A 100% commission brokerage does not charge agents a percentage of each commission. Instead, 100% of each sales commission goes to the agent. 100% brokerages make money by charging monthly or annual fees and per-transaction fees.
100% commission brokerages are options for agents who don’t want to pay for traditional brokerage services. Many agents may feel that the split of other brokerages are high. This is especially true if an agent can handle their own marketing and technology. That said, many 100% commission brokerages do provide technology, marketing, and other support services. But they may charge for them on a case-by-case basis.
100% commission brokerages charge fees for each transaction or have a monthly or annual recurring fee. A traditional brokerage usually includes most services as part of its commission split. But many traditional brokerages also have monthly or annual fees to cover the cost of office space or other services.
100% commission brokerages almost always employ agents as independent contractors. Because 100% commission brokerages provide no-frills service offerings, agents often must build their own business practices. This favors an independent contractor relationship. It also means that the 100% commission brokerage can bring on more agents without worrying about full-time employee costs.
Fathom Realty and HomeSmart are two popular 100% commission brokerages. Both charge flat-rate per-transaction fees instead of a set commission percentage.