How a real estate marketing company makes money
A real estate marketing company does not sell units it owns; it sells a service: bringing the buyer to the right unit and closing the deal. Its main income is a commission the developer pays on every unit it sells from the developer's projects, sometimes a commission from the seller or buyer on resale deals between individuals, or fees for managing rental units. So the revenue formula is simple: deals per month × average unit price × commission rate.
The difficulty is not the formula but its timing. Advertising, salaries and rent are paid every month from day one, while the commission arrives only after the team finds the buyer, persuades them, signs the contract with the developer, and then waits for the developer to pay out. That waiting period sets the capital you need, and it is the first thing a good feasibility study calculates.
Licensing: registering in the real estate brokers' register
Before the numbers, check the new legal framework. If your business is intermediation in buying, selling or renting property, note that a mandatory official register of real estate brokers has been created at the General Organization for Export and Import Control (GOEIC), and people working in the activity must register in it and pass specialised training programmes1. This came under the executive regulations of Law 120 of 1982 regulating commercial agency and some commercial intermediation, as amended by Law 21 of 20221.
On 25 January 2026 the Ministry of Investment and Foreign Trade issued a decision amending the executive regulations and gave people already in the business 6 months, starting the day after the decision was published2. The grace period ended in July 2026, and since then only brokers recorded in the official register may practise1. The rules also require documented electronic records of operations, contracts and commissions2, and transparency in disclosing commissions1. In April 2026 the ministry announced it had caught a person practising real estate brokerage without a licence1.
From Maher Consulting Firm's own incorporation files for this activity (October 2026), the person with management and signing authority in the company, not the other partners, is asked at incorporation for:
- A criminal record certificate addressed to the General Organization for Export and Import Control.
- A recent extract of their birth certificate.
- Attendance at a real estate marketing training course at the Organization.
These requirements can change, so check them at the time you incorporate.
In practice: put a cost and time line for registration and training before your first deal into your feasibility study, and do not assume you can start first and register later. Check the detailed registration conditions with a specialist before you incorporate; Maher Consulting Firm can handle company formation.
Monthly costs of a real estate marketing company
The three biggest cost lines in this business are the team, advertising and premises. Some of the figures are set by law and leave no room for estimates:
- Wages: the National Wages Council raised the private-sector minimum wage to EGP 7,000 a month from 1 March 20253. Many marketing companies pay a fixed salary plus commission; the example below assumes a fixed salary equal to the minimum.
- Social insurance: the employer pays 18.75% of the insurable wage and the employee 11%4; the employer's share is a cost on top of the salary.
- Advertising: a variable line you control, but you pay it before you know whether it will bring a serious buyer.
- Office, a client-tracking system (CRM), phones and an accountant.
Illustrative example: how much capital do you need before the first commission arrives?
This is an illustrative example. Its figures are assumptions to explain the method, not market prices or standard commission rates. A small company starts with three sales agents:
- Start-up costs: EGP 150,000, split as in the table below.
- The owner manages the team and draws no salary in the first year. If you will draw one, add it, and the cash need will rise.
- Fixed monthly expenses and advertising (advertising is held constant in the example): salaries of 3 agents × 7,000 = EGP 21,000, the employer's 18.75% social-insurance share = EGP 3,937.5, rent EGP 15,000, advertising EGP 40,000 and other expenses EGP 8,000. Total EGP 87,937.5 a month.
- Commission: average unit price EGP 4,000,000 and an assumed commission rate of 2%, so EGP 80,000 per deal. The agent receives 20% of it (EGP 16,000) when it is collected, leaving EGP 64,000 for the company.
- Deals: none in the first two months, one deal in months three and four, two in months five and six, and three a month after that.
- Collection: the developer pays the commission 3 months after the deal, so a deal signed in month 3 is collected in month 6. Commissions in the example are before VAT.
| Start-up cost item (assumption for the example) | EGP |
|---|---|
| Office fit-out and furniture | 60,000 |
| Rent deposit (two months) | 30,000 |
| Devices and client-tracking system | 35,000 |
| Incorporation, registration and training | 25,000 |
| Total | 150,000 |
Monthly break-even = 87,937.5 ÷ 64,000 = about 1.37 deals, so two deals a month, and that calculation does not include recovering the start-up costs. But the cash tells a different story (selected months; cash out = monthly expenses + EGP 16,000 to the agent for each commission collected):
| Month | Deals signed | Commissions collected | Cash in (EGP) | Cash out (EGP) | Cumulative balance (EGP) |
|---|---|---|---|---|---|
| 1 | 0 | 0 | 0 | 87,938 | -237,938 |
| 3 | 1 | 0 | 0 | 87,938 | -413,813 |
| 5 | 2 | 0 | 0 | 87,938 | -589,688 |
| 6 | 2 | 1 | 80,000 | 103,938 | -613,625 |
| 7 | 3 | 1 | 80,000 | 103,938 | -637,563 |
| 8 | 3 | 2 | 160,000 | 119,938 | -597,500 |
| 10 | 3 | 3 | 240,000 | 135,938 | -453,375 |
| 12 | 3 | 3 | 240,000 | 135,938 | -245,250 |
(The cumulative balance starts from the EGP 150,000 of start-up costs as a negative figure; amounts are rounded to the nearest pound.)
Although the company signs 3 deals a month from month seven, more than break-even, the deepest cash need reaches EGP 637,563 in month seven, and at the end of the first year the cumulative balance is still EGP 245,250 negative; it does not turn positive before month 15 if the 3 deals a month continue. If the developer paid commissions after 6 months instead of 3, the deepest cash need in the first year would rise to EGP 901,375. So the question "how many deals do I need?" matters less than "how many months can I hold out until the commissions arrive?". The difference between profit and cash is explained in detail in our article on cash flow for small businesses.
Cost per deal from advertising
In the example, EGP 40,000 of advertising a month with 3 deals means each deal cost about EGP 13,333 in advertising. If one potential client (a lead) costs EGP 250, the budget brings 160 leads, and about 1.9% of them need to turn into deals to reach 3 deals. These rates are all assumptions for the example, but the method is what matters: calculate the cost per deal, not the cost of the ad, and compare it with what you keep from the commission. If you do not yet know your conversion rate, start with a small advertising budget for two months and measure the results before you scale it up.
Tax on commissions
A commission is a service, and the general rate of value added tax on goods and services is 14% from fiscal year 2017/20185, while the mandatory VAT registration threshold is EGP 500,0006. Anyone whose sales reach this threshold in any fiscal year or part of one must register within 30 days of reaching it5. In the example, commissions collected in the first year reach EGP 1,200,000 before VAT, above the threshold, and cumulative collected commissions pass EGP 500,000 in month ten. The tax you collect on a commission is not your income, so work your figures before tax, and check your VAT position and the profit-tax regime that applies to you with an accountant or with Maher Consulting Firm.
Commission risks you should price in
- Cancelled deals: if the buyer cancels, the commission may not be paid or may have to be returned. Read what your agreement with the developer says about this, and include a share of cancelled deals in the pessimistic scenario.
- Payment conditions: the commission may be tied to the buyer paying the down payment or part of it, so agree in writing when the commission is earned and when it is paid.
- An agent who leaves with the clients: keep client data in a system the company owns, not on the agent's phone, and state in the employment contract that clients belong to the company.
Steps to start a real estate marketing company
- A feasibility study that calculates the capital needed until the first commissions are collected, not until the first deal.
- Incorporate the company; Maher Consulting Firm can handle the formation.
- If your activity is brokerage, register in the real estate brokers' register and pass the required training.
- A written agreement with the developer setting the commission rate, when it is paid, and what happens on cancellation.
- Set up the team and the client-tracking system, then test advertising with a small budget.
Common mistakes in a real estate marketing feasibility study
- Counting revenue from the date the deal is signed rather than the date the commission is paid.
- Relying on a single developer, so if they pay late or their project stalls, all your income stops.
- Forgetting the agent's share of the commission, or paying it before the company has collected from the developer.
- Raising the advertising budget before measuring the conversion rate.
- Starting before confirming the brokers' register requirements and the required training.
- Capital that covers only three months, when the first commission may not arrive before month six.
To judge an investment over years rather than months, read our article on NPV and IRR explained, and for break-even and working capital in detail see our article on break-even and working capital. If you are looking at the other side of the market, see a property development feasibility study.
Frequently asked questions about a real estate marketing feasibility study
Do I need a licence to open a real estate marketing company in Egypt?
If your business is intermediation in buying, selling or renting property, people working in the activity must register in the official real estate brokers' register at the General Organization for Export and Import Control and pass specialised training programmes, and since the grace period ended in July 2026 only registered brokers may practise1. From Maher Consulting Firm's incorporation files, the registration documents and training course are required at incorporation of the person with management and signing authority in the company, not of the other partners.
How much capital do I need to start a real estate marketing company?
It depends on the size of the team, the advertising and how long it takes to collect the first commission. In this page's illustrative example, a company with three agents needed EGP 637,563 at its deepest point, even though its start-up costs were only EGP 150,000, because commissions arrive months after the deal.
How many deals a month does the company need to cover its costs?
Divide the fixed monthly costs by what the company keeps from each deal after the agent's share. In the example: 87,937.5 ÷ 64,000 = about 1.37, so two deals a month, but that does not cover the wait until commissions are collected.
Are real estate marketing commissions subject to VAT?
A commission is payment for a service, the general VAT rate on goods and services is 14%5, and the mandatory registration threshold is EGP 500,0006. Check your tax position with an accountant before you set your prices.
Sources
- General Organization for Export and Import Control (GOEIC). وزارة الاستثمار والتجارة الخارجية بالتنسيق مع الجهات المعنية تضبط واقعة مزاولة نشاط سمسرة عقارية بدون ترخيص (in Arabic) (2026-04-28). Checked 22 October 2026.
- Al-Ahram Gate. ضوابط مهمة لمزاولة نشاط السمسرة في العقارات.. تفاصيل (in Arabic) (2026-04-27) — secondary source. Checked 22 October 2026.
- Ministry of Planning and Economic Development. الاجتماع الأول للمجلس القومي للأجور: رفع الحد الأدنى لأجور القطاع الخاص إلى 7000 جنيه (in Arabic) (2025-02-09). Checked 22 October 2026.
- Andersen Egypt. Social insurance in Egypt (contribution rates under Law 148/2019) (2026-06-30) — secondary source. Checked 22 October 2026.
- Financial Regulatory Authority. قانون الضريبة على القيمة المضافة رقم 67 لسنة 2016 وفقًا لآخر تعديل (in Arabic). Checked 22 October 2026.
- Egyptian Tax Authority. ما هو حد التسجيل الإلزامي لضريبة القيمة المضافة، وما هي الأنشطة المعفاة منها؟ (in Arabic). Checked 22 October 2026.