While the money an agent makes collecting commission is most often going to provide the majority of their income, it isn’t a bad idea to begin generating other channels of income, in order to supplant any losses they might experience during an economic downturn or slow selling season.
One way to make extra money while you get situated in your new role as a real estate agent, is to attend networking events, as well as local seminars on real estate, where you might bump into potential buyers/sellers in need of a little help. This way, you can make some money by referring the services of agents outside of your area, who can then help the client and send a portion of the commission your way for sending them a successful lead. The amount you’ll receive on every referral can be negotiated, but it isn’t uncommon to ask for 25% of an agent’s commission if you send them a lead that turns into a buying/selling client. The greatest benefit to all of this is that you will have an immense amount of questions thrown your way while potential clients vet you by seeing how you might address their concerns, which is why it is important to speak confidently, and remain abreast of changes to the local laws governing real estate in your area. Even if you spend some time acting as a lead generator for other agents while you establish yourself, the questions you answer will help strengthen your knowledge and make you an expert in your local market. All of the experience gained from helping people discover what they need from a home will increase your confidence, help your client interactions progress more smoothly, and over time will generate many more leads for yourself, which translates into increased revenue, ultimately.
Lastly, if you’re passionate about real estate, real estate law, or any other aspect of the real estate market, we recommend working for local institutions that help educate and better the real estate community overall. Helping develop and lead professional developments for local area agents, or working at local colleges to help others discover their passion for business in real estate, will not only strengthen the community involved in such efforts, but it’s the best way to get to know the people that might eventually turn into clients or colleagues, and can generate extra income on the side for any agent working to grow in their local market.