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Mike Ferry's Thoughts on "Supposedly Active" Real Estate Agents

By
Services for Real Estate Pros with The Mike Ferry Organization

Did you know that we probably had the highest number of non-producing agents, or should I say agents who never closed a deal throughout the entire year, in the calendar year 2011? I've heard people say that it could be between 30% and 40% of all the agents who are "supposedly active" in Real Estate never did a deal. How in the world can you work in Real Estate for 12 months or even pretend to work in Real Estate for 12 months and not have a single closing? It means one of two things, or maybe I should say 3 things. First ... you simply don't know what to do to generate income in the Real Estate business. Second ... you know what to do but you choose not to do it or third ... you probably shouldn't be in the business and should consider finding some other type of job.

We know that the number of agents in Real Estate who are "supposedly active" has dropped dramatically over the last 24 to 36 months and probably should continue to drop as we speak. If you're not going to learn how to be a salesperson ... if you're not going to learn the sales process, which is what buyers and sellers expect you to know and execute on ... then you probably should consider another type of work for yourself.

It's interesting to me that we have an industry that allows people to not learn how to do the job they're licensed to do ... which is "sell" ... and we have an industry where being non-productive is considered okay. Each of us can take a stand and change the perception the industry has by committing to not only being productive in the calendar year 2012, but also committing to learning the sales process required to make transactions work, which in turn serves the needs of the buyers and sellers in the marketplace. The sooner we make the commitment ... the more productive we become ... and the more we can serve the buyers and sellers that need the good service of Real Estate people.


Mike Ferry - The Mike Ferry Organization
Mike Ferry
CEO - The Mike Ferry Organization
800-448-0647

Comments(20)

Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

#4 * 50 years ago, women agents were married to wealthy doctors, etc and their business expenses were a write-off against his income

I ENJOY being a Tax Shelter for our investment income!

Dec 20, 2011 06:42 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

We have a few hobbyist in our MLS. If they find a buyer on the way to the country club fine. If not, no big deal.

Dec 20, 2011 07:42 AM
Ken Brandon
Coldwell Banker Sea Coast Advantage (Jacksonville, NC) - Jacksonville, NC
Camp Lejeune, Jacksonville, NC

I like how you make a distinction based on results..."non-producing" sums it up very nicely. And I love your three reasons. Someone needs to speak the truth. Thanks for speaking it.

Dec 20, 2011 01:51 PM
Janis Borgueta
Newburgh, NY
Retired RE Salesperson

Yes,  Too many don't do anything. The reason for inaction being taken to change this is because they also pay the same dues the rest of us do. Without their dues, we would be paying more every year for the services that we actually use and they don't.  I certainly am not for higher dues, although it would be great to have less people taking up space in our system.

Dec 23, 2011 01:42 AM
Linda Holloway
Keller Williams Realty Tampa Central - Tampa, FL
REALTOR®, Your Next Home in Tampa Bay Starts Here!

Hi Mike, I hear your name quite often in my office.  2011 was a year of many unexpected changes for me.  I'm looking forward to a productive 2012.  Thanks for this post!

Dec 27, 2011 01:35 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Many companies are running real estate puppy mills ! (And)What passes for a real estate agent today is scary ! Pity the unsuspecting public !!!!!!

Apr 03, 2012 10:28 PM
Pamela Smith
Award Realty - Sun City West, AZ
Sun City West, Corte Bella, Sun City Grand

When some people get into this industry they have an unrealistic view of the job.  You can't just sit the desk and make $100K per year.

Apr 04, 2012 02:01 AM
Leona Greenlow-Turner
Keller Williams Realty, Danville - Antioch, CA

Insightful as usual. I remember be the unproductive agent a few years ago when before attented one of your seminars. It feels good "making money" in Real Estate.

Apr 04, 2012 06:32 AM
Christina Sanchez Hood
Palo Alto, CA
#SiliconValleyHOODS | Inspired Living

Passive Income is not created by Passive Work!  Thanks for the great post :)

Apr 04, 2012 07:57 AM
Ron Wexler
Keller William Preferred Realty - Orland Park, IL
The Wexler Group

Agreed Mike... there has never been a time where lack of basic skills, and willingness to be in action have been more important. Great agents get a great Coach and do what it takes everyday to find people to help.

Apr 04, 2012 12:52 PM
Wes Neal
Wes & Company - Tumwater, WA
The expertise you expect and attention you deserve

Mike,

 

I feel the winds of change are upon us and many of those agents are leaving the business... my offices let four agents doing less than 4 transactions a year go as they felt that it was too costly for the office to keep them.

Apr 05, 2012 01:04 AM
Brett Monk
Real Estate Photography Class - Fairfax, VA

Mike, thank you for a challenging call to action. In an economy where many people (not without reason) complain about lack of opportunities to prosper, real estate agents in the U.S. are blessed with a wide open door to reap the rewards of hard work.

Apr 10, 2012 06:48 AM
Jay McHugh
SendOutCards-Appreciation Marketing Expert - Acton, MA
YOUR SendOutCard Mentor

Mike well done...Kudos....your voice and passion for taking the non popular side always excites me...I too call out our industry and voice the position of we all have to work harder to promote what we do.  An industry for the most part does not get paid unless they get a successful result period!  Everyday agents should work on their sales skills, psychology, relationships, and business plans.  By strolling through and waiting for all boats to rise in a rising tide is the wrong way to approach this business....

 

Thanks for being you....

 

Jay McHugh - Broker Owner RE/MAX Boston

Apr 11, 2012 09:44 PM
Ken Tracy
Coldwell Banker Residential - Naperville, IL
Helping clients buy and sell since 2005
Hello Mike. Interesting post... Not sure how non-producing agents hurt though... Why do they matter to you or me? Thanks for writing! Ken
Apr 12, 2012 09:32 AM
Ralph Post , Realtor
Suntree, FL
Melbourne Florida - Post Real Estate Group

Great post Mike !...    It is time real esate be looked at as a profession. It is very gratifying to make goals, reach them, Then stretch ourselves further. It is most gratifying to me to help buyers and sellers.

 

 

Apr 14, 2012 09:39 AM
Jessica Wallace
Coldwell Banker - Santa Cruz - Santa Cruz, CA
Santa Cruz Realtor (831) 419-9345

Real estate is full time, all consuming career, for me anyways!  There have always been a lot of part time agents in the business due to many factors.  But it is not so easy anymore and you really have to dedicate yourself full time to succeed.

Apr 15, 2012 02:24 AM
Wanda Phillips
Success Investment Realty - Altamonte Springs, FL

I find many agents come on board excited to learn and produce but they find out quickly that real estate is hard work and they just aren't willing to put in time and money to get established.  

Apr 15, 2012 05:46 AM
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

Mike, you are so right.  We could eliminate 75% of all real estate agents and probably not hurt our business.

Apr 20, 2012 12:15 AM
William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Wanda said the key thing about non-producing agents: they do not have the willingness to put in either the time or the money to make a go of it.

Apr 29, 2012 11:18 AM
Shuki Haiminis
Lofts.com - Boston, MA

I think one of the biggest problems is the ease at which it takes to become a Real Estate agent in the first place and then it continues with the pitiful continuing education that is allowed.

 

I can't think of any other professional businesses where you can literally take a weekend coarse and be well on your way to legally being able to work with the public in what is considered most peoples largest and most important investment.

 

Where we are based in Mass the hours increased recently but not nearly enough IMHO.

 

If it took 6 months or a year to get your license this industry would be rid of a lot of the quick buck type of people that have given Real Estate agents a bad name.

May 22, 2012 09:42 PM