Finding the Profit in Real Estate Recruiting

According to a recent study on real estate agent income, most new agents double their income soon after starting their businesses.Those in their first year reported an average annual income of just under $15,000.However, those who’ve been in business for three years saw their average earnings jump to $38,141Most full-service brokers know this time period in an agent’s tenure is where the highest margins are realized from the recruiting process.Once an agent is established, two things happen:Income Growth Slows: It takes most agents until year 10 for income to double again (those in business from 4 to 10 years earn on average $63,595 per year).Splits Favor Agents: With an established track-record, agents demand higher splits and brokers see diminished margins.The research also revealed the early years of fast growth is when agents most value the support of their companies:Agents that have the most [early success] are those that find a supportive brokerage and seek out a knowledgeable mentor for guidance.Bottom line: If your company has a knack for finding new agents and helping them establish their careers, there’s still good profit margin in this business activity.