Top 5 Reasons Real Estate Agents Fail

By
Real Estate Agent with Amanda Davidson Real Estate Group Brokered By eXp Realty 0225221517

Top 5 Reasons Real Estate Agents Fail

Why do the majority of real estate agents fail?

 

A friend of mine who is newly licensed reached out to me last week to say he thinks he just “stinks at this real estate thing.” Questions immediately came to mind when I saw his message and it got me thinking about just how many real estate agents fail.

 

Depending on the source the percentages vary from 85-90% in the first five years. That’s a HUGE percentage and yet the perception remains both with the public and many interested in real estate that you get your license and start making serious money. It couldn’t be further from the truth.

 

There are a variety of reasons real estate agents fail. For this article, I’ll stick to the top 5 reasons real estate agents fail. Whether you’re already licensed or studying to get your license being aware of why agents fail is important. You’ll want to avoid these reasons to avoid becoming part of the statistic.

 

Not Knowing How To Lead Generate

There is no one size fits all for lead generation in real estate. Which is a great thing because it means real estate professionals can generate business in a way that works best for them. The problem is that if you don’t know how to generate leads and referrals you’re going to fail.

Successful real estate agents know exactly what they’re going to do to generate leads and how they’re going to do it. They know their business depends on it. One of the first things new real estate agents should do is create a business plan that outlines how they want to generate leads.

 

It doesn’t matter if it’s through door knocking, social media ads, or any of the other hundreds of ways there are to generate leads. What matters is the agent knows what they’re going to do and how they’re going to do it.

 

No Understanding Of How Or Where To Market

If you shake a tree 20 real estate agents will fall out. What are you going to do to make yourself stand out? Real estate agents who look at marketing as an opportunity to say look at me…ME…ME…ME will find themselves blending in and not getting business.

 

A self-serving mentality is a sure fire way to fail in real estate. Your marketing needs to come from a place of value and be consistent with your brand.

 

Share helpful advice, personal stories, checklists, and first-hand experience. Solve a pain point your audience has. No one cares if you sold 5 houses last week and are “crushing it.” Serve your audience with what they can actually use.

 

There are a ton of different ways real estate agents can market themselves but, until you have a plan in place don’t spend a dollar on marketing.

 

No Mentor Or Coach

I purposely didn’t list this one first to illustrate that you’re going to need someone to teach you how to lead generate and market yourself correctly. Whether it’s your broker, a team leader, or a successful individual agent who you partner with as your mentor or coach you’re going to need someone to teach you to be an expert.

 

This is, in my opinion, a factor that can make or break a new real estate agent.

 

Passing the test to get a real estate license is easy and teaches you absolutely nothing about actually selling real estate. The test is just like school, memorize the info and then answer questions. Day to day life as a real estate agent requires running your own business which requires an extremely high level of various skills in order to be successful.

 

Soak up every ounce of knowledge from someone who is successful and who already has a business like the one you envision yourself creating. Be a student of the industry and be willing to make less money in return for gaining expertise. You cannot put a price on expertise and I see far too many new agents focusing on their splits when it comes time to select a brokerage or team. Stop worrying about commissions because 100% of nothing is nothing.

 

Get Into Real Estate For The Wrong Reasons

A lot of real estate agents fail because they get into the business thinking they’re going to pass the test, start selling a ton of houses and make a ton of money. If it were that easy everyone would be a successful real estate agent. This couldn’t be further from the truth. Let’s not forget the average real estate agent makes $40,000 annually.

 

Another reason people get their real estate license is they love “looking at houses.” Yes, houses can be nice to look at but, that’s not what real estate is about. Simply opening a door to let someone in a house is not going to get you anywhere remotely close to being successful in real estate.

 

If you want to get into real estate you need to first ask yourself why. You are signing up to assist people with what is most likely one of the biggest investments in their lives. That comes with a massive responsibility to be an expert and advocate on their behalf.

 

Poor Work Ethic

When you become a real estate agent you are entering the world of entrepreneurs. There will be blood, sweat, and tears to become successful. If you have a 9-5 mentality you are going to fail. Successful real estate agents work long hours, nights, and weekends.

 

You don’t get paid to show up when you own a business. Real estate is not for everyone nor is owning a business.

 

Real estate is flexible in that you can very likely run errands on a weekday which equates to your personal business revolving around your client needs. It is not flexible in the sense of being able to work whenever and wherever you want.

 

It requires working every day, there is always something to do. Many agents fail because they don’t have a plan or action items to complete each day.

 

Successful agents make themselves available to their clients and respond quickly to phone and email contact. Being successful in this business requires a high level of communication and it’s not uncommon for that to occur 7 days a week. Agents who don’t put the work in will not be successful.

 

 

Closing Thoughts

The perception of what being a real estate agent involves and the reality are on opposite ends of the spectrum. The barrier of entry into the profession is low and the failure rate is high. Being a successful real estate agent might look easy on the surface but, being in business for yourself is never easy no matter what the industry is.

 

The failure rate is staggeringly high but, if you understand what you’re getting into, surround yourself with the right people, and work tirelessly you can beat the odds and become successful.

 

 

Posted by

 

Amanda Davidson Real Estate Group

 exp realty

 

 

      

 

AMANDA DAVIDSON  
l ASSOCIATE BROKER l  
l AMANDA DAVIDSON REAL ESTATE GROUP BROKERED BY eXp REALTY l

C  703.431.3755   |   O  866.825.7169 ext: 743  |   W  www.amandadavidson.com

A  1320 Central Park Blvd Suite 200, Fredericksburg, VA 22401




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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Sally K. & David L. Hanson 06/10/2019 07:16 PM
  2. Roy Kelley 06/30/2019 01:00 AM
Topic:
Real Estate Industry
Location:
Virginia Fairfax County Alexandria Kingstowne
Tags:
real estate agents
real estate agent failure
why do real estate agents fail
realtor life
how to be successful in real estate

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Show All Comments
Rainmaker
6,211,912
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Monday morning, Amanda. Have a great day and an outstanding week.

Jul 01, 2019 05:03 AM #37
Rainmaker
1,545,148
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Roy Kelley thank you!

Jul 02, 2019 04:54 AM #38
Rainmaker
2,299,919
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Good Morning, Amanda S. Davidson - I hope you're doing well, perhaps on vacation? I trust all is well and wanted to let you know, you are missed on ActiveRain.

May your days be full of goodness, celebrated with good friends and family when time permits, good health and lots of sunshine and smiles.

Jul 07, 2019 04:16 AM #39
Rainmaker
1,545,148
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Patricia Feager, MBA, CRS, GRI,MRP good morning! Thank you for your sweet comment. I miss everyone on AR. I'm not on vacation, was just finding that from a business standpoint the site was no longer benefitting me and although I love the interaction the time investment became too big to just be for social interaction. I'll still be around from time to time because of the friendships that exist here though. 

I hope you are doing well too and enjoying the summer. You are a wonderful person and I'm grateful to know you. 

Jul 07, 2019 08:28 AM #40
Rainmaker
2,299,919
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Amanda S. Davidson - I completely understand your point of view. AR is addicting, but in a good way when you feel a kinship with other birds of a feather. May you continue to soar to great heights and look down and over your shoulders to see what's going on in AR world from time to time. You will be sorely missed on a regular basis; however, I admire you for taking a stance. You're one of the great ones here on AR. But you're right there comes a time when everyone must decide if their time is being used wisely. 

I hope your summer and remainder of the year will be grand. You are absolutely the best. It truly is an honor and a pleasure to know you and I want to personally thank you for all the great blog posts you have written. 

Jul 08, 2019 06:23 AM #41
Rainmaker
1,545,148
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Patricia Feager, MBA, CRS, GRI,MRP I will definitely be popping into the Rain from time to time. I couldn't stay away forever. Even if it's just to comment on others posts it's not goodbye forever. Thank you from the bottom of my heart for your friendship and support. You always made me feel welcome and supported. My admiration for you goes far beyond AR. Wishing you nothing but, the absolute best. 

Jul 10, 2019 05:41 AM #42
Rainmaker
3,767,954
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Amanda S. Davidson hi Amanda... you are missed. But I get where you're coming from as I've been thinking much the same for a while now.

Jul 15, 2019 10:29 AM #43
Rainmaker
1,545,148
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Nina Hollander thank you for stopping by. Your comment made me smile. I truly miss the interaction with friends and it was a hard decision to not be active here on an almost daily basis. It freed up a large amount of time to do some other things that I felt like I need to do but, still a hard decision! I hope that you are doing well and I know that you are busy helping your clients. They're so lucky to have you. 

Jul 15, 2019 12:59 PM #44
Rainmaker
6,211,912
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I was looking for your current posts. I hope all is going well for you.

Nov 02, 2019 05:14 AM #45
Rainmaker
1,545,148
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Roy Kelley thank you for stopping by! I hope you are doing well too! I'm not in the Rain much these days but, do read posts from time to time. I miss all the wonderful people here, you included. I love the social aspect but, from a business standpoint wasn't seeing a strong enough return on the time commitment. Wishing you and Dolores a great weekend!

Nov 02, 2019 06:28 AM #46
Rainmaker
6,211,912
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Saturday morning, Amanda.

Have a great day and and a very special weekend.

Nov 02, 2019 06:41 AM #47
Rainmaker
2,299,919
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Happy New Year Amanda S. Davidson!

I hope you are doing well and excited about this new decade. May all that you are hoping for come true.  

Jan 01, 2020 06:59 AM #48
Rainmaker
1,545,148
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Patricia Feager, MBA, CRS, GRI,MRP Happy New Year! You are very kind to stop by and send me well wishes. Thank you!! I hope you are doing well too and wish you nothing but, happiness and positivity in the New Year. 

Jan 01, 2020 12:10 PM #49
Rainmaker
3,702,317
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Amanda, we miss you in the rain and your great bolgs that you would share with us.

Feb 29, 2020 11:15 AM #50
Rainmaker
1,545,148
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Will Hamm thank you! I miss all my friends in the Rain too! Very grateful we keep in touch outside of the Rain. 

Mar 01, 2020 05:00 AM #51
Rainmaker
3,702,317
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Amanda, we still miss you in the rain and wish you would come back.  You are great to hear from.

May 04, 2020 05:05 PM #52
Rainmaker
1,545,148
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Will Hamm hi sweet friend! I hope you are doing well!

May 05, 2020 10:11 AM #53
Ambassador
3,984,110
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Hi Amanda! First of all, loved your video...but, it makes me miss you even more!

Seriously, I completely understand why you have pulled back from AR. I did the same back in the summer and really enjoyed my additional time. Something brought me back recently and I'm enjoying AR again! She pulled me back in! LOL

We would love to have you join us for our AR meet-up calls on Tuesdays. We have a very nice group that meets and we have one speaker for the meeting. We have learned so much while being able to 'see' one another and laugh together. One of us usually posts the link for the meeting in AR Peeps and Bananatudes on FB each week. It's the same link each week, BTW. Again, would LOVE to see you there!

Nov 04, 2020 08:25 AM #54
Rainmaker
1,545,148
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Debe Maxwell, CRS I miss YOU!! Seeing your Facebook posts have brought me so much joy this year. Your happiness shines through and there's no one who deserves it more than you. LOL, I can definitely understand why she pulled you back in. It's a special place! It is a big-time commitment and that's ultimately why I made the decision to pull back. I'll never completely give it up though, too many wonderful people here. I'm a lurker now haha!

I will look for the link and do my best to join this Tuesday's meeting! Things are finally slowing down - or maybe I'm choosing to slow down, not sure which but, I definitely have more time this month than I had over the summer. Thank you so much for your kind comment, you're the best!

Nov 06, 2020 05:45 AM #55
Ambassador
3,984,110
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Oh my gosh, I'm so sorry, I should have left you the link! Here you go.

 

Oh talking about 'lurking,' well I did the same thing too - I just couldn't resist commenting in Q&A though! LOL 

 

Enjoy your weekend...

Nov 06, 2020 06:58 AM #56
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