Within a couple of months, I’m publishing my new eBook: Launching Right in Real Estate: What They Won’t Teach You in Pre-License School. This book will tell it like it is for all those people thinking about real estate as a career. Different, yes?
So, I’ve been thinking about all the mistakes I made as a new agent–and all the mistakes I’ve seen new agents make. In this and my next blog, I’m going to be giving you those mistakes. Help me out here. What should go into my new book? What are the mistakes new agents make that put up barriers to their success? What should I caution would-be and new agents about?
The Frank Sinatra Syndrome: Doing it ‘My Way’
We all want success easily. We all want to ‘do it our way’. And, if we’re honest, in our quest for easy success, we’ll all done dumb things. That is, we realized they were dumb—after the fact. So, just because I’m picking on new agents here doesn’t mean I haven’t done many more than just ten dumb things! I’m listing these here, though, to help you avoid the mistakes I made as a new agent, and the mistakes I’ve observed thousands of new agents make over the years I’ve managed, trained and coached.
Some Mistakes Cost us All Lots of $$$$
Some dumb actions don’t cost us much, but, when an agent fails, it costs money to everyone—agents, offices, and consumers. It’s estimated that it costs a manager $15,000-30,000 for every agent hired who fails! So, that agent isn’t a profit-center, she’s a cost center! In addition,
an agent who fails spends at least $5000-15,000 just in ‘subsidized living’ and real estate expenses the first three months in the business.
New agents don’t come into the business to fail. But, they don’t realize the effort and skill it takes to succeed.* In addition, there are increasingly difficult challenges for new agents:
- The gap between consumer expectations and agent performance is widening quickly and dramatically. New agents must have better training, coaching, and commitment from their brokers.
- The market in most areas is very competitive, so new agents can’t get those ‘easy sales’.
- The committed, career-oriented agent is taking much more of the market share.
It’s estimated that 50% of new agents fail and get out of the business in their first year, and 75% are out in two years. That seems to me a huge waste of resources—and a huge contributor to that expectations gap I listed above. We need to stop that attrition now. So, new agents, I’ve created a list of the ten dumbest things I’ve seen thousands do to fail themselves right out of the business. In this blog, we’ll investigate the first five:
- Thinking that there are lots of ways to start the business. There aren’t. Real estate sales is sales, and sales is a numbers game. (Up and Running in Real Estate shows you exactly how to work those numbers to your benefit).
- Thinking they don’t have to lead generate, because they’ll “do it differently.” Don’t talk to people consistently and in great numbers and you’ll be flipping burgers before you know it! (Not that there is anything wrong in flipping burgers, but you won’t be “selling real estate”.)
- Thinking that their manager or office or the Internet will supply them leads. If that were the case, your commissions would be much smaller.
- Thinking that this business is about tasks and technology. It’s not. It’s about people relationships.
- Treating the business like a ‘next’ business. It’s not about finding and selling a customer. It’s about finding and keeping the customer for long-term referral business.
How many of these dumb things have you done? In truth, we learn from our mistakes. It’s not what we do wrong. It’s what we continue doing wrong. I’m writing Launching Right in Real Estate to prepare people for the career in a straightforward manner.
In my next blog, we’ll investigate the remaining mistakes. What did I miss?
*Launching Right in Real Estate helps would-be agents make best decisions and prepare to sell real estate. It includes:
- What it costs to enter real estate
- What it costs monthly to run a business
- The behavioral profile that will love and thrive in the business–how to tell if you’ll love it
- The 5 most important interview questions you need to ask
- How to evaluate the office and manager as you interview
Want a complimentary copy when it’s ready? Email me with your advice to would-be agents and/or the mistakes you see would-be agents make as they come into the business: firstname.lastname@example.org. If your advice is included, I’ll send you the eBook. Thanks!