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Wednesday, 19 February 2020
Agent Resource Center
Agent Resource Center

Why Real Estate Agents Fail & Out of the Business

Written by Posted On Friday, 24 January 2020 21:06
Why Real Estate Agents Fail? Why Real Estate Agents Fail? https://marketingrealestateideas.com/

 

I noted that many real estate agents fail out of the business every year. I'm gonna give you the reasons why you might fail out of the business and become another data point on that stats.

I'm gonna give you three things. That if you do when you become a real estate agent. Well, you better just start looking for a different job.

1. You Did Not Build a Referral Base

The first thing that's gonna cause you to fail out of the business is that you did not build a good enough referral base. Everyone knows that its referrals are the goldmine in business.

Everyone wants to get to a referral-based position. Where they have all the referrals coming in and it's basically a passive running business. But this takes time.

So when you're a new real estate agent you need to get out in the community you need to meet as many people as possible. You need to get your name out so you start getting those referrals and become the trusted real estate advisor in your area.

It's gonna happen if you don't eventually start running off of referrals is you're gonna be working so hard to get all these leads all these sales and it's only going to be people that say you're meeting in open houses.

You know maybe you met a guy at the gym. Well, then you get one sale and then what you know how you have to wait and wait to find another lead to find someone else that wants to buy or sell. But say that one person that sold your house referred you to as friends and you got two or three more sales out of it.

So this basically means that they have a self-running business by itself right they could literally stop prospecting and they would still have a very good living. But additionally when they do prospect and all that you know they're still gonna get about 60 percent more business from getting new leads sitting open houses etc.

2. Lack of Follow Up

That leads me to the second reason why you'll fail out the business and it's because you do not follow up correctly. You do not have a CRM system in place. So when I say CRM system I don't just mean you know notepad writing it down on the note.

I mean a proven system that's in your laptop on your phone on your iPad that reminds you when you need to call that person down to the minute of a phone call and email a text whatever it might be of how you're reaching out to that client.

You have to stay in front of them because if you don't you're gonna miss out on a ton of sales. In my first year, I think 10 people that I missed out on sales and I called them too late.

They said: I already bought a house, I already sold my house. Well if you account that to Commission checks. I think it's around $100,000 Dollars. That I missed out on in 2019.

So when you look at it on a number basis. I guarantee you've got to follow up on time and stay in front of your clients. It's a priority in this business.

If you want to be in this business for the long run and not fail out of the business within a year. You need to set these habits from day one and you have to remember that.

You're not gonna see results right away, I've had multiple clients that it took me a year to sell them a house and I was following up then without hearing from them for months on end.

3. Not Setting Clear Goals

The third way of why you're gonna fail out of the business when you get into real estate is you did not say yearly goals.

Goal setting is crucial when you're self-employed. Because you have no one telling you what to do when to get up, what to do with your day, how to plan your day.

For all your concerns you could get up at noon and just do nothing for the rest of the day. But when you have a countability partner that has your yearly goals.

They're gonna keep you on pace for those goals and they're gonna call you out if you're slacking.

So have an accountability partner when you're self-employed. I believe is crucial to success. If you want to stay online and you want to have that tunnel vision on what your yearly goal is.

But when you're setting your goals out there especially for real estate agents. Don't just say I want to make $200,000 in 2020. All right that's not very defined. The way I do I want to make a hundred thousand dollars. So that's going to be maybe eleven transactions.

What's the average sale price? $350,000 average Commission is 2.5 percent. So that you break it down like that. So that's the large scheme goal. You want to make a hundred thousand dollars you have to sell 11 houses.

So how are you gonna do that? So you need to break it down on a daily basis or a weekly basis. So in order to meet that goal, you're gonna need to meet 2 to 3 people a week. So that's your weekly goal.

So that's how much detail you need and you need to break it down in such way and then what activities are you gonna do in order to meet those people are you gonna Door Knock, are you gonna cold call, are you gonna set up coffee meetings, are you gonna you know go buy people's houses and set fliers on their doors.

Whatever it might be you need to define that goal all the way down to a daily and weekly reminder. So you can keep on track for that end term goal.

You know real estate you have to have that mindset that you know could take months and months. But if you keep working hard and keep doing the same thing every single day the correct way. You're gonna see results and you're gonna start getting those commission checks in and I guarantee it's gonna feel super good at the end of the day

Listing Additional Info

  • State: Alabama
  • Address: 123
  • City: yorba
  • Zipcode: 12345
  • SOLD: no
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