7 Reasons Real Estate Agents Fail (And How To Make Sure You Don’t)
87% of real estate agents fail in the first 5 years of entering the industry, according to The National Association of Realtors.
75% of you fail in the very first year, according to NAR.
Ouch!
Those numbers are sobering for sure, but they are not surprising.
There are countless threats to your success as a real estate agent.
From big business competitors like Zillow and Amazon moving into the industry, to market crashes, and everything in between, it is hard to hack it as an agent.
Hell, I know of agents that had amazing careers that still went bankrupt after 30 years in the business, because the refused to keep up with the growing pace of technology.
With so many variables out there that can affect your business, it is only natural for you to harbor a certain amount of fear that failure could be right around the corner.
Imagine what it would be like to eliminate those threats?
Although, nothing can completely protect you from those threats, I want to help take care of a few of the big ones for you.
But first, I need you to do me a quick favor! Please share/subscribe to my website so you can get more money-saving and money-making advice to propel your real estate career.
Thanks for that!
Now let’s get down to the real reason you’re here; safe-guarding your success.
1 - They Don’t Belong In Real Estate
The fact of the matter, is that the real estate industry just isn’t what it looks like from the outside.
Thanks to shows like Million Dollar Listing, there is a major misconception out there that being a real estate agent is all about extravagant clothes, decadent dinners, and fat, fast paychecks.
Because of that perception, many new agents coast into this business with sky-high hopes and very unrealistic expectations.
Let me ask you this:
How many times in the first three years of your career as a real estate agent did you say to yourself “I wish someone had told me that I would be doing (insert ugly situation) when I signed up to be an agent”?!
I can’t begin to tell you how many times real estate agents have said it to me over the years.
Anyone that enters into the real estate industry because they think it will be “easy money” or that they will be able to become an “insta-millionaire” does not belong in this business because they are in for a very rude awakening.
Anyone that enters into the real estate industry that is not pumped and patient will become a statistic.
If you want to be successful in real estate, you have to love the process of getting to the closing table as much as you love cashing your commission check.
2 - They Don’t Believe In Themselves
Owning your own business means feeling the pain of failure. Frequently. Sometimes, very fucking frequently.
Being a real estate agent means facing constant rejection.
It means being hung-up on, yelled at, laughed at, joked about, and disrespected.
No matter how thick your skin is, dealing with all of that will likely get to you at some point. That’s okay. It’s more than okay, it’s normal.
However, being overly affected by the regular rejection can be very damaging to your career. Just as a poker player can lose their stack when they “go on tilt” after a bad hand, you can launch yourself into failure by letting botched transactions, high-maintenance clients, and nightmare listings get you down.
You can’t allow all of the low moments that you experience as a real estate agent to compromise your self-esteem, integrity, or ability to believe in yourself.
Trust me, as someone that started her first business at 5 years old, I know first-hand how hard all of this can be.
I know how easy it is to doubt yourself during the dry spells.
I know how scary it can be to take such a big leap of faith on yourself.
As soon as you are able to accept that part of being a business owner means failing on the reg, the better equipped you will be to succeed.
3 - They Try To Do Too Much
As someone that frequently works more than 100 hours a week, I am one of the biggest advocates for hustle that you will ever find.
However, many agents with a heart for hustle shoot themselves in the foot by trying to do too much.
I know that when most of you get started, you have limited resources which means you have to do the job of a buyer’s agent, a seller’s agent, a marketing team, a writer, a social media specialist, an administrative assistant, etc..
Trust me, I get it!
Where many agents make a big mistake, is with their initial business spending.
When most agents start making enough money to spend it on the business, they fail to spend it in an area that will actually allow them to double-down on their strengths, and counter-balance their weaknesses.
Listen, you became a real estate agent, to be a fucking real estate agent.
It is your job as a real estate agent, to become the best damn real estate agent you can be.
That does NOT mean you should waste time getting amazing at admin stuff, web development, branding, photography, video editing, writing, etc..
Once you have any money to spare, you need to enlist the people that are the experts in all of those things, so that you have the time and energy to spend becoming the local expert in real estate.
4 - They Don’t Treat Real Estate Like A Business
Okay I know this one is cliche, but it’s cliche because it’s fucking true.
Most of you don’t treat your business like a business. But what does “ treating it like a business” mean?
Without a brick and mortar store and tangible item to sell, it can be really difficult to do.
Trust me, again I get it because I am in the same boat as you my friend.
Here are five ways that I treat my business like a business, and you will too, if you want to succeed as a real estate agent:
- Implement strategic systems
- Invest most revenue back into the business
- Always, always, always...ALWAYS follow-up
- Plan ahead for the slumps
- Plan ahead for growth
That list could probably go on for forever, but I believe those are all crucial.
If you cash every commission check like it’s a paycheck for you to play with, you’re going to fail.
I survived on less than $20k a year before I started my business, and I am committed to keeping my nut that low for the next few years while I continue to build the business.
There are days where I make thousands of dollars for a couple of hours of work and then eat fucking ramen noodles for lunch and dinner so that I will be able to reinvest that money back into the business. In fact, I actually dramatically downgraded my car this year, so that I would have more money to invest back into the business.
Success comes from serious sacrifice. It’s not always as sexy as it looks on Instagram, but damn it’s worth it.
5 - They Lie To Themselves
Many of us are guilty of lying to ourselves at one point or another about shit.
The problem is that as a business owner, that can be very toxic to your progress.
If you can’t admit your shortcomings to yourself, you will never be able to work around them.
You do not need to be perfect. You do need to give yourself permission to be who you actually are.
You need to be able to be completely honest with yourself about what you are doing well, where you could improve, and where you’re falling short.
I have agents bitching to me all the time that they can’t understand why they aren’t more successful. Then we take an honest look at how much REAL work they do on a weekly basis and discover its 20 hours or less. The truth can be crushing, but it can also save your ass.
You may feel like you’re “working” all day, but when you take a deeper look at how much time you are spending on nonessential busy work, you could be shocked at how little you’re really doing.
6 - They Try Too Hard To Catch Up
It is natural when you enter a new business to feel overwhelmed by the amount of information that you need to learn.
From the MLS and contracts, to SnapChat filters and Alexa Skills, there is a lot to master.
(By the way, if you don't have an Alexa Dot, you NEEEEEED one for more reasons than I can possibly begin to express. Get one NOW!)
Again, you do not need to know it all.
I want you to focus on having a serious handle on the real estate stuff more than anything.
BUT…and this is a big one...you must get ahead of the game on technology and marketing.
Many agents spend so much time trying to get caught-up on current technology and social media practices, and drown in the details.
Don’t let yourself fall victim to that trap.
Instead, what you need to do is watch how the attention of your target audience is shifting, and make sure that you hire the necessary professionals to make you an all-star in those areas.
Just because you are huge on one platform today, does not mean you will be on top forever.
Attention will always shift, because it is human nature. It is a lot of hard work to attract that attention on an ongoing basis.
Quit playing catch-up and start getting ahead by strategically investing your time and energy in the up-and-coming platforms, as much as the major ones of today.
7 - They Don’t Target Their Ideal Clients
When you start out in real estate, it is drilled down your throat that you need to go after listings.
Listings, listings, listings, listings.
Fuck that.
You didn’t get into real estate to be told what to do. You left your last job because you wanted to call the shots.
This job can be ugly and challenging and it is so much worse if you chase your tail trying to attract every tom, dick, and harry that might buy or sell a house.
If you want to live a happy life, and build a business you can be proud of, you need to identify who your ideal client is. There is not a single person on this earth that can tell you who that is, it needs to come from you.
However, if you would like some help identifying a profitable niche, that will make sense for you and your business, you can always reach out to me. I have a worksheet that will help you to clearly identify your ideal client and dramatically improve the future of your business and life.
Get Your Personalized Plan For Success
While you all have a lot in common, you are all very different. You all have your own business, your own situation, your own brand etc..
Right now you have unique goals and challenges in your business, and you should have a unique plan for achieving success.
I would love to help you in developing that plan with a free consultation call to explain how you can attract your ideal clients, grow your team, increase your passive income, and avoid becoming a statistic.
Comments
Post a Comment