Needing an unbiased opinion need on brokerage splits please
I’ve been a broker for 2 years now in a West Coast market and I’m still very naive to how things should work. A lot of colleagues in other industries tell me I’m getting boned but they also don’t fully understand the broker life. 

As of lately I kind of feel like I’m getting taken advantage of too but I also understand I’m still very young and inexperienced.

I work for a sink or swim brokerage. I’m on 100% commission, and I only eat what I kill. 

I have a senior partner who helps me on every deal I find. I pay him 50% of the commission and he helps answer my questions, comes to the meetings, and he does everything he can to help get the deal closed. 

His help is valuable because I don’t really know what I’m doing all the time- but being 2 years in now, I’m starting to get my feet under me.

On top of giving up half the fee- I also pay my house split for my gross commission. 50/50 for my first $40k gross, 70/30 after that. It resets to 50/50 at the beginning of each calendar year. 

I don’t really get much to work on from my Senior partner. He’s made a ton of money in the past, doesn’t do a ton of transaction volume and only works deals on a client by client basis. 

As of lately, if he’s working on a new deal and gets it closed he’ll kick me 20% of that fee. He’ll scratch my back a little bit but the difference will always be in his favor which is me paying him a lot more than the latter. 

Any advice would be greatly appreciated.
[{"id": "iu0ka9q", "text": "Not a broker but I'd imagine that the questions that you have going into the third year are fewer and you have more velocity i.e. money coming in so the split should be readjusted.", "replies": [], "depth": 1}, {"id": "iu0maki", "text": "I\u2019m in a similar position. My split is 50/50 until 60k. I have a senior broker who helps me with my deals here and there. I feel like you are in an average situation. I hear horror stories from big brokerages where they don\u2019t help you at all. I would say if you are getting solid help, it\u2019s worth it.\n\nAdding: Really rare to get thrown 20% of any deal. Sounds like you are in a decent position.", "replies": [{"id": "iu15eyz", "text": "This is good to know. Thanks", "replies": [], "depth": 2}], "depth": 1}, {"id": "iu0ttqq", "text": "Suck it up. This is this career. You\u2019re only in year 2. It\u2019ll take 5 for you to get up and running. This actually sounds like a decent position.. Don\u2019t listen to others in other industries that have no clue how ours works. \n\nFYI most of CRE brokerage is 100% commission. So if this life is too much for you to handle, I suggest you go find a low salary gig and ride that out. \n\nYou really have no reason to be complaining. If you\u2019re not making enough, go find more deals", "replies": [{"id": "iu0uchw", "text": "I think you\u2019re right. Just feels good to hear it from someone on the outside. Appreciate the info. Love this career and could see myself doing it for a very long time.", "replies": [{"id": "iu0w4b1", "text": "Good stick w it. Wasn\u2019t trying to be a prick. This career has over a 90% attrition rate. If you were me, I\u2019d do whatever it takes to bring in as much business as I can. This old dog is going to wind down soon probably. Help feed him and use him to get big meetings and one day maybe soon you\u2019ll takeover his book. But you\u2019re going to have to prove yourself. Keep it up", "replies": [{"id": "iu177m2", "text": "Yes sir, it\u2019s definitely a grind and pay days are far apart with few between. But holy shit- when it rain it pours ($). Funny part is- for some reason the pay days aren\u2019t even the most exciting. What keeps me going is \u201cthe chase.\u201d", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iu0v3rv", "text": "First you say you're on 100% commission, then you say you're on a house split. Which is it?  \nI get the 50/50 with your mentor, but is there something on top of that?  \n\nEither way, your arrangement is ok for someone completely new to the business, but at this point you need less oversight and should have the experience to justify a more favorable fee structure.", "replies": [{"id": "iu0xtqu", "text": "Yes. For example, say OP completes a deal that produces a $20,000 commissions. $10,000 goes to his senior partner. Then the OP has to split the $10,000 with the house. \n\n$5k to house / $5k net to OP (if UNDER $40k total gross produced during the calendar year)\nOr\n$3k to house / $7k net to OP (if OVER $40k total gross produced during the calendar year)\n\nEdit: OP means that he is on 100% commission as in no base salary.", "replies": [{"id": "iu0yv3d", "text": "That clears it up. Seems like not a lot left for op's net.", "replies": [{"id": "iu1ccw7", "text": "Correct. Not a lot left on my plate. But it\u2019s part of being in the biz at 24 years old I guess. Gotta pay dues to get deals done. I can\u2019t show up to the table without grey hairs with me. In Residential I think you can fake it till you make it. Sell a house to your friend in 30 days and just wing it. In commercial you won\u2019t get anything done if you don\u2019t have experience so I have to pay my mentor for his experience.", "replies": [{"id": "iu1funn", "text": "Not sure what leaner shops are like but 20% for everything he brings in seems like a good gig. Is my math/commission economics right? \n\nIf he closes $50M worth of deals at 3% ($1.5M) you can receive 20% of that ($300,000) in gross commission? \n\nThen if you close $10M yourself that year @ 3% fee ($300,000), you'll be left with $150,000 in gross commission after partner split. \n\nBrings total gross commission to you at $450,000. \n\nYou give $20,000 to the house and keep $20,000 on first $40,000 gross commission and remainder of $410,000 you receive 70% ($287,000) bringing total to just north of $300,000 in net commission in your pocket? Seems like a good deal if that much volume is getting pushed.", "replies": [], "depth": 5}, {"id": "iu1hqir", "text": "Keep improving your knowledge. If you aren't already doing it, I'd suggest getting into some CCIM classes and working towards that designation. As a young person in the industry, it will lend a lot of credibility.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iu0ylwi", "text": "I had a similar setup with a mentor at M&amp;M. Personalities were too different but he taught me a great deal about the business and also would cut me in on deals he brought in which was more favorable than anyone in the office. Sounds like you have a fairly reasonable arrangement here and you seem to have a pretty good head on your shoulders. In a couple more years I think you will probably want to evaluate this but today with your admittedly limited experience and knowledge it may be worth maintaining.", "replies": [{"id": "iu1631y", "text": "Sounds like we\u2019re on a similar boat. Appreciate your input.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iu159ha", "text": "What your describing is pretty much exactly how it is expected to go your first few years in brokerage. You are in a better spot than most. Continue to add value for your senior partner, learn, and start to build your client base. There will come a time to discuss splits with your partner but now is not the time.", "replies": [{"id": "iu1cip8", "text": "Thank you!", "replies": [], "depth": 2}], "depth": 1}, {"id": "iu19b1d", "text": "What\u2019s the value of the senior partners deal that you\u2019ll get 20%? And do you have to cut the house in 50/50 or 30/70 from the split when revived. The senior broker really doesn\u2019t need to be giving up anything as your value would be limited given experience, maybe just some help and presence in the deal along the way? Either way I assume their deal is larger therefore the 20% more valuable than a smaller fee which a new broker might do?\n\nTo be honest this is a pretty normal set up. You can start cutting the senior broker down when you no longer require any assistance.\n\nThe house splits sound normal too.", "replies": [], "depth": 1}, {"id": "iu1lnai", "text": "As a a debt/equity broker - I would kill for 70/30.", "replies": [], "depth": 1}, {"id": "iu200y1", "text": "You\u2019re in the exact same spot I was. The long story short is you\u2019re getting shafted but that\u2019s the game. You don\u2019t have to like it. Just learn to live with it. I had the same exact splits and the only way is up or out. Make sure you have a path to becoming an equal partner and do everything you can to get there\n\nAlso I was 50-50-50 for any amount and I earned my senior partner well over $1.5mm. I still keep him on all my deals with anyone I met while running for me and have kicked him damn close to another million since I became a partner. It sucks but if he\u2019s providing value and is a real big time broker then it\u2019s lessons and knowledge no Reddit or google will ever be able to provide. At some point when you\u2019ve made him a lot of money ask him to kick deals your way and you\u2019ll do all the work", "replies": [{"id": "iu746v7", "text": "Sounds like we\u2019re at the same brokerage. M&amp;M or L&amp;A. Thank you for the input. Like I said I\u2019m very naive so utilizing Reddit has been helpful.", "replies": [], "depth": 2}, {"id": "iuu987c", "text": "Hey I was thinking about this response and it lead me to another question. How do you know when it\u2019s time to go out on your own. Does your brokerage allow you to be solo agent? Isn\u2019t the goal to ultimately do deals on your own?", "replies": [{"id": "iuvuxng", "text": "If you\u2019ve made your broker a lot of money then at some point you should be able to do deals on your own. Unfortunately, it just depends. Some guys continue to work with their partner forever and they mutually share everything with you ultimately inheriting their book of business. Others just collaborate on certain deals. Depends on the situation and the value you\u2019re providing each other. I do 75% of deals on my own. I bring my former boss and current partner in on certain big deals if he\u2019s bringing value or if it\u2019s in his wheelhouse of expertise (a specific market area he knows very well). He brings me in on listings in my market area and on certain deals that fall within my expertise", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iu2fy7u", "text": "I\"m just hitting year 2. 50/50 split until $100k... then 60/40. I'd like to renegotiate but will probably wait until I've hit closer to 40M. I can handle all leasing by myself and usually only bring in a senior broker to split for the larger deals.", "replies": [], "depth": 1}, {"id": "iu2s4is", "text": "Big CRE houses on west coast are also 100% commission and 50/50 split usually somewhere past $200k gross then your share increases from there Usually in the range of 75/25 or 80/20 until you gross somewhere near $1,000,000.", "replies": [], "depth": 1}, {"id": "iu34ii9", "text": "Austin, TX brokerage firm. 50/50 to $250k gross, 70/30 up to $350k gross, 90/10 above $350k gross", "replies": [], "depth": 1}]