Tracking your real estate commission isn’t as black and white as you might think. As independent contractors, our commission are our life blood and it’s very important for you to have a long term plan for your earnings. Today I’m sharing with you the mindset shifts that I used to triple my real estate commission earnings and I know they will change your success levels forever.
1 \\ Track where they come from
Nothing will set you up for success better than knowing exactly where your business came from last year. Set up a system to track each commission check and write down where the business originated. Was this off of a sign call or a referral? Knowing where your income comes from will allow you to prioritize clients and prospects. Then you can duplicate the fruitful ones and waste less time on the bad apples.
2 \\ Set a goal, then ask why
I think you already know how important goal setting is. But there’s more to it than everyone lets on. The second part of goal setting that everyone forgets is, the why. Why do you want to achieve this goal? To beat last year’s number? To earn that sales award? To give your family a great vacation? Figure out your why and the money will follow, trust me.
3 \\ Create a funnel for incoming commissions
“But I have a direct deposit, so I’m good”. FALSE! Working on strictly commission is both a blessing and a curse. It allows for large chunks of income to stream into (and out of) your account if you don’t have a plan. Here are a few options to consider when you’re creating your real estate commission funnel.
Here’s how to get your real estate commission funnel started:
• Set up a separate business account with your bank
• Set up direct deposit so your commissions go directly into your shiny new business account
• Put a percentage of each commission check toward your estimated tax payments
• Put a percentage of each commission check toward your personal savings account
• Transfer what you need for living expenses on a monthly basis
• The rest stays in your business account
4 \\ Check in often
Keeping yourself accountable is one thing, but missing a commission check is entirely another. This might sound crazy but if you’re busy enough it’s possible. And because they’re not fun to track down after a closing is tied up, it’s important to keep tabs on your pending & closed commissions.
Another benefit to monthly check-ins is that you’re reminded of where you are in comparison to your goals for the year. It’s also possible that your split might have been incorrect or a fee meant for the client got taken out of your commission check by accident. Pay close attention to these details shortly before and after closing day.
5 \\ Put them where you can see them
Keeping a commission tracker on a bulletin board where you can see it everyday will be a constant reminder of where you are and how close you are to crushing your goals. In contrast, it’ll keep you accountable if you’re falling behind.
#REALTALK: I have this exact commission tracker on my bulletin board in my office and find it so rewarding to update it with every new sale. It’s a small victory and encourages me to keep moving. You can download the same tracker I use by clicking below!
6 \\ Focus on transactions, not dollars
My first two years in real estate netted me almost the exact same amount of commission dollars. A pretty deflating feeling. After that I decided to reevaluate how I was setting goals for myself. So I changed my mindset and goal setting format from commission dollar targets to activity level targets.
This meant that I set a goal for how many transactions I wanted to close and broke that down into how many calls, emails, appointments, open houses, etc. I needed to complete in order to hit that target. And guess what… I tripled my commissions. The right focus makes a world of difference and I’m living proof of that.
7 \\ Start a friendly competition
A group of us once hosted a 1 month competition to see how many listings, buyers, and closings we could get. We kept a white board in the hallway between our office to keep score. It did help our business and because we were a small group of friends who respected and trusted each other we were all happy for each other no matter who won. More on the importance of friends in the business here. Challenge a few agents in your office to a friendly competition. This will light a fire under your behind and ramp up your activity levels.
Finding a balance between motivation and sheer grind is essential when you’re a real estate agent. I hope this strategy is something you’ll try and please do let me know if you do and how it goes!
With love, respect, and good vibes,