Key Takeaway: A real estate brokerage is the licensed firm under which a new agent operates. The brokerage determines training access, technology tools, and operational support structure. Key evaluation factors include training programs, mentorship availability, commission and fee terms, and long-term growth pathways. These vary significantly between brokerage models and individual offices.
TL;DR About Brokerage Selection for New Agents
- Brokerage brand does not determine support quality.
- Training and mentorship vary by office and model.
- Cloud-based brokerages provide daily structured training.
- Commission splits and fees reduce agent net income.
- Sponsor teams do not take commission splits.
- Technology and lead access vary across brokerage models.
- Brokerage selection affects long-term career development.
A real estate brokerage for new agents is the licensed firm under which a newly licensed agent operates. The brokerage provides the legal structure, compliance oversight, training resources, and operational tools required to conduct real estate transactions.
A common misunderstanding is that the brokerage brand determines the quality of support a new agent receives. In practice, training availability, mentorship access, and operational systems vary significantly between offices and models within the same brand.
This article explains how brokerage selection fits into the broader Smart Agent Alliance brokerage comparison resources agents use to research and compare brokerages.
The following sections explain brokerage model types, agent role structures, commission and fee mechanics, and key factors agents use when evaluating a brokerage:
Table of Contents
What is a Real Estate Broker (and Brokerage)?
In real estate, the terms broker and brokerage are often used interchangeably, but they refer to different roles. The distinction is relevant when evaluating which brokerage structure is appropriate for a new agent.
A real estate broker is a licensed professional who has completed additional education and examination requirements beyond the standard agent license. Brokers hold legal authority to supervise agents, oversee transactions, and operate an independent brokerage. They are responsible for maintaining legal compliance and contract integrity within the brokerage.
A real estate brokerage is the company under which brokers and agents operate. The brokerage holds the agent’s license and provides the support structure, transaction systems, marketing tools, and legal compliance framework that agents rely on to conduct business.
For a new agent, the brokerage structure determines what training, tools, and support are actually available. A single supervising broker has limited capacity to provide individualized support at scale. Brokerages with structured programs provide ongoing training and resources beyond the initial onboarding period.
Comparing Brokerage Models
Different brokerage models offer different structural characteristics, support levels, and fee structures. Some provide comprehensive training and onboarding; others offer minimal operational guidance. The following is an overview of the most common models:
Cloud-Based Brokerages
Cloud-based brokerages such as eXp Realty operate without assigned physical offices, though agents may access workspace facilities. Agents work using virtual training platforms, technology tools, and distributed support systems. eXp Realty provides daily live training, structured onboarding, sponsor teams, and formal mentorship.
Traditional Franchise Brokerages
Traditional franchise brokerages such as RE/MAX and Keller Williams provide name recognition and in-person office locations, but each location operates independently. Training quality and support resources vary significantly between offices. Commission splits are often structured at 70/30 or lower, with additional desk and franchise fees. Agents should request detailed information about training programs and fee structures before joining. Online research about specific office operations is limited; platforms such as Glassdoor may provide agent reviews.
Local Independent Boutiques
Local independent brokerages are typically operated by a single broker and may offer personalized mentorship and higher commission splits. Training and technology resources depend entirely on the individual owner’s investment. These offices provide direct access to ownership but typically have fewer staff and fewer systemized support resources.
Discount or Flat-Fee Models
Discount and flat-fee brokerages charge per transaction or on a monthly basis rather than taking a commission split. These models typically offer minimal training and operational support. This structure is generally better suited to experienced agents with established systems than to agents in early-career stages.
Agent Roles: Solo, Team, or Sponsor Support
After selecting a brokerage, agents operate within one of several role structures. Each structure carries different implications for support, commission splits, and daily operations. The following describes the primary options available to new agents:
Solo Agent
Most new agents begin as solo agents, operating independently under the brokerage. Solo agents are responsible for their own lead generation, fee payments, and business systems.
This structure functions best when the brokerage provides structured onboarding, technology access, and training resources. Without those systems, solo agents face a higher risk of early attrition. Some agents transition to production teams after encountering operational challenges.
Member of a Production Team
Production teams are common within most brokerages and operate as structured sub-units designed to support transaction volume. They typically provide leads, training, accountability, and community. For new agents, joining a production team can accelerate skill development and transaction experience.
Team quality varies significantly. Some production teams provide substantive training and support; others offer minimal guidance. Prospective team members should evaluate the team’s structure and track record before committing.
Teams apply a separate split in addition to the brokerage split. Agents should review the team agreement before joining, including the terms for entering and exiting the team.
Solo Agent and Member of a Sponsor Team
Sponsor teams are available at brokerages with a revenue share structure and are distinct from production teams. Sponsor teams typically do not take a commission split. They provide tools, systems, and community resources that support solo agent operations.
At eXp Realty, the sponsor selection is made at the time of joining and cannot be changed without leaving the brokerage for a full year. Agents should research and evaluate sponsor options before submitting their application.
Agents should evaluate sponsor teams based on the tools, systems, and support structures they provide for both production and revenue share development.
At eXp Realty, sponsor team members are permitted to also join a production team. Agents who begin as solo agents and require additional operational structure may add a production team relationship without changing their sponsor.
Commission Splits & Fees
A commission split defines how gross commission income is divided between the agent and the brokerage. The first number represents the agent’s share. On a 60/40 split, the agent retains 60 percent and the brokerage receives 40 percent. Some brokerages use fixed splits; others apply sliding scales that adjust based on production volume. Some brokerages apply an annual cap: once an agent reaches the cap contribution amount, the agent retains 100 percent of commission for the remainder of the anniversary year.
Lower commission splits are sometimes offset by additional support resources such as leads, training, and technology access. Higher splits typically correspond with greater agent independence and fewer brokerage-provided services.
Brokerages may charge fees beyond the commission split, including technology fees, desk fees, franchise fees, E&O insurance fees, and per-transaction fees. Some structures charge monthly or annually; others charge per closing. Fee accumulation can be significant, particularly for agents in early production stages.
Before committing to a brokerage, agents should request a detailed fee schedule that covers upfront, monthly, and per-transaction costs.
Key Evaluation Factors for New Agents
Year-1 Net-Income: Same Agent, Same Production, Five Brokerages
New agent scenarios at $100K gross commission income. Excludes self-employment tax and business expenses. Assumes 10 transactions at 2.5% average commission. Redfin shown in its W-2 mode (own leads 75/25).
| Scenario: $100K GCI (10 deals) | Total Cost to Brokerage | Agent Net Take-Home |
|---|---|---|
| eXp Realty (80/20, $16K cap, $1,020/yr, $25/txn) | ~$21,270 | ~$78,730 |
| Real Brokerage (85/15, $12K cap, $999/yr startup, $0/txn pre-cap) | ~$15,999 | ~$84,001 |
| Keller Williams (70/30 start, MC typical, 6% royalty) | ~$36,500 | ~$63,500 |
| Coldwell Banker (65/35 new-agent start, 7% royalty) | ~$42,800 | ~$57,200 |
| Redfin (Redfin Next, 75/25 own leads, W-2 employee) | ~$25,000 | ~$75,000 + benefits |
After reviewing brokerage models, splits, and fees, agents can evaluate a brokerage based on the factors most likely to affect new agent performance. The following criteria are the primary basis for that evaluation.
1. Training & Onboarding
A real estate license satisfies legal requirements. Structured brokerage training addresses the operational skills required to conduct transactions.
Effective brokerages provide a structured onboarding process and ongoing training that covers contracts, negotiations, scripts, and market-specific practices. In competitive markets, this includes local rules, jurisdiction-specific disclosures, and practical exercises.
Agents should look for brokerages that provide live training sessions, role-play exercises, deal debriefs, and access to recorded training libraries in addition to written reference materials.
2. Mentorship
Effective mentorship involves structured access to an experienced agent who can answer questions, provide feedback, and guide newer agents through transaction scenarios.
Agents should confirm how mentorship is structured, including meeting frequency, curriculum, and mentor selection criteria. General assurances of support without defined structure do not indicate a formalized mentorship program.
3. Company Culture
New agents who lack adequate support are at higher risk of early attrition. Brokerage culture directly affects the availability of peer support and operational guidance.
A supportive brokerage culture includes accessible management, collaborative peer relationships, and responsive operational support. Observable indicators include whether agents share resources, how questions are handled, and whether community infrastructure is in place.
Before joining, agents should speak with current members to understand what operational support is actually available.
4. Technology Access
Modern real estate operations depend on technology systems. A brokerage should provide access to a CRM, digital marketing tools, and current listing and transaction technology.
At minimum, look for:
- CRM with follow-up automation (such as BoldTrail or similar)
- Email and text drip systems
- Social media content tools
- eSign and transaction management systems
Functional technology reduces administrative time and supports lead management and transaction processing.
5. Lead Generation Support
Lead access is a critical factor for new agents who are building a client base. Brokerages with structured lead programs provide referral sources, PPC lead programs, or conversion training to support early-stage production (such as Revenos, Zoocasa, and FastCap at eXp).
Some brokerages offer leads directly; others provide training on how to generate and convert them. Agents should understand what systems are in place and what is expected of them to use those systems effectively.
Agents should confirm whether leads are provided, the expected monthly volume, whether leads are pre-qualified, what conversion training is available, and any additional costs associated with the program.
6. Long-Term Growth Opportunities
Brokerage evaluation should include long-term growth infrastructure, not only initial transaction support.
Growth pathways may include:
- Coaching to scale into a team leader role
- Management tracks or specialist positions
- Continued education in marketing, negotiation, and compliance
- Conferences, masterminds, and skill-building events
Brokerages that lack defined advancement pathways may not support sustained career development. Agents should inquire about growth structures before joining.
What Agents Also Ask
Can new agents join eXp Realty without prior experience?
eXp Realty accepts newly licensed agents. The brokerage provides structured onboarding, daily live training, and access to formal mentorship through the eXp Mentor program. Agents complete the onboarding process within their first 90 days of membership. No prior production record is required to apply.
What is the difference between a sponsor team and a production team?
A production team is a transactional unit within a brokerage that typically applies an additional commission split in exchange for leads, training, and accountability. A sponsor team is tied to the revenue share structure and does not apply a split. Agents can be part of both at eXp Realty.
Do real estate brokerages provide leads to new agents?
Lead access varies by brokerage and model. Some brokerages offer structured referral or paid lead programs; others provide conversion training only. Agents should confirm what lead systems are in place, what volume to expect, and what qualifications or costs apply before selecting a brokerage.
How do I know if a brokerage has good training for new agents?
Indicators of structured training include live daily sessions, recorded libraries, role-play exercises, deal debrief programs, and a defined onboarding curriculum. Agents should request specifics on training format and frequency, not just general assurances. Speaking with current agents at the brokerage provides additional context.
Why This Matters
Brokerage selection determines what training, tools, and support infrastructure a new agent has access to from day one. At eXp Realty, all agents receive the same core brokerage platform, including compliance, compensation, and access to company divisions. What differs is the sponsor ecosystem an agent aligns with.
The sponsor an agent selects shapes which tools, training, and attraction systems they have access to, if any, including the structured onboarding resources, mentorship tools, and peer community available to new agents during their critical first year. Agents should treat brokerage selection and sponsor selection as two separate, independent decisions, each requiring its own research before committing.
You can also learn more about how eXp Realty works and why choosing the right eXp sponsor can affect the support, systems, training, and resources you receive after joining.
Splits, Caps and Fees at a Glance
Direct answer: for most newly licensed agents, the best brokerage for new agents is the one that pairs a capped split with structured, scheduled training, because year one is about completing transactions correctly, not maximizing take-home per deal. The table below is the fee side of that decision. Every figure is the published or commonly advertised structure; office-set terms are marked because they are set locally and must be requested in writing.
| Brokerage | Starting split | Annual cap | Recurring fees | Per-transaction fees | New-agent add-on |
|---|---|---|---|---|---|
| eXp Realty | 80/20 | $16K | $1,020/yr | $25 broker review + $60 risk management | Mentor program: additional 20% split on the first three transactions |
| Real Brokerage | 85/15 | $12K | $999/yr startup | $0 pre-cap | Request the mentor-program terms in writing |
| Keller Williams | 70/30 start | Set by local market center | Office-set | Office-set, plus 6% royalty | Ignite onboarding, office-delivered |
| Coldwell Banker | 65/35 new-agent start | Office-set | Office-set | Office-set, plus 7% royalty | Office-delivered onboarding |
| Redfin | 75/25 on own leads | Not applicable (W-2) | None (employee model) | None | Salary, benefits and company leads instead of a split |
| Franchise offices (Century 21, RE/MAX, Berkshire Hathaway HomeServices) | Set by the individual office | Set by the individual office | Set by the individual office | Set by the individual office | Set by the individual office |
How to Choose the Best Brokerage for New Agents
There is no single best brokerage for new agents that applies to every market and every situation. There is a repeatable way to compare them. Score each brokerage you are considering across the six factors below, using the same questions for each, and the ranking sorts itself out.
The Total Agent Value Scorecard (New Agents)
This scorecard is also shown as an infographic on this page. The version below is the readable one. Use it as an interview sheet.
| Factor | What to verify before signing | Cloud-based | Traditional franchise | Independent boutique | Discount / flat-fee |
|---|---|---|---|---|---|
| Training | Is there a published live schedule, or only a recorded library? | Daily live sessions, company-wide | Varies by office; brand curriculum exists but delivery is local | Depends entirely on the owner | Minimal |
| Mentorship | Who is the mentor, on how many deals, and at what split? | Formal program with defined terms | Office-set; often informal | Direct access to the owner, no formal structure | Typically none |
| Cost predictability | Is there a cap, and what happens after it? | Published national cap | Cap set locally; royalty stacks on top | Owner-set, often negotiable | Flat and predictable, but you buy everything else |
| Technology | Is a CRM, eSign and transaction management included or billed separately? | Included, company-wide stack | Brand stack plus office add-ons | Owner’s discretion | Usually bring-your-own |
| Leads | Are leads provided, and at what additional split? | Generally self-generated, tools provided | Office-dependent; often referral-based | Owner’s book, if shared | None |
| Long-term pathway | What exists beyond production income? | Revenue share and equity programs | Ownership or management track | Partnership with the owner | None beyond your own book |
What to Ask Before You Sign
- Who specifically will mentor me, on how many transactions, and what split applies during that period?
- Send me the complete fee schedule in writing: monthly, annual, per-transaction, E&O, technology, franchise royalty.
- What is the cap, when does the anniversary year reset, and what do I pay after capping?
- What training is live and scheduled, versus recorded and self-serve?
- Are leads provided, and does accepting them change my split?
- May I speak with two agents who started here in the last twelve months?
- What are the exit terms if I leave mid-year, and what happens to my pending files?
What Year One Actually Costs a Brand-New Agent
The net-income table earlier on this page models an agent already producing at $100K gross commission income. A first-year agent usually is not there yet, and most brokerages apply a different structure to the earliest transactions. At eXp Realty, agents in the mentor program pay an additional 20% split on their first three transactions, which funds the assigned mentor and the mentorship curriculum. That moves the split to 60/40 during those deals, then reverts to 80/20 once the agent graduates.
Worked cost example, using a realistic first-year scenario. This is a cost illustration only. It is not a projection of earnings, and it excludes self-employment tax, brokerage-independent business expenses, and any team split.
| Line item | Amount |
|---|---|
| Scenario: three closings at $8,000 average commission | $24,000 gross commission income |
| Brokerage share during the mentor program (60/40) | $9,600 |
| What that share would be after graduating (80/20) | $4,800 |
| Recurring fee | $1,020 |
| Per-transaction fees on three closings | $255 |
| Total paid to the brokerage in year one | $10,875 |
| Remaining to the agent before taxes and business expenses | $13,125 |
The mentor program costs $4,800 more than the graduated split would across those three transactions. Whether that is worth it is the actual question a new agent should be asking, and it is the same question at every brokerage that charges for early-career support: what is the structured supervision worth on the deals where a mistake is most expensive. The $16K cap is not reached at this production level, so cap differences between brokerages matter far less in year one than fee floors and early-transaction splits do.
Note that the same math applies in reverse at brokerages with no mentor program. A higher starting split with no supervision is cheaper on paper and more expensive if it produces a failed transaction. See our full breakdown of real estate brokerage commission splits for how these structures compare across production levels.
Pros and Cons by Brokerage Model
Cloud-Based (eXp Realty, Real Brokerage)
- Pros: published national split and cap, daily live training, included technology stack, sponsor teams that take no commission split, revenue share and equity pathways.
- Cons: no assigned physical office, self-directed lead generation, requires discipline to use the training that is available.
Traditional Franchise (Keller Williams, RE/MAX, Century 21, Coldwell Banker)
- Pros: name recognition, in-person office and floor time, established local relationships, brand-level training curriculum.
- Cons: franchise royalty stacks on top of the split, lower starting splits, and support quality varies office to office within the same brand. Following Compass’s acquisition of Anywhere Real Estate, Coldwell Banker, Century 21 and Sotheby’s International Realty now share an owner, so brand-level differences between them are narrower than they appear.
Independent Boutique
- Pros: direct access to the owner, negotiable splits, local market specialization, low agent-to-broker ratio.
- Cons: technology and training depend entirely on the owner’s investment, thin administrative staff, no structured curriculum, and key-person risk.
Employee Model (Redfin)
- Pros: W-2 employment with benefits, company-supplied leads, covered business expenses, no fee floor in slow months.
- Cons: lower split on company leads, less autonomy over schedule and branding, and you build the company’s book rather than your own.
Discount / Flat-Fee
- Pros: highest retention per closing, predictable cost, full independence.
- Cons: minimal training and supervision, monthly cost owed whether or not you close, and you fund your own technology and marketing. Poor fit for a first-year agent.
Bottom Line
Rank the brokerages on your shortlist by what they do for you in the first twelve months, not by the headline split. A 70/30 split with a scheduled mentor on your first contracts is a better year-one structure than a flat-fee model with nobody to call at 9pm before a deadline. Once you are producing consistently, split and cap start to dominate the math, and that is the point at which capped models pull ahead.
Two things are effectively permanent, so decide them deliberately: the brokerage you activate your license under sets your first-year training, and at eXp Realty the sponsor you name at application cannot be changed without leaving the brokerage for a full year. Research the sponsor team with the same rigor you apply to the brokerage. Compare our full brokerage comparison library before you submit an application.
