How Much Does A Real Estate Agent Make a Year?
This is an interesting question to answer. The National Association of Realtors® member profile states the median gross income for Realtors® was $41,800. Salary.com reports that in 2020 the median is currently at $42,438 at the time of this writing.
Here’s the rub.
N.A.R.® also reports that “new members with 2 years of experience or less, made a median gross income of $8,900” of annual income.
Realtors® with 16 years of experience or more had a median gross income of $86,500.
As a new agent, that’s the gap you are going to need to mentally prepare for and overcome with your business launch. Success in the future really comes down to how you prepare for it at the start. As solid foundations are important in the construction of a house, such is true in the launch of a business.
NA365 has always been straight and frank about what it will take to make it through your first year in the Real Estate business. Regretfully, there is no easy button. After all, the N.A.R.® member report also tells us that 87% of Realtors® are independent contractors. That means, you own your own business and are responsible for everything under that umbrella; from finances to marketing to lead generation.
Here are 6 tips to launch a successful Real Estate Start-Up Business:
Have a launch budget set aside. If we now know the average new agent earns less than $10k gross (before tax and expenses) their first year, what are your plans to pay for your living expenses? You might not see any revenue (commissions) coming into your business until 6 months after you’ve made the bold decision to become a real estate agent. Prepare ahead with all your expenses, including fees, dues, mortgages, rent, utilities, etc. 6-18 months of launch funds is a must!
Do the work to create a business plan defining what pillars of prospecting you intend to reach in the first 90 days. i.e. How many homes do you need to sell to gain your gross commissions?
Surround yourself with like-minded, experienced agents and be a sponge whenever they are willing to depart any sort of knowledge with you. The truth is, it’s impossible for you to know everything about being a real estate agent out of the gate. This is a craft that is meant to be shaped as the years go on.
Decide on your company’s identity and who it will serve. Create all your marketing materials through that lens.
Above all else, consider your client’s experience and how you will serve their interests and their needs.
Remember, that what you do today might not produce results immediately. Have faith that the seeds you sowed yesterday will have a future bloom.
While it’s true that choosing to be a real estate agent can open a world of possibility financially, you must also prepared for the launch of you business to be turbulent. Many new agents do not make it through the first year of their launch because they are missing 6 key attributes.
Conducting their real estate business like a business
Insufficient start-up funds
Inconsistent prospecting techniques
Not setting up a CRM early and working their database
Going it alone, and not asking for help from agents around them.
Becoming frustrated that the launch of a business isn’t easier. (If it was, everyone would do it.)
When you boil down any successful business to find out what sets it apart, the key ingredients are often preparation, execution and consistency. Do your research and get to know your market stats inside and out. I’d love to hear your plans. Leave a comment below.
Until then, chin up, feet moving, burn the white flag.
sz
https://www.salary.com/tools/salary-calculator/real-estate-agent?yrs=1.5
Learn more about building your business from the ground up. Join NA365 Missions. 12 expert trainers teach you what you need to know to create a solid foundation. 12 weeks, 12 missions to complete. $100 entry fee. Sign up at www.newagent365.com.
Copyright 2020 - NewRealtor365