What is a common remuneration sharing method between brokerages and salespersons?

A percentage split where the salesperson receives a larger share is a common remuneration sharing method because it aligns the interests of both the brokerage and the salesperson—motivating the salesperson to close more transactions while ensuring that the brokerage also benefits from the sales generated. This method often involves a commission rate that allows more experienced or high-performing salespersons to receive a larger proportion of the commission. It creates a performance-based incentive, encouraging salespersons to boost their productivity and earnings while contributing to the overall success of the brokerage.

In contrast, a flat fee arrangement regardless of earnings does not take into account the effort or success level of the salesperson, which may not motivate them effectively. Receiving all earnings without sharing may limit the brokerage's operational funding, and a commission structure based solely on volume may not adequately reward quality over quantity, potentially leading to rushed or less careful transactions. Therefore, the percentage split approach is more commonly favored in the real estate industry.