In real estate, words matter. They shape perception, professionalism and public trust. One word that deserves a closer look is commission.
For decades, commission has been the standard term to describe how real estate professionals are paid. But it’s time we traded that word in for a better model—one that fits who we really are and what we really do. The right word: compensation.
The word commission often carries baggage. It sounds transactional, almost like a “cut” of someone else’s money. When the public hears commission, they may picture someone skimming a percentage off the top of their hard-earned sale.
But that’s not what happens in real estate. Agents who are REALTORS® don’t simply take a piece—they earn it. They invest time, market expertise, negotiation skill and risk. The payment is not for showing homes; it’s for delivering results.
Think about it this way: Builders aren’t commissioned to construct a house. They’re compensated for their craftsmanship, labor and materials. Likewise, we are compensated for our professional services and expertise—not just for the sale itself.
The term compensation reframes the relationship. It’s professional. It’s accurate. It signals that real estate services are not incidental—they’re intentional. Compensation reflects value exchanged for expertise delivered.
Compensation is earned through market analysis, strategic marketing, risk management, negotiation and guidance that protects clients from costly mistakes. It’s not about what a buyer or seller spends—it’s about what the real estate professional provides.
Imagine explaining your fee this way: “My compensation is based on the level of service and expertise I provide to achieve your goals.”
That feels very different from: “My commission is what I get paid when your home sells.”
The first builds trust. The second can sound self-serving, even when it’s not.
The language we use as professionals reflects how we see ourselves. Attorneys don’t talk about commissions. They discuss fees. Consultants discuss retainers. Contractors discuss bids or estimates.
When we say compensation, we place real estate services in the same professional arena. We’re not “salespeople waiting for a payday.” We’re trusted advisers earning compensation for our counsel, skill and strategy.
Changing this one word can shift conversations with clients, elevate industry reputation and remind us of the value behind the work. Compensation acknowledges the partnership, the performance and the professionalism at the core of real estate.
So, the next time you discuss how you’re paid, make the small change with big impact: Don’t say commission. Say compensation.
Because commission is paid.
But compensation—that’s earned.
