Why 87% of real estate agents fail
Let’s talk about something startling: Back in 2014, the National Association of Realtors reported that a whopping 80% of new agents fail to finish their first year in real estate. Further, 87% don’t make it past five years. And it’s certainly not because they’re rolling in too much cash; it’s because they’re not making enough. Shocking as it may seem, it’s the hard truth of our industry. But don’t let that scare you off. We’re about to dive deep into the five big reasons why most real estate agents fail, and I’ll even throw in some handy tips to help you thrive in real estate.
Is real estate a tough gig?
Well, that depends on how you define ‘tough.’
The day-to-day work? It’s not just bearable; it can be downright enjoyable – chatting with clients, guiding them through one of their biggest life decisions, being there during crucial transitions. The real challenge? It’s the discipline and work ethic needed to consistently handle your daily tasks. That’s where many aspiring agents drop the ball. So, why do real estate agents falter? If you’re starting out or even if you’re a seasoned realtor, it’s crucial to ask, “Why do agents throw in the towel?”
Knowing the pitfalls can help you steer clear of them. So let’s explore the top reasons for failure in the real estate game:
Not enough funds
Starting any business needs capital. Many realtors kick off with little in the bank, leading to a quick financial suffocation under a mountain of expenses. My advice? Save up at least six months’ worth of living costs before diving in. This financial cushion lets you cover your basic needs until those commission checks start rolling in.
Lead generation struggles
Leads are your bread and butter. But if you’re not savvy about generating them, whether through online tools or hosting open houses, you’re setting yourself up for a tough time.
Dropping the ball on follow-up
Closing a deal isn’t the end. A big mistake agents make is not staying in touch with clients post-sale. Build trust, keep those relationships warm, and you might just find them coming back to you or referring others.
Marketing is key. If you’re not maximizing social media, running effective campaigns, or keeping your website fresh, you’re missing out big time. Dive into marketing tools like CRM software, social media management, and email campaigns to spread your brand and keep your audience engaged.
No business plan
Flying by the seat of your pants? Not a great idea. Without a solid business plan, you’re wandering without a map. Use a template, map out your strategy, and adjust as needed.
Ready to beat the odds?
Alright, are you ready to beat the odds and build a thriving real estate career? Here are some tips to help you ace the real estate game:
Sort out your finances
Knowing your financial needs and goals is crucial. Calculate your living and working costs, factor in any additional income sources, and then set realistic goals.
Establish a morning routine
Start your day right. Affirmations, a daily action checklist, and a dose of motivation can set a positive tone for your entire day.
Zero in on lead generation
Make lead generation your top priority. Practice your pitch, reach out to potential clients, and follow up diligently.
Become the go-to expert
To avoid being part of the 87% who fail, you need to be a walking real estate encyclopedia. Keep up with the market, know the latest trends, and network like a pro.