How to Leverage a Commission Advance to Grow Your Business
As a real estate agent, you know how hard it can be to put your business on hold while you wait for your deals to close. Growing your real estate business requires a steady cash flow, which can be challenging when you work on commission. A real estate commission advance can help put you in the driver’s seat, empowering you to invest in the future of your business instead of standing by until you close your next transaction.
Here are 7 ways to leverage a commission advance to grow your real estate business.
Purchase leads
Some real estate agents purchase leads from Zillow Premier Agent, Realtor.com, BoldLeads and other lead generation sources. A commission advance can give you the power to pay for the new leads you need to fill your pipeline.
Many paid lead services limit the number of agents who can buy leads in each zip code. That means waiting to buy leads until after your deal closes and your commission comes through could result in missing out on the opportunity to secure leads in your preferred zip codes.
Invest in marketing and advertising
Real estate agents are often advised to invest about 10% – 15% of gross commission on marketing. Leveraging a real estate commission advance allows you to build your brand and online presence to grow your business.
Consider sprucing up your website (or building one if you haven’t already), creating a marketing campaign or newsletter to send to current and past clients, or promoting posts on social media. There are countless ways to invest in marketing and advertising your real estate business, all of which can contribute to scaling your business and increasing brand awareness.
Invest in education and training
Investing in your education and continuing to hone your skills and expertise in real estate is a great way to leverage a commission advance to grow your business. Though it might take time to see a return on your investment, spending money on education and training will make you a better real estate agent in the long run.
Purchase technology tools to buy your time back
Taking advantage of a commission advance to invest in technology that supports your business can help improve efficiencies and streamline processes. Technology can free up time so you can stay organized and focus on the most valuable activities for your business.
Software like e-signature, cloud-based solutions, customer relationship management (CRM) systems and task management tools can help real estate agents stay organized and operate more efficiently.
Hire someone to handle the administrative work
Using a real estate commission advance to pay for an assistant allows you to delegate administrative tasks to someone else, giving you time to focus on serving current clients and prospecting for new ones. Administrative work like answering the phones and scheduling appointments can quickly consume the better part of your day, leaving you with little time to do anything else.
An assistant can help you stay organized and stay focused on growing your business. If you hire an unlicensed assistant, make sure you understand your state’s rules regarding prohibited activities for unlicensed assistants. (Here’s a link to the National Association of Realtors’ website, where you can find more information on each state’s respective laws.)
Sponsor a local event
Sponsoring a local event is a creative and fun way to help promote your business and build your brand. You might choose to host a client appreciation event, or partner with local businesses or nonprofit organizations to build rapport with your local community and increase your exposure.
These events create opportunities to meet prospective clients in your neighborhood and generate more referrals. Be sure to take some photos and videos so you can incorporate them into your social media and marketing strategies.
Get professional photography and staging for your next deal
Home sellers and real estate agents want to get to the closing table quickly and fetch the highest possible price. Using a commission advance to cover the costs of professional photography and staging may help you close your next listing faster and at a higher sales price – a win-win for everyone.
Though home staging might seem expensive up front, it can help increase the sales price by an average of up to 20%. Another popular service real estate agents can use to promote their listings is aerial photo and video. According to multiple listing service (MLS) statistics, homes with aerial images are 68% more likely to sell than properties without drone photos.
Conclusion
Top-producing real estate agents invest in their personal growth and the growth of their business. A real estate commission advance provides the cash flow you need to fund your continued success without delay. Whether you choose to buy leads, invest in professional training, or level up your listing with professional photography and staging, leveraging a commission advance gives you the purchasing power you need today to help your business thrive tomorrow.
Please note: this post discusses traditional commission advance for educational purposes. Advancing your commission with Tongo is faster, less expensive, and more flexible than a traditional commission advance. Plus, Tongo does not require brokers to sign off. For more information on Tongo click here.