According to a recent study on real estate agent income, most new agents double their income soon after starting their businesses.

Those in their first year reported an average annual income of just $19,375, the study found. However, those who’ve been in business for three years saw their average earnings jump to $41,023….

Most full-service brokers know this time period in an agent’s tenure is where the highest margins are realized from the recruiting process.

Once an agent is established, two things happen:

1. Income Growth Slows: It takes until year 10 for income to double again (those in the business for 11 to 25 years earn $83,177 per year).

2. Splits Favor Agents: With an established track-record, agents demand higher splits and brokers see diminished margins.

The research also revealed the early years of fast growth is when agents most value the support of their companies:

“Agents that have the most [early success] are those that find a supportive brokerage and seek out a knowledgeable mentor for guidance.”

Bottom line: If your company has a knack for finding new agents and helping them establish their careers, there’s still good profit margin in this business activity.