How To Make $100,000 A Year As A Real Estate Agent (even rookies)
I've lost count of how many times I've been asked by newly licensed real estate agents or those curious about the industry if it's possible and how to make $100,000 a year as a real estate agent.
This article will help show how even a rookie could make $100,000 a year as a real estate agent.
To make $100,000 a year real estate agents will need to focus on constant lead generation to maintain and grow their database. Taking action on priority tasks, not getting distracted by shiny objects. And be extremely consistent even when busy or when things don't feel like they're working.
Can A Real Estate Agent Even Make A $100,000 A Year
Yes. Make no mistake. You can absolutely find success as a real estate agent and make $100,000 a year or more!
In fact, many real estate agents make over $100,000 a year (26%). While 10% make over $200,000 a year. So, making $100,000 a year as a real estate agent is not impossible.
Tips on how you can make 6 figures as a REALTOR®
Keep reading to get some tips on how you can make 6 figures as a REALTOR® and achieve your financial goals.
Especially if you're starting out, you're probably wondering how to make $100K your first year in real estate. Sometimes, this depends on location and the market, but focus and commitment play a huge role as well.
So how do you go about making six figures?
There are no shortcuts to success, but the following tips will certainly help you if you want to receive $100,000 USD in income within the year.
How to make $100,000 a year as a real estate agent
It doesn't matter if you're just starting your career, restarting your career:
29 things to do & think about to help you get going as 6 figure agent.
1. Depending on the market, location, price point, it could take a lot of time or could happen immediately.
Not every real estate market is the same. Don't compare yourself to an agent that's in Austin, Texas or Miami Florida right now. Or to a REALTOR® who is selling homes where the median price is $800,000.
If you're committed to this real estate career, you can't beat yourself up and give up if you don't make $100,000 your first year. Think about building something, not grinding away.
“I usually get where I’m going by leaving where I've been.”
— Derek Sivers
2. Remember, income is a lag indicator and you can only control your lead indicators.
When it comes to making money in real estate, it's important to remember that income is a lag indicator. This means that the money only shows up as a result of the activities you do. And you can only control your lead indicators – things like how many leads you generate, how many appointments you set, how many contacts you make, and how much content marketing your release.
There are a lot of things outside of your control, such as the market conditions, a buyer's motivation or the seller's willingness to accept your offer. Don't get discouraged if you're not making as much money as you'd like – just focus on doing the work of the things you can control.
.“Good luck is another name for tenacity of purpose.”
— Ralph Waldo Emerson
3. Getting focused on your goal is easy. Staying focused is hard.
It can be easy to get focused on your goal, but it's hard to stay focused. It's easy to be motivated at the beginning of your journey, but it's hard to keep that motivation going for the long term.
This is why it's important to have a plan and to set small goals along the way. When you reach your small goals, you'll be motivated to continue working towards your larger goal.
4. You’ll need a big enough database or a way to generate enough leads.
In order to make $100,000 a year as a real estate agent, you'll need a big enough database or a way to generate enough leads. If you're getting started and don't have a huge referral base, you're going to have to lean heavier on lead generation.
How big does your real estate database need to be?
Ideally, you want 150 connections in your real estate database.
How many real estate leads will you need to generate?
Assuming a closing earns you a $10,000 commission check, you'll want to generate 1000 leads to hit your $100K goal. If your commission check is $5,000, you'll want to generate 2000 leads.
5. If you don’t have the right strategy and systems you could burn yourself out reaching your goal.
Reaching 6 figures in your first year in real estate goal can be tough. Especially if you don't have the right strategy and systems in place. Without a solid plan, you could easily burn yourself out while trying to achieve your target. That's why it's important to build out a specific strategy and to take things slowly but surely.
Set small goals that you can easily achieve and that will motivate you to continue working towards your larger goal. When you reach your small goals, momentum will work for you and you'll be more motivated to keep going.
6. Do you know WHO can help you or are you trying to do this by yourself?
Are you at the right real estate brokerage? Is you're real estate broker supporting you, coaching you, mentoring you?
Who is showing you the best path to take?
If you're trying to do this yourself you're going to have to try a lot of things to figure out what works and doesn't work. That eats up time and valuable resources. The time you would have been connecting with people you know, generating leads, serving your clients, and making more real estate sales.
If you’d like to work directly, either privately, or do a Deep Dive workshop, or run your paid marketing for you… just send me a message at m.me/darinpersinger with the word “Private”... tell me a little about your business and what you’d like to work on together, and I’ll get you all the details.
7. If you aren’t growing your database/audience, even if you hit your goals, you’ll have the same problems of hitting your goals the next year, and the year after, the year after.
A solid database and a constantly full pipeline is essential if you want to make six figures as an agent. Without a large pool of potential clients, you'll have a difficult time reaching your income goals.
The best way to grow your database is by connecting with new people on a regular basis. You can do this by attending community events, meeting new people through networking groups, doing your own paid lead gen strategy or subscribing to lead generation services.
Remember, it takes time and effort to build a large database, but the rewards are well worth the investment. When you have a large group of interested prospects, you'll be in a better position to find qualified buyers and sellers.
Think of it like Deposit -> Interest -> Withdraw.
If you don't make deposits into your bank, there's nothing to withdraw. If you're not nurturing the money and getting a good return or interest on it, there's nothing to withdraw.
Read my real estate lead generation ideas article. There are 34 ideas, some ideas that are free, some that will cost you money.
8. Being learning-based is awesome, but you should be focused on what you need to learn now, not what you should learn next.
Real estate agents who are looking to make six figure income in their first year should focus on what they need to learn now, rather than what they should learn next. While it is important to be learning-based, you also need to be focused on the task at hand if you want to be a successful real estate agent.
If you're constantly learning new things, you'll never have time to put them into practice. That's why it's important to focus on what you need to learn now so that you can start seeing results sooner, rather than later... or never. Some agents, pass their real estate exam, get their license and focus on the training and education, instead of taking action and doing.
Of course, you should be learning-based and expanding your knowledge base, but don't let that get in the way of what you need to do right now.
Focus on now, not next.
Don't keep collecting ideas and plans for the future or something you might use someday.
What's the first step? The next step will become more clear after you take the first step.
“Doubt can only be removed by action.”
—Johann Wolfgang von Goethe
9. Know what you need to do and be committed to doing that to get Market Leadership in your SPHERE, so they see you as who you are becoming, not who you were.
It's hard for people who know you to see you for who you are now and who you are becoming. They see you as their college roommate, or the little nephew, or a school teacher, or a bartender.
Before you get referrals and they start using you as their agent you have to change their perspective of you. Some newer real estate agents think dressing differently does that. I believe demonstrating your expertise does. You do this with Market Leadership.
If you want to learn more about Market Leadership download my free guide.
10. Some months you’re going to do less transactions than you need to hit your goals. Some months you’re going to do more. Keep your focus on the MORE months.
It’s important to stay motivated during the slower months and remember that it’s all a part of the process. You need to stay focused on the lead indicators. The lag indicators will take care of themselves.
Keep showing up and keep doing the work that works.
11. Your numbers will grow to the levels you’re growing personally (your mindset, skillset and environment).
Your mindset, skillset and environment are containers and set limits. All the stuff you want to achieve is inside these containers. But your results will only expand to the size of the smallest container. If your mindset is limited - your results will be. If your environment is limited - your results will be. If you're not investing in upgrading your skillsets - your results will suffer.
This is why most real estate professionals will not achieve six figure success, and ultimately become one of the 87% who fail. Your "container" for results will only expand to the size of its lowest attribute. Top agents develop their mindset, skillset and environment so they can grow as big as possible.
Many top agents making 6 figures or multiple 6 figures do this by investing with mentors and coaches and getting help in these areas which allows them to level up quickly.
12. Make decisions quickly. Scale it or kill, don’t standstill.
Making decisions quickly is essential for success in any business. If you're not moving forward, your competition is probably passing you. This is especially true in real estate, and today's world, where the market and trends can change rapidly.
You need to be able to make decisions quickly in order to take advantage of new opportunities.
"In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing."-Theodore Roosevelt
13. Recognize there's a big difference from peak achievability and continued sustainability.
Sure you can make a hundred contacts in a week. But can you do it again next week?
Yeah, you generated 200 leads in one month, how many in the next month?
You made 10 videos one week. How many videos did you make the next week?
If you can't sustain the activity, the activity won't bring you the results you desire.
It's like working out and eating right. If you do for one day, you won't see results. Even if you do it for a month then quit, your results disappear.
What you do sometimes doesn't matter.
14. Direction Not Perfection.
Many people aim to achieve a certain goal, but they never reach it because they get perfectionism in their way. Perfectionism is the belief that you have to do everything perfectly in order to be successful. This often leads to procrastination, because people feel like they can't do anything until they know exactly how to do it and they have all the information they need.
However, direction is more important than perfection. It's more important to focus on moving in the right direction and making progress, even if you don't know everything about your goal.
Don't let perfectionism hold you back.
15. It’s hard to live in complexity for very long. And most marketing, advertising and business development ideas are over-engineered and complex for no reason.
Most business plans are complicated. Marketing strategies and lead generation funnels are complex. However, most of these efforts are over-engineered and unnecessary. Living in complexity wears you down. It overwhelms you. Simplicity is more effective, and it’s easier to achieve success when you keep things simple. This allows you to sustain the activity, plan or strategy. Keep it simple. Keep it moving.
"Everything should be made as simple as possible, but not simpler." - Albert Einstein
16. To reach your goals and to stay above that level, you can’t do the right things sometimes. You have to do the right things most of the time.
Jerry West, famous for being a great player, GM and the NBA logo has said, "You can't get much done in life if you only work on the days when you feel good."
Are you committed to the next 12 months?
Are ready to do what you need to do to make this first year a success?
Are you serious about making $100,000 your first year or is it just a nice idea?
If you've been in the career for a while and you're not making 6 figures...
Is it because you've been part-time?
Have you not been serious about your real estate career?
Are you ready to build your business now?
Are you committed to doing the activities you have to do to make $100K?
17. If you’re doing everything yourself, almost everything is going to take longer. This includes small tasks and big goals.
Look at getting help. Outsource some of the lower dollar-producing activities. And look to invest in help on creating higher-level strategies. By doing this, you can speed up the process, gain more clarity and complete more tasks in a shorter amount of time.
Outsourcing can be a great way to get things done quickly and efficiently.
Coaching helps identify the best things to be done and will be effective.
Identify which you need more of right now. Do you need to identify the best things to do or do you just need to get things done?
18. Even if you’re doing everything right, don’t be surprised by inconsistent outcomes.
While making a six-figure income as a real estate agent is certainly possible, it’s not something that’s guaranteed. In fact, even if you’re doing everything right, don’t be surprised by inconsistent outcomes. The key to success in this industry is to keep your head down and work hard, while always remaining focused on your goals.
You have to have faith that what you're doing will bring the results in time.
You have to survive before you thrive.
19. Your lifestyle won’t be much different when you do hit $100,000. At least it shouldn’t be.
When you make $100,000 as a real estate agent, your lifestyle won’t change much. Don't expect to start driving a Lambo or flying first-class. $100K, as a self-employed person, is not that much. You should be investing a good chunk of that money into long-term investments. And investing another decent portion back into your business and yourself.
20. Save for your taxes.
As an independent contractor, you will be responsible for paying your own taxes. This means that you will need to set aside a percentage of your earnings each month to cover this cost.
If you're not sure how much taxes you will need to save from your real estate commissions, just know if you plan on being a productive real estate agent, it's not going to be a tiny amount. It's best to consult with an accountant or tax specialist. They can help you figure out how much you will need to pay each year, and how best to save for it.
Saving for taxes may seem like a daunting task, but it's important to remember that it's an essential part of being a successful independent contractor. It's a good idea to take a chunk out of each check and to know how much you should save for taxes as a real estate agent.
When real estate agents are saving for taxes a good rule of thumb is to save 30% for taxes. So if you made $100,000, set aside $30,000 for your income taxes.
21. If you don’t have money to invest in your business, you’ll have to invest the time. And it’s almost impossible to get in front of enough people online by simply spending your time.
You'll need to invest both your time and money if you want to hit that $100K and multi six-figure level. Time is necessary to learn the ropes and make connections, while money is necessary to invest in marketing and tools that will help you succeed. Money also speeds up the process. It allows you to buy back your time.
Here are some ideas for paid marketing and advertising to generate leads.
22. The average real estate agent doesn’t even make $50,000 a year, so if you do hit your goal, you’ve doubled the average. That’s incredible.
Real estate agents earn less $50,000 a year on average. According to NAR, the median gross income of REALTORS® was $43,330 in 2020, a decrease from $49,700 in 2019.
So first keep in mind, you're goal is double the average. If your business plan is to make $100,000 your first year, double the average, what are you doing to increase your mindset, skillset and environment?
23. You have to remove emotion from your decision-making.
When comes to new goals and new levels you have to be able to remove emotion from your decision-making. Stay focused on your goals. Know your numbers. Listen to the data and follow the results.
24. You’ll have to start doing some things you don’t like and stop doing things you do like.
Making six figures as a real estate agent isn’t easy, especially in your first year. To accomplish this big goal, you’ll probably have to start doing some things you don’t like and stop doing things you do like. But it’s worth it to be successful in real estate. Right?
25. Make sure you’re in the right environment, every day.
When you’re starting out in any career, it’s important to be in the right environment. Here are some things you need to do to make sure you’re in the right environment every day:
1. Join The Right Real Estate Brokerage
Belonging to the right real estate brokerage is a big level up for your success. Be in a place that supports your goals. That provides guidance and coaching for where you are. That doesn't overwhelm you. That will help you identify your NOW ACTIVITIES.
2. Get Connected with Other Agents
Networking is essential for any real estate agent. Get connected with other agents that are at the level you want to be. Not Mega Teams with 100 agents. And not agents who are angry and bitter about the market and not hitting their goals. You want to connect with agents who are already at the 6 figure level.
3. Avoid Dream Bullies
Not only is it about getting in the right environment. It's about getting out of the wrong environment. Join a brokerage and the new broker says you can't do $100,000 your first year, probably not the place for you. Old friends, co-workers not supporting you and telling you that you'll never do it. Might want to avoid them for the next 12 months. Then come back and let them know what you did.
26. You don’t have to be obsessed with metrics, but with limited access to resources (time, energy, money) you must be aware and careful how you invest in your marketing, lead generation, lead conversion, platforms and business development.
One of the most important things that 6 Figure Agents do is track their metrics. They know how many leads they are getting, where they're coming from, how many leads they are converting, and how much money they are making. This allows them to measure their progress and identify areas where they need to improve.
If you want to have a great year in real estate, start tracking your metrics.
27. You can’t just like helping people buy and sell a home. You have to be good at finding people to help. And getting people who want help to find you.
Lead generation is one of the most important aspects of real estate sales. If you don’t have leads, you can’t make any sales. And if you don’t make any sales, you won’t make any money.
There are a number of ways to generate leads, and it’s important to experiment with different methods to see which ones work best for you.
28. Brute force only works so well, for so long.
I'm not against working hard. The hours, the effort or getting my hands dirty. And it's not about white collar vs blue collar. Brute force doesn't mean "physical labor". Brute force means too much focus on the tactic, and not enough focus on the strategy, or the tools, or leverage, or a better way.
Grinding it out over time strips the gears. Trying to solve the same problem or continuing to make the same mistakes leads to frustration and stress.
It's essential to take a step back from situations in your life, business, day to day, to get perspective, try to get insight, and see if there is a better way or even a different way to attack you challenges and problems.
29. Successfully reaching your goal isn’t something that happens in the future. Success comes from what you did today… and yesterday… and the day before that… and the month before that… and the year before that.
I’m not going to ask you what you are going to do today or this week. I’m not going to ask you what tools, technology or ideas are you looking to implement.
I’m going to ask you what you did yesterday and last week.
If you didn’t do enough this week to move your business forward…
if you run out of time at the end of the day…
if you feel rushed on projects…
if you have more ideas than you have time…
if you wish you could clone yourself…
if you find yourself procrastinating…
Or having a hard time deciding what’s important vs what is a distraction... You're probably too focused on Someday and What's Next.
So get started where you can start.
Closing Thoughts
Making $100,000 as a real estate agent is definitely possible. However, it's not going to be easy. You'll need to identify the right work and do the work to make six figures in this industry. But if you're willing to do what it takes, you can definitely achieve your goals.