Gross commission income is the total dollars of commission that a brokerage or agent receives. Most brokerages define their revenue as their gross commission income. Gross commission income can also be calculated by multiplying the total sales volume by the average commission rate. For example, if an agent sells a $100,000 home at a 3% commission, their gross commission income will be $3,000.
GCI is a commonly used acronym for gross commission income.
Gross commission income is the total revenue that an agent or brokerage generates before expenses. For a brokerage, they still have to pay out remaining fees to their agents, and vice-versa for the agents.
Oftentimes, the gross commission income determines the benefits an agent receives at a brokerage. Many times brokerages give agents with higher gross commission incomes more favorable splits. In addition, agents with higher gross commission incomes may get dedicated offices or desks, support staff, or marketing budgets. Agents with high gross commission incomes constantly receive competitive offers from brokerages.
Gross commission income is a good measure for the amount of money a brokerage or agent brings in each year. It is fundamentally the money that is deposited into the brokerage bank account. This makes it a very practical metric for business performance.
Many brokerages and agents don’t openly share their gross commission numbers outside their firm. This makes it a challenging metric to use universally. By contrast, sales volume and sides are often openly reported. Gross commission income does not represent how much money an agent or brokerage actually makes after fees. For example, if a brokerage generates $100,000 in gross commission income but gives 100% of that back to the agent, the metric does not indicate much about the brokerage’s earnings.