As an entrepreneurial real estate agent, relying solely on one source of income can be dangerous. This is especially true for agents in the field since their commissions vary by season and by market volatility. And with so much fluctuation in the industry, opting for multiple streams of income as a real estate professional is key to not only surviving but thriving.
While your first instinct might be to go into investing or creating a side hustle, look inward to resources around you that you can leverage. Fortunately, there is a handful of commission- and referral-based options to grow your business and your wealth no matter the market.
Referrals are a key part of any real estate business. Whether you’re just starting out or you’ve been in the business for a long time, the odds are that you can stand to strengthen your referral game.
With a referral network, agents can refer other agents to clients they’ve worked with who are looking to move to a new area or are interested in a second property. This not only helps the client find a trusted agent, but it puts the original agent in line to receive ongoing referral payments even after they’re done working in real estate.
Creating long-term sustainable wealth can be more appealing to agents than going for upfront commission plans. Much like a referral network, a revenue share program, like HomeSmart+, lets agents build wealth by referring other agents to their brokerage.
Agents have the potential of a long-term income stream, continuing to earn residual income based on the transitions of their referrals. When an agent decides to retire or change industries, they’ll still see earnings from their referral, essentially letting them earn more money than they would as a commission-only agent.
100% commission, 100% real…right?
Full commission plans are becoming more popular in the world of traditional commission splits. And, on the surface, 100% just sounds better than 60% or 70%. But when someone hears the term “100% commission,” they wouldn’t be out of line to be a little skeptical. After all, it sounds too good to be true; there must be a trade-off somewhere, correct?
However, the truth is that agents who opt for this choice, simply pay a small flat transaction fee and earn every bit of the commission on each transaction. This is a great alternative for agents who are used to commission splits.
For example, if you had a 75/25 split, a $10,000 commission would mean $2,500 to your broker. When you work with a 100% commission plan, you only pay a base fee to your brokerage.
Tapping into these available income-generating resources can help you see more income upfront or over time. Whatever your goals are for your business and your finances, you have options that you can tap into from your own brokerage instead of feeling you have to create a side hustle just to get by.
Real estate is a cycle-based industry. Give yourself a raise by looking at alternative income streams within the industry and from your brokerage.
For more information visit https://homesmart.com/.