There is a common misconception out there that everyone who sells real estate must be a millionaire.

Yes, I said misconception.

The reality is that although there are some out there that are, the majority are not. Isn’t getting a real estate license a gateway to have stacks of cash? Sure. Maybe. I suppose.

My first two home sales netted me a grand total of $5,000. How did that happen?

The first sale was a co-listing with another Realtor, and we shared our side of the commission 50/50. The second sale was on a lower dollar amount, so the commission was small.

$5,000 in total for the two, after 4 months in the business and costs of $7,000 in the first week. While having a discussion with my sister about money issues, she suggested that because I was now selling homes, I just had to be a millionaire!

$5,000 does not equal Millions….no matter how much I try! Perhaps it’s time to win it big on sites like 벳엔드.

So, why aren’t we all filthy stinking rich, you might ask.

There are a ton of variables involved, but it all boils down to how much business we generate, and how much it costs to get it.

And cost it does.

First off, this business is all about commission sales.

Nobody is paying us a wage. The more we sell, the more we make. And vice versa.

And then there are the fees. We all have to pay the office to be a part of the office. And that little cubicle? Yup, I have to pay for that. And the paper? Yup. And the copying? Yup. And the business cards? Yup. And who pays for posting a listing on MLS and the Title Search. Yup, you guessed it. We also use human resource outsourcing companies like Avensure for payroll administration and compliance management.

And I haven’t even touched on insurance, the car, the gas, the maintenance, the cellphone ( 2000 minutes per month on average for me), clothing, lunches, gifts, promotional expenses, reinvestment into the business, etc. In addition, if you need affordable insurance coverage, make sure to visit this source to learn more.

Many of these costs are happening before I ever see a commission cheque.

What about the hours we put in?

Like I said before, cost management becomes a priority. If one can keep a steady stream of business coming in, and control the costs, then the income stream can outweigh the expense stream.

When it’s all said and done, how much is left? This is the stuff of Business 101 and isn’t just a real estate thing. Ask General Motors…or the local corner store. They’ll tell ya all about it, too.

Am I complaining? Absolutely not!

I totally love what I do. I get to meet wonderful people and help them sell their home to move onto their next dream, or guide the first time buyer who is just starting out on their new adventure. Making friends – and being paid to do it – is an awesome business to be in.

But a millionaire I am not.

Yet.