If you are considering real estate as a potential career choice, you should know everything about earning a commission and making an income as a real estate agent. With rising competition, real estate agents are facing difficulty in earning a steady paycheck.
Agents who are just starting out will find it extremely difficult to even dream of making a 6-figure income; however, with time, effort, and a plan, you can earn a sizable income in the near future. Here are some actionable and effective steps to earn a 6-figure salary as a real estate agent.
1. Set a Clear Goal
You should start by setting a clear and attainable goal in your first year. Wishing to earn a six-figure paycheque is not a clear goal; you should define it with why’s, how’s, and when’s – why you want to earn a six-figure salary, how you’ll do it, and when can you really start earning. This will also keep you motivated and on track. Next, give some substance to your goal. Depending on the sub-niche you are targeting, you must dig deeper and research your market. Retrieve statistics based on the number of hands involved and sales made in the past five years.
2. Create a Business Plan and Implement it
With the gathered data and statistics, determine your position in the market and create an actionable strategy. You cannot simply start earning a six-figure salary without making a business plan. Divide your long-term goal into tiny milestones and reach your final objective, one milestone at a time. Your business plan will include the type of buyers and sellers you should target, a realistic commission rate, and your sale price. In the end, these figures should help you make a 6-figure income by the end of the year.
3. Consider the Approach of Prospecting
When building your business plan, you should retrieve the contact information of the potential buyers and sellers on the market and start prospecting to gain recognition. Your database should include information on the available properties, owners, and the contact information of the third parties involved. The key to making a higher income in the real estate world is prospecting.
Divert your energy towards prospecting and meet as many buyers and sellers as you can. It is an effective tactic as you can gain more one-on-one leads. Even though it takes a lot of time, it can be highly beneficial in the long run. Every successful real estate agent possesses impeccable prospecting and networking skills, which is why you should be able to dedicate enough time and energy in this direction.
4. IDX Integration
IDX, or Internet Data Exchange, shows a comprehensive listing of properties on websites that cater to real estate agents and relevant services. Apart from information on the properties, IDX also covers the software programs, regulations, and services relevant to the displayed listings and vendors. There are several benefits of IDX, namely, retrieving data from multiple listing service (MLS) websites to your own landing page, targeting a specific audience group, and lead generation. The way you integrate IDX into your strategy determines your visibility and the number of leads you can generate.
5. Promote Yourself
Even if your work stands out from your competitors, you will not be able to attract customers if they are unaware of your existence. Promote and market yourself as much as possible. Resort to social media, create a website, and integrate paid ads in your marketing strategy. Focus more on the content you deliver and convince your potential clients to hire you.
Needless to say, the more visibility and recognition you get, the more you can earn. If you have the luxury, hire a social media or marketing manager to handle your website and social media presence. With a successful marketing strategy in place, you will gain more clients in the long run, thereby making the investment worthwhile.
6. Expand Your Services
Clients prefer to hire agents who provide a wide range of services and cater to every need. Becoming a broker or a commercial real estate agent can heighten your chance of earning a six-figure income.
While it may need more time and effort, you can gain instant recognition and get more clients than your competitors. Include services such as property tax claim guidance, credit repair, and property management. If you possess a knack for public speaking, you can also host webinars or start a blog to encourage novice agents.
Most importantly, be proactive. You cannot expect to earn a lucrative income if you are not willing to put in the effort and time required to gain recognition. Know your market inside out, commit to showing up every day, and keep learning. With time, you will get closer to your goal and earn your desired 6-figure income.