You're a New Realtor? Are You Prepared for the Shock?
Bill this is great advice in the real estate industry as well as others. I always cringe when I see new hires who just got out of college starting here and overspend their future earnings, it generally ends badly.
Most New Realtors Are Not Prepared for the Shock.
My guess is that most people who enter the real estate business as salespersons have never attempted to establish and maintain a personal financial life based on commission earnings.
They are in for a shock.
Real estate sales is an odd business, really. Earnings come in erratic large chunks of money, and those chunks disappear just as fast through erratic stoppage of earnings of those same magnitudes.
How can a family expect to live like that?
In my own companies, I observed many agents, even some who had been around for a long time, who never learned to prepare for lean times.
Walking that tight rope probably has more to do with good agents leaving the business than any other reason.
Many kidded themselves by thinking if they made, say $15,000 this month, that it was a sign from Heaven Above that a pattern was now set.
They figured they could expect enough closings to give them at least $15,000 every month thereafter.
Of course that doesn't and didn't work.
Some asked me to put their earnings, as they came in, into the company trust account, and then to give them a check for a specific portion of their earnings every month.
At the end of the calendar year, I would give them a check for the balance, and we'd start over on January 1st of the following year.
But that wasn't as effective as one might surmise at first blush. Often they'd want to "borrow" from their own account for some reason. I had no choice but to write the check. It was their money.
So in the long run, their financial planning failed.
Real estate brokerage offices would be wise to encourage their commissioned sales people to engage a Wealth Coach -- someone trained at helping people set up a wealth building plan and to stick with it.
Someone who can't be bamboozled by an excuse to not follow the plan.
While there are undoubtedly others, I not only teach how to do it, but I've successfully done it myself for more than forty years.
This might be a good subject for a sales meeting.
Call or email me if you think it would at your Dallas area office.
William S. Cherry and No Company
America's Wealth Coach
972 677-7028
