Introduction: Embrace the Virtual Entrepreneurship Journey
If you haven’t met me (Hey!!) my name is Joni and I am the founder of The Transaction Coordinator Bootcamp and a Real Estate Broker since 1987…yes 1987! I've helped aspiring entrepreneurs like you since 2019 ditch the 9-5 grind start their own online transaction Coordinator business working from home.
Being able to work from home and make a decent income is a dream for many people. I get it. I have been able to work from home as a real estate agent for many years.
Essential Steps to Launch Your Transaction Coordinator Business
Learning how to start an online transaction coordinator business is easier than you think. There are a few key items you need to think about first to be successful. Below is a guide to starting an online business as a Transaction Coordinator. Being a TC in the real estate industry is a great niche because it's in demand and agents need their help.
Choosing Your Business Name and Brand Identity
- Start with a Strong Name.
Starting an online Transaction Coordinator business can be daunting, but there are a few key things you can do to set yourself up for success. One of the most important steps is choosing a business name.
Take your time in choosing a business name - it's an important decision that will lay the foundation for your business's success.
Learn more in my guide about creative ways to choose a business name in our Transaction Coordinator Shop here: The Ultimate Guide to Choosing a Business Name
This name should reflect your business's mission and values and be easy to remember. It's also important to make sure your business name is available as a domain name. You can check availability on sites like GoDaddy or Namecheap.
Staying consistent with a website name and social media name will help keep your brand cohesive.
Once you've secured your business name, you can begin working on developing your brand identity. This process will help you attract customers and build loyalty among your target audience. With a little planning and effort, you can choose a business name that will help you achieve success.
- Build Your Brand Identity.
Once you've chosen a business name, you can create a brand identity around it. This might include designing a logo, choosing a color scheme, and developing a tagline.
A strong brand will help customers know what to expect from your business and will make your business more memorable.
Structuring Your Business for Success
- Decide on Your Business Structure.
You'll also need to decide on a business structure. Several options are available, and the one you choose will impact taxation, liability, and even day-to-day operations.
It's worth taking some time to learn about the different types of business structures available to help you make the best decision for your business.
The most common business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each has its advantages and disadvantages, so choosing the one that makes the most sense for your business is important.
The Small Business Association (SBA) is a great resource for learning more about business structures and how to choose the right one for your business.
Once you've decided on a structure, you'll need to apply for an Employer Identification Number (EIN) from the IRS. This process is relatively simple, and your EIN will be required when you file taxes at the end of the year.
Navigating Real Estate Licensing Requirements
- Understand State-Specific Regulations for Transaction Coordinators.
A question that I often get is “Do I need a real estate license?” I can tell you that every state has its own licensing rules. My home state of Washington does not require a license. However, there are rules about what a real estate TC and real estate assistant can and cannot do in every state.
While most states do not require a license to work as a Transaction Coordinator, a handful do. This doesn’t mean you cannot work as a TC; it just means that you will need to look for a state that does not. If you decide later that you want to get your real estate license to work in your home state, if it is a requirement, then you could at that point.
Setting Financial Goals and Pricing
- Establish Income Goals.
One of the best pieces of advice I can give when it comes to setting your income goals is to work backward. Start with the amount you want or need to make each month, and then figure out how many transactions you would need to close to reach that goal.
For example, if you want to make $5,000 per month, and the typical transaction coordinator fee is $300-$500 per transaction, you would need to close 13 transactions at $400 per transaction. Of course, this doesn't mean you need to find 13 different agents to work with.
You could close fewer transactions if each one were for a higher fee. Or you could work with a team of agents, closing many monthly transactions. It is important to identify the income goal you want to reach and then create a plan for achieving it.
Working with busy agents closing a lot of sales each month are the agents to target working with.
Mastering Real Estate Terminology
- Learn the Lingo.
When you first start an online Transaction Coordinator business and enter the world of real estate, it can be intimidating. There is a lot of lingo and acronyms that can be confusing. However, learning the lingo to build trust with your real estate agent is important. They need to know that you understand what they are talking about.
Like any other industry, real estate has its own lingo and acronyms. For instance, a PSA (Purchase and Sale Agreement) is a legally binding contract between a buyer and seller. An EM deposit (Earnest money deposit) is a good faith deposit made by the buyer to show their commitment to the purchase.
Understanding what the agent is talking about is very important to have their trust that you know what you're doing. If you can learn the key terms, you will be on your way to understanding the real estate industry.
Marketing Strategies for Attracting Clients
- Networking and Outreach.
There are many ways to find potential real estate clients that do not cost anything, but here are just a few.
- Go to a Real estate office weekly meeting and give a presentation on your services
- Go to open houses, talk to the agent doing the open house, and share your services.
- Network at the local Chamber of Commerce.
- Find Facebook realtor groups. There are a TON of FB groups dedicated just to real estate agents.
- Go where the agents advertise. Places like Zillow and Trulia are good places to find agents putting themselves out there for you to connect with.
- Call a few local agents you know. Ask if they need help in their business and, if not, who they could refer you to.
- LinkedIn is an awesome place to connect with real estate agents in your area for free.
Crafting Your Pitch
- Develop a Personalized Pitch Template
Construct a great email to agents in your community asking if they need any help in their business. Make it personal and genuine. Do not mass message them or they won't receive your email well. That would be considered spam. Save yourself time by only contacting agents who are the top producers. Your ideal client is not the agent that sells 6 homes per year. Fun fact: 20% of the agents out there make 80% of the money.
Streamlining Client Onboarding
- Create a Smooth Onboarding Process
Develop a seamless process for bringing new real estate clients to your business; as a result, you'll have raving fans immediately. First, have a welcome packet or onboarding packet. This packet should include information about your services, a contract, expectations of when and how you'll be paid, prices, business hours, and the best way to contact you.
Always have your clients sign a contract with you. Laying out the terms of the agreement, expectations, and services you will provide are a must and will prevent any issues down the line. That should be a must in your onboarding packet.
Check out our TC Shop for our TC Service Agreement template and TC legal Bundle here.
Choosing the Right Systems and Tools
- Organize Your Operations
Being organized will make you look more professional, make your life easier, and make your business easier to scale to earn more income. Will you work from a simple Transaction Coordinator checklist or use software specifically for transaction coordinators? Starting out can be as simple as a transaction coordinator checklist; however, as you get busier, you will want to invest in some online system.
Managing Your Finances
Decide on what bookkeeping system you will use to track your income and expenses. Freshbooks or Honeybooks are good choices. However, if you are good with Excel or Google Sheets, that's an easy way to track things for free.
Leveraging Testimonials and Referrals
- Showcase Success Stories
When you start an online Transaction Coordinator business, make sure your website and FB page have testimonials from the agents you work with once you get a few clients. This will give you the credibility to add new clients to your business. Word of mouth from agents you work with will also be a great free way to gain clients. If you are amazing at the service you provide, then agents will always be good at referring business your way.
Engaging with Potential Clients Through Social Media
- Select Effective Channels
I can tell you from experience that many agents are on Facebook. Many agents have a business page and do a lot of advertising on Facebook, which is a great way to connect with them.
I suggest having a business FB page for agents to see your business because it looks more professional. You can link your website to your business FB page, where they can learn more about your services.
Having a business page is different from a personal page. You want to keep it professional, and a business page is a way to do it.
If you found these tips helpful on how to start an online Transaction Coordinator business working from home, please don't hesitate to let me know!
I would love it if you left a comment below letting me know your thoughts, or you can always contact me directly at hello@inspiredhouseandhome.com. I will read and reply to every email that comes through! Let me know if you have thought about making money from home and what is holding you back from starting.
Check out these other posts:
The Transaction Coordinator Bootcamp
