Did you know that 90% of real estate agents quit before their 2nd year of being in business? Many people get into this industry very excited but quit because they did not make the money they expected or deserved (more on this later). The worst part is that they could have made it to success but they failed to strategize, learn from failures and repeat. In one word, they lacked persistence.
Ray Kroc, the founder of the ever-present McDonalds, said it best:
“Nothing in the world can take place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. "
The opposite of persistence is when you give up and if your goal is failure (likely not), giving up is the fastest route to that end. A persistent person often looks ahead and prepares for what is to come. While there are plenty of others, here are 2 major obstacles that most agents can't overcome.
Work Without Pay
People get into this business to make money, but it is not fast money. Many new real-estate agents wait 6 months before seeing their first check.
How many months did it take for you to complete your first transaction? How long has it been since your last paycheck? You've been an agent long enough to know you will inevitably work without getting paid.
There are a few things you can do to help you during a time of drought:
- save from 6 months to a year of living expenses
- eat ramen noodles and oatmeal to get through the day
- avoid (at all costs) credit card debt
- move in with parents (ugh) or get a roommate
You can think of plenty more on your own but the thought of having to drastically change your lifestyle just to stay in the real estate industry can be depressing. But, what can you do?
For starters, compare your paycheck!
How much commission were you paid for your recent transactions? What is your current commission split?
Is it 95%? If not, you can make immediate improvements to your bottom line by sourcing real estate agencies that offer higher commissions. Excuse the shameless plug but we are an agency that does just that and there isn't any fine print. It's is really this simple:
- 95/5 commission split
- $100 monthly tech/admin fee
- $299 transaction fee paid by the agent
Too good to be true... right? That's what some of our agents said before they came on board. Now they are making more money and have persisted longer than 90% of real estate agents. Is part of your business strategy to share huge chunks of profit with your broker? Wait, do you even have a strategy?
Work Without Strategy
If you fail to plan, you plan to fail... but you know this already. If you don’t know where to start, the fact that you are reading this article is a good thing - kudos to you!
Developing a strategy takes time and commitment but it will set the foundation against which you can create and measure success. With a strategy, you know what appointments make and more importantly, which ones to say no to. A strategy helps you step back and look at the marketplace from a bird's eye view and start looking for where you fit in. Where can you make a difference? What's your niche? You don't help people buy and sell real estate - you solve real problems - and you need a strategy to be effective.
Research the prices in your area, this is what your clients will want to talk about. What types of properties are hot in your area? (condos, one-family, etc)... what's not selling? Without a strategy, you can spend all your hours selling people who never make an offer and you won't even know why. Take a second and grab a pen and paper and write out your answer to this question: what is my strategy as a real estate agent?
Did you come up with one? Here's a tip: a major part of your strategy should include working with an agency that is on your side and will champion your success. An agency that values your time and experience and pays you a high commission to prove it.
Make more money, strategize and stay persistent in your career
Are you ready to give up? Don't do it just yet - fill out the form below and let's start a conversation.