I read an interesting article on how most large brokerages are fee driven and not commission driven. The author explained how real estate has become a numbers game with many brokerages focusing on the fees they charge the agents instead of helping the agents earn more commissions. He also explained the 90/10 rule where 10% of the agents make 90% of the money. I guess if you have 100 agents each paying you $1,000 per month you wouldn't worry much about their individual production. I find it sad that so many spend so much getting licensed and the drain on their financial resources prevents them from staying in the business long enough to learn enough to succeed. There's a lot to know and the three week pre licensing course and exam does literally nothing to actually prepare you for the reality of the business. As a matter of fact (In my opinion) if you try to do things the way the pre licensing course dictates you will almost certainly fail.
Let me explain. Their are several necessary ingredients a successful real estate agent must have. The main ones being a work ethic, marketing skills and people skills. The first a work ethic combines self discipline and organization. If you are lazy don't get into the real estate business and expect to make a living. You can learn marketing skills, people skills,organization and self discipline but all the learning in the world will not overcome laziness and procrastination. I often see agents work at marketing quite effectively yet never answer their phones or reply to emails 3 days later and wonder why they fail to keep or retain clients. Real estate is an evening and week end job. It's hard on family and relationships. I often say a practical person can't sell real estate. Why ??? Because a practical person expects to get paid for their time. In real estate you never know which hours worked will reward you with a pay day. The pay days you receive have to result in enough money to pay you for the time you spend with clients that you don't get paid for. I can almost guarantee you the client you don't choose to spend time with will be another agents pay day. This means you have to be systematic in your approach and give all potential clients the same level of service.
If you make up your mind to provide that same level of service equally here's what will happen. That over priced listing with generate leads that produce buyer clients. That client that didn't buy will refer a friend to list a $500,000 home. That home owner who didn't sell will refer his neighbor to you. Do you get my point here. Your business will grow exponentially by how you treat every person you come in contact with and thus your time is never wasted.
In another article I read where the average agent in Canada does 7 ends and in Toronto last year 35% of the agents did no ends. I often say I have over 40 years of mistakes and overcoming those mistakes in the real estate business and I'm often amused how someone new to the business has been brain washed to think they have a better system or better company. It seems today the reality is in the pitch and not in the facts. All you have to do is switch back and forth from CNN and Fox to get two different pitches but very few facts. In the real estate business there are two facts your either making money or you are not. Last Friday I closed 7 ends in one day. That is a fact. How good is your system ?