Why Commission Splits Don’t Retain Agents (But Transparency Does)
Every agency boss has faced the same fear: “If I don’t give higher commission splits, my agents will leave.”
It’s why commission wars are common. Agencies compete by offering 70/30, 80/20, even 90/10 splits, thinking that numbers alone will buy loyalty. But here’s the reality: splits alone don’t retain agents.
Agents don’t just want “more.” They want clarity, systems, and trust. Without those, even the highest split won’t stop them from walking out the door.
1. Project Sales: Where Transparency Goes to Die
While subsale deals often operate with relative clarity, project sales are where transparency goes to die.
In subsale cases, the split is simple: buyer side vs seller side, sometimes with a co-broking adjustment. Everyone sees the deal, and disputes are rare.
But in project sales, the commission trail becomes murky. Multiple layers get involved:
- Person in charge at HQ.
- Project introducer.
- Team leader or branch manager overrides.
- Agency bosses taking their cut.
Closing agents are simply told: “Your portion is X%.” The rest—the deductions and overrides—remain hidden. No one breaks down how the commission pie is really sliced.
This lack of clarity breeds suspicion, resentment, and ultimately, attrition.
2. The Hidden Cost of Advance Commissions
Another issue in project sales is advance commission payments.
Because developers often take months to release payments, some agencies advance part of the commission to agents. On the surface, this feels supportive—but there’s a catch:
- Many companies quietly charge interest on the advance.
- That interest is deducted from the agent’s commission.
- Worse, most agents were never told upfront about this cost.
The shock comes later, when the final commission cheque arrives smaller than expected. Instead of feeling grateful for the advance, agents feel cheated and betrayed.
Transparency here matters more than generosity. Agents can accept fees if told early—but hidden deductions destroy trust.
3. High Splits Without Structure = Chaos
Giving out high splits feels generous, but without systems it becomes meaningless:
- Agents don’t know when they’ll actually get paid.
- Project deals drag months before cheques arrive.
- Rumors spread about “where the rest of the money went.”
The frustration isn’t about how much they earn—it’s about whether they can trust the process.
4. Transparency Builds More Trust Than Splits
When agents see clearly how commissions are tracked and calculated, they feel secure. Transparency answers the questions that really keep them awake:
- How much did the developer pay the agency?
- What portion went to introducers, leaders, or branch overrides?
- Why was this deduction made?
- Was there interest charged on an advance, and how much?
- When exactly will I be paid?
Most agents would rather have a consistent 70% with full clarity than a promised 90% shrouded in mystery.
5. Systems Drive Retention, Not Numbers
A sustainable agency isn’t built on promises—it’s built on systems.
- Deal breakdowns → Every agent can see not only their portion, but also how the rest was allocated.
- Advance commission terms → Clear disclosure of fees and interest before payouts.
- Commission tracking → Pipelines and payout dates are transparent.
- Case management → Deals don’t vanish into black holes at HQ.
When systems work, agents stop fixating on splits because they finally feel their career is on solid ground. They can focus on what they do best—closing deals—instead of worrying about whether they’ll be paid fairly.
The Hard Truth
Agents don’t quit because of low splits. They quit because they don’t trust the process—especially in project sales, where too much remains hidden. Advance commission fees, unexplained overrides, and opaque deductions do far more damage than a few percentage points.
👉 Splits create attraction. Transparency creates retention.
That’s why systems like ListingMine ERP matter—they break down project commissions by role, show advance commission charges upfront, and give closing agents visibility beyond “your share is X%.” Numbers get agents in the door, but trust is what keeps them there.
