Why Do Most Real Estate Agents Fail To Succeed In Real Estate?
In this article you’re going to find out the top 6 reasons why real estate agents don’t succeed. If you’re contemplating about getting your real estate license, are newly licensed, or already a seasoned veteran, you need to be aware why a ton of agents are failing in the real estate business. Being aware of these reasons why real estate agents fail can greatly reduce the chance that you’re going to fall victim to the startling statistic of the percentage of agents failing in the business.
1. They Don’t Work Hard Enough
Being a successful entrepreneur takes a lot of hard work. No matter the industry, starting a business is going to mean long hours and lots of blood, sweat, and tears. One of the top reasons why real estate agents fail is because they are lazy simply do not work hard enough. Successful real estate agents work odd and long hours. There are few successful agents who work the typical “9 AM- 5 PM hours”, Monday through Friday. Being a successful real estate agent means working many nights and weekends and being available via phone or e-mail nearly 24 hours a day. Simply put, hours outside of the workplace, or, “behind the scenes.” That is what separates the successful agents from those who fail.
2. They Get Involved In Real Estate For The Wrong Reasons
Selling real estate is not ideal for everyone, end of story. Another reason why most real estate agents fail is because they get involved in real estate for all the wrong reasons. One of the most common reasons why people attempt to sell real estate is because they think all real estate agents make boatloads of money. This is a huge real estate myth and couldn’t be more wrong wrong. The average real estate agent makes less than $40,000 per year. Another very common reason people obtain their real estate license is because they love “looking at houses” or like watching shows on HGTV. Being a successful real estate agent is so much more than being a professional door opener. Becoming a professional real estate agent for one of the two reasons above is not smart. It’s important to get involved in real estate for the right reasons, otherwise, you may be another real estate agent on the verge of failure.
3. They Don’t Save Enough Money To Live On
Successful real estate agents spend money to build their business because they know how important it is. Whether it’s investing in promoting themselves to their sphere of influence or using top real estate marketing strategies to sell homes, it costs money. Many real estate agents fail because they don’t realize that it costs money to run their business and when they realize it does, they don’t have enough money to live on, in addition to business expenses. Not having money to make car payments, student loan payments, buy groceries, or to buy other necessities is another reason why real estate agents fail.
4. They’re Selling Real Estate Part Time
Another popular reason why real estate agents fail is because they’re attempting to sell real estate part time. Now, before part time real estate agents lynch me in the comments below, I acknowledge that it’s feasible to be a successful part time agent. The reality, however, is that the majority of part time real estate agents fail to make it big within the industry. Why do many part time real estate agents fail? Well for starters, many buyers and sellers have to decide whether to hire a part time real estate agent or not. Many buyers and sellers will avoid hiring a part time agent at all costs, simply because they’re not readily available compared to a full-time agent. Nothing against part time agents, but this is the thought process of many consumers.
5. They Don’t Set Goals Or Have Action Plans In Place
Goal setting and action plans are an important part of any successful business. Most real estate agents fail because they don’t understand how to properly set goals or even create action plans. Successful real estate agents are constantly setting and reviewing goals and action plans. It’s not as simple as setting a yearly goal and not revisiting it until the end of the year. It’s constantly being aware of your progress towards your goals and action plans, which means checking them daily.
6. They Don’t Know How To Lead Generate
One of the best things about being a real estate professional are the numerous ways business can be generated. The problem though is that many real estate agents fail in the business because they don’t know how to lead generate. One common trait of successful real estate agents is that they understand how they’re going to generate new leads for their business. For example, there are many PROs and CONs of open houses, one benefit being that open houses can be effective for generating leads for agents. On the other hand, a successful agent may determine that open houses are not the way they want to generate leads and they’d prefer to get leads through online marketing or social media. The commonality is that successful agents will know how to generate leads which keeps new business opportunities coming in.