Compensation, Splits & Cap

📖 2 min read

This lesson covers how you get paid — Section 2 of the Agreement. Know it cold.

The two base splits

• Self-Generated / Sphere Leads: you retain 80%, the Company retains 20%.
• Company-Provided Leads: you retain 60%, the Company retains 40%.

A lead you sourced yourself pays you more because you generated it. A lead the Company hands you pays 60% because the Company carried the acquisition cost.

Bonus tiers

Production moves your splits up. These tiers reset on your CAP anniversary date:

• 20 Core Transactions in the year: a 5% increase on all splits.
• 40 Core Transactions: a 10% increase on all splits.

The Tenure Production Bonus

After completing five total years with the Company, an agent who has averaged at least 12 closed transactions per year over the preceding three years qualifies — on their anniversary date — to be tiered to 70% on Company-Provided Leads and 90% on Self-Generated / Sphere for that year. It is reviewed yearly: if your rolling three-year average drops below 12, you revert to the standard 60/80 splits until you requalify. An agent granted the Tenure tier is considered maxed out and is not also eligible for the 20/40 Core Transaction bonuses that year.

Brokerage fees and the cap

• Transaction Fee: $300 per transaction, charged until your cap is met.
• Processing Fee: $195 per transaction, in perpetuity — this one never stops.
• E&O Fee: $300, charged on your first transaction each calendar year.

The annual cap is $3,000 (10 sides × the $300 transaction fee). Once you meet the cap, the $300 transaction fee is waived for the rest of the year — but the $195 processing fee continues on every transaction. Your cap resets on your anniversary date, not January 1.

Referral, rental & consulting transactions

Section 2.6: these are not included in the cap. If gross commission income (GCI) is under $1,000, the transaction is paid at an 80/20 split, subject to a $50 minimum transaction fee. If GCI is $1,000 or greater, it is paid at the applicable split.

Personal transactions

Section 2.7: a transaction where you are the buyer or seller is treated like any other — same fees, same splits, same cap contribution.

Getting paid

Section 2.8: no e-commissions and no advance requests — both are prohibited. Checks are held one business day; wires are encouraged. Any commission check must be cashed or deposited within 90 calendar days or it is forfeited to the brokerage with no reissuance. Commissions disburse in a fixed order: (1) referral fees and third-party obligations; (2) amounts you owe the Company; (3) your Net GCI. You track your own production using Company-approved systems; the Company issues your 1099 and may debit amounts you owe from your next transaction or by ACH.