Experienced independent producers often already know how to find clients and close business. The brokerage decision is about the structure around that work: how revenue is shared, which costs recur, what compliance requires, and whether the operating model respects the way you want to run your practice.
Use the questions below in a conversation with each brokerage. Request the current written fee schedule and agreement, and review the actual terms rather than relying on verbal summaries.
The comparison
Seven questions worth asking
Start with the complete cost of a closed deal
A monthly plan or headline commission split is only one line in the budget. Ask for every recurring and per-transaction charge: brokerage fees, transaction coordination, compliance or technology fees, E&O, franchise charges, and any percentage taken from commission. Then model the same kind of transaction across each plan you are considering.
Understand caps, resets, and exceptions
If a brokerage uses a commission cap, establish exactly what counts toward it, when the cap resets, and what fees remain after you reach it. Clarify whether a transaction above a price or commission threshold follows a different fee rule. A simple flat-fee structure can be easier to forecast, but only when its exceptions are clear.
Separate brokerage economics from lead costs
A brokerage split and a referral or lead fee are not necessarily the same thing. Ask whether company-generated leads carry a different split, whether referral fees are deducted before or after the brokerage calculation, and whether using a lead program is optional. Compare the economics of your own sphere, repeat clients, referrals, and any company-provided opportunities separately.
Decide what brand support is worth to you
A recognizable franchise may offer brand materials, systems, training, or consumer familiarity. An independent identity may offer more room to build your own name. Neither is automatically better. Ask what brand resources are included, what they cost, and what branding requirements apply to your advertising and transaction materials.
Look beyond the promise of revenue share
Revenue-share programs can add another economic layer, but terms vary. Review eligibility, the calculation basis, payment conditions, and what happens if your affiliation changes. Do not count projected revenue share as guaranteed income. Evaluate the day-to-day brokerage arrangement on its own first.
Ask how a file moves from contract to payout
Map the practical transaction workflow: who submits and checks documents, whether a professional transaction coordinator is mandatory, what support is included, and what costs are billed separately. Confirm when the brokerage sends commission after it receives funds and distinguish that send time from bank settlement.
Make supervision and access concrete
California agents operate under broker supervision. Ask how questions are routed, what compliance review covers, what records are required, and how you can raise an issue on a live file. Also check whether the brokerage's investor-transaction policy fits your business and how local association access works, including who pays dues.
A useful comparison method
Build a like-for-like transaction model
For each option, write down the expected commission, every brokerage and transaction charge, lead or referral deductions, and the amount left before your own business expenses and taxes. Run a typical closing and a less typical one, such as a high-value sale or a company-lead referral. Include monthly fees over the months you expect to be active, and note cap reset dates where relevant. This is a planning tool, not a forecast of future earnings.
How Merge Brokerage describes its structure
Merge’s Pro plan is $99 per month plus a $1,000 brokerage fee per closing. Premier is $495 per month at the standard price with no brokerage fee per closing. Standard transactions have no commission split. On sales above $4 million, a 5% fee applies only to the commission attributable to the portion above $4 million.
A professional transaction coordinator is required for every transaction. An agent may use their own TC and pay them directly, or choose Merge’s preferred TC for $495 per file. New licensees who have never completed a transaction pay an additional $600 on each of their first three transactions. Review the complete terms and plan details before deciding.
Active agents must join CAR and NAR through their choice of local association, and agents pay their own dues. Merge joins associations where needed.
Merge maintains an E&O policy, and your cost is included in your monthly membership. If a claim arises from your transaction, you're responsible for $5,000. Coverage is subject to policy terms. Talk to our broker for details.
Same-day ACH refers to Merge sending payment on the day it receives commission. It does not guarantee when a bank will settle the payment. For investor transactions, ask each brokerage to explain its current policy rather than assuming the rules.
A short decision checklist
- 01 I can identify every fee and when it is charged.
- 02 I understand caps, resets, and high-value transaction rules.
- 03 Lead and referral economics are distinct from the brokerage fee.
- 04 I know who handles transaction coordination and file review.
- 05 The brand, association access, supervision, and investor policies fit my practice.