Your favorite Rolls Royce-driving TV real estate agent hustles to listings from a Hollywood Hills Mansion, yet your Aunt, who’s sold real estate in your town since 1984, lives a pretty modest and relaxing lifestyle.
Welcome to the diverse world of real estate. A choose-your-own-destiny industry where commission dollars flow like champagne to a fiercely competitive sea of one million thirsty agents.
Most agents start with a slight drop in an empty glass chute, but every day brings you closer to the million-dollar riches of a full glass of bubbly.
This blog explores everything about making money in real estate sales, from introductory commissions to how top agents succeed and the expectations and tips to thrive in between.
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Understanding Real Estate Agent Earnings
In 2022, REALTORS® earned a median gross income of $56,400—in line with the median American salary. And they worked about 30 hours a week to make that income.
Real estate is an industry where the effort to build a career will directly reflect your income. To an extent.
America is vast, and a REALTOR® in rural Elko, Nevada, plays to a dramatically different market than New York City brokers—a vital distinction that every new agent must make about their direct market.
For instance, let’s break down the median gross income to see how REALTOS® earned it:
Median Gross Income: $56,400 (annual)
Total Commission Before Brokerage Split:
- Median Gross Income / (1 – Brokerage Split Percentage).
- $56,400 / (1 – 10%) = $62,667 approximately.
Average Commission Per Transaction:
- Total Commission Before Split / Median Number of Transactions.
- $62,667 / 10 ≈ $6,266 per transaction.
Average Home Price:
- Calculated as Average Commission Per Transaction / Commission Rate.
- $6,266 / 2.4% ≈ $261,112
If your first reaction is, “Homes in my area cost far more than $260k!” Great! Your per-transaction commission should be higher, but how saturated with agents is your market?
Location, Location, Saturation
The Las Vegas market is home to 16,104 REALTORS® as of the time of this writing. In 2022, REALTORS® sold 27,800 homes. Assuming a unique buyer’s and seller’s agent on each transaction, agents received 55,600 commission checks. Roughly 3.45 deals each.
If all were created equal, Las Vegas area agents would earn $34,500 annually. (Spoiler: They are not equal, and many made $0)
Understanding total homes sold, the number of agents competing for the deals, and the median home price in your market are paramount when setting future earnings expectations.
And don’t be discouraged if the numbers don’t pencil out in your area. Successful real estate agents are rarely an overnight success, and in most markets, the top 10% of agents earn 90% of the commissions. Build your business for your market—which might not support the tailored suit and Rolls Royce lifestyle as a single agent.
Entry-level vs. Experienced Agent Earnings
Experience matters for a multitude of reasons in the real estate industry. Regarding income, REALTORS® with over 16 years of experience earned a median gross income of $80,700 in 2022.
On the flip side, new agents with two years or less earned $9,600, up from $8,800 the prior year.
With experience comes trust and a network, opening your career to above-median-priced homes and luxury markets while tapping into that coveted agent gold: Referrals.
Slow to build but growing with each deal, referrals are the most significant influence on an agent’s income and survivability in the industry.
According to the National Association of REALTORS®, 63% of sellers found their agent through a referral from a friend, neighbor, or relative. The typical seller recommends their agent once after selling their home, while 32% of sellers recommend their agent three or more times.
Overcoming Challenges as a New Real Estate Agent
A commonly quoted and scary statistic is that 75% of REALTORS® quit in the first year, and 87% fail within the first five. It’s a decade-old data point, but the agent failure rate is still high, likely in the 43% to 54% range.
Of course, starting a real estate career with financial stability helps extend your timeline and chances of success, but it’s a luxury most can’t enjoy. Joining a real estate team offers new agents lead flow and mentoring through the early challenging times.
As a new agent, you’ll spend more time selling yourself than selling properties, and that’s okay. Everyone starts somewhere, and this stage will build the foundation for your career.
Tips for New Agents:
- Network Relentlessly: Attend local events, join real estate groups, and always appreciate the power of a good conversation.
- Master the Market: Know your area like the back of your hand. Being able to provide unique insights sets you apart.
- Embrace Technology: Leverage social media and real estate apps to broaden your reach and streamline processes.
- Mentorship Matters: Seek guidance from experienced agents. Their wisdom can help you avoid common pitfalls.
The Importance of Networking
New agents with a large family or connected to a high-net-worth community are fortunate. For the rest of us, building a network means shaking hands and meeting people.
Since they’re involved in every transaction, contact the mortgage lender, escrow officer/attorney, and inspector who had excellent communication or closed early and let them know they did a great job, and you would like to start working together.
Jump-start your networking by finding local industry meetups, entering networking groups, and joining Agent Nook.
Industry partnerships help support your customers and transactions, growing your business organically, but stepping outside the real estate industry is vital for building referral networks. CPAs and financial advisors are often the first call before major life-changing events or large purchases, like selling or buying a home, and one busy estate attorney can skyrocket your income.
Think outside the box and meet a diverse group of professionals. You can never hand out too many business cards.
Maximizing Your Earnings Potential
The path to increasing your earnings in real estate is much like finding the perfect property for a client – it requires diligence, strategy, and, sometimes, a bit of luck.
Strategies for Upping Your Game:
- Niche Down (specialization): Consider focusing on a niche market (No, not luxury). Is there a Condo Queen or Retirement Home Specialist in your area? Think outside the box. The riches are in the niches.
- Marketing Magic: Invest the time in marketing yourself. A solid personal brand presence keeps you top-of-mind during real estate conversations.
- Be Tech Savvy: Use technology to your advantage. CRM tools can help manage client relationships effectively. Track calls to past clients and ensure you reach out at least once a quarter to say hi and ask if they know anyone ready to buy or sell.
- Build a Reputation: Be the trusted resource for real estate. Stay knowledgeable, share information, and help others. The more goodwill you provide, the bigger your ask can be later.
Final Thoughts
The difference in lifestyle from a Million-Dollar Listing star to a humble veteran agent comes down to choice. Up early, cold calling, knocking on doors, and constant networking will earn you a wealthy lifestyle in any major market.
You can also enjoy meeting and helping great people, touring fun homes, and becoming your neighborhood information source while earning a moderate living and working a few days a week.
Determine your lifestyle goals and be prepared to tackle the activities it takes to get there—daily.
Are you starting the licensing process? Jump on Facebook and tell everyone you know. Keep friends and family updated on your licensing journey. Then, never let them forget you sell homes.

Author: Travis French
Hi, I'm the founder of Agent Nook and a licensed REALTOR® and owner in Las Vegas. Finding great partners became my career cheat code, but it took years and happened by luck. So I started asking agents and continued to hear the same story: I can't find the right partners. So I started thinking, where do we even search? If there were a way to search, how can you warmly connect? Agent Nook is the only answer, so we built it. A place for us. Dedicated to real estate professionals and growing our careers. I'm unbelievably proud of the outcome and excited you're here.