New Agent - How To Split Up Commission Check?

[Billy Davidson]

Hi All,

I am a new real estate agent in Ventura, CA. I recently took the jump from being a CPA, which was boring and not fulfilling to becoming a real estate agent. I have other streams of income, but I wanted to reach out to BP to see what everybody thought when it comes to splitting up your commission checks. Below are the 4 categories I was thinking of splitting my commission check into:

• Taxes – not enough agents account for this
• Investing in your business – marketing, tools, etc.
• Personal day-to-day expenses
• Investments -into other streams of income - Stocks, RE investments, etc.

These were the 4 major categories I could think of and I was curious as to how people would split these up based on a percentage. Below were my thoughts, but I wanted to see what you thought

• Taxes – 35%
• Investing in business – 20%
• Personal day-to-day expenses – 25%
• Other streams of income (investments) – 20%

Would love to hear what everybody thinks. Thanks in advance.

[Kushaal Malde]

It's good that you're setting aside taxes!

The thing I would question or alter is your breakdown for personal day-to-day expenses and whether that could be reallocated more aggressively towards investing in your business or other streams of income, which could also be dependent or influenced by your "other streams of income".

Ultimately the allocation should depend on your business and investment goals.