Graduated split mechanics

Graduated splits step the agent's retention rate up as cumulative annual production crosses thresholds. Common ladder: 60/40 to 70/30 to 80/20 to 85/15 across $0-$25k, $25k-$75k, $75k-$150k, $150k+ company dollar.

Graduated splits reset each anniversary year. The agent retains a baseline percentage (commonly 60% or 70% of gross commission income at start of year), and the split improves as the agent contributes more 'company dollar' (the brokerage's share). A typical ladder at a traditional independent or franchise office: 60/40 split until $25k company dollar earned, then 70/30 to $75k, then 80/20 to $150k, then 85/15 for the remainder of the year. At year-end the agent resets to 60/40. The structure rewards consistency and high producers but punishes new-to-firm agents and seasonal producers. A $400k gross-producing agent under this ladder retains roughly $280k-$310k depending on timing of when the splits step up. Graduated splits are still common at traditional independents, Coldwell Banker, and some Berkshire Hathaway HomeServices franchises.