Small independent real estate brokerage

Home sellers and buyers pay commission, and your agents pay you a share of their commissions or fees.

A cut of each closed deal by you and your agents, plus any desk or transaction fees you charge. Costs include software, insurance, marketing and an office if you have one.

• Several years of agent experience, as many states require
• Managing and coaching other people
• Understanding contracts and compliance
• Local marketing and recruiting

• Broker license requirements and experience rules differ by state, so check with your state's real estate commission
• As broker you are responsible for your agents' compliance, so check supervision duties and your liability
• Check rules on trust or escrow accounts for client funds, and on advertising your firm's name
• Check local business license, zoning and lease rules for any office, and home occupation rules if you work from home
• Recruiting good agents takes time, and costs continue in slow months

Startup costs are typically around $5,000 to $25,000, depending on whether you rent an office or work mostly virtually. These are estimates. Costs continue in slow months, so plan for that.

Monthly revenue is typically around $3,000 to $15,000, depending on your own deals and your agents' share. These are estimates. Recruiting good agents takes time, so check you can cover costs while you build.

Broker license and experience requirements differ by state, so check with your state's real estate commission. Also check your supervision duties and liability for your agents, and rules on trust or escrow accounts for client funds.