Top 10 Reasons Why Most Real Estate Agents Fail – Part I
Here are the top 10 reasons why most agents fail in real estate:
- Lack of specialized knowledge. If you want to become an economist, an architect, or an engineer where would you go to get the right education? COLLEGE. For how long? Four to Five Years. How much would you invest? At least $100,000. But if you want to become a real estate agent, where would you go? PRE-licensing school. How long would it take? How much would you invest? Can you see the difference? It is one thing to have a real estate license and a completely different thing to have the marketing and sales knowledge and skills to make money with the license.
- Marketing: Once agents get their license, most believe they become “real estate agents” when in fact what they are is “secret agents,” because no one knows who they are, not even their neighbors. That agent drives around the neighborhood and sees many “for sale” signs, none of which belong to him or her. Make no mistake – every top real estate agent understands they are not in the “people business” “service business” or “sales” – they are in the business of marketing. Watch the Miami Real Estate Show where Top Agents, who close between 75 million to over 200 million dollars a year in sales, talk about marketing. You want to go from “secret agent” to real estate agent and the only way to do it is with marketing.
- Budget: I haven’t met a successful real estate agent who doesn’t have an education and marketing budget. Yes, the old adage is true, in order to make money you have to invest money. Fortunately, in real estate, the investment is not great. With less than $1,000 you can get a great Marketing and Sales course to teach you how to develop a successful marketing campaign, generate leads, and give you the sales skills necessary to convert those leads into clients. With less than $400 a month, you can start generating leads. Here you will find a great Marketing and Sales course designed specifically for real estate agents. This course will teach you how to generate leads and convert them into clients. Ideally, you should set aside 5 percent of your revenues to education and 20 percent to marketing. If you invest your money correctly, these won’t be simply expenses but income generating activities
- Time Frames and Expectations: Your new Facebook campaign won’t generate the same results as a campaign that has been running for three months. The more people see you – the greater the attention and the better results you’ll get. What has a higher probability of selling a new product on Amazon – a product with five reviews or a product, which may be of inferior quality, but has 1,230 reviews? You have to let your campaigns and marketing messages mature.
- Sales Conversations. Do you want to know the fastest way to increase your income? Increase the number of sales conversations you have every day. In our coaching program (go to www.montielorganization.com to find out more) we call it the “Magic 5.” Five sales conversations a day, five days a week for fifty weeks. If you do the numbers – that is 1,250 sales conversations a year. If your conversion rate is one percent, you will close at least 12 transactions in a year At an average commission of $5,000 that is $60,000 a year. Of course, this will be higher with more conversations –
Related articles and resources:
- Watch the interview How to become a Top Real Estate Agent with Orlando Montiel
- Top 10 Reasons Why Most Real Estate Agents Fail Part II
- Score yourself, find out your strengths and weaknesses as a real estate agent by doing the RealEstateAgentScoreCard
- Listen The Miami Real Estate Show Podcast Here