What is Coldwell Banker’s Commission Split for agents?

Realtors earn income through commissions from the sale of a property. Most people may think that realtors benefit from keeping the total commission of a property sale to them. 

But they can never really take the whole commission themselves if they’re working for an brokerage company. 

In that case, they have to split the commission into some parts, where the brokerage agency gets a portion of the commission earned and the agent gets the remainder. In addition to the commission split, agents need to pay the brokerage for certain fees that cover the office space, marketing, admin fees, and other miscellaneous costs. 

The amount to be paid entirely relies on the policies of the real estate brokerage, There may be other fees involved as well, such as a franchise fee, desk fee, or royalty. These fees vary from brokerage company to brokerage company. If you’ve come across Coldwell Banker then you must be wondering what is Coldwell Banker’s Commission Split for agents?

In Coldwell Banker, the average or the main model for a commission split is their 60/40 plan. Here the agent gets 60% of the commission, and the agency gets 40%.

If you’re looking for a more detailed breakdown of the commission split, you have come to the right place. This article will tell you details of the Coldwell Banker commission split policy.

Coldwell Banker

Coldwell Banker is a brokerage company that was founded in 1906 and later grew into a franchise brokerage in 1982. Its headquarters are in Madison, New Jersey

Picking a brokerage firm or agency is an important decision to make. Choosing a successful and well-known agency can provide you with all sorts of marketing support and flow of sales. Although, The brand name itself will not be enough to give an agent a successful career. 

Why does the commission split structure matter?

Different brokerage firms have different commission split models. Sometimes, branches within a firm or franchise can have different policies and plans as well, making it very difficult for an agent getting started to know what to expect.

Thus, it is crucial to do proper research and gather all information available to make a smart decision. An agent must ensure they are receiving adequate value in exchange for the fee paid to the agency to make the whole relationship worthwhile. 

From what agents have disclosed about Coldwell Banker, we know that the splits are not very attractive or favorable. They do not have any company-wide CAP programs. 

However, if you visit their website you will find that there is no desk fee, there are Royalty fee rebates and they offer profitable incentives during the recruiting process. They offer paperless transactions through the use of DocuSign rooms (DSR) and agents can buy and sell, and contact clients from anywhere in an online platform, in their agent website domain. 

Few offices offer a 55/45 split, where 55% of the commission is for the agent, while 45% us for the agency. This may be seen in cases where the agent is a newcomer or has just recently received their license. 

Others offer a 60/40 split, which is better but still not as good as the plans other franchises offer. 

Coldwell Banker does not have a CAP program. And the average split offered here will be the 60/40 plan. 

The brokerage agency keeps a certain portion of commission in exchange for services that the agent enjoys. The agent receives an office space, a telephone line, marketing, and advertising support, and undoubtedly the use of the brand name of the franchise and so on. 

The agency also needs this share of the commission to pay for the technology, marketing, office overhead costs, salaries of employees, and franchise fees. 

In Coldwell Banker, the franchise fee is 5%.

Let us look at a numerical example here for a clearer understanding of how the commission split works in Coldwell. 

If an agent makes a $100,000 gross commission income with Coldwell Banker, $5000 which is 5% of the total commission will go to the agency as franchise fees. 

That leaves us with $95,000 which is to be split two ways. From here, 40% which is $38,000 will be paid to Coldwell Banker. And 60%, which is $57,000 will be left for the agent. 

Here, the agency has been paid $43,000 in total. ($38,000+$5000) 

Compare this to the commission split program of a company that has a CAP, like Keller Williams.

Coldwell Banker is well known for its technology in the industry. They have technology that allows increased streamline transactions and lead generation. They also invest to get national media coverage which further promotes their brand name and generates income for realtors who are working for them. They provide immediate access to online educational resources, technical support, and training. 

However, most of these costs are in reality being borne by the agents since they are getting a smaller share of commissions than they may deserve. Of course, it still would have been difficult and costly without the help of the franchise, but an agent must realize how to get value out of his or her investment to make the partnership fruitful.

An agent needs to constantly be doing a business evaluation and understand if the resources being provided by the brokerage are worthwhile or if they can be acquired in other ways or by associating with another brokerage company.

What do other agents say about Coldwell Banker?

Most reviews from agents who have worked at Coldwell Banker opine that it has one of the worst commissions split plans in the industry, or that they’ve encountered. 

On the other hand, agents do love how much the firm invests in them. Coldwell Banker provides high ranked training programs and technology that enables agents to potentially boost up sales. Apart from this they also give educational opportunities to the agents to help them grow, become, and remain competitive in the market. 

Then again, a lot of agents complain about how the franchise keeps a relatively large share of commissions, which do not seem fair to the agents. New entrants in the company face this more commonly. 

Most agents have said that other agencies allow them to generate more money. And in terms of commission splits, the franchise is not competitive at all. 

Other agents have reviewed that the franchise has a decent reputation, a familiar name, and is nationally recognized. But it does favor the company instead of the realtor. 

At the end of the day, for an agent to consider this firm, it is important to evaluate whether the benefits provided offset lower commission share personally or not. 

What is CAP? 

A CAP is a limit set by a real estate agency or brokerage firm, after exceeding which an agent will have claim over 100% of the commission. In simpler words, the commission is no longer split between the agency and agent after CAP is reached. 

In some franchises, after the CAP threshold is reached the agent automatically gets into a 95/5 commission split plan. 

CAPs are usually restarted in annual terms. After a CAP is reached, the agent will receive full commission for the rest of the year. 

This year may be the calendar year or could also be the contract year or anniversary date year. A contract year refers to the time from when the agent joined the firm. 

My thoughts on Coldwell Banker

If you ask me, I’d say there are other brokerage firms out there who offer much more attractive commission split structures, where it is easier to build wealth or make money. I have outlined a couple of other companies on this site. You will feel more rewarded for all the hard work and not have to give away almost half of the earnings. 

A successful realtor would not prefer to spend valuable time and effort for lower returns here.

However, Coldwell Banker could be considered as a great start for beginners or new agents that value the brand name and the convenience of an office that is located near their location. 

It can provide new agents with educational and training services, and company culture that supports long term growth. New agents will also benefit highly from the prestige and legacy of the name Coldwell Banker. A recognized and trusted brand is what new agents primarily require to pave a road for success if they are not willing to focus on building their own brand and relationships with potential buyers and seller.


In conclusion, finding the perfect brokerage agency for you is all about doing the proper research. After reading this you might be asking, What is a good commission split in real estate? This link will show you an updated comparison.

Hopefully this article was able to answer your question “What is Coldwell Banker’s Commission Split for agents?” Thanks for stopping by.

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