The 6 Types of Real Estate Brokerages Explained

The short version

Every Texas agent must work under a sponsoring broker, so every agent picks a brokerage. The type of brokerage shapes your costs, your support and who owns your clients.

We do not rank the types or tell you which to pick. We use company filings and TREC pages, and we label each fact with its source and check date. The Bauer Group is also a brokerage, so we compete with all of these types. Read with that in mind.

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

The six types at a glance

Labels are common patterns, not rules. A company can fit more than one type, and features vary by company, office and team.

1. Cloud or revenue share

Agents often work from home and meet online. Many of these companies offer a revenue share program. Under one, an agent who brings other agents to the company may earn part of what the company keeps from those agents' sales. The company sets the terms.

eXp World Holdings' 10-K for 2025 says it had over 83,000 agents and describes "low entry fees" and a revenue sharing plan. The same filing says it pays "under a multi-tiered compensation structure similar in some respects to network marketing." That is the company's own wording in its list of risks. Our eXp Realty profile has more.

• How agents are typically paid: a commission plan, plus any revenue share the company offers.
• Who owns the client and the listing: set by the agent agreement. Ask in writing.
• How leads usually arrive: most agents bring their own. Ask what the company provides.
• Typical support: online training and meetings, less in-person contact.

2. Lower fee models

These companies charge set fees instead of a large split. Agents often keep more of each commission up to a yearly cap. Support and leads vary, so ask what is included.

The Fathom Holdings 10-K for 2025 describes a per transaction fee with a yearly cap, plus an annual fee. Real Brokerage's annual information form describes a set share of each commission with a yearly cap, then per transaction fees. Exact amounts are in our Fathom and Real Brokerage profiles. See also our side by side of Fathom, Real and LPT.

• How agents are typically paid: commission minus the company's fees.
• Who owns the client and the listing: set by the agent agreement.
• How leads usually arrive: often through your own work.
• Typical support: tools and online help. In person help varies.

3. National franchise brands

A franchise brand licenses its name to local owners. The RE/MAX Holdings 10-K for 2025 says franchisees "fund and manage their own operations" and work with agents as independent contractors. That means fees and support can differ by office, even within one city.

The Compass 10-K for 2025 says Compass finished buying Anywhere Real Estate on January 9, 2026. Anywhere owned Coldwell Banker and Century 21. Read our profiles of RE/MAX, Coldwell Banker and Century 21.

• How agents are typically paid: set by the office. The RE/MAX report says franchisees can negotiate terms with agents.
• Who owns the client and the listing: set by the office agreement.
• How leads usually arrive: varies by office.
• Typical support: an office to visit, local training. Quality varies by office.

4. Tech-forward national brands

These companies put software and marketing tools at the center of what they offer. The Compass 10-K lists the ability to "generate high-quality leads" for agents as something that affects recruiting and keeping agents. That is a risk line from the company, not our view. See our Compass profile.

• How agents are typically paid: a commission plan and fees. Read the written plan.
• Who owns the client and the listing: set by the agreement, and by the team if you join one.
• How leads usually arrive: ask exactly what is provided.
• Typical support: tools first. Ask who coaches new agents.

5. Local independent brokerages

These are companies with a local or regional base and their own terms. Fees, splits and training are set by the owner, so there is no standard pattern. We did not check a specific company for this page. A company site that blocked our check was not used.

Visit the office, ask for the fee list on one page, and talk to agents who joined in the last year.

• How agents are typically paid: set by the owner.
• Who owns the client and the listing: set by the agreement.
• How leads usually arrive: ask.
• Typical support: often closer contact with the broker. Ask who answers your questions.

6. Team-led brokerages

A team is usually a lead agent and a group of agents who work inside a larger brokerage. The lead often brings in the business. Team members may work assigned clients and share income with the lead. Terms vary a lot.

The Compass 10-K counts team leaders as principal agents, which shows how common teams are at large brokerages. Our guide on working on a team or solo goes deeper.

• How agents are typically paid: a share of each deal set by the team agreement.
• Who owns the client and the listing: ask who holds the listing and the client relationship, and what happens to your clients if you leave.
• How leads usually arrive: often from the lead agent. Ask how they are given out.
• Typical support: steady flow and coaching, with less room to build your own brand. Ask who pays for marketing.

Who stands behind you in every type

In Texas, a sales agent works under a sponsoring broker. TREC says a license holder must give a written notice about agency at the first substantive talk about a property, using the TREC Information About Brokerage Services form. TREC also says Texas does not permit a license holder to act as a dual agent. These rules apply in every type. Our guide on what a sponsoring broker does explains more.

What agents and reviewers say

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

To hear from real agents, ask each brokerage for two or three agents in your market who joined in the last year. Ask each what surprised them.

Eight questions to ask any brokerage

These are our planning questions, not TREC rules. Ask every brokerage the same ones, and get answers in writing.

• What is every fee I would pay in my first year, and when is each due?
• What is the commission plan, and is there a cap?
• Who owns my client relationships and my listings?
• What happens to my pending deals if I leave?
• How do leads reach agents, if at all?
• What training is there in my first 90 days, and who gives it?
• Who is my sponsoring broker, and how do I reach them?
• Who answers my Texas contract questions, and how fast?

How we wrote this

Sources: SEC filings from eXp World Holdings, Fathom Holdings, RE/MAX Holdings and Compass, the Real Brokerage annual information form, and the TREC brokerage notice page, all checked October 14 and 15, 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 types of brokerages and their trade-offs can help you set up your list.