The statistics say, most new agents (87%) fail in the first 2 years in the industry. WOW! That’s horrible!
Can you imagine? You layout the money for the 90 hour broker class, pass the test, pay to take the state exam and pass, join and pay the local MLS dues (annually), quit your current job and work without an income while trying to make it as a new agent when odds are not in your favor to succeed.
The question is “why?”
Reasons New Agents Fail in the First 2 Years
#1 – They think Real Estate will be easy.
Yup, such a myth! They think they will write a purchase agreement and 30 days later collect a commission check. Wrong!
There is no overnight success in real estate unless your entire sphere of influence is in the market to buy and sell as soon as you hang your license with a brokerage. Most successful agents have been working at it for years – building relationships with people who then become clients. Sound fast or romantic? It’s not.
A real estate agent gets out of it what he/she puts into it. If you put nothing in, that’s what you’ll get. It’s simple, not easy.
#2 – They Don’t Treat it as the Business it is
That’s right! Most new real estate agents think their managing broker is their boss. They look at it more like an employee/employer relationship except they get a 1099ed commission check! That is far from the truth.
You are your own boss; you are a business owner. You have to do the activities it takes to be successful whether anyone is hold you accountable or not – you have to hold yourself accountable! This is a very hard mindset for some people to get used to. You are in charge of your time, activities and results. You and you alone!
#3 – They don’t Lead Generate
The foundation of a successful real estate career is lead generation – meaning, you have to find the people who are looking to buy or sell homes. You can’t sit around and wait for them to find you! Taking advantage of or seeking out training in how to lead generate is necessary. Choosing the right brokerage for training helps too!
Successful agents know this and spend time everyday lead generating so they continue to have business. Lead generation and lead follow-up are not optional if you want to succeed in your real estate career.
#4 – They don’t know how to Market Themselves and Business
Real estate is a relationship business, period. Most new agents are so hung up on making a paycheck and fast, they forget this. Relationships take time; trust takes time.
Marketing yourself in the “Look at me, Look at me!!” manner doesn’t work anymore. People are tired of seeing agents only promoting themselves, their listings or open houses. It’s not about you, it’s about them. Let me say that again – “It’s NOT about you; it IS about THEM!
Some agents haven’t figured this out and 87% end up out of the business before they do figure it out… if they do.
#5 – They don’t have Plan
Any successful business has a goal(s) and a plan to achieve that goal(s). Entering the real estate industry and flying by the seat of your pants means you are ripe to end up as one of the 87% who don’t make it.
The goals are pretty easy to name – # of sold units & $ in sales volume. The plan comes into play when you devise systems and processes to achieve the goals.
How are you going to sell X units? How are you going to sell X dollars in volume. Just naming the goal is the simple part. Making a plan, naming and DOING the activities needed to reach the goals is the key!
We need good agents in the real estate industry. Losing 87% of the new agents all the time means their is plenty of room for the rock star agents!
If you want to talk some more about a career in real estate, hit us up! We’ll give you the TRUTH about what it takes to be a successful agent.