Updated: Apr 11
Real Estate is a finicky industry. Aside from the roller coaster ride of the housing market, it is often feast or famine when it comes to agents and brokers getting a paycheck to support their families.
According to the National Association of Realtors (NAR), in 2021, REALTORS® with 16+ years of experience averaged a median gross income of $75,000 per year, while those with 2 or less years of experience grossed an average of just $8,900 per year. If you do the math, compared to a full-time, hourly job equivalent, that equals about $4.28 per hour. In other words, most newer agents are making about the same as a full-time waiter at a local restaurant (minus tips).
Agents struggle with the sporadic paychecks from just selling homes. One month, an agent may make $10,000 - $15,000 on their closings, and then not have another closing for 4-6 months down the road. On average, most agents sell 4-6 homes per year, or roughly 12 "transaction sides," which means agents have to really manage their finances and budget accordingly to ensure they don't overspend their income and have enough money to get them through the lean months where they may not have closings.
This is one reason we joined CanZell's family of REALTORS®.
MULTIPLE STREAMS OF REVENUE
I have long been an advocate for generating multiple streams of income. A friend recently shared with me that when he hears those words, "multiple streams of income," it really means "you're broke" and working several jobs or businesses (such as network marketing) to generate a few extra dollars to add to your revenue each month. And he's right! But, if done well, and with the right vehicle, multiple streams of income truly will help stabilize the roller-coaster ride of the housing market. And CanZell Realty offers agents that opportunity!
Through CanZell Realty, agents not only earn typical commissions on transactions with a 80/20 split and a $14,000 annual cap (which means the agent makes 80% of their co-op split between them and the other agent in the transaction, up to the cap, and then they make 100% commission after that. The other 20% goes to the brokerage.), but they also have the ability to earn up to $14,000 in ownership stock, meaning they are not just an agent, but an actual shareholder and participating owner in the company!
Additionally, agents can earn income by becoming a Circle Leader or Coach by expanding the agent pool through recruitment and coaching new agents who are either just getting started in their real estate career or need help in growing their business.
Working with a brokerage that wasn't all about making the CEO rich and famous, while the agents and associate brokers do all the work, and struggle to make ends meet, was equally important. We believe the more agents and brokers make, the more they can give back to the communities they live in and serve! But, it never should be at the sacrifice or hardship of the client. In other words, we don't want our agents adding to the clients' costs in order to make a decent paycheck for themselves or continue to fund the CEO's lavish, multi-million dollar lifestyles.
MISSION, VISION, AND VALUES
But, one of the biggest reasons we joined the CanZell family is because they align with our mission, vision, and values by giving back 10% of every sale to charities and churches every month! Building community is what we are all about, and helping our community is a huge part of our mission! We also love the fact that CanZell supports causes we believe in, and their mission is to "glorify God by putting our clients' interests above our own." That doesn't mean CanZell or LCRE is exclusively a Christian or faith-based company, but an "all-are-welcome" brokerage, because our main goal is to serve the communities through abundant giving and put our client's needs above our own, as the mission statement says.
GROW AND BUILD YOUR OWN BRAND
Lastly, we wanted a partnership where we could build our own brand, without the exorbitant overhead it takes to run a business. Let's face it, every business owner wants to brand themselves as the local expert or ultimate provider of the product or service they sell - typically not because they are on an ego trip and love the attention - but rather because of competition and the need to be the "go-to" source for consumers, resulting in more revenue for the company and more jobs for the community.
Through CanZell Realty, we have the opportunity to partner with a company that has all the tools and resources needed to build our own brand, grow our platform, and become the most viable resource in real estate in the communities we serve, while capitalizing on a national brand and their marketing efforts, as well. In essence, it's like most brokerages that are affiliated with the big name recognition, such as ReMax, Century 21, Keller Williams, Berkshire Hathaway, etc., but without the enormous franchise/affiliate fees and overhead.
Watch the video below to learn more, and then CLICK HERE if you would like to schedule a time to speak with one of our leaders about being a part of our incredible family!