Last Updated on November 7, 2025 by Elizabeth Nolan
Congratulations on passing your real estate exam! Now comes one of the most critical decisions of your new career: choosing the right brokerage. According to the National Association of Realtors, over 80% of new agents leave the industry within their first two years. The brokerage you choose can make the difference between thriving and just surviving.
With over 90,000 brokerages in the United States, finding the right fit requires careful consideration. This guide will help you evaluate your options and make an informed decision that aligns with your career goals.
Why Your Brokerage Choice Matters
Your brokerage is more than just a company name on your business card. As industry expert Bernice Ross writes in her
Inman article, “Your choice of brokerage can make or break your success.” The right brokerage provides training, support, technology, and lead-generation opportunities that help you build a sustainable business from day one.
Beyond the Commission Split
The Myth of the 100% Split
Many new agents focus heavily on commission splits, drawn to brokerages offering 80%, 90%, or even 100% commission structures. However, as real estate professionals consistently warn: “100% of zero is still zero.”
According to The CE Shop, commission rates vary widely—from 50% or more going to the broker to flat fees of $200 or less per closing. While a higher split seems attractive, consider what you’re receiving in exchange. A lower split with comprehensive training, proven lead generation systems, and mentorship may result in significantly higher earnings than a high split with minimal support.
Understanding Fee Structures
Beyond commission splits, be aware of additional costs:
- Monthly desk fees – Fixed costs regardless of sales volume
- Transaction fees – Charges per closed deal
- Franchise fees – Often 3-8% with national brands
- Technology and marketing fees – Software, CRM, and promotional tools
Building Better Agents recommends getting a complete breakdown of all costs before signing. Expect to invest between $1,200 and $2,000 in initial startup costs, including board dues, lockboxes, signs, and errors and omissions insurance.
Training and Support: Your Foundation for Success
For newly licensed agents, comprehensive training can be the difference between closing deals and struggling to find your first client. Look for brokerages offering:
- Structured new agent orientation with clear onboarding processes
- Mentorship programs pairing you with experienced agents
- Sales and negotiation training to build essential skills
- Ongoing education opportunities for continuous improvement
As Colibri Real Estate notes, mentorship programs are invaluable for new agents. A dedicated mentor provides guidance, insider knowledge, and helps you navigate complex transactions while avoiding common pitfalls.
Related article: Real Estate Continuing Education Classes: The Latest Guide
Technology and Tools That Drive Results
In today’s digital marketplace, having the right technology stack is essential. According to
Inman’s comprehensive guide, successful agents need access to:
- Robust CRM systems to manage leads and client relationships
- Marketing automation tools for email campaigns and social media
- Transaction management software to streamline paperwork
- Professional website and listing platforms with IDX integration
Request a demo of the brokerage’s technology suite before signing. The tools should be intuitive, well-supported, and designed to help you work more efficiently—not add complexity to your day.
Related article: Building Your Own Real Estate Tech Stack: A Complete Guide for Independent Agents
Lead Generation: The Lifeblood of Your Business
As a new agent without an established sphere of influence, lead generation support is critical.
Orchard’s guide emphasizes asking: “How do incoming leads get distributed? Is there a rotation, or do top agents get priority?”
Quality brokerages offer multiple lead sources including floor time, portal advertising, community sponsorships, and active referral networks. Some brokerages, like Redfin, even offer salary or hybrid compensation models that provide stability for new agents while they build their business.
Related article: Paid Lead Generation Platforms for Real Estate Agents in 2025. A More Complete Guide
Culture and Brand Recognition
Don’t underestimate the importance of company culture and brand strength in your local market. According to real estate trainer Verl Workman, “Culture doesn’t just ‘happen.'” Look for brokerages with clear, lived values—not vague buzzwords—where agents show up because they want to, not because they have to. Evaluate:
- Local market presence and reputation
- Agent satisfaction and turnover rates
- Collaborative vs. competitive environment
- Average transactions per full-time agent
Spend time in the office, attend team meetings if possible, and talk to current agents. A “dead office” with low activity will require significantly more effort to succeed than a productive environment with steady lead flow. WFH has absolutely upended the traditional office culture in real estate. Attending office meetings and networking events is more important than ever.
National Chains vs. Boutique Brokerages
National Franchises
Major brands like Compass, Keller Williams, RE/MAX, Coldwell Banker, and Century 21 offer:
- Instant brand recognition that opens doors with clients
- Structured training programs and proven systems
- Large agent networks for collaboration and referrals
- National marketing resources and technology investments
However, large franchises may provide less individualized attention and typically maintain franchise fees that reduce your take-home commission. Additionally, the effects of the proposed merger between Compass and Anywhere on local agents remains to be seen in terms of technology integration, training, independent contract terms and fees.
Boutique and Independent Brokerages
Smaller, independent firms can offer:
- More personalized mentorship and attention
- Flexible commission structures without franchise fees
- Intimate knowledge of your specific market
- Opportunity to build your personal brand more quickly
The trade-off may be fewer resources, less name recognition, and potentially slower lead generation initially. High-end, luxury home markets are the exception. Bespoke local offices still have weight in affluent communities.
Consider Joining a Team
Many successful agents recommend that new licensees consider joining an established team within a brokerage.
Top producing agents consistently advise: “Look for a team spearheaded by a busy listing agent who has an overflow of buyers.”
While you’ll share a portion of your commission with the team leader, you gain immediate access to leads, proven systems, and daily mentorship that can dramatically accelerate your learning curve. Many agents use team experience as a launching pad before transitioning to independent production.
Questions to Ask During Interviews
Interview at least three different brokerages before making your decision. Remember, you’re evaluating them as much as they’re evaluating you. Key questions include:
- What is the average number of transactions per full-time agent annually?
- What training and mentorship programs are available for new agents?
- How are leads generated and distributed?
- What is the complete cost breakdown including all fees?
- Who can I contact for support after business hours?
- What technology tools and CRM systems are provided?
- What are the terms for leaving if it’s not the right fit?
Terms of leaving is especially important. These interviews/recruiting meetings are always positive and enthusiastic about how great the brokerage is but ask this question and read your contract carefully. It can be very costly to leave a brokerage in terms of clawbacks and lost client contacts.
Making Your Final Decision
After gathering information, create a comparison chart rating each brokerage on the factors most important to you. Don’t feel pressured to decide on the spot—take time to reflect on where you’ll receive the best foundation for long-term success.
Trust your instincts, but also recognize that no brokerage will be perfect. Focus on finding the environment that best supports your learning style, provides access to the resources you need most, and aligns with your values and career vision.
Plan to reassess your choice after six months to a year. As you gain experience and clarity about your business model, you may find that different resources become more important. Many successful agents change brokerages as their needs evolve—this is a normal part of career development.
Your Path Forward
Choosing the right brokerage is one of the most consequential decisions you’ll make in your real estate career. While commission splits matter, they’re just one piece of a much larger puzzle. The best brokerage for you provides comprehensive training, proven lead generation systems, cutting-edge technology, and a supportive culture that helps you build a sustainable business.
Remember: you’re not just selecting an employer—you’re choosing a partner in building your future. Invest the time to make an informed decision, and you’ll set yourself up for success in this rewarding and dynamic industry.
