Cloud vs Traditional Brokerages: Which is Right for You?
Published January 17, 2025
The real estate industry has been transformed by cloud-based brokerages. Here's how they compare to traditional models and which might be right for your career.
What Are Cloud Brokerages?
Cloud brokerages operate primarily online with minimal physical presence. Examples include Real Brokerage, eXp Realty, and Compass. They leverage technology to reduce overhead and pass savings to agents through better commission splits.
Traditional Brokerages
Traditional brokerages like Keller Williams, Coldwell Banker, and RE/MAX operate with physical offices and established franchise systems. They emphasize local presence and in-person support.
Key Differences
Commission Structures
Cloud Brokerages:
- Higher commission splits (85-95%)
- Annual caps on brokerage fees
- Revenue sharing opportunities
Traditional Brokerages:
- Variable splits (50-90%)
- Monthly desk fees
- Transaction fees
Support and Training
Cloud Brokerages:
- Virtual training programs
- Online collaboration tools
- Digital resource libraries
Traditional Brokerages:
- In-person training sessions
- Local office support
- Face-to-face mentoring
Which is Right for You?
Choose Cloud If:
- You're comfortable with technology
- You're self-motivated and independent
- You want higher commission splits
- You're interested in building passive income through recruiting
Choose Traditional If:
- You value in-person support
- You're new to real estate
- You prefer established brand recognition
- You want local office resources
Run the Numbers
Use the BrokerageCompass calculator to compare actual earnings potential between different cloud and traditional brokerages based on your production level.
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