As an entrepreneurial real estate agent, relying solely on one source of income can be risky, especially if you are thinking long-term, even after you’re done working And with so much fluctuation in the industry by season and by market, opting for multiple streams of income as a real estate professional is key to not only surviving but thriving and preparing for life after selling.
While your first instinct might be to invest or create a side hustle, look inward to resources around you that you can leverage. And if you’re in the market for a change of brokerage, look for one that has everything you’re looking for in earnings, value and long-term financial growth.
Fortunately, at HomeSmart, we offer our agents the opportunity to build their income on multiple levels. Here’s a breakdown of what you should be looking for–and what HomeSmart has to offer–when it comes to creating and managing multiple income streams.
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 also 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 your traditional or even 100%-commission plans. Much like a referral network, a revenue share program lets agents build wealth by referring other agents to their brokerage.
Agents who opt into a revenue share plan, like HomeSmart+, have the potential of a long-term income stream, continuing to earn residual income based on the transactions of their referrals. When an agent decides to retire or change industries, they’ll still see earnings from their referrals.
100% Commission, 100% Real…Right?
Transaction-fee 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 pay a transaction fee to your brokerage no matter what the sales price of the home.
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.