While being a real estate agent is continuously ranked as one of the best jobs to have, the first year working as a professional can be challenging. According to the National Association of REALTORS® (NAR) 2025 Member Profile, new real estate agents typically earn less than their more experienced counterparts, with median gross incomes rising significantly as experience grows.
But you don’t have to wait years to see financial success. Whether you’re just starting your journey or looking to level up your existing career, there are numerous ways to maximize your earning potential. We’ve put together a comprehensive guide on how to make money as a real estate agent, exploring actionable strategies that go beyond the commission check.
Key Takeaways
- Diversify Your Income: Supplement traditional sales commissions with alternative revenue streams like property management, real estate consulting, or freelance writing to create a more stable financial foundation.
- Invest in Real Estate: Leverage your industry knowledge to build long-term wealth by investing in properties, whether through flipping houses or acquiring rentals for passive income.
- Build a Strong Personal Brand: Develop a powerful online presence and marketing strategy to attract more clients and establish yourself as a trusted expert in your market.
- Continue Your Education: Boost your earning potential by pursuing specialized certifications and designations that allow you to serve niche markets and provide greater value to clients.
Traditional Real Estate Sales and Commissions
At the core of a real estate agent’s income is the traditional commission structure. This is the most common way agents earn money, typically involving a percentage of the final sale price of a property.
For most residential transactions, commissions are split between the buyer’s agent and the seller’s agent, and then further split with their respective brokerages. While this income can be substantial, especially as home values rise, it can also be variable. Successful agents understand that mastering the art of the sale, from lead generation to closing, is fundamental. However, relying solely on transaction-based income isn’t the only path to financial stability.
Here are five ways to improve your bottom line as a real estate agent:
Tip #1: Increase Your Earning Sources
Experienced agents will tell you that the best advice to increase your salary is to diversify your income. Being an agent gives you the freedom to be your own boss, but that also often means you are responsible for paying out of pocket for business expenses like advertising, website management, and healthcare.
To build a more resilient career, consider supplementing your real estate income with other sources that blend perfectly with your profession.
Alternative income streams for real estate agents
Broadening your services not only boosts your bank account but also positions you as a versatile expert in the industry. Here are several alternative income streams to consider:
- Property Management: Many property owners need help managing their rentals. By handling tenant placement, maintenance, and rent collection, you can earn a steady monthly fee. Learn how to do this by earning your Certified Property Management Expert (CPME) certificate.
- Real Estate Consulting: Use your expertise to advise investors or developers on market trends and property viability for an hourly fee or retainer.
- Broker Price Opinions (BPOs): Lenders often pay agents to value properties for short sales or foreclosures.
- Real Estate Photography and Videography: If you have a knack for visuals, offering high-quality photography or virtual property tours can be a lucrative side hustle.
- Freelance Writing or Blogging: Share your knowledge by writing for real estate publications or starting a monetized blog.
Tip #2: Real Estate Investing for Agents
Why just sell homes when you can own them? Real estate investing is a powerful way for agents to leverage their market knowledge for personal financial gain. As an agent, you have the advantage of spotting great deals before they hit the mass market.
Whether it’s flipping houses, buying rental properties for passive income, or participating in real estate investment trusts (REITs), investing allows you to build long-term wealth alongside your active income.
Tip #3: Marketing and Personal Branding Strategies
Your personal brand is your most valuable asset. Effective marketing can directly influence how much money you make as a real estate agent.
- Build a Strong Online Presence: Ensure your website is professional and SEO-optimized. Use social media platforms like Instagram and LinkedIn to showcase your listings and share client success stories.
- Networking: Attend local networking events and join community groups. The more people you know, the more referrals you generate.
- Content Marketing: Start a podcast or YouTube channel discussing local market trends. This not only builds authority but can also generate ad revenue over time.
Tip #4: Broaden Your Experience
Specializing in a niche can significantly boost your earning potential. According to NAR, many agents specialize in secondary markets to diversify their income. Consider branching out into:
- Commercial Real Estate: Transactions are often larger, leading to higher commissions.
- Luxury Real Estate: High-end properties command top-dollar commissions.
- International Brokerage: Assist clients looking to buy property abroad.
- Relocation Specialists: Help corporate employees move for work, often with guaranteed volume from corporate contracts.
Tip #5: Study Under a Seasoned Mentor
Experience is the best teacher, but learning from someone else’s experience is a close second. The median age of REALTORS® is 55, meaning there is a wealth of knowledge available from seasoned professionals.
Find a mentor who specializes in an area you want to grow. Many new agents also choose to join a team where earnings are distributed, and marketing efforts are shared. This mentorship can provide stability and accelerate your learning curve during those crucial first years.
Bonus Tip: Continue Your Education
In real estate, learning never stops. Beyond the required continuing education (CE) for license renewal, earning specialist designations can help you market yourself as an expert.
Certifications in areas like negotiation, luxury real estate, and AI usage can open doors to new client demographics. Investing in your education is investing in your future income.
Ready to take your career to the next level? Explore our continuing education membership packages to find the perfect program for your goals.
Frequently Asked Questions about Real Estate Agent Earnings
How do real estate commissions work?
Commissions are typically a percentage of the property’s sale price, paid by the seller and split between the buyer’s and seller’s agents and their brokerages.
Can I make passive income as a real estate agent?
Yes! Investing in rental properties, earning referral fees from other agents, and monetizing a real estate blog or podcast are great ways to generate passive income.
How much do new real estate agents make?
Income varies widely by location and effort. However, NAR data indicates that income tends to double or triple as agents move from their first year into their fifth year and beyond.
Learn more industry income data by requesting Colibri Real Estate’s Salary Guide.
Unlock Your Full Potential
Success in real estate is about more than just maintaining your license—it’s about seizing every opportunity for growth and personal mastery. While there are countless ways to expand your earnings, the most successful agents know that continuous learning is the key to unlocking a thriving, lucrative career.
With a Colibri Real Estate CE Membership, you can take full control of your professional journey. Our All-Access Pass is designed to do more than just meet your state requirements; it’s built to help you grow. You’ll gain unlimited access to our extensive library of state-approved courses, allowing you to choose topics that truly interest you and align with your long-term goals.
Empower yourself by elevating your expertise with professional certifications included in your membership. From becoming a Real Estate AI Specialist—giving you the edge to automate smarter and stand out—to mastering the luxury market through the prestigious Institute for Luxury Home Marketing, these tools are designed for your ultimate success. You can also dive into specialized paths like Certified Negotiation Expert or Property Valuation Expert to provide unparalleled value to your clients.
Beyond certifications, stay sharp with our “Learning Snacks,” which are bite-sized modules on subjects like pipeline boosting and client care, and access practical templates and checklists that turn knowledge into action.
Ready to unlock your full potential? Join a community of professionals dedicated to excellence.
