The most common response I hear when I ask why someone decided to pursue a career in commercial real estate is ‘the money’. More specifically, because there is no ceiling to an individual’s income potential.
Sadly, most commercial real estate professionals make less than they would if they simply had a job. In fact, the most recent national commission survey suggests the average CRE professional grossed about $120,000 last year. That’s an average of only $60,000 net income.
One of the greatest benefits of being a commercial real estate professional, is that you own your business. It’s not a job, and for most brokers – there is no salary. Instead, you earn what you deserve – not what you want. There is no limit to what you can earn. From a pure income perspective, commercial real estate is one of the most rewarding professions you can pursue.
So why do most commercial real estate professionals continue to live deal-to- deal, commission-to-commission, and year-to-year? Low producers think like people earning income rather than someone building wealth.
• Average producers treat their profession as a job with the 9 to 5 and weekly paycheck mentality.
• Average producers look to their broker of record as an employer, and themselves as an employee.
• Average producers have no financial plan in place. Remember, living commission to commission is worse than living paycheck to paycheck because commissions can be wildly inconsistent.
• Average producers spend every dollar that comes in on expenses and material goods.
• Average producers try to keep up with the Jones’, without regard to personal investments and savings.
• Average producers hang in the “entrepreneurship zone” (a concept originated by Dan Sullivan) – with 90% that look to just pay their bills, and only 1% that looks to achieve profound, exponential growth.
• Average producers don’t invest in themselves. They purchase new golf clubs or a car, but won’t spend money on a course on presentations, an industry designation, or aligning with a coach.
If you would like to learn more about creating wealth from commissions, I invite you to check out my new book Building Wealth Beyond the Commission – Mindsets, Strategies and Principles for Creating Abundance Above a Simple Transaction Fee, co-authored with Kevin Bassett, CPA. In this book, you are going to learn strategies for transforming your generated commission income to real wealth. We only printed 500 copies for this first run – if you interested, please click here to secure your copy!
If you want to schedule a free strategy session on how you can consistently earn greater income, click here.