Business Idea

Become A Real Estate Agent

About

Becoming a real estate agent requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell real estate agent, or selling real estate agent online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$9.6T
revenue (monthly)
$350K
starting costs
$21.2K
gross margin
5%
time to build
300 months
growth
Direct sales
time investment
Full time
work from home?
Yes

About

Becoming a real estate agent requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell real estate agent, or selling real estate agent online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$9.6T
revenue (monthly)
$350K
starting costs
$21.2K
gross margin
5%

 

time to build
300 months
growth
Direct sales
time investment
Full time
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $151 $352
Website Costs $223 $7,215
Business Formation Fees $5,600 $20,400
Equipment & Supply Expenses $66 $700
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $2,550
Training & Education Expenses $0 $1,000
Total Startup Costs $6,202 $42,311

Successful Businesses

Business URL Rank
Domain domain.com.au #3,137
corcoran corcoran.com #43,603
Luxury Estate luxuryestate.com #49,765
Rocket Homes rockethomes.com #60,263
Christie's Real Estate christiesrealestate.com #64,435
ratemyagent.com.au ratemyagent.com.au #65,156
Miami Condo Investments miamicondoinvestments.com #65,661
Ray White, Australasia's largest real estate group raywhite.com #70,957
bproperty bproperty.com #76,378
The Oppenheim Group ogroup.com #81,019
Belle Property belleproperty.com #93,135

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Rewarding work Starting a real estate agent can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections You never know who you will meet as a real estate agent. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Pick & choose the clients you work with Real Estate Agentes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Control of workload With becoming a real estate agent, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A real estate agent can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your real estate agent are typically around 5%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the real estate agent, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a real estate agent, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.