How does an independent contractor broker typically earn income?

An independent contractor broker typically earns income by negotiating commissions on transactions. This model allows brokers to operate their own businesses while being affiliated with a brokerage firm, giving them the freedom to work on their own terms. Commissions are usually calculated as a percentage of the sale price of the properties they help to buy or sell, which incentivizes brokers to focus on closing deals successfully.

This commission-based earnings structure aligns with the entrepreneurial spirit of independent contractors, where income is directly tied to their performance and the volume of transactions completed rather than being reliant on a fixed salary or hourly wages.