As an enterprising realtor, relying on just one source of income can be dangerous. This is especially true for field agents since their commissions vary depending on the season and market volatility. And with so much fluctuation in the industry, opting for multiple sources of income as a real estate professional is essential not only to survive, but also to thrive.
While your first instinct may be to invest or create a side hustle, look for resources around you that you can mine. Luckily, there are a handful of commission- and referral-based options to grow your business and your wealth in any market.
Reference network
References are a key part of any real estate business. Whether you’re just starting out or have been in the business for a long time, chances are you can step up your referral game.
With a referral network, agents can refer other agents to clients they have 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 puts the original agent in line to receive ongoing referral payments even after they finish working in real estate.
Revenue sharing
Building long-term, sustainable wealth may be more appealing to agents than opting for up-front commission plans. Just like a referral network, a revenue sharing program, like HomeIntelligent+allows agents to build wealth by referring other agents to their brokerage.
Agents have the potential for a long-term income stream, continuing to earn residual income based on their referral transitions. When an agent decides to retire or change industries, they will still receive income from their referral, which will essentially allow them to make more money than they would as a commission-only agent.
100% commission, 100% real… right?
Full commission plans are becoming increasingly popular in the world of traditional commission splits. And, at first glance, 100% sounds better than 60% or 70%. But when someone hears the term “100% commission”, it wouldn’t be out of place to be a little skeptical. After all, it sounds too good to be true; there has to be a compromise somewhere, right?
However, the truth is that agents who opt for this choice simply pay a small fixed transaction fee and earn every part of the commission on each transaction. This is a great alternative for agents who are used to splitting commissions.
For example, if you had a 75/25 split, a commission of $10,000 would mean $2,500 for your broker. When you work with a 100% commission plan, you only pay a base commission to your brokerage.
Tapping into these available income-generating resources can help you see more income upfront or over time. Whatever your goals for your business and finances, you have options you can leverage with your own brokerage instead of feeling pressured to create a side hustle just to get by.
Real estate is a cycle-based industry. Give yourself a raise by looking at other sources of income within the industry and with your brokerage.
For more information, visit https://homesmart.com/.