Top 10 Reasons Why Most Real Estate Agents Fail – Part II
- Unrealistic Expectations: It is not that you can’t generate enough income in the first six months in your business. It is like any business, it takes a little time – time to learn, time to position yourself as the expert of choice, and time to get in front of enough leads. Even if you get a listing right away, chances are by the time you show it, get an offer, negotiate a contract, go through the financing and inspection process, it’ll be around five months before you see any money. You could do it in six months, but is it worth the price? Real estate is not a light switch you can switch on in a second but is a business in which you can become successful faster than most. Even so, it is important to set a realistic timeframe of at least six months to a year.
- Discipline: We all know we need more discipline, but it is easier said than done. One of the worst things about the real estate industry is the type of contract an agent signs with his broker. It is known as an “independent contractor agreement” which means an agent can do whatever he wants, but the problem is “whenever he or she wants” often means it never happens. One of the best ways to gain greater discipline is with an accountability partner or better yet a coach with whom you can communicate daily about your goals and specific activities and when you want to accomplish those goals during the day, week, or month.
- Lack of Money: One of the main problems for new real estate agents is the unrealistic expectations discussed in point #6. Unrealistic expectations have a great deal to do with money. Every business needs money, fortunately, in real estate, the amount is small though you still need some. First, invest the funds you have in education, after all, how can you have leads if you haven’t been taught how to generate them? How can you convert leads into clients if you haven’t learned how to convert them? If you wanted to become a lawyer, accountant, or engineer, you would go to college and invest in your education. As a real estate agent, you need to invest in educating yourself in marketing and sales. How much? As a general rule, you should Invest at least five percent of your revenue in education and once you have the knowledge, invest 10 percent in marketing until you have the funds to consistently invest 20 percent into marketing. Here is one of the most recommend courses on sales and marketing for real estate agents.
- They Get into Real Estate for The Wrong Reasons: The reality is most agents fall in love with the promise of flexible hours, being their own boss, and making a lot of money. But, they don’t fall in love with the process. It is like falling in love with the idea of becoming a doctor or lawyer because they make a lot of money, but they don’t make the money unless they love the process. If one doesn’t enjoy the process, chances are he or she is not going to be very good at their chosen field. If you don’t like math, chances are you are never going to be very good as an accountant, you might be average, but why would you choose a business or career to be average?
- AND THE BIGGEST ONE: PATIENCE!!!
Related articles and resources:
- Watch the interview How to become a Top Real Estate Agent with Orlando Montiel
- Score yourself, find out your strengths and weaknesses as a real estate agent by doing the RealEstateAgentScoreCard
- Read the Top 10 Reasons Why Most Real Estate Agents Fail Part I
Listen The Miami Real Estate Show Podcast Here