You have all heard the cliché that there is no such thing as a typical day in real estate. Yet, there are common occurrences and common eventualities REALTORS® face. On the plus side, there’s unlimited income potential, scheduling your own work hours, and being your own boss. On the negative side, there’s a lot of paperwork, fluctuating working hours, and an irregular paycheque. For individuals used to a regular paycheque, working for commission can be a big adjustment.
Planning for when there won’t be a regular paycheque is essential. This is especially true for new graduates, and during seasonal market variations (e.g., winter is a slow season for home buyers and sellers) and market fluctuations.
Here are some tips on how to survive the ‘lean’ periods:
• If you are a new salesperson, set a realistic budget to get your through your early career-building process and have sufficient capital available to be financially independent for at least six months.
• Resist the temptation of overspending when you receive your first big commission.
• Regulate expenditures for the entire year based on your commission. In other words, draw a wage from that commission, and put aside a percentage of the funds.
• Avoid living off a line of credit.
• Don’t sit around waiting for the phone to ring. Use the down time to market yourself and prospecting for new clients, preferably face-to-face.
• Follow up on old leads and keep in touch with past clients. If you provided good service, they will remember you and may have a referral.
• Network, network, network.
How do you survive the ‘lean’ times and not having a regular paycheque. Let us know.
Source: EDGE, February 2013