Agent compensation / split / broker fees

[Ben Williams]

In the North Texas area, what are the most common broker/agent fees and/or commission splits?

 I just got my license and now need a sponsoring broker and just wondering what the going rates where, especially for someone like me who's not looking to be an agent full-time but rather getting the license more for my own investment purposes.

[Ryan Siegert]

Hey Ben, 

I am new to BiggerPockets, but would like to share my 2 cents with you. I have been a Broker for 9 years here in Texas and from my experience the most important part of that question is what Bryan Hedges pointed out, "It's all about what the Broker will do for you." 

For Instance, when I was a new agent I signed on with a large firm that had a 50/50 split. That was pretty much the going rate back then for new agents. As you close deals and your production rises your split gets better and better. Today you have a few more options available with all the different types of offices. IMHO your decision should come down to if you want to pay for the services your broker provides with your commission split. A large firm i.e. Coldwell Banker, Century 21, Kellar Williams, etc. will hold your hand and guide your through your first deals. They will provide new agent training, oversight, contacts, networking, environment, processes, and resources that you will not get from your smaller firm. 

If you have built-in deals in your back pocket (family, friends or your sphere of influence are about to buy an expensive house) and they will use you as their agent no matter what, then I would suggest you consider a transaction fee style broker. If not, I feel as though you may want a little more from your broker to help you get into "The Game." It's worth it when your broker is giving you leads in conjunction with a hands-on education allowing you to get your feet wet. When you start bringing the deals on your own, that's when I would start re-thinking your sponsorship. 

I hope this helps give you a little light. If you have more questions please let me know. Good luck in your search and endeavors. 

Cheers,