REAL Broker Revenue Share Explained (Comprehensive 2024 Guide)
Over the last decade, the "revenue share" model has seen various adaptations in the real estate industry, with Keller Williams using a similar model to become the largest brokerage by agent count. Revenue share is an alternative growth strategy that replaces traditional advertising expenses with payouts to agents who help grow the company. This model offers multiple benefits, including additional income streams for agents, fostering a collaborative culture, and improving the new agent experience by ensuring every new agent has a "sponsoring agent" within the company.
As a real estate agent, understanding the revenue share model is crucial for maximizing earnings and achieving long-term success. REAL Broker's revenue share model is designed to empower agents, providing a transparent and lucrative way to earn commissions. In this comprehensive guide, we'll delve into the details of REAL Broker's revenue share model, exploring how it works, its benefits, and what sets it apart from traditional brokerage models.
📌 REAL Broker LLC Revenue Share Model Explained
REAL Broker uses a 5 tier revenue share model, paying the sponsoring agent up to $4,000 annually for each agent they directly bring into the company (Tier 1). If those Tier 1 agents bring in others, those recruits become Tier 2, earning the original sponsor up to $3,200 annually. This pattern continues down to Tier 5 with revenue shares as follows:
Tier 1: Up to $4,000/year
Tier 2: Up to $3,200/year
Tier 3: Up to $2,400/year
Tier 4: Up to $1,600/year
Tier 5: Up to $800/year
Unlocking Tiers
While Tier 1 benefits are immediately available, unlocking revenue share from Tiers 2-5 requires a certain number of producing agents in Tier 1:
Tier 2: 10 producing agents
Tier 3: 15 producing agents
Tier 4: 20 producing agents
Tier 5: 25 producing agents
A "producing agent" is defined as one who has contributed at least $450 in company dollars in the previous six months, usually by closing at least one deal or referral. Agents need to list their sponsor when signing their Independent Contractor Agreement to credit the sponsor for their Tier 1 position.
Revenue share is calculated using a simple 5%, 4%, 3%, 2%, 1% model. It is drawn from the $12,000 cap each agent pays to REAL Broker annually via an 85/15 commission split. The sponsor receives their respective share percentages from this 15%.
📌 What if the agent leaves?
If an agent in your downline leaves the company, REAL assumes their tier position, ensuring you continue to receive revenue share from the agents beneath them, assuming those tiers have been unlocked.
📌 The Hidden Benefits of Revenue Share
The revenue share model might sound like a multi-level marketing scheme, but it’s a legitimate growth strategy with benefits beyond growth:
Mentorship and Support: New agents have up to 5 agents in their upline financially incentivized to help them succeed. This support can include training, resource guidance and answering questions. The financial incentive means sponsors are motivated to help new agents thrive.
Additional Income Streams: Revenue share gives agents another income stream, reducing the financial pressure of their business. Many agents aim to have at least 3 producing agents in their Tier 1 to essentially cover their cap through revenue share.
Encouraging Collaboration: Revenue share encourages a culture of knowledge-sharing and collaboration. Unlike other companies that just talk about culture, REAL Broker integrates financial incentives to promote a collaborative environment. Through the stock program and revenue share, agents are motivated to help each other succeed, where “a rising tide lifts all boats.”
REAL Broker’s revenue share model is a proven growth strategy with benefits for both the company and agents. By moving marketing funds directly to agents, REAL Broker is growing and promoting a collaborative culture. This is just another way REAL Broker is redefining the agent and brokerage relationship so agents have the resources and incentives to succeed.
Ready to learn more? Schedule a free 1-on-1 video call today to learn how REAL Broker's revenue share model can help you maximize your earnings and achieve long-term success.
National Association of Realtors. (2020). 2020 Realtor Technology Survey Report.
Real Trends. (2022). 2022 Real Estate Brokerage Report.
