Numbers are the language of business: Appointments, the number of phone calls made, the number of homes sold, gross commission income (GCI), and even future business plans. Money matters in the game of real estate. Let’s dive in.

Most of us know what GCI is, but what NCI is? Net Commission Income is the amount of money paid after taxes. An agent needs to be keen on personal and business expenses and keep a close eye on them.  These numbers are not only important but are vital when it comes to forecasting annual GCI and NCI.

Track income diligently to stay on track and achieve your goals. As a new agent, it is more challenging to budget income BUT a budget is critical so that as the business grows, the projections for growth are planned out. Keep in mind as a new agent the first commission check to account for fees and expenses and to save for future expenses. 

Everyone needs to pay income taxes. If you are working in the corporate world and earning $100k per year, the employer would take taxes out of the paycheck. Being a real estate agent is no different. The difference is that you are your own boss and are responsible for paying taxes. Talk to a CPA to set your business up the right way. As a business, there are different tax deductions that would minimize the amount of taxes owed each year.

Treat your business like a business and get a business checking and savings account. Understand your income, expenses, and future goals to be fiscally responsible. It’s so easy to make money but to have a functioning and profitable business, it takes skill, effort, and commitment. Start small, consult a CPA and/or tax accountant, and celebrate the little wins. You will thank yourself in the long run!