Keep more money in your pocket with these tips to help you maximize your profitability.
Many of us got into real estate with high expectations, full of enthusiasm, and a vision of unlimited earning potential. We were seeking independence–we want to be our own boss, create our own business, design our future.
A career in real estate provides many rewards and benefits. However, as with running any business, attention to expenses is crucial to understanding your bottom line. There are many expected expenses real estate agents incur, such as licensing, association fees, transportation costs, and general operational expenses. Factoring these expected costs into your budget will help you build a financially sound business.
What you may not realize is the amount of unexpected, hidden fees you are paying to your brokerage. Additionally, you may find that these fees don’t apply to the way you run your business. The brokerage shouldn’t tell you how to run your business. It should power your business. It shouldn’t take away your hard-earned commissions. It should focus on your entrepreneurship and help you become as profitable as possible.
Here a few tips to ensure your brokerage is allowing you to maximize your profitability.
1. Understanding the split. Simply put, some brokerages take more than others. A brokerage may offer you a lower split while promising to pay for things like administrative support, marketing costs, or your website. Always make sure you have a full understanding of exactly what benefits you will receive and if those benefits outweigh the costs. It may be more profitable to choose a brokerage with a better split and manage those costs yourself.
2. Watch out for hidden fees. There is nothing worse than closing a deal, getting your payout, then realizing it’s much lower than you had anticipated. Partner with a brokerage that is transparent with their fees and is delivering what is expected.
3. Don’t fall for the sign-on bonus. Some brokerages will try to entice you with a large bonus for signing on with them. While this sounds great initially, don’t be fooled. They usually take back those dollars through fees or less than favorable splits. In the long run, you’re better off choosing a plan with a brokerage that pays you more out of each deal than taking a lump sum upfront.
4. Remember to invest in yourself. As a Realtor, you are your own business. In business, you need to spend money to make money. However, there are ways to grow your business without breaking the bank. Partnering with a brokerage that provides great tools, support, and training at little to no cost will benefit your bottom line.
The easiest way to put more money in your pocket is to make sure your brokerage is encouraging your entrepreneurial spirit and allowing you to be as profitable as possible. Your real estate career is your business to run on your terms. Your mark is yours to make…go ahead, do your thing.
About Iron Valley Real Estate
With over 800 agents at 29 locations across 6 states, Iron Valley is one of the fastest-growing brokerages in the country. We have a true belief in encouraging entrepreneurship and giving our agents the tools they need to succeed. We are known for offering some of the best splits in the business, but we are much more than that.
Iron Valley understands that the foundation of our success is built on the success of our franchisees and our agents, so it’s our goal to allow you to be profitable. We stay committed to leading with honesty and transparency, having no hidden costs or franchise fees. We offer 24/7 support, as well as training and education programs, all free of charge. We also provide access to top-of-the-line marketing, advertising, and technological tools at a minimal cost.
By Andrew Sprenkle