If you watch reality TV, you might think being a real estate agent is all about lunch meetings, driving luxury cars, and effortlessly opening doors to multi-million dollar mansions. It looks glamorous, easy, and incredibly lucrative.
But if you pull back the curtain, the reality is quite different. It is dynamic, yes. It is rewarding, absolutely. But it is also one of the most challenging careers you can choose.
The question “How does it work?” isn’t just about how you get paid or how you show a house. It’s about understanding the engine that drives the entire profession. When you become an agent, you aren’t just taking a job; you are starting a business from scratch.
The Daily Grind: It Starts with the Hunt
What does a typical day look like? It doesn’t start with showing homes. It starts with finding people who want to see homes.
We start the day prospecting for business. In this industry, procuring business is always job number one. If you don’t have a client, you don’t have a job for the day. This morning routine involves calling, texting, and reaching out to potential leads to find new opportunities.
Only after the prospecting is done do we move on to the tasks most people associate with the job:
- Client meetings to discuss listing strategies or buyer needs.
- Showing properties to prospective buyers.
- Handling the mountain of paperwork and transaction details required to get a deal to the closing table.
The Misconception: It’s Not “Easy Money”
The biggest misconception people have is that this job is easy. They see the commission check at the end and think, “Wow, that was fast money.” They don’t see the months of work that led up to that moment.
When you get your real estate license, you are basically starting up a new company. You are the CEO, the marketing director, the sales force, and the administrative assistant. All the processes, systems, and workflows belong to you.
There is no boss handing you a stack of files to work on. You have to build the machine that generates the work. That requires discipline, grit, and a willingness to work for free until your business gains traction.
How You Actually Get Paid
Speaking of working for free, let’s talk about money. Real estate agents are independent contractors, not employees. You do not get a salary. You do not get an hourly wage.
Real estate agents get paid strictly when they close deals.
Here is how the structure typically works:
- Commission: When a property sells, a commission (usually a percentage of the sale price) is paid.
- ** The Split:** You don’t keep all of that money. You have to split it with your broker. This split depends on your experience level and how many tools, leads, or services the brokerage provides you.
- Expenses: Before you even see that money, you have to cover your own costs.
This brings us to one of the biggest challenges: financial management. Until you sell, it just costs money to get your business going. You have to pay for your license, your association dues, your marketing, your gas, and your insurance. You are operating in the red until that first check clears.
The Core Skill: People Over Property
You might think you need to be an expert in architecture or construction to succeed. While that helps, it’s not the core requirement. We are not in the housing business; we are in the people business.
Being a great communicator and a genuine people person is essential. Learning how to sell in real estate is unlike other forms of sales. You aren’t selling a vacuum cleaner or a car; you are guiding someone through the largest financial transaction of their life.
This requires earning trust through solid performance and ethics. If people don’t trust you, they won’t hire you. You must be able to listen, empathize, and communicate complex information clearly.
The Tech Evolution: From Cold Calls to Content
Technology has fundamentally changed how this job works. Years ago, an agent might have blocked out two hours a day to sit at a desk and make cold calls. Today, the landscape is digital.
Marketing is almost entirely digital now. Being able to make engaging content—videos, social media posts, virtual tours—is essential. You have to be where the eyes are.
Furthermore, communication habits have shifted. We spend less time calling prospects than ever before. We now spend time messaging. Because of this, prospecting isn’t just a morning time block anymore; it takes all day. You are constantly responding to DMs, texts, and comments, keeping the conversation going and nurturing leads through your device.
Advice for the Aspiring Agent
If you are reading this and thinking, “I can do this,” I have a few pieces of advice to help you start on the right foot.
1. Interview the Industry
Don’t just jump into a class. Go interview a few agents. See how they like it. Make sure to interview agents at different companies and with different levels of production. Ask the rookie how hard the first year was. Ask the veteran what keeps them going. Get a realistic view of the landscape.
2. Aim for Credibility
I always encourage agents to get their broker’s license as soon as they can. In many states, you can upgrade from a salesperson license to a broker’s license after a certain amount of experience and education. There is additional credibility that comes with that title. It shows clients and peers that you are committed to the highest level of professionalism.
Conclusion: The Ultimate Reward
So, why do it? Why take on the risk, the long hours, and the uncertainty?
For me, I’ve always liked being in charge of my income. In the corporate world, your salary is often dictated by a band or a budget. In real estate, this business truly gives out what one puts in.
If you work hard at income-producing activities—if you prospect consistently, serve your clients well, and treat it like a business—it can be very rewarding financially. There is no ceiling. You determine your worth every single day you wake up and go to work. And for the right person, that freedom is worth every bit of the hustle.