The "Realtor's" True Reason for Failure

When I originally started working in this industry, it became apparent very quickly that I was facing an uphill battle.  I originally thought "only a lazy person can fail in this industry!" but quickly figured out that every agent is set up for failure and left fighting for their life.  But wait, the NAR and their state and local subsidiaries are there to help you for only $400 or more per year.  Yeah right!  Let me start with the NAR while I'm on the subject.  They are their own business entity and need our "support" to keep their employees fat while agents flounder.  It doesn't benefit them for brokers to be selective.  It benefits them to help brokers hire as many agents as possible and to replenish the ranks when they fail.  The NAR makes a labor union look like a social club.  You better pay your dues on time, as well, or face penalties because you make so much money thanks to them.  Let's face it, the NAR's purpose is to support their own employees and the aged, inefficient dinosaurs in our industry.  Now let us take a look at brokerages-starting with the big boys.  They promise new agents support, leads, and marketing.  This is why they must take such a huge percentage of the commission you bring in.  It costs alot to help you start out.  Another way they help you get started is to hire anyone with a pulse.  You need healthy competition to help you stay motivated-especially in this market.  OK, enough sarcasm.  A typical new agent in real estate, no matter how motivated and hard working is set up for failure.  Why?  Let's start with training:  if you even get any, it's typically old systems that take so long to build your business, that you will have run out of money by the time they start to pay off.  Second:  part of the reason you run out of money is because you need to give up X% of your commission to support the franchise and then 50% to help pay for all that "support and services" they provide you.  This is it of course, unless it's a company lead, then they need another 25% for providing you that lead.  Keep at it though because eventually you will get a higher split when your business is finally booming and you are already making alot of money (if you don't run out of money first).  Third:  you still have expenses like E&O, MLS (talk about another joke-we'll save them for another day), taxes, gas, and web marketing to cover.  Fourth:  the split they take from you pays for ineffective marketing like newspaper and marketing the company which they lead you to believe will help you get more business.  So how do agents survive?  First, realize that nobody is going to help you and that won't change any time soon.  Networking, online or off, with lenders and other professionals because this is the key.  The systems most brokers teach are outdated and inefficient.  Present them to any bean counter and they'll cringe at the cost vs. return of these systems.  By the time they start working you will be out of the business and the company will market to your old clients.  The benefits they provide for that 50/50 split don't even cost 1/5 of what they are taking.  You can pay for those yourself and work for a higher split like 75/25 or 80/20.  Spend your money on the web.  It will give you the second biggest bang for your buck to networking.  Take a look at small brokers.  They might provide more one on one support and connections to help you build your business.  Remember, you truly are on your own out there.  Take care of your clients and YOUR business first to survive.