Cloud and Revenue Share Brokerages Explained

The short version

Cloud brokerages are one of the six common brokerage types. If you are comparing brokerages in Texas, you will see them often. The model is not good or bad. It fits some agents and not others.

We do not give an opinion on any company. We use SEC filings, and we label each fact with its source and check date. The Bauer Group is also a brokerage, so we compete with these companies. Read with that in mind.

Education only, not legal, tax or financial advice. Confirm licensing rules with TREC.

What the model is

In a cloud brokerage, there is often no local office to visit. Agents work from home. Training and meetings happen online. The company runs on software for contracts, payments and records.

Fees are often lower than at a traditional office, and agents often keep more of each commission up to a yearly cap. Features vary by company, so check each one.

What revenue share means

Many cloud brokerages offer a revenue share program. In general, an agent who brings other agents to the company may earn a share of what the company keeps from those agents' sales. The company sets who qualifies and how much.

Companies describe it in their own words. Here is how three public companies describe theirs.

How agents are typically paid

An agent usually earns commission on their own deals, minus company fees. Some companies charge a set fee per deal, with a yearly cap. Others take a share of each commission, with a yearly cap. Read the written plan.

If a revenue share program is on offer, it is a separate stream of income. It depends on other agents joining and closing deals. Ask what you must do to qualify, and what the company does not promise.

Who owns the client and the listing

In most models, the agent agreement sets this. Ask in writing who holds the listing and the client relationship, and what happens to pending deals if you leave. Your sponsoring broker must be in place the whole time. See what a sponsoring broker does.

How leads usually arrive

At many cloud brokerages, agents find their own clients. Some companies offer tools or programs to help. Ask exactly what is provided, what it costs, and whether it is in writing.

Typical support

Support is often online: video training, chat groups and a help desk. In person contact is less common. Ask who answers a hard contract question on a Friday evening, and by name.

What companies say about their own risks

Public companies must list risks in their annual report. A risk line is not a finding of fault. These are short quotes, not our views.

• eXp says it "pays under a multi-tiered compensation structure similar in some respects to network marketing."
• eXp also says "Network marketing is subject to intense government scrutiny and regulation."
• Fathom says "we might not be able to attract, retain and incentivize agents."
• Real says "There is no assurance that the Company will be able to maintain its recent agent growth rate."

What commentators say

Review data was limited when this page was written. We could not load a public source that allows reading, so we are not reporting reviewer quotes, counts or scores. We will not guess what agents think.

People have different views of revenue share. Some say it rewards agents who help others join. Others compare sponsor based plans to network marketing. We have not quoted any commentator here, because we did not fetch an attributed source. To hear real views, ask two or three agents in your market who joined in the last year what surprised them.

Eight questions to ask any cloud brokerage

These are our planning questions, not TREC rules. Get the answers in writing.

• What is every fee I would pay in year one, and when is each due?
• What is the commission plan, and what is the yearly cap?
• What do I pay after I reach the cap?
• How does revenue share work, and do I have to join it?
• Who is my sponsoring broker, and how do I reach them?
• What training is there in my first 90 days, and who gives it?
• How do leads reach agents, if at all?
• What happens to my pending deals if I leave?

Who may want to look closer, and who may want to compare more

We do not say who should join any brokerage. These are questions that help you decide for yourself.

You may want to look closer if you are comfortable working from home and learning through online meetings.

You may want to compare more if you want an office to walk into or a mentor next to you. Ask yourself where you will get answers on a hard contract at 6 p.m. on a Friday.

How we wrote this

Sources: the eXp World Holdings and Fathom Holdings Form 10-K filings for 2025 and The Real Brokerage Inc. annual information form, all on SEC EDGAR and checked October 14, 2026. We left out any fact we could not read from a primary source.

Experiences vary by office and team. If you see an error, write to agents@joinbauergroup.com. We apply corrections within 2 business days.

Comparing options?

Ask any brokerage the same questions. Our guides on choosing a brokerage in Texas and the six types of brokerages can help you set up your list. See also our profiles of eXp, Fathom and Real.