It’s pretty well-known that around 87% of new real estate agents fail in the first two years. But it’s not as easy to see why they fail. Real estate agents who make it usually seem to be doing so well, but it’s hard to see when you’re just starting how much work went into their success.
There are several reasons that most real estate agents fail. The most common include:
- Failure to follow up
- Not knowing how to market
- Failure to improve
- Not treating real estate as a business
- Fear of taking chances
There’s no single answer to why agents fail, but these are common pitfalls many new agents fall into. With a little help, you can avoid hitting those same pitfalls and failing right along with them. Keep reading below to see why real estate agents fail and how you can beat the odds and succeed.
1. Agents Fail To Follow Up
Lead generation is a tough game, but today there are tons of resources for doing it well. Many real estate agents know just what they need to do to generate the leads–but once they have them, they forget to reach out and follow up.
A lot of new agents run the ads they learned about from their brokerage. They go on Facebook or other social media sites, they put out signs, they give out business cards, etc. But once they get a few hits, they forget to follow up and engage those people in conversations.
I help agents generate leads when they join my team. In fact, I’ve generated THOUSANDS of leads for agents in the past several years. But I’ll bet that not even 50% of the leads I generate get a call from the agent.
It’s not a problem of ability. Most agents are good at striking up conversations and getting people interested. But then they go back to “being busy” and forget all about the people they talked to yesterday.
As a new agent, keep track of your leads and reach out to them. Don’t forget that a call back could be the tipping point that turns them from a curious lead into a dedicated client. You need to make contact and make it stick if you want to make it as an agent.
2. Agents Don’t Know How To Market Themselves
Starting out as a real estate agent can be hard, especially because there are already so many other agents out there. If new agents simply mimic all the agents already working in their field, they’ll never get any new clients.
As an agent, it’s important that you don’t get too caught up in yourself. You don’t want potential clients to see you as someone out to get the best commission possible from selling their home. You don’t want customers to see you as the center of the story.
Many agents make the mistake of painting themselves as a hero come to save the day. But clients can see right through that–they know that real estate agents are probably just doing what they do to make a paycheck.
Instead, agents should be painting the client as the hero. Keep the focus on what your client needs and wants and show them how to achieve it. In other words, you are meant to be the guide in the story, not the hero.
People don’t want a savior as much as they want their problem solved. If you can solve their problem, show them how instead of trying to convince them to hire so you can save them later.
3. Agents Fail To Improve
Many new agents think that once they’ve finished the required education, they’re good to go. Frankly, this just isn’t true. No job is stagnant, and adaptation (especially in real estate) is a MUST.
As a new agent, you need to keep learning from experts. Keep taking classes and getting involved in educational opportunities. Invest in making yourself great at your job, not just getting through it by guesswork.
Take classes on communication, negotiation, or anything else that’s a struggle for you. If you aren’t used to using it in other careers, you likely won’t get used to using it in real estate. You need to learn from experts who have had time to practice and find success. Don’t hesitate to seek education and training from your broker, other agents, or anyone else who can help you.
4. Agents Don’t Treat Real Estate As A Business
Real estate is known for providing agents with flexibility and a lot of personal and financial freedom. But many agents start out not realizing that they still have to work hard to get to that freedom. Without a boss, some agents simply don’t put the necessary time and effort into building a business.
New agents often fail to create a business plan and stick to it. They fail to realize that they are in charge of running a business, not just enjoying a hobby. As such, they fail to set out actionable goals that will get them the earnings they need to survive.
Many agents have no idea of the numbers that go into real estate. They don’t know how much it will cost to generate a lead or close a transaction. They don’t know how much they need to spend, need to make, and need to save. Without the numbers, they get lost and lose the money and momentum that could have gotten them through.
As a new agent, it’s important to know the numbers. Get help from an older agent or your broker and calculate what you need to spend and save in every category. Then, and only then, will you be ready for life as a real estate agent.
5. Agents Are Afraid To Take Chances
As new agents, it’s common to have fears of doing things wrong. There’s a lot to pick up in those first few months, in legal knowledge, sales tactics, and more. Out of fear, many agents simply sit back and let the brokerage make all moves and decisions for them.
New agents often rely on old marketing strategies that “have always worked” instead of trying new ones created for the new decade. Many are passive, refusing to reach out to leads over a fear of being rejected.
These are all legitimate struggles that agents face, but they shouldn’t dictate your business. Don’t be afraid to ask questions if you don’t understand something, but also be willing and eager to take risks. You don’t want to stay stagnant when the real estate world is growing around you.
Reach out to people. Don’t fear rejection from people you’ve never met–rather, fear failing and losing your new job. You’re going to have to take chances to make it as a real estate agent, but you won’t regret it when you do.
If you’re starting your real estate business and need help, don’t hesitate to reach out for guidance. I’ve helped hundreds of agents get their footing and find the leads they need to start their real estate business. Take a risk and get started building your future today!