Wow this is an awesome article that talks about the cost of being a Realtor. The article comes from https://www.housingwire.com/ by Jeremiah Jensen and it goes over some of the challenges a new Realtor goes through,
I will say I do not agree it takes 6 months to make your first check if you know how to market and getting into other income streams in real estate it a lot faster.
"“I went from making a reasonable living down to nothing, and I liked sales and thought, ‘what am I going to go do? Housing market’s good right now, and I like the transition of helping people versus being an outlet for rich people to gamble,’” Jeff said of his decision to become a real estate agent. "
The huge issue is that agents are not taught to market and how to create other streams of incomes that add up to a lot of money. I personally have 4 ways to make money on any transaction I do. That really adds up to a lot of money. Yesterday we made over $5000 with the all the different income streams we created together.
Basically learning how to create services and being able to market those services can make you a lot of money.
"What this means is that Jeff's take home pay is still roughly 50% what he earns before taxes. He did about $3,000,000 in sales in his first year as a Realtor."
That does not have to be the case, a lot of times Brokerages charge to much money and they are not worth it. 50% is crazy and you do not have to pay those type of fees in some brokerages. If you join a team you a least get leads, but marketing is the key to getting your own clients and building a business. I am at EXP Realty and they charge 80%-20% to $16,000, they also have a ton of FREE classes you can attend online weekly.
"Sounds promising. But even with an industry-standard 3% commission, much of that will go to fees to other, related counter-parties, such as their brokerage. For Jeff, for example, he also spent roughly $11,000 on generating that $3,000,000 in sales."
The money that was spent on marketing is in line with the current cost, but you can market a lot cheaper. Most brokerages have CRM software's that create some free advertising and keeps your potential clients informed and your name in front of them. You can also set up most MLS software's to send new properties that come on the market automatically to your clients. Knowing how to do this will get you a lot more business.
"What Jeff learned in his first year is that there is no silver bullet for real estate success no matter how much people want you to believe their service is it. That said, Jeff knows there is a price that has to be paid. Leads don’t fall out of the sky."
Need to learn how to use your CRM Systems, Market, and set up multiple income services for your real estate business? We have a Meetup coming up on June 12th Click here to RSVP. It's FREE and fun, need to be a Realtor or going to be a Realtor to join us.
You can also call me for Coffee at 216-703-5740 EXP Realty
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Thank you