What Does a 70/30 Commission Split Actually Cost You in Florida?
| Cost Layer | What It Is | How Common |
|---|---|---|
| Base Split (e.g. 70/30) | Brokerage keeps a percentage of every commission | Illustrative example only — varies widely by brokerage |
| Franchise / Royalty Fee | Additional cut off the top, before or after the split | Mainly at franchise-model brokerages |
| Desk / Monthly Fee | Flat charge regardless of production | Some brokerages, not all |
| Marketing Fund Contribution | Required contribution to brokerage-wide advertising | Common at larger franchise brokerages |
Why a Split Percentage Alone Doesn't Tell the Whole Story
A 70/30 split sounds simple, but it's only one line on a much longer bill. Franchise fees, desk fees, transaction fees, E&O charges, and marketing fund contributions can all apply on top of that split — and none of them show up in the headline number a recruiter quotes.
How Franchise and Marketing Fees Stack on Top of the Split
Franchise-model brokerages typically charge a royalty or franchise fee as a percentage of gross commission, separate from the agent/broker split. Marketing fund contributions work the same way — a percentage taken to fund brokerage-wide advertising the agent doesn't control and often can't see the return on.
The Math on a Single $400,000 Closing (Illustrative Example)
On a $400,000 sale at a 2.5% commission side, gross commission is $10,000. At a 70/30 split, the agent's share before any other fee is $7,000. Add a 6% franchise fee on gross ($600) and a flat $85 transaction fee, and the agent nets closer to $6,315 — about 63% of the gross number, not 70%. This is a hypothetical example to illustrate how layers stack, not a real brokerage's actual fee schedule.
What to Ask Before You Sign With Any Brokerage
Ask for the complete written fee schedule — split, franchise fee, desk fee, transaction fee, E&O, and marketing contribution — and run it against your own actual production, not a hypothetical average deal. The gap between the advertised split and the real number only shows up when someone does that math.
Questions That Reveal the Real Cost
- What's my split after 12 months of production?
- Is there a franchise or royalty fee on top?
- Is any marketing fund contribution mandatory?
- Are there transaction or E&O fees per closing?
Red Flags in a Fee Schedule
- "It depends" instead of a written number
- Fees that change based on your production tier
- Marketing fund with no visibility into how it's spent
- A split that resets every year regardless of tenure
5 Mistakes Agents Make When Comparing Splits
- Comparing only the split percentage — ignoring franchise fees, desk fees, and marketing contributions.
- Not asking for the fee schedule in writing — a verbal estimate isn't a contract.
- Assuming "100% commission" means zero costs — ask what's charged per closing regardless of the commission structure.
- Forgetting E&O and transaction fees add up across a full year — not just per deal.
- Not running the math on their own actual production — a split that's fine at 5 closings a year looks very different at 25.
Key Takeaways for Realtors
- A split percentage alone doesn't tell you what you'll actually keep.
- Franchise fees, desk fees, and marketing contributions stack on top of the base split.
- Ask any brokerage for a full written fee schedule — not a verbal estimate.
- Run the math on your own production, not a hypothetical average.
- A flat per-closing cost, with no split and no franchise cut, is a fundamentally different structure — worth comparing directly.
What's a typical real estate commission split?
Splits vary widely by brokerage, market, and agent production — there's no single “typical” number, which is exactly why the fee schedule matters more than the headline split.
Do all brokerages charge a franchise or royalty fee?
No — franchise-model brokerages typically do; independent brokerages may not.
What is a desk fee?
A flat monthly charge some brokerages bill agents regardless of production, separate from the commission split.
Is 100% commission really zero cost?
Not usually — ask specifically what per-closing or monthly costs apply regardless of the commission structure.
How do I compare two brokerages fairly?
Get each one's full written fee schedule and run your own production numbers through both — not just the advertised split.
See the Full Cost, Not Just the Split
Certainly Sold uses one flat per-closing fee structure — ask for the actual numbers on a 15-minute call.
See What Certainly Sold Offers Agents- Sources:
- First-hand brokerage-building experience — Ray & Kelly Nadeau, Certainly Sold