For the most part, a broker’s split is based on a combination of 2 things – time in grade and sales volume. Neither will help your business grow over the long term. I think there is a better and more client-focused approach. Base the splits on client satisfaction. Here’s one approach:

1. Get rid office politics by posting everyone’s split outside your door and track them on a monthly chart.

2. Everyone starts at a 50/50 split.

3. At each closing, the client is given a survey by the title company after the broker leaves. There are only 3 yes or no questions.

   1. Were you happy with your broker?
   2. Do you feel your broker deserves the $18,567.89 commission?
   3. Would you use this broker again?

4. For every positive survey (2 out of 3 or more “yes’s”) the broker’s split goes up a point in their favor, for every negative survey (2 out of 3 or more “no’s”) the broker’s split goes down a point against them.

In a short period of time, the ones who aren’t providing an excellent client experience will leave because they can’t make it. Those who provide an excellent client experience will stay and grow because they are being rewarded to do so and have the capital to continue to enhance their experience.

Go one step further and let them keep 95% of repeat business commission.

“But what about the huge operating expense to keep the office running?” you ask.

Over time, if your client experience is so good your at a 5/95 split with your brokers, you’re clients won’t care if your operating out of a shack.