What's the best real estate brokerage? Brian Icenhower explains the evolution of the brokerage and the benefits of each model.
Today, I want to address a question I hear often, especially from real estate agents, team leaders, and broker owners: what’s the best real estate brokerage model for agents? This question comes up time and again, and it’s one I love exploring because the answer depends on so many factors.
To help you make an informed decision, I’ll provide a historical overview of real estate brokerage models and discuss how they’ve evolved. We’ll also examine the advantages of different models to determine which might be the best fit for your business.
Be sure to listen to this episode of The Brian Icenhower Podcast and subscribe to the podcast so you never miss an episode!
VIDEO: What’s the Best Real Estate Brokerage Model for Agents?
The Evolution of Real Estate Brokerage Models
Understanding the history of real estate brokerage models is key to appreciating the options available today. Over the past several decades, brokerages have continuously adapted their structures to meet the needs of agents, team leaders, and the real estate industry at large.
The Early Days: 50/50 Splits and Mentorship
In the 1950s and 60s, real estate brokerages followed a 50/50 commission split model. Brokers kept 50% of the commission and provided agents with valuable resources like training, mentorship, and leads. These leads often came from office-generated sources, such as calls from yard signs or advertisements.
Agents would sit “floor time,” taking these incoming leads and learning from brokers how to convert them into transactions. During this period, mentorship and training were highly valued, as agents relied heavily on their brokerage for professional growth.
Icenhower Connect allows team leaders, brokers, and owners to become entrepreneurs by adding integrated mortgage and insurance services their customers and agents already need to their existing real estate business.
The Rise of Competitive Splits in the 70s and 80s
As the industry matured, agents began seeking brokerages offering higher commission splits. By the 1970s, 65/35 or 75/25 splits became more common, giving agents a larger share of the commission. This shift marked the beginning of brokerages competing for agents by offering more favorable financial arrangements.
In the 1980s, RE/MAX disrupted the industry with its “100% commission” model. This concept allowed agents to keep all their commissions after paying a monthly desk fee. Top producers flocked to RE/MAX, as they valued independence and were willing to pay for the privilege of keeping more of their earnings. The model also positioned RE/MAX as the brokerage “where top producers go,” which appealed to experienced agents who no longer needed intensive mentorship.
Keller Williams and the Commission Cap Model: The 90s and Early 2000s
The next major evolution came in the 1990s, when Keller Williams (KW) introduced the commission cap model. Agents paid a percentage split until they hit a predetermined cap, after which they retained 100% of their commissions for the remainder of the year. This innovation allowed agents to maximize their earnings while still receiving training and support.
KW also championed the rise of the real estate team. By offering training and resources tailored to teams, KW became synonymous with team-based real estate success. This era saw many agents move from solo practices to structured teams, taking advantage of KW’s resources and commission cap.
EXP Realty: A Cloud-Based Model
In recent years, EXP Realty has become a dominant force in the brokerage world. EXP combined the commission cap model with a cloud-based approach, eliminating the need for brick-and-mortar offices. By cutting overhead costs, EXP reduced fees for agents and introduced innovative perks like revenue sharing and stock ownership.
Revenue sharing allows agents to earn passive income by attracting others to join the brokerage, creating a new form of compensation beyond traditional commission splits. This model appeals to entrepreneurial agents who want to build wealth through recruitment in addition to real estate sales.
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Brokerage / Corporate Coaching Program
With the Brokerage / Corporate Real Estate Coaching Program, ICC will help firms set up the most effective and efficient systems for recruiting, agent onboarding, commission & fee structures, agent engagement & retention systems, recruiting, administrative work-flows, transaction management, staff hiring, agent onboarding, productivity training & accountability, financials & budgeting, marketing and much more!
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Executive Team Coaching Program
The Executive Team Real Estate Coaching Program is designed for a high functioning larger team. These team leaders will build their influence, structure their brokerage systems and growth, recruit, lead internal divisions to operate at a high level and leverage their time. Opportunities to add ancillary services to build wealth.
Key Factors to Consider in Choosing a Brokerage Model
With so many options available, it’s important to evaluate what matters most to you as an agent, team leader, or broker owner. Here are some key factors to consider when deciding what’s the best real estate brokerage model for your business:
1. Commission Splits and Caps
The financial structure of a brokerage is often the first consideration for agents. Do you prefer a higher split with no cap, or are you drawn to models with caps that allow you to retain 100% of your earnings after hitting a threshold? Evaluate your production volume and how it aligns with the brokerage’s compensation model.
2. Training and Support
If you’re a new agent or value ongoing professional development, look for a brokerage that offers mentorship, coaching, and training. Some models, like the traditional 50/50 split, prioritize agent development, while others cater to experienced agents who need less support.
3. Technology and Tools
In today’s competitive market, access to cutting-edge technology can be a game-changer. Cloud-based brokerages like EXP have capitalized on this trend, offering virtual tools and platforms that reduce costs and enhance efficiency.
4. Community and Culture
Your success in real estate often depends on the community you build around yourself. Some agents thrive in traditional office environments with face-to-face interactions, while others prefer the flexibility of virtual workspaces. Consider what type of culture will best support your growth.
5. Opportunities for Passive Income
For agents interested in building wealth, revenue-sharing models like those offered by EXP and similar brokerages can be highly attractive. These models reward agents for recruiting others, creating opportunities for passive income and long-term financial growth.
6. Brokerage Reputation and Brand Recognition
The reputation of your brokerage can impact your ability to attract clients. National brands like RE/MAX, KW, and EXP often have widespread recognition, which can lend credibility to your business. However, some agents prefer the flexibility and independence of indie brokerages or team-based models like “Team Ridge.”
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Recruit: Recruiting Real Estate Agents
ONLINE COURSESLearn to grow your real estate business by targeting, connecting with and ultimately closing on the best recruits around. We'll teach you how to find great candidates, qualify them, and say the right thing at the right time to bring them on board.
Designed for all learning types
Video Training
In-depth professional video training on every module, presented by the author, Brian Icenhower.Written Modules
Detailed and downloadable written modules with detailed graphics, scripts, spreadsheets, forms, and so much more.Audiobook
Since real estate agents are always on the move, your training must be too. This course provides a professional downloadable audiobook.Course curriculum
Enrollment includes access to the following course materials for 2 years
Module 1: Your Unique Value Proposition & Recruiting Targets- Workbook: Your Unique Value Proposition & Recruiting Targets
- Video: Your Unique Value Proposition
- Graphic: DISC Behavioral Assessment
- Graphic: DISC Profiles
- Commission Comparison Chart Template
- Workbook: The Recruiting Scoreboard
- Video: The Recruiting Scoreboard
- Graphic: The Big 3
- Resource: Sample Weekly Calendar
- Resource: Sample Recruiter Dashboard
- Resource: Recruiting Tools
- Workbook: Recruiting with Technology
- Video: Recruiting with Technology
- Graphic: 10-10-5 Daily Plan
- Workbook: Recruiting Sources
- Video: Recruiting Sources
- Script: Congratulations & Production Report
- Script: Congratulations on Production
- Script: Expanding into Your Area
- Script: New Listing
- Script: Thank You for Cooperating on Buyer Side
- Script: Thank You for Cooperating on Listing Side
- Script: Real Estate School and New Licensees
- Workbook: Setting Recruiting Appointments
- Video: Setting Appointments
- Script: Let’s Talk About Your Production
- Script: Provide a Production Report
- Script: After Closed Transactions #1
- Script: After Closed Transactions #2
- Script: When Recruit is Referred by One of Your Own Agents
- Script: When Recruit is Referred to the Recruiter
- Script: For a New Brokerage or New Recruiter
- Script: Looking to Build Relationships
- Script: Referred by Agent After Transaction
- Script: Students from Real Estate Licensing School
- Script: For Rookie Agents in Their First Year
- Script: For Up-and-Coming Agents
- Script: Increased Market Presence
- Script: Invitation to Class or Training Event
- Script: Invitation to Participate on Agent Panel
- Script: Confirming Recruiting Appointments
- Script: Objection Handler – Not interested in moving companies
- Script: Objection Handlers – I’m too busy #1
- Script: Objection Handlers – I’m too busy #2
- Script: Objection Handlers – Happy with current company
- Script: Objection Handlers – I need to wait until my transactions close
- Script: Objection Handlers – Let me think about it
- Recruiting: Scripts E-book
- Workbook: Conducting Recruiting Appointments
- Podcast Episode 196: Real Estate Recruiting Scripts – Conducting the Appointment
- Video: Conducting Appointments
- Script: The Recruiting Process
- Workbook: Setting Follow-Up Appointments
- Video: Setting Follow-Up Appointments
- Natural DISC Profile Business Generation Tendencies
- Script: Attend a Class or Training Event
- Script: Behavioral Assessment
- Script: Set a Coaching Appointment
- Script: Create a Business Plan
- Workbook: Closing recruits
- Video: Closing Recruits
- Agent Intake Pipeline
- Scripts: Closing and Objection-Handling
- Script: When, Not If
- Script: They Can’t Say No to Their Own Goals
- Script: Delay Causes Resentment
- Script: Commission Split
- Script: You Need Our Systems
- Script: Start Transitioning Ahead of Time
- Script: Can Your Broker Help?
- Script: Prepping the Broker Conversation
- Script: Transferring Current Business
- Workbook: Creating a Growth Environment for Recruiting
- Video: Creating a Growth Environment for Recruiting
- Graphic: Characteristics of a Growth Environment
- Graphic: DISC style identification
- Graphic: SWOT
- Real Estate Office Brokerage Training Monthly Calendar
About this course
- $199.00
- 82 lessons
- 5 hours of video content
Immediate Takeaways
Here is what you can expect to gain from taking this online course.
- SCRIPTS for recruiting. Congratulations & Production Report Script, Expanding into Your Area Script, New Listing Script, Thank You for Cooperating on Buyer Side Script, Thank You for Cooperating on Listing Side Script, Real Estate School and New Licensees Script, Objection Handlers, and many more
- RESOURCES to help you recruit effectively. Sample Weekly Calendar, Sample Recruiter Dashboard, Recruiting Tools, Recruiting Scoreboard, Agent Intake Pipeline
- HELPFUL GRAPHICS to illustrate takeaway points and reinforce learning. DISC Behavioral Assessment, DISC Profiles, The Big 5, 10-10-5 Daily Plan, DISC Style Identification, Characteristics of a Growth Environment, SWOT
- OPTIONS for how you learn best. Each module provides a downloadable PDF chapter as well as a featured video of Brian Icenhower, teaching the topic at hand. At the beginning of the course, you are also provided with a full audiobook to listen to. So however you learn best -- we have an option for you!
Certification & Designation Upon Completion
In this ICC online course, you will receive an official designation of "Certified Real Estate Recruiter" or CRER upon completion, as well as a downloadable (and printable) Certificate of Completion. Add your designation seal, as well as your designation letters, to your email signature to bolster your reputation and show off your expertise to clients and colleagues alike.Reviews
"I use ICC systems, the Online Learning Center, and the coaching program to coach and train my team of over 30 agents. I use the ICC dashboard systems to keep my entire team accountable for their activities and set proper expectations."
Jake Rockwell
Over 500 Units Sold Annually I have coached with ICC for over five years. ICC has helped me quadruple my luxury business through marketing strategies so that I receive listings and sales through lead generation and multiple pillars of income.
Dennis Adelpour
Luxury Agent - West Los Angeles When we started coaching with ICC we worked all the time with some degree of success. Now, seven years later, we have grown to have the #1 market share in our area, we more than tripled our income and production, while also improving our work-life balance to enjoy our personal life with family and friends.
Tammi Humphrey
#1 Market Share & 100 Million in Annual Sales Volume Instructor Brian Icenhower.If your business isn't growing then it's dying.
To attract agents to your real estate team or brokerage, you must evidence your ability to increase their productivity and help them sell more real estate. In his most important work to date, veteran coach and real estate consultant, Brian Icenhower, shares the systems and strategies he used to build some of the fastest growing real estate companies in the United States. Recruiting is the single most valuable skillset in real estate and the linchpin of all successful real estate businesses. To exponentially and sustainably increase the net profit of your real estate business, it is essential that you operate a committed and systematic recruitment practice. From sourcing recruits and recruiting with technology to setting, conducting, and closing recruiting appointments, this exhaustive course provides invaluable insights and practical instruction for creating a production-centric growth environment that attracts agents to your real estate team or brokerage. With our consultative approach, recruits guide agents to a place where they self-discover that the best way to sell more real estate, become more successful, and increase their net income is by joining your team or company. We know not everyone learns the same way. For that reason, this course has videos, text modules, and a full audiobook. In addition, the text and audiobook are downloadable so you can keep this information for life, and take it with you wherever you go.
Recruiting for real estate agents
Recruiting is the single most valuable skillset in real estate and the linchpin of all successful real estate businesses. To exponentially and sustainably increase the net profit of your real estate business, this course will help you build and operate a committed and systematic recruitment practice. Add to CartRecruiting for Real Estate Agents
More about this real estate training course
Talk to a coach
If you've been considering hiring a coach, now's the time. Book a FREE coaching consultation session with your purchase of this course! Book Your Call
The Role of the Agent: Success Is What You Make It
While choosing the right brokerage model is important, it’s crucial to remember that no brokerage will “make” you successful. As an agent or leader, your success depends on your willingness to lead generate, recruit, and build relationships. Changing brokerages won’t solve your challenges unless you’re willing to put in the work to grow your business.
Recruiting, in particular, is one of the hardest—and most rewarding—skills to master. It requires consistency, effort, and a willingness to step outside your comfort zone. Whether you’re recruiting agents to your team or attracting clients, success comes from your ability to extend your influence and add value to others.
Learn more about the Agent Management Portal
Looking for the best way to add value for your agents? The Agent Management Portal is a powerful learning management system. You get access to all of our state-of-the-industry training materials, as well as tools to help you create your own training content for your agents.
Understanding the history of real estate brokerage models is key to appreciating the options available today.
Brian Icenhower
Final Thoughts on the Best Real Estate Brokerage Model
So, what’s the best real estate brokerage model for agents? The answer is: it depends. Each model has its strengths and appeals to different types of agents. Traditional brokerages provide mentorship and support, while newer models offer innovative compensation structures and opportunities for passive income.
The key is to evaluate your goals, preferences, and business needs. Whether you’re drawn to the flexibility of EXP, the training resources of KW, or the independence of an indie brokerage, the right model is the one that aligns with your vision for success.
Remember, success in real estate isn’t about the brokerage—it’s about you. By committing to lead generation, recruitment, and continuous learning, you can thrive in any environment.
If you’re looking for coaching or tools to grow your business, we at Icenhower Coaching and Training are here to help. Let’s work together to create a plan that drives your success, no matter where you choose to hang your license.
