As an entrepreneurial real estate agent, relying on only one source of income can be dangerous. This is especially true for agents in the field, as their commissions vary by season and by market volatility. And with so many fluctuations in the industry, opting for multiple income streams as a real estate professional is key to not just surviving, but thriving.
While your first instinct may be to go invest or create a side hustle, look within for resources around you that you can tap into. Fortunately, there are a handful of commission and referral-based options to grow your business and your wealth regardless of the market.
Referrals are an important part of any real estate business. Whether you’re just starting out or you’ve been in business for a long time, chances are you could stand to step up your referral game.
With a referral network, agents can refer other agents to clients they have worked with who are looking for a new area or who are interested in a second property. Not only does this help the client find a trusted agent, but it puts the original agent in line to receive ongoing referral payments even after they have finished working in real estate.
Creating sustainable long-term wealth can be more attractive to agents than choosing upfront commission plans. Just like a referral network, a revenue sharing program, like HomeSmart+, lets agents build wealth by referring other agents to their brokers.
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 switch industries, they will still see earnings from their referral, essentially making them more money than they would as a commission-only agent.
100% commission, 100% real… right?
Full commission plans are becoming more and more popular in the world of traditional commission splits. And on the face of it, 100% just sounds better than 60% or 70%. But when someone hears the term “100% commission” they won’t be out of line to be a little skeptical. After all, it sounds too good to be true; there has to be a trade-off somewhere, right?
However, the truth is that agents who choose this option simply pay a small flat transaction fee and earn every part of the commission on every 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. If you work with a 100% commission plan, you only pay a base fee to your brokerage.
Taking advantage of these available income generating resources can help you see more income up front or over time. Whatever your goals are for your business and your finances, you have options you can take advantage of from your own brokerage instead of feeling like you have to create a side hustle just to get by.
Real estate is a cyclical industry. Give yourself a boost by looking at alternative income streams within the industry and from your brokers.
For more information visit https://homesmart.com/.