Which Redrock Commission Model Should You Choose?
A decision framework for choosing between Redrock's five commission models — the four variables that decide it, and how to work out your own numbers.
This is the single biggest commercial decision you make when joining an aggregator, and most people approach it the wrong way — by looking for the highest number. A 100% split is not automatically better than an 80% split. Which model works depends on what you settle, how predictable it is, and how much infrastructure you want bundled rather than bought.
Here is a framework for working it out.
The four variables that actually decide it
1. Settlement volume, and how predictable it is. Splits are a percentage; fixed costs are not. The higher your volume, the more a higher split is worth and the less a fixed monthly fee matters as a proportion. Predictability matters as much as level — a variable pipeline is punished harder by fixed costs than a steady one.
2. Brand support versus independence. Do you want to build under your own name, or would a supported brand shorten the runway? This is the fault line between the Specialist franchise model and the four independent models, and it is a genuine trade-off rather than a tier.
3. Your appetite for a minimum volume condition. The Maximiser model carries a minimum volume requirement. If you are confident of clearing it comfortably, that condition costs you nothing. If you would be scraping it, the condition is a real risk, not a footnote.
4. How you value bundled infrastructure. Every model includes the joining package — Certificate IV, FBAA compliance fundamentals, financial abuse awareness training, professional indemnity premium for year one, induction training, national police check, first-year FBAA membership, initial AFCA membership, mentoring, and unlimited panel lender accreditation training. The franchise model adds a branding kit, website profile, professional photography, cloud storage, business email and branded collateral. If you would otherwise buy those things, count them; if you already have them, do not.
The five models
| Model | Split (upfront / trail) | Structure | Typically suits |
|---|---|---|---|
| New Entrant | 80 / 80 | Independent | New to industry, still building a pipeline |
| Specialist | 80 / 80 | Franchise — Red Rock Group Franchising Pty Ltd | Brokers who want brand, marketing assets and a supported identity |
| Advantage | 90 / 90 | Independent | Established, consistent settlement volume |
| Prime | 95 / 95 | Independent | Experienced, higher and steady volume |
| Maximiser | 100 upfront / 95 trail | Independent | Mature, high volume — carries a $1,500 pa compliance fee (ex GST) and a minimum volume requirement |
Common to all models:
- All fees are quoted excluding GST, with pricing quoted on application
- A minimum two-year term
- A monthly fee per credit representative, with one credit representative included
- Up to three months with no monthly fee during induction for new-to-industry brokers
- An additional credit representative is a one-off charge of 50% of the initial investment — charged once when the representative is added, not monthly
- Non-mortgage commission at 80% of commission received
- No office requirement — brokers work from anywhere
The Specialist model is a franchise, granted by Red Rock Group Franchising Pty Ltd under the Franchising Code of Conduct with a term of up to five years. It carries the disclosure document and legal framework that goes with any franchise, and should be assessed as a franchise decision, not just a split. See Franchise or Independent.
A stage-based walkthrough
New entrant. You have no pipeline, no trail book and no brand. Cash preservation matters more than percentage. New Entrant 80/80 exists for this stage, with the induction fee relief and the full joining package behind it. If you want a brand and marketing infrastructure from day one, Specialist is the franchise alternative at the same split.
Building. Volume is rising but still lumpy. This is the stage where people move too early. The question is not "can I hit the volume in a good month" but "can I hit it in a quiet quarter". Advantage 90/90 is the usual step.
Established. Volume is consistent and you know your seasonality. Prime 95/95 becomes worth the arithmetic — the extra retained commission comfortably clears any additional fixed cost, month in and month out.
Mature, high volume. Maximiser returns 100% of upfront and 95% of trail, with a $1,500 per annum compliance fee (ex GST) and a minimum volume condition. At genuine scale the compliance fee is a rounding item; at marginal volume it is not, and the minimum volume condition is the real consideration.
How to work it out for your own numbers
Do not compare splits. Compare totals.
- Estimate your annual settled volume, conservatively, using a quiet quarter rather than your best month.
- Estimate the commission you would receive on that volume. Lender commission rates vary — use the actual rates applicable to the lenders you expect to use, not an industry average you read somewhere.
- Retained commission = split % × commission received. Do this separately for upfront and trail, because Maximiser treats them differently.
- Add your fixed costs: the monthly fee (quoted on application) × 12, plus the $1,500 compliance fee if you are considering Maximiser, plus the monthly fee for any additional credit representative and the one-off 50% charge in the year you add them.
- Net position = retained commission − fixed costs. Run this for each model you are considering.
- Find the break-even. Take the difference in fixed costs between two models and divide it by the difference in retained commission per unit of volume. That gives you the settlement volume at which the higher-split model overtakes the lower one. If your conservative estimate is comfortably above that number, move. If it is close, do not.
- Sense-check the non-mortgage side. Non-mortgage commission is paid at 80% of commission received across all models, so if diversification is a large part of your plan, it does not shift the comparison between models — but it does lower your blended rate if you are on a higher split.
Ask for the monthly fee quote for each model you are shortlisting before you run this. The arithmetic is meaningless with a placeholder.
Two things people get wrong
Choosing on split alone. A higher split with fixed costs you cannot cover in a slow quarter is worse than a lower split you never have to think about.
Treating the choice as permanent. It is not. Models can be discussed and changed as your volume changes — that is a normal conversation, not an exception. Start where your current volume actually sits, not where you hope it will be in a year. Note that moving to or from Specialist means entering or leaving a franchise, which is a bigger step than moving between the independent models.
Where to next
- All five commission models compared
- The initial investment: what joining Redrock covers
- Three Ways to Join Redrock
- Fees, costs and commissions FAQ
To talk it through, call 1300 667 694.