pocket. However, as a solo agent, you are responsible for 100% of your business expenses. You paid for the photographer, the marketing, the gas, and the lead generation that found that buyer. After expenses, that number shrinks.

The Team Model (Example 50/50 Split)

Now, let’s say you are on a team. The team provides the leads and handles the transaction coordination.

• GCI: $12,000

• Brokerage Cut (20%): -$2,400 (This goes to the broker first)

• Remaining Pot: $9,600

• Team Cut (50% of remainder): -$4,800

• Agent Gross Check: $4,800

On the surface, walking away with $4,800 versus $9,600 feels painful. But here is the reality check: The team agent didn't pay for the lead. They didn't pay for the transaction coordinator. They likely didn't pay for the listing photos or the CRM. That $4,800 is "cleaner" income.

If you are a solo agent spending $2,000 a month on marketing costs for real estate agents just to get one deal, your net income starts to look very similar to the team agent's, but with a lot more financial risk.

Common Split Structures You’ll See in 2026

When you are interviewing, you’ll hear a lot of different numbers thrown around. Here is what is standard in the market right now.

The 50/50 Standard remains the norm for leads provided by the team. If the team hands you a buyer who is ready to sign, expect to give up half the commission. It’s the price of convenience and speed.

Graduated or Tiered Splits are becoming popular to retain talent. You might start at 50/50, but once you sell $3 million or $5 million in volume, your split might bump up to 60/40 or 70/30 for the rest of the year.

Lead Source Dependency is a fair structure you should look for. This means if the team gives you a lead, it’s 50/50. But if you sell a house to your cousin (your own "Sphere of Influence"), the team might only take 20% or 30%, acknowledging that you did the work to find the client.

We are also seeing the "Teamerage" Model. This is where massive teams act like mini-brokerages. They might have their own "team cap"—for example, once you pay the team $20,000 in splits, you keep 100% of the team portion for the rest of the year. This is a great model for high producers who want team support without unlimited split costs.

What Do You Get for the Split? (Pros & Cons)

So, why would anyone give up half their paycheck? It comes down to the value exchange.

The Team Value Proposition is about volume and safety.

• Leads provided: This is the big one. Teams shorten the time it takes to get your first paycheck.

• Accountability & Coaching: It is hard to slack off when you have a daily huddle.

• Transaction Coordination: Most teams have admin staff to handle the paperwork so you can focus on living in Port St. Lucie and selling houses rather than filing PDFs.

• Brand leverage: It is much easier to open doors when you say you are with the number one team in the county rather than "Me, Myself, and I Realty."

The Solo/Brokerage Value Proposition is about margin and freedom.

• Higher upside: If you are great at generating your own business, you keep the lion's share of the profit.

• Creative Control: You build your own brand, not someone else's.

• Flexibility: You set your own hours and business model without a team leader tracking your calls.

The trade-off is simple: Teams offer safety and volume; Brokerages offer freedom and margin.

New Agents vs. Experienced Agents: Who Wins Where?

If you are just getting licensed, the team model is often the smartest play to "earn while you learn." Real estate school teaches you law, not how to sell. A good team acts like a paid internship where you get hands-on experience. Even though the split is lower, 50% of a deal is better than 100% of no deal.

For experienced agents, the math often shifts. Once you have a database of past clients and referrals, you don't need to pay a team 50% for leads. This is when many agents transition to a solo model or a high-split brokerage.

However, there is the "Hybrid" Agent. These are veteran producers who stay on teams because they hate the admin work. They are happy to pay the split just to avoid hiring their own staff and managing real estate lead generation campaigns.

7 Questions to Ask Before Signing a Team Agreement

Before you sign on the dotted line, you need to dig into the details. Don't just look at the percentage; look at the policies.

• Is the split different for my own leads vs. team leads?

• What happens to my database if I leave the team? (This is crucial—do you own your clients?)

• Are there additional transaction fees or desk fees on top of the split?

• Do I pay the brokerage split before or after the team split is calculated?

• Is there a team cap on how much I pay you annually?

• What specific support is included—do you pay for my business cards and headshots?

• Does the team provide Errors & Omissions (E&O) insurance, or is that extra?

Frequently Asked Questions

Is a 50/50 commission split fair for a new agent?

Yes, it is generally considered fair if the team is providing real value. If you are receiving active leads, mentorship, and administrative support that allows you to close deals you wouldn't have found on your own, the 50/50 split is a worthwhile investment in your career foundation.

Do I pay the brokerage split if I am on a team?

Typically, yes. Most structures require the "company dollar" (brokerage split) to be paid regardless of whether you are on a team. Often, the brokerage takes their 20-30% off the top, and then the team splits the remaining 70-80% with you, though some teams cover the brokerage fee from their portion.

Can I negotiate my real estate team split?

Everything in real estate is negotiable, but it depends on your leverage. A brand-new agent has little room to negotiate, while an experienced agent bringing a strong track record or a large sphere of influence can often secure a better split, especially on their own personal deals.

What is a "capped" commission split?

A cap is a maximum limit on how much commission you pay to the brokerage or team in a given year. For example, if your brokerage has a $20,000 cap, once you have paid that amount in splits, you keep 100% of your commission for the remainder of your anniversary year.

What happens to my leads if I quit the team?

This is governed by your independent contractor agreement. In many cases, leads generated by the team stay with the team, while leads you brought in personally may leave with you, but you must clarify this in writing before joining to avoid losing your hard-earned database.