How to Choose Your First Real Estate Brokerage In New York

Choosing your first real estate brokerage in New York determines whether you'll succeed or join the 87% of new agents who fail within their first year. The right brokerage provides training, leads, and support while you learn the business.

Key factors: commission splits, training quality, lead generation support, desk fees, brand reputation, and company culture. Most new agents prioritize training over high commission splits—learning the business is more valuable than keeping a larger percentage of your first few deals.

Brokerage Decision Factors at a Glance

Factor	What to Look For	Why It Matters
Commission Split	50/50 to 70/30	Lower splits include better training
Training & Mentorship	Onboarding, assigned mentors	Critical for first deals
Lead Generation	Brokerage-provided leads	Builds client base faster
Desk Fees	$0-$1,000/month	Reduces financial pressure
Technology	CRM, marketing tools	Tools you can't afford alone
Brand Recognition	Local market awareness	Builds client trust

Commission Splits

Common splits for new agents:

• 50/50: You keep 50%. Includes extensive training and lead generation

• 60/40 or 70/30: You keep 60-70%. Less training, more independence

• 100% commission: Keep everything, pay desk fees ($500-$1,500/month). For experienced agents only

Start with 50/50 or 60/40 at a brokerage providing training and leads. After 10-15 deals, negotiate better splits or switch.

Training and Support

Training determines success. Look for:

• Structured 2-4 week onboarding covering contracts and negotiation

• Assigned mentor who reviews your deals

• Weekly ongoing education

• Role-playing practice

Ask: "What does your training program include?" and "Will I have an assigned mentor?"

Lead Generation Support

Brokerages offer different lead support:

• Company-provided leads: Brokerage generates and distributes leads

• Lead rotation: New agents get percentage of incoming leads

• Floor duty: Take turns answering phones

• No support: You generate all leads yourself

Choose a brokerage providing lead support for your first 6-12 months.

Desk Fees and Costs

Beyond commission splits, expect:

• Monthly desk fees: $0-$1,000

• Transaction fees: $200-$500 per deal

• Technology fees: $25-$100/month

• Franchise fees: 6-8% at some brokerages

Calculate total costs. A 70/30 split with $800/month desk fees may cost more than 50/50 with $0 fees if closing fewer than 5 deals yearly.

Brand Recognition

Brand strength varies by region. Evaluate:

• Local market share and listing dominance

• Client familiarity with brand name

• Marketing resources provided (signs, brochures, digital materials)

Strong brands help overcome "I've never heard of you" objections.

Office Location and Culture

Location: Consider proximity to target market, commute time, and workspace access.

Culture: Collaborative vs. competitive environments. Visit during business hours and talk to current agents about their experience.

Questions to Ask

• What's included in your training program?

• Will I have an assigned mentor?

• How do you help new agents generate leads?

• What are ALL monthly and per-transaction fees?

• What's your average new agent's first-year income?

• Can I speak with agents who joined recently?

Red Flags

• No structured training

• Pressure to recruit agents (MLM-style)

• Unclear fee structure

• No mentorship for new agents

• Guaranteed income promises

Frequently Asked Questions

What commission split should I expect?
Most new agents start with 50/50 or 60/40 splits. Lower splits include better training and support.

Should I choose a national brand or local brokerage?
Depends on your market. National brands offer broader resources; local brokerages may have stronger community ties.

How important is office location?
Very important if working from the office regularly. Less important if working remotely.

Can I switch brokerages after I start?
Yes. Many agents switch after gaining experience. Check contractual obligations first.

What if I choose the wrong brokerage?
Don't panic. Many successful agents switched within their first year. Focus on learning, then reassess after 6-12 months.

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