Getting a commission advance: When to apply
There’s no better feeling in real estate than when you make a big sale. Except perhaps when you finally get the commission check!
But first comes the wait to get paid. Will it be 30 days, 45 days, 60 days? Every closing is different, and the wait-time can throw a wrench into the growth plans of your business. Questions start to arise like:
Will I have money for my next advertising campaign?
What about paying for an assistant to help me with administrative duties that keep me from selling?
Commission advances are the easiest way for real estate agents to smooth out the peaks and valleys of a 100% commission based income.
So, when is the best time to consider a commission advance? These 9 scenarios are when our customers find the most value in using a commission advance.
Several Closings at Once
Instead of waiting on all commission checks to go through at once, you can balance out your income with a commission advance that’s immediately repaid at closing.
It’s also very secure considering it’s unlikely all of the deals will fall through – one of the most common concerns about commission advances.
Unexpected Closing Delays
Why should unpredictability get in the way of making more sales and growing your business?
When you run a real estate team and have salaried employees who need a paycheck at the end of the month, it’s not possible to keep your team waiting. They’re depending on you.
It can be tough to set aside enough money for quarterly and annual taxes. Avoid fees and interest that add up if you don’t pay on time and remember – commission advance fees are 100% tax deductible!
Time-sensitive Advertising Opportunities
Some advertising opportunities are seasonal or event specific and it’s not worth missing them just because the timing doesn’t line up exactly with your closing.
Business is Slow
Slow periods are often the result of seasonal and/or market conditions but no matter the reason, it’s important to maintain lead generation marketing for the long term pay off.
Business is Booming
Many Realtors® sustain growth during high times (like Spring, for example) by doubling down on marketing and lead generation. Receiving your commission earlier grows your forward momentum and helps catapult your real estate business to a new high.
Dues & Continuing Education
Keeping up with the industry trends and changes may require additional classes or learning materials, and sometimes you need extra income for those possibilities.
Repairs & Replacements
Sometimes your car or laptop needs repair or replacing. Anything that involves your mobile office is a legitimate expense that should be taken care of as quickly as possible.
Whatever the reason, a commission advance can help you to invest in your business on your timeline.
Are you new to eCommission, or do you have any questions about commission advances we can answer? If so, please let us know by reaching out to us at 1-877-882-4368 or you can visit the How it Works page on our website.