Commission income is business revenue, not a paycheck
Most conversations about starting a real estate career skip how real estate agent finances actually work in Southwest Florida, especially in the first year.
Many new agents assume commission income functions like a paycheck, just without a cap. Sell a home, get paid, repeat. In practice, commission income operates as business revenue. It arrives unevenly, carries expenses with it, and rarely lines up neatly with the time or effort invested.
Bills keep coming whether you’ve closed a deal or not, taxes are yours to set aside, and income tends to be unpredictable.
Understanding these financial realities doesn’t discourage the right people. In fact, it helps them plan for what’s actually coming.
Key Takeaways (TL;DR)
- Real estate agent finances work differently than salaried income
- Expenses and taxes arrive before income does
- Income shows up in clusters, not on a schedule
- Financial runway creates room for patience and better decisions
- Pressure changes behavior long before it feels obvious
Most New Real Estate Agents Keep Less Than Half Their Commission Check
That first commission check feels like you’ve finally turned a corner. For many new agents, it’s the first real sign that the work is starting to pay off. What’s easy to miss is how much of that check has already been spoken for.
Most new agents at traditional brokerages start on a 60/40 or 70/30 split. That means the brokerage keeps 30 to 40% off the top. Many also charge franchise fees, desk fees, transaction fees, and technology fees that reduce the check further. Some require a mentor fee during the first year, taking an additional 10 to 25% of gross commission. On a $10,000 gross commission, a new agent might see $5,000 to $6,000 after the split and fees. That’s before taxes.
Then come self-employment and income taxes. No one is withholding for you as an independent contractor. Setting aside 25 to 30% of what’s left is a safe starting point. That brings the number down to roughly $3,500 to $4,500 on that same check. Ongoing expenses like MLS access, insurance, marketing, and transportation take it lower still.
Team Splits Take an Even Bigger Cut
Agents who struggle to gain traction on their own often join teams. On a team, the commission gets split twice: once with the brokerage and again with the team leader. A 50/50 split with the team on team-sourced leads is common. After both cuts, an agent can walk away with 30 to 40% of the original gross commission. That’s before taxes and expenses. The tradeoff is access to leads, mentorship, and transaction support. Whether that builds long-term skills or just keeps someone busy at thin margins depends on how the team is run.
Some brokerages offer a flat-fee model where agents keep 100% of the commission. Instead of a split, agents pay a small per-transaction fee. The math on each check looks better, but these brokerages typically offer minimal training and little hands-on support. For an experienced agent with an established pipeline, that can work well. For a new agent still learning how deals come together, keeping more of each check means less without someone helping you build the skills that produce the next one.
The difference between gross commission and what actually stays in your account is where early financial planning either holds together or falls apart.
Why the Money Shows Up Later Than New Agents Expect in Southwest Florida
Effort, closings, and cash don’t move together in the real estate business. Work comes first, followed by relationships, then decisions, with money arriving later and often on a different timeline than expected.
In Southwest Florida, seasonality stretches that timing gap even further. Markets like Estero and Bonita Springs tend to see their strongest buyer and seller activity during the winter months, when seasonal residents arrive and demand increases. Summer is typically slower, with fewer showings, longer decision cycles, and more deals pushed into the fall or winter.
For a new agent starting in late spring or summer, this can be disorienting. You may be doing the right work, meeting people, hosting open houses, following up consistently, while seeing very little immediate traction. That doesn’t mean the work isn’t working. Often, it means the calendar hasn’t caught up yet.
Income clustering in Southwest Florida follows a seasonal cycle. Agents who don’t understand that cycle often panic during slower months, assuming something is wrong when they’re actually early.
Startup Costs for New Agents in Southwest Florida
While income often arrives later, expenses begin immediately.
Licensing, association dues, MLS access, insurance, marketing, transportation, and technology costs show up regardless of production. Living expenses continue as well. None of them pause while you build a pipeline.
For many agents in Southwest Florida, first-year startup and operating costs often land somewhere between $3,000 and $6,000 before any income arrives, assuming only the basics and minimal marketing. Depending on brokerage model, MLS structure, the tools an agent uses, and how intentionally they invest in growing their business early on, that number can climb quickly.
Seasonality matters here as well. An agent starting in Fort Myers, Cape Coral, or nearby markets in June may need to carry those costs longer before the market picks up again in the fall and winter. That longer runway catches many new agents off guard.
The gap between money going out and money coming in becomes one of the most common sources of stress early on. That pressure pushes agents to take whatever comes, before they’ve built enough stability to be selective.
Why Financial Pressure Changes Behavior
There’s a big difference between chasing a transaction and building a career. Financial pressure pushes new agents toward the first, even when they want the second.
When income feels uncertain, agents stop asking “What builds momentum over time?” and start asking “What might turn into a deal soon?” That doesn’t happen intentionally. It happens because bills are real and waiting feels risky.
This leads to the reactive pattern explored earlier in The Hard Truths About Starting a Career in Real Estate—chasing whatever shows up, saying yes to everything, postponing the relationship work that actually builds a pipeline.
Financial pressure pulls attention toward short-term transactions at the exact moment when long-term habits matter most.
What Financial Stability Actually Means Early On
Financial pressure pushes new agents toward chasing transactions, even when what they want is to build a career.
Larry Kendall, author of Ninja Selling, describes this as the difference between operating from scarcity and operating from abundance. When agents are under financial pressure, every conversation starts to feel like it has to lead to a deal. They need something from the interaction. That need comes through in their voice, in how they follow up, in the way they subtly push people toward a decision. Clients feel it, even when nothing is said directly.
When agents have enough runway to cover their expenses for several months, they can show up differently. They can listen without an agenda. Follow-up comes from genuine care, not from needing the deal. Walking away from a bad fit becomes a real option. That patience and presence is what builds trust—and trust is what makes up the foundation of a sustainable real estate career.
For most agents, that runway looks like six to twelve months of living expenses plus business costs set aside before the first transaction closes. Of course, many people start with less, and some still succeed. And let’s be real, those who do usually have something else working in their favor early on—another source of income, fewer fixed expenses, or support at home that reduces financial pressure while the business takes shape.
No one withholds taxes for you. Agents need to set aside 25 to 30% or more of every commission check for tax obligations that arrive later. This reality catches many new agents off guard.
Understanding this structure early supports better planning and steadier decisions about real estate agent finances and the way money works in a commission based business, especially in a seasonal market like Southwest Florida.
What New Agents Are Asking
A lot of agents do, and there’s no shame in it. Keeping income coming in while you build your database gives you room to have real conversations without needing every one to turn into something. The tradeoff is time. Real estate requires availability during business hours, which can be hard to manage around a full-time schedule. Some agents transition through part-time or shift-based jobs that leave daytime hours open. The goal is enough financial stability to do the relationship work consistently.
That’s more common than most agents would admit. Start by getting honest about your numbers: what’s going out each month, what’s realistically coming in, and how long your current situation holds. From there, tighten expenses where you can and protect your proactive time so the pipeline has a chance to build. Some agents pick up flexible work on the side to stabilize. The worst move is pretending the pressure isn’t there, because that’s when every conversation starts to feel like it has to lead to a deal, and clients notice.
A safe starting point is 25 to 30% of every check, moved immediately into a separate account you do not touch. No one is withholding taxes for you as an independent contractor, and quarterly estimated payments are your responsibility. Many new agents spend the full check and then face a tax bill they aren’t ready for. A CPA who understands commission-based income is worth the investment early.
It depends on what the team actually provides. If the team is generating leads, handling transaction coordination, and giving you real mentorship, a smaller split can be worth it because you’re learning while earning. The question to ask is whether the team is shortening the gap between where you are now and where you can sustain yourself independently.
Most who make it through had some combination of savings, a working spouse or partner, part-time income, or low fixed expenses. Very few funded the entire first year on commission alone. The highlight reel version of real estate skips the part where most agents are figuring out how to cover rent while building a business that hasn’t produced anything yet. The ones who plan for that reality give themselves time to build relationships the right way.
What This Means for New Agents
A career in real estate can be financially rewarding over time, but the first years require more stability than most people expect. Real estate agent finances work differently than salaried income, and misunderstanding that difference creates unnecessary strain.
When agents plan for uneven cash flow, seasonal slowdowns, ongoing expenses, and delayed income, they give themselves room to work consistently and make better decisions. That extra room often determines whether the first year feels manageable or overwhelming.
If you’re exploring what a real estate career could look like and want to learn more about Worthington Realty, you can read about joining our team in Southwest Florida or contact us to start a conversation.
This article is part of the Worthington Realty Agent Success Series, a 14-part series exploring what it actually takes to build a sustainable real estate career in Southwest Florida.
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