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Why 87% of Real Estate Agents Fail in the First 5 Years

Why 87% of Real Estate Agents Fail in the First 5 Years

It’s a known fact that the real estate business is a thriving business, which is why many people are diving into it, and yet, 87% of real estate agents fail within the first 5 years of being in the business! If you’re a real estate agent, and you’ve been in the business for some time, and you’re still not getting what you’re expecting, chances are you are one of the 87% that will most likely fail – if you don’t ACT now!

The reality is that a large percentage of real estate agents fail due to the following:

  • They really want to earn their living in real estate sales.
  • They did not anticipate the additional expenses such as taxes and commission percentages, marketing cost, training, and other expenses that must be deducted from their actual take home income.

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Often, new real estate agents just can’t afford all the expenses associated with getting started in real estate sales. An immediate solution for this is to join a team of real estate agents. The downside of being on a team is you have to share the commission and profit within the team for each sale, but there is far more upside to this kind of arrangement as you are rewarded with several people who can do more leg work than you can in looking for leads and you’ll have more chances of getting sales as a whole.
On balance, the vast majority of agents make far more NET income on a team than they do going it alone.

What are the common problems facing Real Estate Agents?

  • Agents are bombarded with far too many shiny objects, and it becomes difficult to concentrate on important things like leads.
  • Suffering from the “Magic Pill Syndrome”, and thinking that any ONE THING will solve their problems.
  • Listening to “Guru’s” who have never even sold real estate.
  • Overestimation of short term income potential.
  • Underestimation of long term income potential.
These are some of the problems facing real estate agents today. That being said, there is a silver (or perhaps even ‘golden’) lining! Here are some of the suggestions that could help you become one of the 13% of real estate agents that will succeed:
  • Join a team of successful real estate agents. This way, you’ll have the privilege to join training sessions, receive support from your teammates, generate more leads collectively, and have more access to a systematized infrastructure.
  • Work hard on it; especially during the first few years.
  • Stop listening to negative people and focus on taking advice ONLY from agents who have earned what you want to earn.
  • Practice and recite daily affirmations, and program your brain for success!
  • Remember: Garbage in – garbage out. Don’t let negativity into your brain. You will get out of your mind what you put into it.
  • Be cool. Not like “Rockstar” cool, rather be authentic. Don’t try to be something or someone you’re not. The right people will be attracted to who you “really” are.
  • Stop spending so much time getting ready to be ready. Use the Ready-Fire-Aim approach.

Reasons Why Real Estate Agents Fail

  • “Bad habits” or lack of good habits.
  • Not punctual (seriously, showing up late is an epidemic in the real estate world).
  • Bad work ethic (always making excuses), and/or poor work habits.
  • Believing that being busy means the same thing as being dollar productive.
  • Poor time management (Refer to our Perfect Daily Schedule blog for a more detailed time plan).
  • Call reluctance.

So I am failing, now what?

Let’s face the fact that the real estate business is not a walk in the park. You’re not going to make a great living hanging out at broker’s open houses whining about how “Buyer’s are liars and sellers are worse!”. You have to streamline everything, develop systems, and follow a set and effective routine in order to become successful. Here is what 90% of your real estate-related activities should entail:

 

  • Lead Generation. This is the most important daily activity, and should always be performed prior to noon.
  • Lead follow-up. Speed to lead and frequency of follow-up matters. Remember, the fortune is in the follow-up!
  • Lead conversion. This is the fruit of consistent follow-up. There are only two acceptable outcomes for appointments:
    1.    Write a contract
    2.    Set next appointment

I have a leads and appointments, now what should I do?

Now that you’re progressing, it’s often exciting to have a lead or have set an appointment, but please, take a deep breath, and be aware of some do’s and don’ts:
When following up with a lead…
  • Don’t say, “So, are you ready to sell or buy yet?”
  • Do say, “I just want to make sure I am not dropping the ball on my end.”
When closing an appointment…
  • Do ask, “Would Wednesday or Thursday at 5 p.m. be better for you?”
When converting a lead…
  • Don’t require them to get pre-qualified.
  • Do say, “When would you like to see it? Would Wednesday or Thursday at 5 p.m. be better for you?”
  • There is only ONE GOAL on lead calls: GET AN APPOINTMENT
When converting an appointment…
(For buyers)
  • Do say, “At what prices would this be a great deal for you?”
  • Do say, “Which of the homes were seen today would you like to make offers on?”
  • Do say, “When would be the best time to make an offer?”
(For sellers)
  • Do say, “Are there any other questions before we get started on the paperwork?”
  • For more information, watch and listen to the video on this page, and don’t forget your FREE download!

As our way of saying thank you for taking the time to read this blog, we invite you to a FREE 55 minute NO PITCH one-on-one coaching call with a Club Wealth® coach! Request Strategy Session!

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