Running Lean, Leading Strong

Running a brokerage has never been easy—but today’s reality presents a new set of challenges that owners and managers can’t ignore. From shrinking profit margins to rising expectations from agents, the brokerage model has changed. Years ago, traditional commission splits gave brokerages the financial breathing room to invest in operations and growth. Today, many are working with razor-thin margins, offering 90/10 splits, capped fees, or flat-rate options—all while managing increased costs and delivering more value than ever before.

Years ago, a traditional commission split might have meant a 50/50 or even 60/40 breakdown between brokerage and agent. The value proposition was clear: agents needed the brokerage for tools, support, and branding, and in exchange, brokerages generated healthy margins that sustained operations and expansion. Fast forward to today, and many brokerages are working with razor-thin profit lines, offering 90/10 splits, flat fees, or even 100% commission models in exchange for monthly desk fees.

The Pressure is Real

With more generous splits going to agents, brokerage leaders are under pressure to do more with less. Operational costs haven’t decreased—if anything, they’ve increased. From compliance to tech platforms to marketing resources, running a brokerage requires serious investment. So how can you remain profitable and relevant when your slice of the pie has shrunk?

The answer lies in redefining what your brokerage means to your agents.

Lead Like a Partner, Not Just a Boss

Today’s agents aren’t just looking for better splits—they’re looking for leadership. They want support that helps them grow, systems that make their lives easier, and a culture that feels collaborative, not competitive. Brokerages that thrive are the ones that shift from being just a place to hold a license to being a true business partner.

That means:

• Offering real, personalized support: Technology is important, but it’s the human support that wins long-term loyalty. That could mean business coaching, marketing support, or help with operations.

• Stay lean but effective: Streamline operations wherever possible. Automate admin processes and consider outsourcing tasks that aren’t core to your value proposition.

• Foster community and culture: In an industry that can be isolating, a brokerage that builds camaraderie and collaboration gives agents a reason to stay—beyond just the numbers. Agents stay where they feel connected, seen, and supported. A strong internal culture helps with retention and recruitment alike.

• Be transparent and communicative: Agents want to understand what their brokerage stands for. Leadership should clearly communicate how the business operates, what’s changing, and how they’re supporting agents’ long-term success.

Rethinking Profitability

If you can’t make money from commission splits alone, where else can your profitability come from? Some brokerages are turning to diversified revenue streams—offering in-house staging services, marketing packages, property management, mortgage or title partnerships, or running education and events that build community while generating income.

In other cases, the goal may not be to extract maximum profit from every agent, but to attract and retain top performers who help the brokerage build a stellar reputation—and thus generate greater overall business value.

Looking Ahead

Brokerage leadership today requires adaptability, empathy, and a clear-eyed view of what it takes to build something sustainable. The old models may no longer apply, but the opportunity to create something better is real. When brokerages stop chasing what worked in the past and start leaning into what agents truly need today, they’ll find themselves not only surviving, but thriving—even in a competitive and ever-changing market.

Ready to Strengthen Your Brokerage?

Whether you're rethinking your model, looking to streamline operations, or simply want a sounding board for your next move, you don’t have to figure it out alone.

Connect with our team here at The Real Estate Source to explore solutions built for today’s brokerage—grounded in experience, backed by strategy, and always collaborative.