Special offer

Why do most agents fail...and Quit the business?

By
Real Estate Broker/Owner with Waves Realty BK3246853

If you are reading this you are either new to the business...or past the stage of failure (although you may be ready to pack it in and you are ready the last blog post of your career). Over the years I have watched many failures in sales of all kinds and the reasons (no matter what you sell...cars, TVs, houses, etc...) are the same.

Here is my breakdown of why, how, and how to overcome this issue:

1. Time Management: Most sales people...real estate agents included have terrible time management skill. If you can not manage your time you will work much harder than you need to. Here are a couple of tips for you...schedule your hours at the beginning of each month...for the entire month. Make sure to show up for each hour scheduled...and work while you are at work. Even if you home office you must schedule your time. Write down what you need to accomplish each day, and also flag it on your computer...this will give you a double check to make sure you are getting everything you need to do-DONE!

2. Hours: Most salespeople and real estate agents are no exception have absolutely no idea how many hours it takes to do this job properly. I can not tell you how many times I have been told the reason someone got into the business was "...because of the flexible hours!"  This could not be further from the truth...especially when you are getting started. The hours are long and the work is hard...the benefits are down the road...but you need to stick with it.

3. Run out of money: This is a big reason salespeople drop like rocks! It takes time to get started and learn your craft. If you are in real estate you must learn what your special niche will be...and find ways to get the message out. Solution if you are new: Go into to this with a specific budget to spend each month on advertising, spend your time wisely visiting competitive homes, new builders, learning the neighborhoods (all this should be scheduled of course...please see #1 above) and finding out our technology that can help you drive leads to your specific area of expertise. Make sure you have enough money set aside to pay the bills for a year (if you are going to be counted on to provide for the family). If you do not have the money to get started you will very likely fail!

4. Your attitude is your altitude: You will only go as far as your personal attitude will carry you. If you are negative about everything going on at your office ( I always here...the training is bad, the people are not friendly, the manager is never around, the buyers are liars, etc...) you will not go far...my suggestion...GO DRIVE A TRUCK...OR MAYBE TEACH HIGH SCHOOL...you will not make it in real estate!

Posted by

 

Jeffrey DiMuria

Waves Realty
Broker/Owner
2018 Melbourne Ct, suite 206
Melbourne, FL 32901

Phone: 321.223.6253         

e-mail:  Jeff@WavesRealtyFL.com 

Comments(122)

Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!
I am a new agent, just made one year a couple of weeks ago.  So far I have found it fascinating and after trying several things and talking about trying several more things I have come to the conclusion that in order to make it in this field you have to do and then you have to do again and then you have to do again the things you were trained to do.  I remember getting my first referral from a satisfied client.  There is no other feeling like it.  I spent the first two months out of school trying to think of ways to get started and then somehow, I just started.  It was the action that got me going.  I am putting in lots of hours, mostly 7 days a week and I am getting business, even in this slower market.  I am working!
Mar 28, 2008 02:00 PM
Kevin Robinson
Twin Falls, ID
Fractional Developer

I am laughing that you included "the office" in your example. As a long time agent and homebuilder, I laugh at agents that still need the crutch of an office. It is almost like they kind of want a job, but not really. I train all of my new agents to work from home and hire an assistant ASAP. Self-motivation and the ability to work alone equal big money. Working out of an office is akin to not being able to cut the cord.

Mar 29, 2008 03:45 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes
Kevin, I think most  agents who only see the value in the commissions they earn and not the clients best interests likely feel the same way you do
Mar 29, 2008 09:14 AM
Jolynna McCune
Groome & Co. REALTORS - Memphis, TN
Affiliate Broker

I have been an agent for three years and I will confess, it has not been easy!  I have been fortunate to have a lot of great support from the company I work for, along with family support.  This is a very competitive field and the market conditions do not help any.  This is not a business to get into when you want to make a quick buck.  I agree with this post above, that budgeting and time management skills are crutial and can make or break you.  So far, each year, I'm doing better and better and my business is starting to really grow.  But it has not been half as easy as i thought when I first obtained my license and took the leap.  Good luck to all of you and happy blogging!

Jolynna 

 

Mar 29, 2008 09:46 AM
Lisa Marie Thomas
Prudential - Salt Lake City, UT
it is sad but true. i was just thiking 8 years ago when i started i was in a class with 19 other newbies and the instructor said that 3 out of every 5 of us would drop out.  so he thought only about 8 of us would secceed.  to date out of the 20 people in the class i am the only one still in the business.  i always tell people you get out of this business what you put in.
Mar 29, 2008 03:39 PM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645
I like the bluntness on the last point.  Many people really need that.  There are many I the business that are just not cut out for this type of business.  That is not a bad thing.  They just need to come to that understanding and then move on.  Hopefully before they go broke.
Mar 30, 2008 02:38 PM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Too many people think of this as a career rather than as a business.  It is no different from opening a restaurant or storefront.  You have to have capital to carry you through the start-up phase and a business plan that differentiates you from your competitors and allows you to make money. 

I liked your focus on time management.  Without that you can do all of the above and burn to a crisp within a few years.  I was making six figures in my third year in the business, but I was on the verge of burn out.  I got a part-time assistant just in the knick of time.

I'm not one for a schedule beyond scheduling paperwork until noon and appointments in the afternoons.  I try to keep evenings for family and work every other weekend.  This doesn't work perfectly, but it works well enough.

Mar 30, 2008 05:54 PM
Dorene Shirley
The Mortgage & Property Connection - Campbell, CA
Silicon Valley Real Estate
If time management is a problem...go get a hourly paid job.  You'll find out real quick that the boss expects you to work every minute of that hour.  When you work for yourself it should be no different!
Apr 01, 2008 12:33 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes
Dorene, you are likely very good at what you do...but some agents who are new to this have an issue with the managing of time and effort...that was always someone else job.
Apr 01, 2008 08:13 AM
Greg Nino
RE/MAX Compass - Houston, TX
Houston, Texas

LAZY!

INCOMPETENT!

LAZY!

INCOMPETENT!

Apr 02, 2008 11:34 AM
Anonymous
Bill Frailey
I am thinking about getting into the business....this sounds like I need more cash and more time then I thought...What do you think the minimum investment is?
Apr 03, 2008 04:06 AM
#115
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Bill,

hard to say...you need at least a six month supply of funds...maybe nine is more realistic to live the way you do now...then more for investment in you business.

Apr 04, 2008 07:26 AM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT
Bill - It took me a year before I got my first commission check.  I was very selective about which homes I listed and which buyers I worked with as I was more concerned with testimonials, word-of-mouth referrals, and having a great track record in terms of ratio of sale price to list and days on market.  This approach paid off and I was able to leverage my initial successes into more successes that are continuing to build upon each other.  A lot of people go into this business without a plan and just take whatever comes their way.  In the short-term they make money, but often at the cost of long-term sustainable gains.
Apr 08, 2008 05:06 PM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes
Gail...you can never have too much back up....great response!
Apr 16, 2008 09:39 AM
Crystal Ledbetter
Texas Home Group - Montgomery, TX
Wonderful post and so right on, most people think they can getr there license and sit back and wait for the phone to start ringing, it is work and time magement,
Apr 20, 2008 03:35 PM
Trey Thurmond
BCR Realtors - College Station, TX
College Station , Texas Homes

Gosh

You have said... what as a company owner I really believe.

Apr 21, 2008 04:07 AM
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI
Great post. Time management is critical. Many agents quit marketing when they are busy and suffer drops in business. You have to work at filling the pipeline at all times.
Apr 25, 2008 01:30 PM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes
Wayne...we agree...of the entire post time management is the most important....
Apr 26, 2008 02:52 AM
Carolina Zepeda - REALTOR® Houston Texas Real Estate - www.carolinazepeda.com
Champions Real Estate Group - Cypress, TX

Time will make you or break you.
Thank you for providing this information, I'll try to stay away for those reasons!

Jun 02, 2008 02:37 PM
Anonymous
Angie

Knowing your business and working it can be two different things. I have several friends in the business and since they started 5-7 years ago, they do not know how to work this market. The business is hard on people who can't make it beyond the breaking point or the dip. There was a time, when I first started that I was almost going to go referral. I was in business for 6 months without a sale and then what felt like almost overnight, my business took off.

Then another dip. . .Then another take off. . .the key to this business is always be prospecting. When the business changes, you have to change with it.

http://www.bizintros.com

Jul 24, 2008 07:54 AM
#124