$6 Million a Year in Commission!

Its every business owners dream to become a multi-millionaire but few ever actually realize that dream. Maybe its because some people are more in love with the idea of being rich and not neccesarily with the ‘work’ of being rich. Thats where the divide begins. Last year I decided that this year would be the year I got my real estate license in New Jersey and I began calculating how many houses I would have to sell to make a million dollars, and at what price point. That number was staggering. Lets say I decide to focus on selling homes worth $500,000 at a 6% commision. That would come out to $30,000 commision per sale. When you factor in the 70/30 split that Keller Williams takes as their share from every new agent, I would actually only be taking home$21,000. I would have to sell 47.6 houses at $500,000 to make one million dollars. Now at first glance it doesnt seem like a lot, especially in New Jersey where the average home price is around $450,000 in north New Jersey. However when you factor in the cold hard truth that the average realtor wont close 47 sales in a year, and that alot of home sales contracts may get signed but sometimes never close, then that million dollars seems further away.

Being the kind of guy that I am, I continued to think about how could I make over a million dollars without having to sell that much property. The first thing that came to mind is COMMERCIAL PROPERTY! Number one it’s more expensive for commercial property typically and that automatically means higher commissions. Thats where it hit me. If I focus on commercial property that is commercial like apartments buildings which in New Jersey typically are above $2 Million, then I could become a millionaire faster. So the magic number that popped in my head was $6 Million dollars. How do I make $6 Million Dollars? My calculations began and I came up with this formula. If I sell just FIVE $5 Million Dollar properties at 6% commission, thats $300,000 in commision. When you minus 30% for my brokerages cut, thats $210,000. So in order to make $1 Million dollars I only have to sell five commercial properties worth $5 Million dollars at a 6% commission. In New Jersey those properties are very very very common, especially in Bergen & Hudson county. To me making a million dollars now seems like a piece of cake. As it began to look more in reach I began to think bigger.

So if I only have to sell five properties to make a million then how to I make $6 Million. Still wanting to be realistic but at the same time set high goals as it would not be an easy road to get these listings, I thought to myself if I sell $100 Million at 6% commision then thats $6 Million dollars in commission. I began to calculate again, if I sell ten $10 Million dollar properties thats $100 Million in sales. Its a huge goal but its not impossible at all especially in north new jersey. So now i am starting off my 2017 planning my lead generation campaign to target these property owners who may be looking to sell. Ive developed an excel database complete with the contact information of the wealthiest residents and property owners in NJ. The money is in the propspecting of your leads. I believe that in order to live a big life you have to try big things, I look forward to giving this a shot and Im confident that this will be the year I break $1 Million dollars in commission.

In 2014 I wrote a book based on the principles I thought were neccesary to create wealth for yourself. Alot of these principles were based on the ideas of my creative wandering mind, semi wrapped around my own common sense and desire to be successful. I believe that success isn’t a defined path, its a path that is created by whoever decides to make one for themselves. Everybodys road to success is different, the great thing about it is that you get to choose between copying someone elses or forging your own path.

Tosin Oduwole

IG: Tosin_Oduwole