Choosing a brokerage isn’t a decision to take lightly. The name itself could be enough to keep your sales funnel full, which is one reason Coldwell Banker is such a popular choice among agents. But another major consideration is how you’ll split your commissions with your broker.
Real estate commission split plans will vary by franchise, and sometimes, plans can vary by branch of the same franchise. It’s important to do your research in your local market to ensure you’re getting enough value from the brokerage to justify what you’re paying them out of pocket.
Here’s a closer look at the Coldwell Banker commission split and how it affects your success as a real estate agent.
What is the Coldwell Banker Commission Split?
Coldwell Banker commission splits can vary between office, but many agents have freely disclosed that the splits are low. Some offices may offer a 55/45 split, where agents keep 55% of their commissions while the brokerage gets 45%. Others provide a 60/40 split, which is still a high cost to the agent compared to other franchises.
The portion kept by the brokerage is used to cover marketing costs, technology, office overhead, franchise fees, and salaries of the office workers.
Coldwell Banker is known as being one of the most tech-forward franchises in the industry. They invest in tools that increase lead generation and streamline transactions. Plus, they purchase national media coverage to increase brand awareness, which helps their real estate agents make more money.
But agents largely bear the cost of these tools. Granted, it’s cheaper than paying for these things on your own, but they still eat into your bottom line. And if you don’t know how to take advantage of these tools to increase your income, you won’t be getting your money’s worth.
What Other Agents are Saying about Coldwell Banker Commissions
Career site Glassdoor.com provides more insight from agents about what it’s like to work for Coldwell Banker. Like many other franchises, the reviews are a mixed bag, but many of the company’s agents or former agents say the commission split is one of the worst they’ve seen.
On the plus side, agents love the ongoing investments the franchise makes in their agents. They provide educational opportunities to help agents stay competitive in the market and plenty of growth opportunities. New agents can take advantage of their top-rated training programs and real estate technology to scale up quickly.
But on the downside, many agents have mentioned that Coldwell Banker keeps too much of their paychecks, especially when you’re first starting with the company. Agents note they can make more money at other real estate companies and that rates are not competitive.
It all comes down to whether the training, tools, and marketing will help to offset the lower commission splits.
How Clever’s Commission Plan Compares to Coldwell Banker
Perhaps you’re about to embark on a new career in real estate and are vetting your options. Or perhaps you’re with a brokerage already and are looking for a fairer commission split. Wherever you are in your journey, Clever offers a lucrative opportunity without complicated commission splits.
As a Clever Partner Agent, you don’t have to spend thousands of dollars on desk fees, marketing, admin, and other expenses charged by your brokerage. Instead, Clever sends you qualified leads and will pay you a flat-rate commission fee when you close the deal. This takes much of the guesswork out of the process and lightens costs on your end, so all you have to do is win the sale and collect your pay.
Learn more about becoming a Clever Partner Agent and how you can make more money in real estate without the hassles of a traditional brokerage.