Being in the industry that I am, I deal with agents all day long in just about every state in the union. Some of the agents I work with are as solid as they can get...others, not so much. But, the one thing that I do know is that all of them WANT to be successful. It's just that some of them have the ability to ensure that it happens to them.
You can WANT to be successful with all your heart - The fact of the matter is that you will only be successful if you work hard, work smart, and avoid the pitfalls that the majority of agents hit at some point in their career...usually within the first 2 years. According to recent statistics, as many as 50% of new agents are no longer active within one year. And 75% of them are done within the first 2 years.
My question is - Why?
Is it because they don't know how it works? Is it because they think this is easy? Perhaps it's because they are "visionary" and plan on breaking new ground wherever their butt lands...
News Flash -- New agents don't come into the business to fail. No one takes on a new career with the specific purpose of being the low man on the totem pole. But, few realize that this job is just that...a job. It's work, people! In fact, it's hard work. And by being such, you must have certain skills and apply some effort to make sure that you succeed.
Now, with today's market, there are certain factors that are working against new agents.
- There is an ever-widening space between what the consumer wants and the performance level of certain agents. Agents require better training, coaching, and communication skills (online or offline) than ever before.
- The market (in most areas) has become more challenging then ever before. Agents can't just jump in and get "easy sales" to get their feet wet.
- Committed, long-term oriented agents (seasoned veterans) are taking a much larger share of the market leaving less for new agents.
So, with those factors in mind, this list of 10 mistakes that new agents make regularly should help you stay on track...and make it past the first 24 months of your career.
- Don't think that there are multiple ways to start. There aren't. Despite everything that I have said about this being a "numbers" game in the past, it is sales. And sales is a numbers game.
- Don't try to "do it differently". Fast food joints and cell phone kiosks are full of people that thought that they had a better way to go about getting prospects. If you are not out there talking to as many people as humanly possible about real estate and trying to turn business your way, you will fail. Lead generation is quite possibly the most work a new agent faces, but one that will lead to the greatest reward in the long run.
- Don't rely on others for business. Your manager isn't going to give you clients. The other agents in your office aren't going to give you clients. If that were the case, your commissions would be much smaller. If you want business...go out and get it.
- Don't fall into the technology spiral. This job isn't about tasks and technological advantages (although, those help!). It is about people relationships. And if you are not out there helping people and talking with people and letting people know what you can do for them, you will be flipping burgers in no time!
- Don't think that a deal is ever "done". I had a manager once tell me that the sale isn't over until you are eating the steak that you bought with the money that you got from the bank after the check cleared. And, my immediate response was, "But, if I want to eat that steak again, shouldn't I keep in contact with that person?" In this business, the sale is almost never over...because you can sell that person again. Or get a referral from that person in the future. Maintain your relationships with your clients and they will monetize in the long run.
- Don't start off "part-time" without a clear strategy to go "full-time". That's right. If you have to start this business part-time, you MUST have a full-time mentality. This job requires at least 50hrs per week. If you can not commit to that right away, make sure you have a plan in place that allows for a move to full-time within a specific time frame. "Part-time" is a disservice to your clients and to your officemates. Also, Managers - Do not hire someone that is going to go part-time without a firm commitment of a full-time placement. You are wasting your time, effort, and money without it.
- Get coaching often and make sure your broker is on the same page that you are on. If your manager cant commit to helping you be more successful, maybe you are in the wrong office. (Managers - You're goal should be to ensure that you commit 100% to the success of a new agent. They need you. Without you showing them the way, the likelihood of them falling on their faces is 75% in 2 years. As a manager, a 25% success rate should be infuriating!)
- Don't base your office choice by the commission structure of the office! Don't base your decision to work for one office or another on the payment structure of the office. You need to sell real estate. In fact, you need to sell LOTS of real estate. So, choose an office that will allow that to happen. The money will come as you sell more.
- Invest in your business!! Many agents decide that they cant invest in their business until they "get successful". When is that going to happen? How will you compete against all of those other agents that are doing what you are not? How will anyone find you to work with you? Why would someone want to work with you if you don't at least appear to be successful?
- Don't do this if you are "seeing if its right for you". The last stat I read was that 50% of new agents got into this business to see if it was a good fit for them. If you are not 100% committed to being a success at this business, you are wasting your time, your manager's time, your broker's time, your client's time, and everyone's money. As a very wise Jedi Master once said..."Do. Or do not. There is no ‘try'".
I realize that some of these words might be a bit harsh...be a bit difficult for some of you to read. But, they are true. Your success or failure rides directly on your shoulders. So, make sure you choose and environment that will help you get where you want to be. Pick a manager that is committed to your success. Find people that will tell you the truth - even when you don't want to hear it. And, develop a plan of attack that requires you, your manager, and your broker to be committed to your success. If you do that, you might make it beyond that 24 month time frame and have a long, successful career.
If you would like more information on www.recr.com and how we can help you get more clients to work with, contact Clint Miller at 800-977-7058. Or, follow me on Twitter at www.twitter.com/recr.
Completely true all of it. When I ran my own company and trained agents, these were just the sorts of things I would lecture them with. BTW, I want a twitter button...hook a girl up!
Lesley -- Excellent...I figured you would be the perfect "litmus" test for these to make sure I wasnt barking up the wrong tree. Im glad you concur! :-) And, I sent you the info on the twitter button via Twitter, my dear!
Clint - All great advice (as usual). I think one of the biggest reasons agents fail is that we go to school to get a license, which is useless unless we know what to do with it. Sure I can sell you a house, but how do I get your business. I think there should be some focus in schools on lead generation, basic business practices, and of course more actual case studies of how to navigate your way through a transaction. I know that teaching lead generation in schools would be hard, since there are so many schools of thought on it, but at least giving students a basic idea of what to expect might help. And of course, being independent is not for everyone. I know my first few weeks I sat here thinking "when will the calls come?" I had to learn that the calls didn't fall from the sky. Luckily I picked that up quick or I might have thought this wasn't the career for me. I actually have learned to love the prusuit of a lead and trying to find new ones. Sometimes its hard, but when you know you've finally got one that might just become a client...there's a great sense of accomplishment.
Matt -- Amazingly well thought out and educated comment, my man! I have to agree with you on providing new agents with some of the basics required to survive. I am certainly glad you realized the "mistakes" you were making by waiting for the calls rather than seeking people to call. I think you would have really missed your calling if you had not. Youre good at this...And, Im pleased to have you as part of this industry, and a friend. Thanks for the comments, my man!
Matt -- with regard to your lead gen statement...I call it the "thrill of the hunt". Yeah, sometimes it is hard...but, when you are able to reap the reward that comes from that effort, its quite rewarding! And, with the right mind-set, addictive!
I am a relative newbie, coming up on my third year, and I can attest to everything you have written. I went into it knowing I would need to build both a knowledge and customer base, but honestly was surprised by how the transaction itself was secondary to relationship building.
I also observed that there is great change in the air. Like the shift from MLS in print to an online database, probably the third component of the profession is to be observant and open to learning and adapting. Find the top producers in your office and observe them if you can. And plan on investing many more than 50 hours a week initially.
Thanks for the good words. The harshest lesson is failure.
Diane -- Thanks for stopping by and making a comment!! Much appreciated!!
Thank you so much for the testimonial on the concept of this blog. You are correct with your assessment of the transaction being second!! So glad to know there are people out there like yourself that do understand that point.
With regard to your second point....AGREED!!! If you dont improvise, adapt, or overcome the new things that come about, you will get bowled over by those that do!
Thanks again!
That was a great read! So true... New agents especially within the last few years thought real estate was a money tree waiting to pick from... It's not. Up and down markets have to be handled uniquely and you have to have the drive, discipline and determination. Love your tips!
Cecilia -- Awww, thank you so much! Im quite happy you enjoyed it. You are so correct about that observation too...This is a job, not a gravy train! :-)
Clint - all good points, but, I need to remember some of them myself and get off my blogging butt and put on my relating shoes.
Mike -- Yeah, these pitfalls arent just for newbies. Some of them apply right now to everyone on RE.net...lol
I especially love #6 about having a plan to go full-time if you start off part time. That is so important! And then #10 - don't do this if you are just "seeing" if it would work for you. That's like going into marriage with the attitude that you can just get divorced if it doesn't work out. You will get divorced with that attitude. And, with that "just seeing" attitude, you will only last a minute. You've got to be in it for the long haul!
~Renae
In addition to the excellent comments above, I think what some agents fail to realize is they are running small businesses. Profit, loss, expenses, ROI, brand, brand management, social capital, social data, social reputation, pipeline visibility and continuous education are just a few things that I foster, nurture, or manage in my business.
#10 is a particularly odd reason to start a business. The startup costs are not trivial.
Craig -- You have a wonderful point here! I do believe that people sometimes have a major misconception as to the level of committment required. And, that is the reason for #10.
Hey Clint~ I could use all these great points in my business for sure..these tips could help many avoid the "second-guessing" that goes into doubting your tactics in this market. My sister is a new agent, so I'll forward to her as well..you're the best.
Clint, your post was great, when I was a new agent the Broker I worked for said this to me "heres your desk, heres the phone, good luck you're on your own". I was clueless on what to do and my broker couldn't didn't tell me. New agents need to get the education for lead generation by watching DVD's or getting a coach or mentor. Thanks for the post.
Long-term agents seem to be getting more of the market share because buyers and sellers are specifically seeking agents with experience. The newer agents have this against them, even when they have tons of other things that are pluses for them.
Kathy
Laura -- Thank you so much for the kind words and for sharing this post with your sister! I am quite pleased with that...
Bill -- OMG!! Its no wonder why new agents fail, eh?? Youre welcome for the post! Thanks for the comment!
Kathy -- Perhaps its because those agents know how to weather a storm like the kind weve had in the last 12 months? But, yes...I get your point...the deck is stacked against a new agent in just about every way.
I enjoyed reading your featured post. I have reblogged it
Don
You are so right, Grasshopper!! Thank you for those pearls of wisdom. I have been doing (almost)everything I know to do to get out there. I think I passed with at least 80% of your 10 mistakes. Thanks for sharing.
#2 and #7 are my favorites, As a new agent I can't agree more!
I thought the best advice was about not going for the comission. I have always been successful in my career by choosing the job and or boss where I can learn the most. That is the key to long term success.
Hi Clint,
Great post!! All points are very good - your words are not harsh - they are true. I needed to read this since I am a new agent trying to avoid the very pitfalls you outlined. Thanks!!
Deborah :)
Your post is so right on and not just for realtors but any small business. Most small business people fail for all the reasons you gave. I train home stagers across North America and many of your points are those we talk about in class - but you said it so well and convincingly. This is exactly why I will be inviting all my students to join activerain - there is so much to learn here. Thank you, Clint.
Good Post Clint... thansk for sharing such valuable information for new Realtors... I have forwarded your post to a few newer Realtors!
One of the main reasons that agents ( as well as most other businesses ) fail is unrealistic expectations. Brokers and recruiters have only one goal in mind. Get warm bodies. The theory is that everyone has a few friends and relatives and the newbie will likely bring some new business with them. They are not really told that this will be hard work.
Ron Tiller - Grand Rapids MI with a high today of 10 degrees Farenheit
Don -- Thank you so much! Im glad you enjoyed the post that much!
Latonia -- Well, thank you very much! By passed...do you mean you didnt make them?? Or you did make them?? LOL
Jay -- Both of those are ones I run into alot in my business. And, I agree with you!
Mike -- AMEN!! Preachin to the choir, brotha!! Nice job and much continued success.
Deborah -- Thank you so much! I am glad you liked it. And, I hope it helps you set yourself on the right path!
Joanne -- You are correct with your analysis on small businesses as well as real estate agents. Having ran my own show for a long time, I know I made a few of these along the way as well.
Patty -- Thank you! And thanks for thinking this was worthy enough to share with other agents as well. I appreciate that.
Ron -- Dead on, my man. This is hard work...and as such, requires hard training...consistant training...and committment. Without those, you will fall on your face.
Whew, I am exhausted reading this post! It is full of good advice and every new agent should be reading it!
Caren -- Well, I hope the exhaustion isnt from having to scroll down with your finger so many times...LOL! Thanks for the compliments and the comment!
Coming from a real estate newbie this post is greatly appreciated. I have been in the business for less than a year, and for the last 8 months I've been a little worried, lead generation is really hard for a new agent. Everyday I work harder at meeting new people and making connections on and off-line. After 10 months it's paying off. For the last couple of weeks the leads have been rolling in and I am very grateful. It is very hard work, but for the right person it can be great. Work hard, treat people with respect, help those you can, it makes it all worth it! Thanks, Clint!
Malisia -- I heard a comment the other day that "socialization will lead to monetization". And I firmly believe that is correct. Make contacts, keep contacts, assist as needed...it will pay off in the long run. But, the deal is...LONG RUN! There are no easy sales any more. This is work. Youre doing the right things! Keep it up!
Wise nuggets of info. It's not fair to blame/stick an office manager with newbies. They take alot of time, hand holding and psychological drama. The office manager needs to make a living too without another couple of kids to babysit in the office. The market is a tough place to be a newbie or a veteran! Wise words about the steak!
Lyn -- Thanks! Im glad you liked the post...and, to some extent I agree with you. But, you have to also recognize that it is the duty of the manager/broker to provide all of the tools and training required for them to be successful PROVIDED that they are willing to put in the effort. Without that happening ON BOTH ENDS the relationship is doomed.
Great blog and great comments. The only problem I have is stating that they have 24 months to work through it all and as long as they avoid those listed mistakes(and many others), they have a shot at making it.
Totally do not agree.
Unless these new agents have plenty of cash stacked away already, a bread-winning spouse who can support them while they gain experience, and a circle of influence that is monstrous, new agents are out of this business in less than 3-6 months.
Training and mentoring and helping new agents get off the ground doesn't pay the monthly bills. Which, when brought up in relationship to The Terminator movie, 'absolutely does not stop, until you are DEAD!'
I do agree with your statements about the experienced agents getting more and more marketshare. Consumers could care less about brand, technology skills, or other fluff at this point. They want the fear removed from the entire sale and a proven experienced agent, who may barely know how to use email, will get their business at this point in time.
I got my license back in Feb of 08...did the blogging, the mailings, the calling, the emailing, the flyers, the floor time, etc...and the single biggest question I would get over and over is 'how many sales have you done in the past year?'
No amount of explaining or sales pitches could get me past that question. And I never would hear from the people again.
This industry and other realtors as well, via blogs, magazines, newspapers, does one helluva job screwing over their own newer agents. Specifically today. All I continue to see people talk about is 'go with the experienced agent...etc.' I understand why it's mentioned in blogs and comments, but in the same breath, as the consumer reads these things more and more, you leave us new agents swinging in the wind.
The only way a new agent makes it is if they can somehow gain the trust of close friends and family who are willing to spread the word and give you a shot. Or, by some miracle all of their hard work manages to pay off with a sale here and there.....hopefully in time before their electric and heat is cut off due to non-payment.
I wanted to start out part time and realized quickly that no one wants a part-time Realtor selling their house. So now I am "All In"
Kristi -- I know alot of people that were on that same boat with you! :-)
You are right-on with this assessment. Being somewhat new myself, I can look back and see that lots of face-to-face people interaction and FOLLOW-UP have helped me become more successful more quickly than some others in my office.
Kelsey -- Thank you! Its all about the networking! If you socialize, you will monetize!
Outstanding post! Your words couldn't be more true!
Victoria -- Thank you so much! Im pleased you liked it!
As a seasoned agent and trainer I think it should be mandatory for anyone contemplating entering the business or complaining about their (real estate) business to read your article. My staunch counsel to myself or anyone one else in a slump is back to basics. It always pays off.
Cathy Sarmento Cool, CA www.CoolRealEstate.com
Cathy -- Uhhhh....WOW! Thank you so much! Im flattered! And yes...however you put it -- back to basics; dumb it down -- going back to the fundamentals that got you where you are now is always a good step.
It is even more brutal in the commercial real estate arena. You must network and network well or your career is over before it begins, period. Also you must have the financial security to last longer than 3 - 6 months, more like 12 - 18 months in the commercial real estate business. Thus, I have to agree with Nick Ruta on this issue. Even after you get listings there are no guarantees, and even those listings close and you get the commission it may not be enough (after splits) to recoup operating expenses. The lesson here is pick your broker carefully.
Featured @ Club Chaos
Samuel -- I cant add anything additional to this comment as I have no commercial experience at all. I defer to your expertise in this. Excellent addition....and thank you!
Carolyn -- Bay-Bay!!! Thank you so much!!!
This is good. I had someone tell me the other day that it is 7% content and 93% delivery ... if new agents master the 10 or 12 most common questions / situations / scripts and can exude confidence when talking on those points, they will be way ahead of the majority of agents. There are way too many agents out there barely making it ... mastery mastery mastery of the 10 most likely tough questions and you'll make it.
Julie -- Thank you so much! Both for the comment and the quality of the comment. Excellent point...and I couldnt agree more.
This is a great article. GREAT POINT!!!
Ken -- Thank you! I appreciate that!
These are all so very true. Thanks for sharing all of this. Great lessons for new agents.
T.H. -- Thank you so much for reading...and for commenting! Much appreciated!
Clint, I really love the section " Don't Think The Deal Is Ever Done" That is so true and I'll be willing to bet it makes you a "force to reckon with" in Bozeman. Well done, Karen
Karen -- Thank you! Im glad you liked the post...and that is one of my favorite sections as well. :-)
Great posts with great points and I agree with all of them. New agents can succeed if they don't recreate the path to success. Follow others lead and pretty soon you won't be the "new" agent you'll have experience behind you!
Sonya -- THanks for reading and commenting!! And, i think youre right...put in the work required...you will make it.
I agree - your broker won't "Give" you clients - you definitely need to prospect for them yourself!
Rob and Camille -- Agreed! Contacts lead to contracts. You want more of the latter, you need more of the former!
This is just a park mark. :)
Doreen -- No worries!