The 2015 - 2016 real estate market in Texas is strong, and TREC is reporting the highest number of actively licensed real estate agents since the late 80s. The opportunity is easy to see and understand, but statistics also show a high turnover rate in our industry.
Before embarking on a career change (to or from real estate), remember the wisdom of Benjamin Franklin: “If you fail to plan, you are planning to fail!”
What Kind Of Planner Are You?
Hop on my boat, fish! -- As silly as it may sound this way, a remarkable number of agents have unrealistic expectations about being a career sales professional. They mistakenly believe their license alone will be the "powerful bait" that will lure fish to jump out of the water and land on the deck of the boat. Sure, it can and does happen, but this business model is neither sustainable, nor sufficient to justify a career.
You get a line, and I'll get a pole! -- Some agents recognize that they need to plug into a system in order to hit the ground running, and their entire business plan is based in joining a team. While plugging into the right team does have merit, this can also be a difficult model to sustain. Agents who don't know how to pull their own weight are quickly voted off the ship. Agents who do more than pull their own weight can develop resentment and feel undercompensated -- or even worse, get deprived of their own production credit, leaving them disadvantaged to hire into an improved environment.
Throw me a fish! -- Cousin to the TEAM model, many new agents lean on their brokers to learn the fundamentals of prospecting, and hope to be handed leads as a reward for their eagerness. Provisionally, this can be a solvent starting place for career-minded real estate salespeople, providing they select the right brokerage, quickly develop strong conversion (closing) skills, and can refrain from the temptation to cherry pick leads.
The fish market! -- Second cousin, once removed. For agents who align with brokerages who don't offer leads, partnering with referral agencies can fill the net. The costs are typically success based, meaning any referral fees are paid at closing to the referring broker). The threats to longevity in this relationship are the same as for those who receive direct leads from their own broker… Agents who can't close or develop a prima donna ego about the referrals they are sent will find themselves dry docked.
Cast a wide net! -- While folks who develop prospecting plans under this philosophy are certainly going to eat better than those in the first two categories, all that is good CAN be the enemy of greatness. Too many lines in the ocean keeps quality agents from focusing on the channels where they can be the most profitable. Distractions waste time, effort and money, and can compromise quality of service, ultimately leading to agent burnout and customer dissatisfaction.
Fish on! -- Suresh Vittal, VP and Principal Analyst at Forrester Research wrote, “Sales folks can no longer simply act as hunters; they have to act as Fishermen. They have to study where their best prospects live, they have to discover which kind of bait attracts certain prospects, and they have to learn what tactics to use as a hook.” Building reliable systems and processes around a niche specialty or geography (farming) has the highest chance of netting exactly the type of rewarding career that new licensees dream about.
It's Time To Set Up For 2016
If you are already a licensed Texas real estate agent, waiting for January 1st each year to start goal setting or mapping out your business plan can be a debilitating mistake. Likewise, if you are stuck in a miserable career -- handcuffed to a cubicle and trading time for money -- you can make a decision now to harness your destiny.
The world of real estate is a rich ocean, teeming with viable prospects who need competent, professional service. The fishing is good… it's the catching that can be hard if you don't have the right support, guidance, or skill set.
If you are serious about taking your career to the next level and earning what you are worth, Providence Group Realty can help you learn how to get there. For more information and details on what it takes to join our ranks, email firstname.lastname@example.org or call us at 469.645.6363 x700.