The Death of the 80/20 Rule

The 80-20 rule, as all of you know, is that 80% of real estate business is done by 20% of the agents out there. That’s not the rule of thumb anymore, at least in our market.

Those numbers are outdated. We are in a new world when it comes to real estate and the way agents approach the business. If you’re still operating off of that 80-20 rule, you’re going to get wiped out.

You may have heard the term ‘mega-agents,’ which is the way the real estate business is headed. The top 5% is now dominating 95% of the business, leaving 95% of agents to fight for the remaining 5%. If you’re not careful, you’re going to wind up in that group. How can you differentiate yourself and keep yourself from getting wiped out? Where do you even begin?

Start by not waiting for business to find you. These days, 90% of buyers start their search online, so if you’re not the first person they see, then you’re going to struggle to capture business.

Additionally, 80% of people select the very first agent they see online to be their agent. If you’re not in that top group, you’re in trouble.

You need to work to differentiate yourself, and the tried and true way to get business is still the same – you’ve got to be active. You’ve got to go out there. You can’t sit at your open houses and wait for things to happen. You can’t sit during your floor time and wait for things to happen. You have to go out and get it.

If you feel like you don’t know how to do that, give me a call and let’s talk soon.


If you are interested in completing the courses required to get your California State Real Estate Salesperson’s License in under 16 weeks, and for less than the cost of your cell phone, visit The College of Real Estate or call them directly (888) 512-CORE.

If you are licensed, and just need that extra push in the form of coaching or accountability, at no cost, email or fill out our “5 Step Business Plan to Becoming A Successful Real Estate Agent” modeled after agents that earn incomes in excess of $375,000! You may also call us direct at (888) 727-0REH and select Option 5.

Our internal real estate coaching programs help our agents achieve a higher rate of production. Additional outside coaching programs are available (at the agent’s own expense) and encouraged. Many of our agents have utilized Mike Ferry and Tom Ferry as their coaches.

Leave a Reply

Your email address will not be published. Required fields are marked *