Starting a real estate brokerage in 2025 is one of the most profitable moves in the property market. It offers autonomy, scalability, and long-term income potential. This guide explains exactly how to build a successful brokerage, whether you’re transitioning from being a real estate agent or launching a brand-new firm.
Content
What Is a Real Estate Brokerage?
A real estate is a licensed entity that connects buyers and sellers while ensuring all legal and financial details are handled correctly. A broker either works alone or manages a team of agents, offering oversight and infrastructure for property transactions.
There are multiple types of real estate brokerages, including traditional brick-and-mortar firms, cloud-based brokerages, and hybrid models that combine both. Each has different advantages based on your market and goals.
How to Start a Real Estate Brokerage
Understanding how to start a real estate brokerage begins with legal compliance and ends with brand building. Here’s what to focus on:
Get licensed as a broker Before launching, you must meet your state’s licensing requirements, including passing the broker exam and having years of real estate experience.
Develop a business plan Define your target market, income goals, team size, and branding strategy. This document acts as your growth blueprint.
Choose your business model Will you follow a commission-based brokerage, adopt a flat-fee model, or try a hybrid setup? The right model impacts profits, agent attraction, and operational cost.
Register your business legally Select a legal entity (LLC, S-corp, etc.), apply for an EIN, and complete any required local registration.
Create your branding and website Your website should be user-friendly, mobile-optimized, and SEO-enhanced. Include features like lead capture, listings, and testimonials.
Difference Between Real Estate Agent and Broker
Many confuse these two roles, but the difference between real estate agent and broker is significant:
A real estate agent works under a broker and handles property showings, client communications, and sales.
A broker has a higher license and can run their own firm, manage agents, and ensure regulatory compliance.
If you’re aiming to build a brokerage, upgrading from agent to broker is a necessary first step.
Real Estate Brokerage Business Models
Your real estate business model defines how you attract agents, generate income, and compete in the market. Here are the main options:
Traditional model: You take a cut of your agent’s commissions (e.g., 30%–40%) and provide support like office space and marketing.
Flat-fee model: Agents pay a monthly or transaction-based fee and keep 100% of their commission.
Virtual model: Fully online with low overhead, ideal for tech-savvy entrepreneurs and remote agents.
Hybrid brokerage: Combines in-person support with virtual tools—offering flexibility to clients and agents alike.
Choose the model that matches your leadership style, resources, and target location.
How Do Real Estate Brokerages Make Money?
One of the biggest questions new owners ask is how do real estate make money? Your income streams include:
Commission splits with your agents
Monthly desk fees or franchise fees
Referral income from other brokerages or partner services
Training programs offered to agents for additional fees
Technology and marketing services that agents pay for on a subscription basis
Smart brokerages diversify their income sources to remain profitable regardless of market shifts.
Best Real Estate Brokerage to Work For
If you’re an agent looking for the best real estate brokerage to work for, pay attention to these features:
Strong training and onboarding – Ideal for newer agents building confidence
Tech tools – Access to a CRM, digital marketing suite, and automation
Positive company culture – Collaboration and mentorship are essential
Flexible commission structure – Ensure you’re getting fair value for your efforts
Reputation and support – A brokerage’s public image can help build client trust
Top names like Keller Williams, Compass, and eXp Realty often lead in agent satisfaction, but the best firm for you depends on your niche and goals.
Real Estate Brokerage vs Independent Agent
Choosing between real estate vs independent agent depends on your experience level and risk tolerance.
Independent agents enjoy autonomy, but they lack the legal protection and administrative support of a brokerage. In contrast, brokerages offer:
Legal compliance
Access to mentorship
Transaction management
Tools for marketing and lead generation
If you’re new to the field, starting under a brokerage is usually the smarter route.
Top Real Estate Brokerages in the US (2025)
Wondering which companies dominate the industry? These are the top real estate brokerages in the US by performance and innovation:
Keller Williams Realty – Known for agent-first culture and high training standards
RE/MAX – Great global reach and brand equity
Compass – Tech-driven, luxury-focused
eXp Realty – A fully virtual platform with growing momentum
Coldwell Banker and Century 21 – Longstanding legacy brands with national presence
Studying these models helps you understand how to structure your own firm effectively.
How to Grow a Real Estate Brokerage
If you’re ready to expand, here’s how to grow a real estate brokerage successfully:
Recruit high-performing agents Offer competitive commission splits, mentorship, and support systems.
Use smart tech tools Automate lead generation, manage listings, and streamline transactions with modern CRM platforms.
Invest in content marketing Publish blogs, neighborhood guides, and video tours to build your online authority.
Host agent events Offer continuous learning through workshops, webinars, and coaching.
Track KPIs Monitor deals closed, agent retention, average time-to-close, and marketing ROI to adjust strategy.
Growth is about combining strong leadership, brand trust, and smart use of technology.
Conclusion: Build Your Dream Real Estate Brokerage Today
Starting a real estate brokerage in today’s market is both rewarding and challenging. With the right licensing, a modern real estate business model, and a focus on marketing, mentorship, and technology, you can build a profitable and resilient company.
Whether you’re aiming for a small boutique firm or a nationwide operation, staying focused on client value and agent support is key. Start with a clear plan, leverage these proven strategies, and you’ll stand out in the competitive 2025 real estate landscape.
FAQs: Real Estate Brokerage Essentials
What licenses do I need to open a real estate brokerage?
You must have a broker’s license from your state, along with business registration and insurance.
How much do brokers make per year?
Income varies by market and model, but successful brokers can earn $150,000 to $500,000+ annually.
Is it hard to manage a team of agents?
Not if you provide solid systems, clear expectations, and incentives for high performance.
Can a brokerage work without a physical office?
Yes, many virtual brokerages thrive using digital platforms and cloud-based systems.
What makes a brokerage successful long-term?
Consistent branding, agent retention, compliance, client satisfaction, and adaptation to market trends.
With a sharp eye for design and a passion for renovation, Samantha transforms fixer-uppers into dream homes. Her expertise in remodeling adds extra value to your real estate experience.
