Home › Flat fee vs. commission split, with the actual math
Both models cost you money. The difference is whether that cost grows every time you have a good year. Here is the break-even math so you can decide for yourself.
A commission split is a variable cost. It is a percentage of every dollar you earn, so it scales with your production without limit unless your brokerage caps it.
A flat fee is a fixed cost. It is the same whether you close two deals or forty. That makes it more expensive for very low producers and progressively cheaper as you grow.
Neither model is universally right. The honest question is where your production sits relative to the break-even point.
The table below assumes a $400,000 average sale price, 3% commission per side ($12,000 per closing), a 70/30 split at a traditional brokerage, and CapTex at $100/month plus $99 per closing.
| Closings per year | Gross commission | Kept on 70/30 | Kept at CapTex | Difference |
|---|---|---|---|---|
| 2 | $24,000 | $16,800 | $22,602 | +$5,802 |
| 6 | $72,000 | $50,400 | $70,206 | +$19,806 |
| 12 | $144,000 | $100,800 | $141,612 | +$40,812 |
| 24 | $288,000 | $201,600 | $284,424 | +$82,824 |
Illustrative only. Your real numbers depend on your average sale price, your actual split, and any caps, desk fees, franchise fees, or transaction fees your current brokerage charges. Many split brokerages charge several of those on top of the split.
It would be dishonest to pretend flat fee wins for everyone. A traditional split brokerage may genuinely be the right call if:
If none of those describe you, you are most likely paying a percentage for things you are not using.
Cheap sponsorship is a crowded category in Texas, and the cheapest options are often the thinnest. Before you sign anywhere, including here, ask:
Is it a licensed broker who actively sells, or a support queue? How fast, and at what hours?
Errors and omissions coverage is not optional. Some low-cost sponsors bill it as an add-on.
If transaction management and e-signatures are not included, that is a separate monthly bill you should add to their advertised price.
Statewide sponsorship does not automatically mean access to the MLS you need. Ask by name.
CapTex includes E&O on every transaction, dotloop transaction management with unlimited e-signatures, and active MLS access in both the Austin and Houston metros. See what sponsorship includes →
Apply today and have a quick, no-pressure conversation with your broker. We handle the TREC sponsorship transfer start to finish.
Questions first? Email join@captexrealty.com