Traditional vs. Cloud Brokerage
Traditional brokerages
Traditional brokerages rely on brick-and-mortar offices and in-person management, offering structure and local visibility but often at a higher cost to the agent.
While they provide hands-on oversight and a familiar office environment, these models typically come with lower commission splits and limited growth flexibility.
Cloud brokerages
Cloud real estate brokerages are redefining how agents build their businesses. By operating primarily online, they eliminate the need for costly physical offices and instead invest in cutting-edge technology, training, and support.
This allows agents to keep more of their commission, work from anywhere, and scale their business faster through flexible models, revenue-sharing, and equity pportunities.
The difference is simple:
Cloud brokerages are built for freedom, scalability, and modern agents, while traditional brokerages are built around offices, hierarchy, and local operations.
Tips for Choosing
Your work style
85% of the commission goes to the agent and 15% goes to the brokerage.
Production volume
Higher volume can justify monthly fees if your net take-home increases.
Team vs. solo
Revenue share matters more if you build a team.
Tech needs
Bundled tools vs. your own stack changes cost trade-offs.
How to Compare Key Factors
If joining a cloud brokerage is something you’re considering, here are the main players in the industry: eXp Realty, Real Broker, LPT Realty, Fathom Realty, and Epique Realty (smaller).
| Feature | eXp Realty | Real Broker | LPT Realty | Fathom Realty |
|---|---|---|---|---|
| Cloud-native tools | ★★★★ | ★★★ | ★★ | ★★★ |
| Tech fee | Yes | No | Low/varies | Moderate |
| Revenue share | Complex multi-tier | Simple multi-tier | Yes | Yes |
| Commission split potential | 100% after 16K cap | 100% after 12K cap | Up to 100% | Up to 100% |
| Training | Extensive | Good | Moderate | Moderate |
| Brand footprint | Large | Growing | Small | Medium |
| Overall | ★★★ | ★★★★ | ★★ | ★★ |
Real Brokerage is often considered better than eXp Realty because it offers a simpler, more agent-friendly compensation model with lower ongoing fees, a straightforward cap, and meaningful equity rewards without complexity. In short, Real focuses on maximizing net income and ownership, while eXp’s structure can feel more layered and diluted as agents scale.
Side by side comparison
Here’s a side-by-side comparison table of five cloud real estate brokerages – eXp Realty, Real Broker, LPT Realty, Fathom Realty, and Epique Realty – to help you compare key compensation and structure elements in one place:
| Feature | eXp Realty | Real Broker | LPT Realty | Fathom Realty | Epique Realty |
|---|---|---|---|---|---|
| Standard Commission Split |
80/20 (agent/broker) until cap |
~85/15 (agent/broker) until cap |
80/20 up to 100/0 depending on program | Plans vary; e.g., Share Plan 88/12 or 100/0 by model |
85/15 until cap |
| Annual Cap (before 100% payout) |
~$16,000 | ~$12,000 | Varies (ex: ~$5k–$15k) |
~$9k–$12k depending on plan |
Starts ~$15,000 and declines with tenure down to ~$10,000 |
| Monthly/Annual Fees |
~$85/mo tech + start-up & transaction fees |
No monthly tech fee; ~$750 annual brokerage fee | Typically annual/transaction fees (varies) | Annual fee (e.g., ~$700) & transaction fees |
~$99–$149/mo tech fee |
| Transaction Fees |
Broker review + risk mgmt (~$25–$40 per sale) |
Lower fixed post-cap fees; daily payout | Varies by plan | ~$465 per deal + post-cap fees |
~0.1% of sales price (cap ~$500, then ~$250) |
| Revenue Share (Passive Income) | Multi-tier (7 tier) model |
Multi-tier (5 tier) simpler structure |
Multi-tier (7 tier) |
Multi-tier (5 tier) |
Multi-tier (~5 level) w/ broader agent revenue share model |
| Stock/Equity Opportunities | Agent stock awards + purchasable discounted stock |
Agent stock awards + purchasable discounted stock |
Stock awards available | Typically no direct stock program | Company stock opportunities & Power Awards |
| Training & Tools | Large virtual training ecosystem + CRM tools included | Good tech stack + daily payouts |
Varies by office/team |
Basic CRM + regional training |
CRM, AI tools, marketing systems included |
| Best Fit | Agents wanting robust cloud tools & growth network |
Agents valuing simplicity, low fees & team support |
Flexible split agents & team builders |
Agents wanting simple fees & strong net take home |
Agents wanting perks + equity incentives |
Cost/Profit Calculation
Important: These are estimates based on typical commission models publicly shared; actual numbers may vary by your state, team arrangement, or specific plan you choose. Also, this assumes you have not yet hit your annual cap (so you’re paying the full split to the brokerage on this transaction).
Estimated Net to Agent on a $500,000 Sale ($15,000 Gross Commission)
| Feature | eXp Realty | Real Broker | LPT Realty | Fathom Realty | Epique Realty |
|---|---|---|---|---|---|
| Commission Split Before Cap | 80% to agent 20% to broker |
85% to agent 15% to broker |
Typically 80/20 before cap |
Many agents go 100% with transaction fee | ~85/15 plus 0.1% of sales (~$500) |
| Approx Brokerage Take | ~$3,000 | ~$2,250 | ~$3,000 | ~$0 split (on some plans) |
~$2,250 split + ~$500 extra |
| Approx Tech/Transaction Fees | ~$300–$400 (avg post-split add-ons) |
~$285 transaction fee (est.) |
~$195 transaction fee (est.) |
~$465 (Max plan) |
~$0–? (no large tech fee) |
| Agent Keeps (est.) | ~$11,300–$11,700 | ~$12,465 | ~$11,800–$12,000 | ~$14,535 | ~$12,250 |
Notes on the Estimates
Real Broker:
- Commonly 85/15 until cap; no monthly tech fee, but there’s often
- a small transaction compliance fee.
- Rough result: ~$12,465 net before cap.
LPT Realty
- Many agent plans start at 80/20 before cap, with modest transaction fees.
- Net is similar to eXp when not capped, unless you’re under a 100% split plan.
Epique Realty
- Typical split 85/15 with a 0.1% sales price fee (~$500 on $500k).
- With fewer additional small fees reported, net is around $12.25k.
eXp Realty
- Standard split is 80/20 until you cap ($16,000 per year).
Then you keep 100%, but this example assumes pre-cap. - After the split, expect small transaction-related fees (e.g., broker review/risk management) which reduce the net a bit.
- Rough result: ~$11.3k–$11.7k on a $15,000 gross commission.
Fathom Realty
- Many agents choose the 100% commission model with a flat transaction fee instead of a percentage split.
- With a ~$465 fee, you would keep most of the $15,000 – around $14.5k.
Bottom Line
Real Brokerage is built to maximize what agents actually keep. Compared to other cloud brokerages, Real combines low fees, a reasonable cap, and true ownership upside in a way that consistently favors producing agents.
Key compensation advantages:
High take-home pay
After the cap is reached, agents keep 100% of their commission (minus small transaction fees), often sooner than at competitors.
Equity participation
Agents earn stock awards for production, capping, and attracting agents—turning commissions into long-term wealth.
Lower ongoing costs
No excessive monthly desk fees or hidden tech charges eating into profits.
Revenue share without dilution
Clean, transparent revenue share model that doesn’t reduce your own split.
Agent-friendly cap structure
Competitive cap that rewards productivity without punishing growth.
While some cloud brokerages talk about “better splits,” Real Brokerage focuses on net income and ownership, not just percentages. For agents who want more money now and equity for the future, Real’s compensation model is hard to beat.