While the following small survey is hardly representative of the whole industry, it does illustrate a possible disconnect between the expectations of new real estate agent and the realities they have yet to face.

David Fletcher, founder of Agents' Boot Camp, conducted a brief survey of new agents for Keller Williams in Orlando, Florida.

Twenty-three newly licensed agents and students getting ready to take the state licensing test took the pre-course survey showing that nine, a majority (39 percent), expect to earn more than $60,000 their first year. Seven of the 23 (30 percent) said they expected to earn $40,000-$60,000. Only 3 (13 percent) said they expect to make between $15,000-$25,000.

According to new agent figures supplied by the National Association of Realtors in April 2003, the average new Realtor since 2000 makes about $36,000 annually, far below the $52,000 that the average member makes.

Fletcher's survey was distributed at the beginning of a three-hour Battle Plan seminar conducted for Keller Williams by Agents Boot Camp in Orlando, Fl. The seminar centers around a "Survival Business Plan" spreadsheet. Agents are shown how to tie in their personal finances with their business expenses and build sales goals from that point. This approach is especially important during any business' start-up phase.

"That is what new agents are doing," says David Fletcher, founder of Agents Boot Camp, "starting their own business."

Fletcher reports that Keller Williams Team Leader Denise Le Heup said, "This was a serious dose of reality for new agents who need to clearly understand not only the great opportunity but what it takes to become a successful real estate agent."

Of the 20 participants responding to "I am leaning toward joining an independent office, a franchise, or it doesn't matter, 19 (95 percent) said it "doesn't matter," while one said "franchise."

Again, this doesn't reflect the realities of the current marketplace. According to the NAR internal report "The Future Of Real Estate Brokerage" published in 2003, "vertically expanded firms," those which grew from consolidation and acquiring agents tend to be franchise firms. Nearly two-thirds of "vertically-expanded" firms are affiliated with a national franchise. "With a minimum sales force of 200 agents, the vast majority of these firms (95.6 percent) are corporations."

When asked to check the one thing they felt they would have the hardest time learning, seven of 21 (33 percent) respondents said "financing," followed by prospecting. No one checked "overcoming objections" or "Deciding which homes to show."

The new agents also believe their technology skills are good. When asked on a scale of 1-10, how they would rank their technology skill level, no one gave themselves less than a "six."

Six of the 21 respondents (26 percent) said they felt they had a "good sales background." Fifteen (74 percent) said they had no or "some" sales experience.

Fourteen of the respondents were presently in licensing schools, four were waiting to take their license exam, and two had their license and had not placed it with a broker. One student was with another office and considering a move.

Published: August 26, 2004

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.