Note: by the 'Taxman' I am referring to the boss or the principal who your comm split goes to.
This little graphic keeps popping up in my feed, it always surprises me at just how hard real estate agents have it in 2024.
This agent is earning $1,000,000 GCI and is on a 50/50 commission split. So for every $1 they bring in, their boss ‘the taxman’ takes 50c.
What if you could bypass the ‘taxman’ and keep the majority of your earnings?
Imagine you’re earning $1,000,000 GCI but you get to take home $971,700 (a $471,700 difference not even including the franchise fees you may be paying), it almost sounds unreal. These stats are based off of a 75/25 comm split up to $100,000 in GCI, where the agent keeps 100% of their commissions on anything after $100,000 + a $275 monthly fee for services subscription.
Now we get that some agents reading this aren’t bringing in $1m in GCI, but imagine you’re earning $150,000 GCI, if you currently keep 50%, you would be earning $75,000 per year. With the same comm splits as mention above^ you would be earning $121,700 (a $46,700 difference).
I want you to think about that for a second, what would you spend your extra money on? Think deep – more than just a car, watch or something materialistic. How about a holiday with your family, paying off your mortgage or investing in your career.
Now that I’ve have got you excited because you’re thinking of this ideal scenario, go and click on the link below to use the commission calculator to see what you would be earning on the same ideal comm split.
Going from keeping 50% commission to 100% is the most liberating move in real estate
The above graph shows the current average real estate commission split between the agent and the agency. I won’t lie – that’s rather grim.
Does this graph reflect your situation?
Does it make you feel stuck? Unable to move forward? It’s like for every step forward you taking half a step back. I get it.
Well there’s some good news for you, you can get a 75/25 comm split in Australia as a real estate agent. By partnering with eXp Realty(the Australian branch) you are on a 75/25 comm split up to $100,000 in GCI, once you pass $100k GCI you the agent get to keep 100% of your commission on all future sales. This resets every year (on the date you join eXp Realty). We call this yearly milestone ‘capping’.
eXp agents also pay $275 per month subscription fee (which has been factored into the figures above) which gives them all the support they need from people, weekly training and platforms like Realestate.com.au, Domain.com.au, CoreLogic/RP Data, Agentbox CRM, RealWorks/ REAForms/ REIWA, Rate My Agent, Realty Assist, Homepass, and more .
Who is eXp Realty and what other benefits do they give me you might ask? Well I won’t bore you with all the details here, you can head to our learn more page to learn everything you need to know.
