Why most real estate agents never get rich

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http://www.inman.com/2015/11/20/why-most-real-estate-agents-never-get-rich/

Key Takeaways

  • Most salary surveys will tell you that the average salary for a real estate agent in the U.S. is just $39,800 a year.
  • What most real estate agents don’t realize is that it takes a lot more work to sell those 20 cheaper homes than it does those two expensive homes.
  • Make sure people know that you broker luxury real estate because if they don’t know, they won’t hire you.
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A hidden gem in the article:

An article in New York Magazine recapped a noteworthy scientific paper that found wealthy people are not empathetic; they’re insensitive, and they disregard other people. They have a tendency to cheat, and they’re even more likely to be jerks while driving.

Have you been cut off by a Tesla? Now you know why…

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Most realtors do at most 1 transaction a year…6% of agents in SM county do 90% of the business

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Statistics show that most agents sell between 0 and 5 homes per year. No wonder they live with a lot of stress and fear. They still have bills to pay. So, I think that it would be better for those who enter the real estate industry to be paid a monthly salary instead of commissions. Brokers should allow agents to choose how they want to get paid. I know that receiving a commission is more stimulating and motivating than a salary… but it would be great for many to have that option. As they gain experience, agents can specialize in luxury real estate and fight for higher commissions. But it takes time. They have to build their career, their personal brand, and a strong network.

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Not yet. Mostly by BMWs.

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Real estate agent is just like any other salesperson. A few will make a ton and just kill it while majority will be struggling along.

This shouldn’t be surprising…

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Similar phenomenon with modeling and movie stars. Only a few super models and super stars. The rest earns much less than a typical SWE.