Why 90% of New Real Estate Agents Fail.
Millions of people in the United States are training to get their real estate license at any given time. With the promise of a lucrative payout and large commissions, a glimmer of hope shines in the eyes of newly licensed agents. For 4 out of 5 agents, this glimmer of hope will soon become a much dimmer light, then a dull one. Simply put, real estate is a tough industry… but not a lucky one. Those who make it show similar patterns and trends in work ethic, habits, and practices. In this article we’ve broken down reasons why most agents fail. Hope you learn something!
The #1 reason real estate agents do not make it past the first year is that they did not anticipate the costs and efforts that must be put into real estate in order to be as successful. With NAR (National Association of Realtors) fees at Record highs and a costly licensing process, every agent should expect to put $3-4,000 of their own money into the profession before even making a sale. With shows such as Property Brothers & Million Dollar Listing fantasizing the lifestyle that can be achieved through real estate, many new agents sign up on a whim and are not prepared to spend their savings to start their own real estate journey.
You have the $4,000 saved as well as some additional savings to cover living expenses for a few months before you sell your first home – Fantastic. The other major barrier that you will have to overcome is real estate is a connection based industry. Your first clients will be from what is know as your “warm circle of influence”. People in this category are your friends, family members, acquaintances, co-workers, etc. This is a major start up barrier only if your warm sphere of influence is small or entirely distanced from the real estate market.
If you do not have a large sphere of influence, try networking using Google Ads, going to Local Networking Events, Showing Open Houses, and engaging with more conversations with strangers. The best real estate agents are those who let everyone on the street, and their mothers, know that they are real estate agents. Human nature often suppresses those urges to vocalize your career, but the Law of Averages is an important sales tool in Real Estate.
In short, this means if I tell 100 strangers I am a real estate in conversations, on average 1 person may need my services within the following few months. This is hard work with lots of conversing, but it is how new agents without an internal sphere of influence can become successful.
To understand more prospecting and client acquisition skills and techniques visit our page here: https://www.darrylturner.com/real-estate-coaching/
Accountability & Lack of Coaching
One of the most appealing parts of real estate is also one of the biggest reasons new agents fail – you are your own boss. This means one has to hold themselves accountable to working consistent hours every day. Believe it or not, this is much harder than one expects. Unlike working directly for a company, real estate agents are independent contractors meaning you do not get paid unless you do the work to attract business.
If you do not have a coach, a loved one, or a strong enough reason to hold yourself accountable, then you will likely not succeed in real estate. Until you’ve built your sphere of influence to be sustainable, being an agent requires a lot of monotonous and repetitive tasks.
Having a coach is more than just learning about ways to attract and retain new clients. It is more than getting insightful, trend-setting knowledge on the real estate industry. It is a guiding hand, a motivator and an accountability partner. With a business coach, you will never miss out on sales calls, never forget to follow up with prospects, and more importantly will have a much higher chance of finding the success you sought when deciding to get your real estate license.
Darryl Turner Corporation is a Nation-Wide Coaching agency that has brought it’s clients over $330M in revenues. Click on the link above for a free consultation to learn what you may be doing wrong and what we can do to help you sell more.
“Why Real Estate Agents Fail”