The Top 25 Things You Need to Consider First Before You Get Your Real Estate License!
- You are now a startup business! You are a small business owner. It’s unavoidable.
- This business is expensive. Most often, even if you do not sell any homes, you will need
to pay some sort of fees.
- 80% of new real estate agents who attempt to launch as a small business owner go out of
business by the second year.
- ALL startup businesses often take 3-4 years to see any profits. This will most likely be
true of your launch as well. Prepare your personal finances so you can afford your
- You DO NOT need to “work under another agent” to start your business. You DO
however, have to partner with a brokerage who will be in charge of checking your
paperwork, your E&O insurance and “hold” your license in your state. However, you are still
your own business.
- A brokerage owner or manager is different than a “Team Lead” or recruiter. Learn the
difference here: https://ontrackagent.com/who-is-the-best-brokerage-to-choose/
- It is YOU that chooses the brokerage you want to work with. You are no longer a W2
employee. Your first business decision is to choose what brokerage aligns with your
value system. Meet with many brokerage owners and managers (not team leaders) and
have a list of questions to interview them. Some of who you will interview will make it
seem like they are interviewing you. This is not the case. Be confident, this is your
- You will spend more time looking for and attracting new clients than you will selling and
- You will get advice to either join a team, or get a Coach. There are SEVERAL different
definitions of what a Coach is in this industry. Find one who wants to help you build your
business, instead of hiring you to help build theirs. Look for a Coach who will teach you
how to fish instead of give you leads.
- Be aware of the snake oil salesmen who calls themselves a Coach, but is actually a
recruiter interested in making a living off the fees you’ll pay. This business is to riddle with
people who know there is a lot you don’t know and will prey on your vulnerabilities.
- Learn the difference between a Realtor® and a real estate agent. You can choose which
one you’ll be.
- The National Association of Realtors® (N.A.R) reports that in 2020, the average new real
estate agent made $8,500 GCI. (Before taxes and expenses), down from $8,900 in 2019.
- You MUST have a plan for the launch of your business. You are now the head of your
marketing, accounting, financing, sales, lead generation, business development, human
resources and I.T. departments.
- Further, you MUST have a business plan that outlines your core values as a business, and
why you are in business.
- Learn the difference between gross commission and net income.
- Find a peer group who wants to help your business (for free). Every business leader
needs a solid mentor group.
- Building a real estate business is learning a craft. You will learn most things on the job
and find your exam did not teach you much about the actual business.
- It is a lot of work to be successful in real estate. Don’t be naïve in thinking you’ll set
hours to do it when you feel like it. You will find, as you wade into the flow of the market
that it will dictate when you work.
- A real estate agent’s main duty is to help families buy and sell the biggest asset of their
lives. For some, it will be the only savings they have to retire on. This kind of
responsibility comes with a lot of pressure and stress.
- Homes are bought and sold on evenings and weekends. Your new “Saturday” is
- Real estate agents often keep (net) less than 1/3 of their commission check. The rest
goes to taxes, expenses and fees.
- There are companies that will “advance” your commission check before a transaction
closes. Do not do this. A deal is only final (and you paid) when it is formally recorded.
- According to Box Brownie, only 1.3% of real estate agents properly list and market a
- You will be called to ask if you want to purchase digital leads. What they are offering
you is scraped data. The National Association of Realtors reports the odds of closing a
digital lead is between 0.4%-1.2%: https://www.homevalueleads.com/convert-
- The most successful real estate agents are skilled at building relationships, are nurtures
of their communities, understand their responsibility for building financial wealth for
their clients, build client focused experiences, and measure their success based on their
ability to serve, not their wealth.
Check Out More Resources For New Real Estate Agents:
NA365 New Real Estate Agent Community
NA365 LIVE Joins OnTrack Agent
$179 Course for New Real Estate Agents