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Why do new agents fail?
I keep hearing some depressing stats in our industry. I am a big believer in the 80/20 rule, and I know that principle also applies to our business 20% of the agents make 80% of the sales. I also remember to hear that the turnover rate in real estate is 75% in two years.
Last week I was told that in this current market only 10% of the agents are making 90% of the transactions and that 40% of the agents in my area have only close ONE transaction in the last 12 months.
I was doing the numbers the average sales price is $200,000 and the average commission is 2.5% so the one sale a year only brings $5,000. most of the agents in my area are associated with traditional broker splits of 50/50 to 60/40 I will take the later. So that means that 40% of the agents in my area have only earn $3,000 in 12 months. I know the local board is $580, MRIS is $660, license $90, business cards $100, sentri card $175. Total investment is $1605. That leaves a profit of $1,395. divide that by 12 months and that is a $116 monthly income.
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