Real estate commissions have been a topic of discussion for years. In the past, most agents worked under a traditional commission split, where the brokerage takes a portion of the earnings from each deal.
But in 2025, many agents are starting to wonder if 100% commission models are the future. This means agents would keep all of their earnings from sales but may pay a monthly fee to their brokerage.
Will 100% commission models take over, or will traditional commission splits remain the standard?
Let’s explore this topic by looking at the different commission structures, their pros and cons, and what real estate agents should consider when choosing a brokerage in the future.
Why Will It Trend Real Estate Commissions?
The real estate industry and how agents are paid are evolving. As more agents seek higher earnings and more flexibility, commission structures are becoming a more significant point of debate. Traditional commission splits (where agents share a percentage of their profits with their brokerage) are no longer the only option.
Some agents are beginning to explore 100% commission models, where they keep all the earnings but pay a flat monthly fee to their brokerage. With 100% commission models, agents have the potential to earn more if they can close enough deals.
But is it the best choice for long-term success?
Real estate agents in Canada see how new commission structures can significantly impact their business as technology and market conditions change. Let’s examine how these different models work.
What are the Pros and Cons of Different Commission Models in Canada
Although the real estate commission structure in Canada can vary from province to province, most agents still follow one of two main models: traditional splits or 100% commission models. Let’s examine the pros and cons of each.
1. Traditional Commission Split
Agents typically share some of their earnings with the brokerage in a traditional commission split.
The commission split can be either 70/30 or 60/40, where the agent retains a percentage and the brokerage receives the remainder. This structure has been the standard in real estate for many years.
Pros of Traditional Commission Split:
- Support and Training: Brokers often provide valuable support, resources, and training. This can be crucial for new agents learning the ropes of the industry.
- Marketing Tools: Many brokerages provide marketing materials, websites, and lead-generation tools that help agents attract clients.
- Shared Risk: The brokerage helps manage overhead costs, such as office space, advertising, and administrative support. This means agents can focus more on selling.
Cons of Traditional Commission Split:
- Lower Earnings: Agents give up a significant portion of their commission, which can feel like a loss of earnings for high-performing agents.
- Less Flexibility: Agents may have less control over their schedule and the tools they use for marketing and lead generation.
In Canada, many agents still prefer this model because it provides security. It’s helpful for those starting in the industry or for those who don’t want to manage every part of their business.
2. 100% Commission Model
In a 100% commission model, agents keep all their earnings but pay a fixed monthly fee to their brokerage.
These fees can vary depending on the brokerage, but agents don’t have to split their commission with the company.
Pros of 100% Commission Model:
- Higher Earnings Potential: Since agents keep all their commissions, they can earn more if they can close enough deals. This is especially appealing to experienced agents with a solid client base.
- Complete Control: Agents have more control over their marketing, branding, and business decisions. They can choose how they operate and which tools they use.
- Flexibility: Many 100% commission brokerages offer flexible schedules and fewer restrictions, allowing agents to run their business as they see fit.
Cons of 100% Commission Model:
- No Support or Training: While agents keep all their earnings, they may not receive the same support, training, or resources as those in a traditional commission split.
- Upfront Fees: The monthly fee can be high, especially if the agent doesn’t close many deals. This can create financial pressure for newer agents or those in slower markets.
- More Risk: Agents are responsible for their marketing, administration, and overhead costs, which means more work.
For Canadian real estate agents, 100% commission models are becoming more popular, especially in larger cities like Toronto or Vancouver, where experienced agents can close enough deals to make the monthly fees worth it.
How RE/MAX Millennium Structures Maximize Agent Success
At RE/MAX Millennium, agents benefit from a balanced commission approach through a flexible commission structure that caters to their needs. RE/MAX Millennium understands that different agents have unique business models and aims to create an environment where all agents can succeed, regardless of their preferred commission structure.
RE/MAX Millennium supports agents by offering training, marketing tools, and technological resources to help them grow their businesses.
They provide the benefits of a traditional commission split, like access to professional development and brand recognition, while allowing agents to earn a competitive commission.
For those agents who prefer more flexibility and higher earning potential, RE/MAX Millennium offers an option to work under a 100% commission model.
With this model, agents can keep all their earnings while still benefiting from the support and resources available at RE/MAX Millennium.
What Real Estate Agents Should Consider When Choosing a Brokerage in 2025
When choosing a real estate brokerage in 2025, real estate agents should keep a few key factors in mind:
1. Support and Training
A brokerage with intense training and mentorship can significantly benefit you if you’re new to the industry. If you’re more experienced, you might prefer a brokerage that offers fewer restrictions but more independence.
2. Commission Structure
Do you want to keep all of your earnings? Or do you prefer a steady split with access to more resources and support? Consider your financial goals and business style.
3. Technology and Tools
Does the brokerage offer up-to-date marketing tools, CRM systems, and virtual tour software? In 2025, these tools are more important than ever to stand out in a competitive market.
4. Company Culture
The environment at your brokerage can impact your success. Look for a company with a culture that aligns with your values and business goals.
5. Location
Some commission models work better in specific markets. For example, in larger cities, 100% commission models may work well for experienced agents. While in smaller markets, traditional splits may still be more common.
Final Thoughts
The future of real estate commissions is evolving, and 100% commission models are gaining popularity.
For agents in Canada, choosing the proper commission structure depends on their experience, financial goals, and the level of support they need. Whether they prefer a traditional commission split or the independence of a 100% commission model, working with a brokerage like RE/MAX Millennium that offers flexibility and support can set them up for long-term success.
Ultimately, agents should consider each model’s pros and cons and what will work best for their business in 2025 and beyond.
