Why Would an Agent Choose a $15K Cap Over a $5K Cap?
Picture two agents with the same production, the same market, and the same goals for the year. One picks a $5,000 cap. The other picks a $15,000 cap. Neither made a mistake.
At first glance, the lower cap looks like the obvious winner. Lower cost, more money kept. But the cap is only one part of the picture. The better question is what kind of business you’re building, and what you want that business to do for you five years from now.
“Why would a real estate agent ever choose a $15,000 cap when they could have a $5,000 cap? Well, that’s a great question. I’m Nazar Kalayji, I’m the CEO of Fiv Realty, and I’ve helped agents for the last 20 plus years build a more profitable real estate business.
At Fiv Realty, we offer two different types of plans because not every agent is trying to build the same business. Our Foundation plan is an 80/20 split and a cap at only 5 grand. It’s designed for agents who simply want a low-cost model that can help them keep more of what they earn. Our Fusion plan has a $15,000 cap, but it gives agents access to additional opportunities like revenue share and stocks.
If your priority is to keep brokerage costs as low as possible, then the $5,000 cap makes sense for you. If you want an opportunity to build income beyond just your own production and participate in the growth of Fiv, then the $15,000 cap may be a better fit. If you want to see whether Fiv could be a fit for you and your business, schedule an exploratory call today.” — Nazar Kalayji, CEO of Fiv Realty
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Not Every Agent Is Building the Same Business
Most agents compare brokerage commission caps the same way: lowest number wins. It’s a fair starting point, and it’s how most brokerage conversations begin. But it treats every agent as if they want the same outcome.
Some agents want a lean, low-cost model where they keep as much of each commission as possible. Others want a business that can grow beyond their own transactions. Those are different goals, and they call for different plans.
That’s why Fiv Realty offers two plans instead of one. A single plan would force every agent into the same model, whether it fit their business or not.
The $5K Cap: Keep More of What You Earn
Fiv Realty’s Foundation plan is an 80/20 split with a $5,000 cap. It’s built for agents who want a low-cost brokerage model and a simple path to keeping more of their earnings.
There’s nothing complicated about it, and that’s the point. If you know your business, you’re focused on your own production, and your top priority is keeping brokerage costs as low as possible, this plan is designed for you.
The $15K Cap: Room to Build Beyond Your Own Production
Fiv Realty’s Fusion plan carries a $15,000 cap, and it opens the door to additional opportunities like revenue share and stock.
That’s the trade-off. A higher cap in exchange for a chance to build income that isn’t limited to your own closings, and to participate in the growth of Fiv.
For agents who have been thinking about what comes after the next closing, that matters. Revenue share is a way to grow income that isn’t tied to how many transactions you personally close each month. Stock is a way to have a stake in the brokerage you’re helping build. Neither shows up in a simple cap comparison, which is why comparing the two numbers alone can leave out half the story.
Why the Lowest Cap Isn’t Always the Right Answer
A lower cap answers one question: how do I keep my brokerage costs down? It doesn’t answer the bigger one: how do I build a business that isn’t limited to my own production?
Some agents are perfectly happy with the first answer, and that’s a legitimate choice. Others want the second, and for them a higher cap can be a reasonable price for access to opportunities the lower plan doesn’t include. The right choice depends on where you are and where you want to go, not on which number looks smaller.
How to Know Which Cap Fits Your Business
A few questions can help you decide:
- Is keeping brokerage costs as low as possible your top priority? The $5K cap may be the better fit.
- Do you want income that goes beyond your own production? The $15K cap may be worth a closer look.
- Do you want a stake in the growth of the brokerage you work with? That’s what the Fusion plan is designed for.
- Are you focused on your own business, or on building something bigger than it? Your answer usually points to the plan.
Neither answer is wrong. The right plan is the one that matches the business you want to build.
Want to Talk It Through?
If you’re weighing the two plans and want to see how Fiv could fit your business, there’s no pressure. It’s just a conversation about your goals and which plan lines up with them.
Phone: 435-212-4233 | Schedule an exploratory call
About Fiv Realty: Fiv Realty is a high-split, low-cap, cloud-based brokerage built for agents who want to keep more of their commission, build passive income through revenue share, and collaborate with a nationwide network of growth-minded professionals. Learn more at fivrealty.com.
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