Now that we’ve covered commission splits and how they affect your real estate business, it’s important to look at the other things a broker can offer you, and how they should rank in your decision.

Leads and Prospects – Brokers use different tactics to provide leads to their agents; some employ the latest technology in finding leads, others advertise their agency in newspapers and community newsletters, and others stick to the number one rule in real estate: location, location, location. How a broker finds their leads is extremely important, because those leads can be directly turned into clients, which means commissions for you. Make sure you know and understand the prospecting tactics your broker uses, and how many leads and prospects you can expect to be given on a monthly basis. Talk to other agents to make sure they fell well-supplied with leads, and ask if they’re satisfied with the broker in charge.

Training and Mentoring – One of the most important things to look for when you’re new to the real estate business is a broker that will offer you training and education. Larger agencies may hire a trainer or new agent assistant to help you get started, whereas smaller companies may be more tight-knit. Make sure to ask what kind of support your broker will be offering you as a new real estate agent and let them know it’s one of the most important factors in your decision.

Office Expenses – Not only does your broker take a split on your commission, but many of them charge a monthly desk fee or office expenses. These expenses help cover the rent for the building, insurance, technology and other operating expenses. It’s important to look at both your monthly expenses in combination with your broker’s commission splits, since many of the brokers geared towards getting Denver real estate agents up and going will have lower monthly expenses, then take a greater portion of the commission when it finally does come. This is to benefit the agents, since many can’t afford hundreds of dollars of desk fees while they aren’t actively making commission checks.

Lastly, before leaving your 9-5 job and steady paycheck, it’s extremely important to know that you can afford to get into real estate as a career. A great rule of thumb is to have at least six months living expenses saved up, in case your first few commission checks take longer than expected or fall through at the last minute. Make sure you can also afford the marketing and travel expenses as well as your desk fees before signing on, or if you need to, keep a part-time job to keep the income coming.

The real estate market will pick up in the next few years, so now is truly the best time to get started. You will learn how to work hard for your commissions and how to keep your clients happy, which will make your business a huge success once business picks up again.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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