Referral Fee Split Calculator

Outbound referral fees and brokerage splits compound — compute agent take-home.

Sale price

Gross commission %

Referral fee %

Agent split %

Franchise fee %

Net to agent

$8,460

Gross side commission

$15,000

Referral fee paid

$3,750

How the math works

Commission − referral − franchise → brokerage share. × agent split = take-home.

$15k × (1−25%) = $11,250. × (1−6%) = $10,575. × 80% = $8,460 net to agent.

How to Use

Enter sale price.
Enter gross commission %.
Enter referral fee %.
Enter brokerage split % (agent share).
Enter franchise fee %.
Read net to agent.

Frequently Asked Questions

How do referral fees work?

When agent A sends a lead to agent B who closes the deal, A gets a referral fee as % of B's commission. Standard: 25% of commission is most common; 30-35% for high-quality relocation referrals, 15-20% for low-touch referrals. Paid broker-to-broker, then allocated by each brokerage to the individual agent per split. Referral is a separate 1099 transaction.

Can only licensed agents collect?

Yes — real estate referral fees must be paid to a licensed real estate brokerage. Paying a referral to an unlicensed consumer is illegal in all 50 states (with limited exceptions for thank-you gifts under $25). Retired agents keep a 'referral-only' license specifically to receive referral income. Many brokerages exist solely to facilitate referrals between retired or inactive agents.

Referral vs co-broker?

Referral: A sends lead, B handles 100% of transaction, A gets 25% of B's commission, B gets 75%. Co-broker: A and B both work the transaction — A lists, B sells — each gets their side's full commission via MLS. Referral is upfront, smaller %, no ongoing work; co-broker is standard split-side arrangement.

Network economics?

Top referral networks (Leading RE, Keller Williams Global, Sotheby's): 1-3 inbound referrals/month per active agent. Average referral closes at 30-50% vs standard lead conversion 2-5%. ROI on network membership: $200-500/month dues vs $5-15k/month average referral commission. Strong referral agents run 40-60% of business off referrals.