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 $38,141 Most 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.