Why Most Broker/Owners Don’t Turn a Profit — RISMedia

Owning a real estate brokerage may seem like a lucrative business, but in reality, many brokers struggle to turn a profit. Despite the appeal of running their own operation, most find themselves facing financial challenges due to high overhead costs, intense competition, agent commission structures, and ineffective business strategies. We’ll break down the key reasons why most broker-owners don’t see the financial success they anticipated.

1. High overhead costs

One of the biggest obstacles broker-owners face is the high cost of running a brokerage. Expenses such as office space, marketing, technology, insurance, legal fees, and staff salaries quickly add up. Many brokers invest heavily in large office spaces and expensive branding efforts to…