In 2004, the number of licensees in California reached 418,000 while membership of the California Association of Realtors (C.A.R.) reached an all-time high of 161,000. Nearly 42,000, or 25 percent were new members. The organization predicts that only 34,000 will survive the year, and that in five years only 18,000 will still be in business.

Consequently, productivity is at its nadir, the lowest since the mid-1990s at about eight transaction sides per member annually.

To learn more, the C.A.R. has tracked the careers of 100 agents who were new to the industry in 2000 through 2004. The five-year study, consisting largely of annual interviews, was designed to discover current and emerging needs of new agents -- what new agents struggle with, how they stay or stray from their brokerage firms, how they survive and what makes them thrive in the real estate industry.

The panelists were an ethnically diverse group of 25 whites, 20 African-Americans, 20 Latinos, 20 Asians, and 15 from other backgrounds. Fifteen were MLS-only participants.

Nearly all participants felt the first year was the most challenging financially and emotionally. Determination to succeed was crucial to their success.

The surviving panelists credited training with their success, along with mentoring and marketing. They valued training in the transaction process (forms, regulations, disclosures, etc.), marketing (prospecting, building loyalty, etc.), and professional skills development (selling skills, business management, etc.). Other topics were the escrow process, appraisals and 1031 exchanges.

By the fifth year, the participants wanted more training in Internet/website marketing, intermediate and advanced technology applications and professional development and time management.

In particular, they mentioned mentoring with regard to the transaction, staying motivated and developing a business plan. Only 20 percent of the panelists had non-broker mentoring in the first three years of their real estate careers and half of those agents wished they had worked with a mentor in their first year. Having a strong relationship with the broker also was important to their success, they felt.

For new licensees, referrals and "floor time" were the primary sources of business. Over the years, they began to focus on a niche or specialized marketing, and used technology to expand their business. They joined business organizations such as the Rotary Clubs, Chamber of Commerce and networking groups.

Toward the last few years, more panelists used the Internet to market themselves with email and websites. By the fourth and fifth years, panelists used weekly or monthly emails to stay in touch with prospects and past clients.

Two-thirds of panelists reported more satisfaction with organized real estate when they completed local association orientation, including training seminars, "caravans," and MLS assistance. Almost all felt the value of their membership in local associations and C.A.R.

But not all were successful. Over half of the original panelists wither left the real estate field by the fifth year, or left their companies in search of more broker support, better commission splits, or more stability, as well as personal reasons. New licensees left the industry because they weren't able to make enough money, found other opportunities outside the industry, or they had personal or family issues.

By the time the study was completed, only 43 percent of the original participants were still in the real estate field.

However, they had strong advice for brokers and for new agents coming into the industry:

For brokers:

• Invest more time and money in training -- particularly one-on-one training programs

• Establish a mentoring program with qualified, committed mentors

• Provide a base plan, scripts, calendars, and marketing plans to agents

• Check in on agents frequently

• Be encouraging and supportive while holding new agents accountable for activities

• Consider offering entry-level assistant positions to Top Producers

• Be available

• Provide real-time communication and training on changes in forms, regulations, etc.

• Provide staff support

• Provide ongoing technology training and assistance

• Ensure office equipment is functional and up-to-date

For new agents:

• Find a broker who will invest in training and development

• If you aren't satisfied with your broker, leave and go to another office

• Get a mentor, company assigned or personal

• Have a plan, be persistent, be positive -- the three P's

• Become an Internet expert, and tech-savvy agent

• Identify niche or specialty markets to target in your business

• Be yourself. Be honest

Published: September 20, 2005

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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. For more articles by Blanche, click here.