People enter commercial real estate as a career due to many reasons, but one of them is because they want to earn a 7-figure income. It’s not a secret that commercial real estate agents tend to make a lot of money quickly, but it doesn’t happen overnight.
Earning a 7-figure income as a commercial real estate agent isn’t impossible, and the most successful agents manage to achieve that with skill. That is mainly because they have gone through different stages and made all the right moves to get the success they deserve.
If you also have ambitions of earning a 7-figure income as a commercial real estate agent, here are the best tips for you.
Do you know what venture capitalists look for when picking winning businesses to fund? They are looking for this combination:
1 Target Market + 1 Product + 1 Sales Channel = Profit.
You can get to 1 million with this simple strategy.
#1 Target Market.
You can get super niche or keep it in one category.
I.E. Investor rep, landlord rep, tenant rep.
-AND / OR- property types, like multifamily, medical office, retail, industrial, etc.
Choosing one you will keep your marketing budget intact. It’ll also give you a clue as to what kind of lead magnets (freebies) you can create for your audience that they’ll love. The more the content resonates with them, the more leads you’ll receive.
Ok, I know it’s a little weird talking about product when we’re a service industry, but you can package your services like products to stand out.
The goal is to make working with you an absolute no-brainer.
#1 Their Problem
List the #1 problem your target market has. This is what keeps them up at night.
#2 Your Solution
Propose that you have the solution to their problem.
I.E. Your X process is detailed, efficient, and tested for success.
#3 Three Step Plan to Get Results
Make it sound easy. You need a three-step process to get the results.
“But, Brandy, my process is 15-steps!“
Break it into 3-categoties as best you can.
My website design process on ClickUp will make you dizzy! It’s over 100 tasks. I break the process into 3 basic categories (Meeting – Design – Delivery) because you don’t need to know all the pieces. Your client only needs the basics too!
#4 Negative Stakes
What happens if they don’t use the solution.
I.E. Takes longer to sell, high turnover tenants, etc.
#5 Positive Stakes
What happens when your client uses your solution.
I.E. Your client gets more eyes on their property, increasing their chances of selling / leasing quickly and for top dollar. -OR- Your process is so detailed and thorough, ensuring their next property is going to suit the business’s needs for years to come.
#6 Ask for the Sale
Fun tip for service industries – Tell your client you have an opening on Monday to get started. If they want to sign a contract, you’ll begin the process on Monday. If they call you back on Tuesday, they can sign a contract today, but you don’t have an opening to start your process until MONDAY – not tomorrow. This gives the feeling of “limited availability” that service industries usually lack.
#3 Sales Channel.
There are 6 sales channels used to bring in new business.
#1 Current Lists
I’m putting this as #1 because your current clients will convert at 5% while cold traffic converts at 1%, and for some reason commercial real estate values cold over current. I don’t get it! Contact your list, there’s money in it!
#2 Cold Outbound (Cold Calls, Cold Emails, Cold Text)
Probably the only thing they taught you in real estate school, but it only converts at 1%, so consider creating a funnel for your cold outreach where you can pour new lists into the system and it runs hands-free. I don’t like to spend a lot of time and money on 1% conversions, so investing in a funnel is key if you want to rely on cold outreach.
#3 Content (Organic)
This is the only way to get search engine traffic and other organic traffic. Now, before you knock this saying it’s not worth the time, it’s totally worth it! Content (and current lists) compound over time – meaning the more time you spend on this, the better your results will be long-term. Writing articles, making videos, or podcasts over the next few years is a lot, but you’ll be popping up in search results for YEARS. If you’re looking for a long-term strategy, this is it.
#4 Paid Ads (Google, LinkedIn, Facebook, etc.)
Not for the meek! It takes a lot of time and study to get your paid ads working to the point where your ads are paying off. Note that paid ads work the best if you have a tried-and-true funnel that turns leads into sales. For instance, you have a freebie that sends people into your welcome sequence and X% become sales. If you have a predictable funnel, you can run ads to sign more clients easily.
There are plenty of agents that 100% live off referrals and live abundant lifestyles! If you want to super charge your referrals consider holding events (you can do get-togethers without fancy plated dinners) like bar meet-and-greets, host luncheons (you don’t have to pay for everyone’s lunch), do a theme party at a restaurant, whatever! The goal is to create a community where people feel welcome.
I can’t figure out how to use affiliates as a commercial real estate agent. I can tell you that residential agents will send out affiliate links from Hello Fresh saying something like, “Settling in can be stressful, get done dinner without the stress!” If you think of an affiliation you can use in commercial real estate, send me an email! I’ll update this!
Ok, I’ve given you a lot to think about! But I don’t want you to be stuck at the average income from a commercial real estate agent of $80,000. I want you to make real money! The kind of money where you buy a boat because it matches your sunglasses money.
Think about these pieces and how you want to combine them to make your first million. Giving you the strategies venture capitalists use to choose winning businesses for use in commercial real estate, is just another way, I’m taking the “broke” out of commercial real estate brokerage.
If you want to learn more about sales channels, check out the free course: 5 Fundamental Ways to Get CRE Clients.