The formula to calculate the commission split is:
\[ CS = T \times R \]
Where:
A 70/30 commission split is a type of payment arrangement, often used in real estate or sales industries, where the salesperson or agent receives 70% of the commission earned on a sale, while the remaining 30% goes to the brokerage or company. This split is typically used to cover the costs of office space, marketing, administrative support, and other resources provided by the company. The exact percentage can vary depending on the company’s policies and the individual’s level of experience or performance.
Let's assume the following values:
Using the formula:
\[ CS = 10000 \times 0.7 = 7000 \text{ \$} \]
The Commission Split is \$7,000 for the agent.
Let's assume the following values:
Using the formula:
\[ CS = 8000 \times 0.3 = 2400 \text{ \$} \]
The Commission Split is \$2,400 for the brokerage.