How much of your gross commission income (income to you after your split with your broker but before taxes) do you spend on real estate related business expenses? I've been paying closer attention to these numbers lately, and have found a good tracking system to be helpful. Last year I spent a whopping 33% on all business expenses, everything, and advertising was 16% of that 33%. This year, so far, I have spent 26% on all business expenses, and 8% on advertising. My income is going to be a little more this year than last.

Do you know what percentage you spend on expenses and advertising? Just curious so I can get an idea of where I am compared to other agents, and what is the norm, because I have no idea. Thanks!

Does anyone else track their business expenses?

My expenses ranged from 15% (once I stopped spending money on print advertising) to 75% (the year I paid to stage all my listings and the market crashed without notice - I had 27 staged, unsold listings that were withdrawn).

Typically, my total expenses were around 50%, which included splits, gas, phones, home office and other expenses that I'd probably have as a "regular" person, but got to write off due to my self-employment status.

I started to track them but got disorganized. I'm going to turn over a new leaf in January. LOL

I do know that my expenses will total at least $8,000 and that's just to stay legal, keep the car on the road, and pay a babysitter. Does not include promotional stuff like new business cards, mailers, etc.

Thanks for the input. My husband has always tracked all expenses, business and personal, but I never paid attention until about a year ago when I realized we had been spending a ridiculous amount of money on certain marketing and advertising with a terrible return. When I started caring more and studying the ROI, and where it came from, I made changes that are finally paying off.

Always keep track of your expenses, no sense pay tax on income that was in fact offset with expense (and don't expect the IRS to accept "guestimates"!).

you pay taxes?

taxes? thats how I got to Mexico, Canada put in place a GST tax I interpreted it to mean Go South Today lol

I learned real quick to track ALL expenses years ago, when I had $16k due in taxes on Apr. 15, even after having paid quarterly estimated taxes, which obviously had been insufficient.