Why Real Estate Agents Fail
and How You Can Avoid a Similar Fate
Who should listen: Agents who don’t want to make the most common mistakes that contribute to the incredibly high failure rate in the real estate industry.
Key idea: You can recover from even the worst failures if you get back to the basics.
With an incredibly high failure rate of 87% in the first 5 years, it’s a wonder that anyone chooses real estate as a career—except that when it’s done right, you can make a lot of money.
In today’s Silver Dollar episode, we’re determined to help you avoid becoming one of the casualties of 5 common mistakes that lead agents to their demise.
1. Agents who fail don’t take the time to build and manage their database of contacts
What so many agents—especially new agents—don’t fully appreciate is that, as an agent, you are a business owner. This means there is an entirely new set of skills you need to learn, and many of them are operational. Building and maintaining a database of contacts is one of those skills.
During the episode, we refer to Gary Keller, the founder of Keller Williams Realty. During the throes of the pandemic, Gary noted that businesses with well-maintained databases, which could be used to stay connected to their customers and clients, would survive. He included restaurants—one of the most vulnerable and hardest-hit industries—among those businesses.
It may be that some agents don’t fully understand the value of their databases, but the information within them will make or break their businesses. We understand that if may be difficult to get the information you need, which is why we offer several tips for how you can get it.
2. Agents who fail succumb to shiny object syndrome
Shiny object syndrome happens when things that falsely guarantee your success distract you from actions proven to produce results. It’s an insidious condition because it preys upon our insecurities and causes us to doubt our actions and plans.
When someone dangles another course, tool, method, book, strategy, seminar, etc.—promising that it will provide whatever it is that you need to succeed—you’re at risk of contracting shiny object syndrome. And new entrepreneurs are especially susceptible to shiny object syndrome, with real estate agents being a prime target.
There’s no doubt that some shiny objects are worth a look, but here’s the problem. We jump from one solution to the next, never giving any of them sufficient time to work before another shiny object appears.
When you put a plan into action, you must stick to it until it proves itself to be worthwhile or not. Don’t expect anything to produce results for at least 6 to 12 months—and that’s only if you work the plan!
3. Agents who fail don’t make their calls
There is no substitute for having voice-to-voice conversations with prospects and leads. Period.
Too many agents avoid making calls by focusing on the operational aspects of their business. They feel busy, so they think they’re being productive, but that’s not how it works.
Whatever you want to call it, busywork is busywork, and it stops you from doing the only thing that will grow your business—prospecting for leads.
If you’re hesitant to make your calls, it’s because you’re frightened of rejection. But rejection is part of the job. We’ve got dozens of podcast episodes and guests who offer their advice on how to move beyond the fear. Still, the bottom line is, as you make more calls, you become less intimidated. The only way is to jump in and do it.
Get yourself a good script, practice it until it feels right and fits your style, and start dialing. To get started, download our free Guide to Cold Calling and take a look at our free scripts in our Resource Library.
4. Agents who fail don’t hold themselves accountable
Serious agents understand that real estate is a career, not a hobby. Success as an agent takes as much commitment as success in any other job.
You are your boss, so be accountable to your boss. Set a schedule, be at work on time, do what’s required of the job, and go above and beyond. Block your time for certain tasks, and make that time sacred so that nothing else interferes with what you need to do.
5. Agents who fail don’t align themselves with the right people
This mistake doesn’t just happen to agents.
If you find yourself with people who don’t support your dream, agents who aren’t adequate role models, or a mentor or coach who hasn’t achieved what you want to achieve, then you should seriously consider rolling with a different crowd.
You don’t want to be the smartest person in the room. You want to learn, to aspire, and to emulate what other successful people have done. Consider joining a professional networking group, and keep listening to Stay Paid and other high-quality podcasts.
Bonus: Agents who fail don’t set goals or plans to achieve them
Listen to the podcast for details about this last mistake, but, essentially, you need a big goal to drive your ambitions and a plan to get you there.
Please enjoy this episode, and we’d appreciate it if you would give us a 5-star rating and leave a review on Apple Podcasts. (Not sure how to leave a review? Click here.)
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Free e-book: Guide to Cold Calling