Among the wide variety of tasks real estate agents need to accomplish through the course of their workday, the most important, of course, is to make the sale. For each sale made, agents get a commission. However, these commissions are typically issued once a deal is confirmed and closed, which can sometimes take longer than preferred.
A delayed commission can be strenuous on the agent for a variety of reasons. They may rely on these commissions to pay their bills and advance their careers. In the event of a sale taking a while to close, real estate agents can opt to receive their commission in advance. A commission advance occurs when real estate agents receive a portion of their commission early—before the deal officially closes. Getting part of it earlier can significantly help agents advance their business as well as keep the business moving smoothly.
If you are uncertain as to how a commission advance works, get in touch with a commission advance company and relay any inquiries to the professionals working in the company. Shop around for a company that is reputable and offers lower rates. Yes, you want your commission earlier, but you also want it to be financially reasonable.
Here are seven ways a real estate commission advance will help grow your business.
1. Use the Money to Invest in More Advertising
Every real estate agent knows the dedication to the job needs to be somewhat intense in order to get the calls coming in.
You don’t need to go overboard, but the more advertising you put forth, the better it’ll be for your business. Ultimately, you want potential clients to think of your name first, especially considering the competitiveness of the industry.
2. Reduce Other Business Debts
If you have other loans to pay back or you know you have accumulated debts, a commission advance can help you pay these debts back in the appropriate time. There is no need to wait until a deal to pay your bills. You can avoid interest fees with a commission advance.
3. Advance Your Educational Career
You can use a commission advance to increase your knowledge of the industry. You don’t have to head back to school full time. You can use your commission to pay the costs of attending different events or taking condensed courses here and there. It can significantly help you in your business venture.
4. Hire Additional Employees
It is advantageous in the long run to hire people who have skills that will help your business grow. Perhaps a new employee with web design experience could help you with your online presence. An accountant who can help you manage business expenses will also aid in keeping the finances organized.
5. Pay Your Bills on Time
It can be tough waiting to sell in order to get your commission. Seeking a commission advance will enable you to control any additional expenses with your company, as well as keep your personal finances in check.
6. Keep Your Business Flowing
There’s no reason to allow a delayed commission to stall your business. During slower seasons, you do not need to worry about the business stalling as a result. Get a commission advance to market your business and keep it relevant.
Getting a commission advance can be used toward investing in other areas of your business. Going off of the last point, you can invest in more marketing with a commission advance. In the event of a dry spell, you still want to ensure your business remains a strong competitor in your local area. You can also invest in a larger office, in better office equipment, or a new car to help improve your professional image.