Living Without a Regular Paycheque

You have all heard the cliché that there is no such thing as a typical day in real estate. Yet, there are common occurrences and common eventualities REALTORS® face. On the plus side, there’s unlimited income potential, scheduling your own work hours, and being your own boss. On the negative side, there’s a lot of paperwork, fluctuating working hours, and an irregular paycheque. For individuals used to a regular paycheque, working for commission can be a big adjustment.

Planning for when there won’t be a regular paycheque is essential. This is especially true for new graduates, and during seasonal market variations (e.g., winter is a slow season for home buyers and sellers) and market fluctuations.

Here are some tips on how to survive the ‘lean’ periods:

•  If you are a new salesperson, set a realistic budget to get your through your early career-building process and have sufficient capital available to be financially independent for at least six months.

•  Resist the temptation of overspending when you receive your first big commission.

•  Regulate expenditures for the entire year based on your commission. In other words, draw a wage from that commission, and put aside a percentage of the funds.

•  Avoid living off a line of credit.

•  Don’t sit around waiting for the phone to ring. Use the down time to market yourself and prospecting for new clients, preferably face-to-face.

•  Follow up on old leads and keep in touch with past clients. If you provided good service, they will remember you and may have a referral.

•  Network, network, network.

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How do you survive the ‘lean’ times and not having a regular paycheque. Let us know.

Source: EDGE, February 2013

Originally posted here – 

Living Without a Regular Paycheque