In the South African property industry, commission splits have become one of the hottest talking points since 2020. With the rise of cloud-based brokerages and “agent attraction” models, many companies now offer eye-catching splits of 70%, 80%, or even 100% to lure agents away from traditional firms.

For many estate agents, the decision seems simple: keep more of every deal. But the question is - what are they sacrificing for that higher split?

Why High Commission Splits Appeal

The traditional agency model often saw agents taking home 50% or less of their commission, with the rest funding the brand, office space, marketing, and back-office support. Newer platforms flipped this model, promising agents:

•   Bigger take-home pay per transaction.
•   Autonomy to run their own businesses.

A chance to build personal brands instead of working under a corporate umbrella.

On paper, it looks like a no-brainer. But the trade-offs become clear once you dig deeper.

What Agents May Be Sacrificing

1. Brand Recognition & Market Credibility

A strong brand name opens doors. Sellers are more likely to trust a household name like Pam Golding, Seeff, or Lew Geffen than a lesser-known brokerage. Agents at high-split firms often need to build personal credibility from scratch, which takes time, effort, and money.

2. Training & Mentorship

Traditional agencies typically offer structured in-house training and mentorship. This is invaluable for new agents learning the ropes of contracts, negotiations, and compliance. At high-split brokerages, training tends to be self-directed or outsourced, which can leave agents feeling unsupported.

3. Marketing & Lead Generation

Established firms invest heavily in advertising, digital campaigns, and lead distribution. High-split models often expect agents to fund and manage their own marketing, from Facebook ads to listing photography. The “extra” commission can quickly be eaten up by personal marketing spend, particulalry as a single agent doesn't have the benefit of economies of scale when it comes to pricing.

4. Office Space & Administrative Support

A physical office, front desk, and admin team may feel old-fashioned, but they create structure and convenience. Cloud-based, high-split agencies usually run lean operations with minimal admin support, meaning more paperwork, compliance checks, and scheduling falls onto the agent.

5. Legal & Compliance Safeguards

With FICA, POPIA, and PPRA rules tightening, compliance has become a full-time job. Large agencies often have back-office teams to ensure contracts are watertight. High-split models place this responsibility squarely on the agent, who risks fines or penalties if something slips through the cracks.

6. Culture & Team Environment

The traditional model fosters a team environment - floor duty, joint show days, and the motivation of working alongside peers. At high-split firms, especially fully virtual ones, agents can feel isolated. This suits self-starters, but others may miss the sense of belonging and collaboration.

The Real Trade-Off

At the end of the day, higher splits mean higher responsibility. Agents keep more of each deal, but they also need to invest more of their time, money, and energy into:

Personal branding

Marketing

Training

Compliance

Client support

For entrepreneurial, independent-minded agents, the trade-off may be worth it. For others, the safety net of a full-service agency offers more value than a few extra percentage points in commission.

Who Thrives in High-Split Models?

•   Experienced agents with strong networks and the ability to self-generate leads.
•   Entrepreneurial agents who want to build their own brand rather than rely on a corporate name.
•   Digital-savvy agents who are comfortable running their own marketing and client pipelines.

By contrast, new agents or those who prefer a structured environment may struggle - the higher split won’t compensate for the lack of support.

Final Thoughts

High commission splits are attractive, but they’re not a silver bullet. Estate agents should ask themselves:

Am I ready to take on more responsibility?

Do I have the resources to fund my own marketing and training?

Do I thrive independently, or do I prefer being part of a strong team?

In real estate, as in life, there’s no such thing as a free lunch. The split you choose should match not only your financial goals, but also your working style and career stage.