Saturday, 29 February 2020

8 Reasons Why Most Agents Fail In Real Estate

Estate Agent

We're talking about 8 reasons why most agents fail and what you should about it. I want to unwrap the 8 reasons why new agents fail and people that are joining teams are failing every single day. This list could have been a 100, but when I thought through decades of working with new agents, watching senior agents, bring people into the business, watching owners and managers recruit in mass brand-new real estate professionals. There were 8 reasons why I see people missing the opportunity and not earning the money that they want and ultimately ended up failing from this business.

Let's take a look at what you should do about each of the 8.


1. Interested Versus Committed

Think about this, I'm going into the real estate profession as we all know real estate is generally speaking not a professional you jump into straight out of college or high school. There are not many people on the planet that wake up and say guess what I want to do when I grow up, I want to be a real estate agent. The vast majority of the people that get into space come in, in a second, third or fourth career, and in many cases, they failed and failed and this is the last-ditch effort, an opportunity to strike it rich and make money and yet most of them are just interested. 

They're interested in success, they're interested in doing what it takes, they're interested in being the kind of real estate professional that can win the type of business that we all want. but we both know there's a big difference between being interested and committed. 

This is a mindset thing my friend, commitment is I'm willing to do whatever it takes no matter what for as long as it takes to be successful. Interested is, I do it when it's convenient, I'll make my calls when it's convenient, I'll learn the script when it's convenient, I'll create my plan when it's convenient, you know the difference. 


2. They Are Not Strategic

I meet with agents every day and inevitably when we're talking about planning or their market or growing their business, I'll say talk to me about the way you look at your marketplace, how strategic are you, for example, do you look every single day at the hot sheets, do know every new listing, every pending, every sale, every price reduction or amendment, and are you paying attention to the real strategic pricing trends of your marketplace. Can you talk strategically to buyers and sellers about the date and the math of your market? Do you know that condos are not selling and residential selling or two stories aren't, but those old bungalows that were built a long time ago are being bought and traded and fixed and flipped every single day as an example?

A big reason why people fail is they go into real estate and they say, I like houses and I like people and they basically get excited about whatever's on caravan versus stepping back 30,000 to 40,000 feet and looking at the marketplace and asking yourself where do I fit in? Where can I have the greatest value, what market is hot right now, what market is percolating on it's way up and what has clearly jumped the shark. Most people aren't thinking strategically, so they literally show up bang, bang, bang, whatever happens, happens. That's a big reason why they fail.


3. Fear Of Mistakes And The Desire To Look Good.

I get it, I mean, we see the photos, we see the look and style of many real estate professionals, they want to look good. But here's the reality. To be successful in life and in business especially in business you have to make a ton of mistake, every good agent will sit you down and say look, let me tell you about all the areas that I screwed up, the time that I forgot to follow up, the time that I forgot to put a CTA on a direct mail piece, the time that I did an ad and there was no phone number. I mean, it's just mistake after mistake, and then learn the lesson, that's how the best people get great at this business. 

You have to save yourself, if you're new or joining a team that my number one focus is to make as many mistakes as I can and learn as many lessons as I can because from that, you have wisdom, you become wise, you actually know what works and what doesn't, and you've got that sort of gap if you were between not knowing and knowing and you've bridged it and that's when you become successful. So I would encourage you to make as many mistakes as you can.


4. No (Or Wrong) Role Model

What if you're reading this and you're a brand new agent, and you're in a class with a bunch of brand new agents, and you're looking around at what they're all doing, guess what happens? We begin to model the behaviors and the mindset of the people we spend the most time with, so as a brand new agent or someone joining a team, you need to consciously decide "Who is my model in the real estate industry"? And what's most important to me, as an example, maybe you want to model someone that is highly skilled and highly technical and they've been selling real estate for 10 years, not too far from where you are as a brand new agent or 5 years and they're ridiculously successful, but not just successful in their business, in their relationships with their money, the way they manage themselves. Everything they do is the whole package 

The mistake that most people make is they have no model. So they just get stuck in the minutiae of the agents around them but also aren't selling any houses and like attracts like my friends, you get the point. Who is your role model in this business? Who are you aspiring to be like? Who are you looking up to and saying, she's the one, he's the one, and then dissecting how they think, how they walk, how they plan, how they market, everything that they do. 


5. There Gas Station Is Only Open 1 Day A Week For 1 Hour.

You're in a sales and marketing business. The number one reason why people fail is they don't bring in enough clients. they don't attract enough clients, as a brand new real estate professional or brand new to a team, what I'm going to stress to you is, if you want to guarantee failure, do what the masses do. Don't mark it, don't do lead generation, talk about things like prospecting is a bad thing and it's not something you're interested and you don't like rejection and all that other BS, and I promise you, you will have a slow painful death in this business. 

On the flip side if you say to yourself, I'm in the sales and marketing business and my number one job is to attract customers every single day and you take on the same philosophy we believe which is there's no wrong way to do it, know yourself, know your skills, know your DNA, know your market and what are the opportunity and be strategic. 

For example, we talked about the core four, if I could wave a magic wand every agent around the world would focus on the core four, and then build their business from there. Here are the Core four


  • 1. Their Database
The people you know that already like you and trust you hopefully, and you can bring them value and ultimately either win their business or their referrals.


  • 2. Open Houses
Open houses are an opportunity for you to be in the marketplace, talk to buyers every single day, talk to potential sellers and neighbors and if you know what to say, you can win a ton of business.


  • 3. Geographic Farming

Picking a community where the turnover is 5%, to 7%, and planting your flag and saying, for the next 18 months I'm going to become the agent. The knowledge broker in this subdivision of 200 to 500 building whatever it may be, and become the knowledge broker, become the most requested talked to an agent in that area. 

  • 4. Online

Making sure that your presence online is attracting opportunities buyers and seller is following up and winning. Those are the core four.


The big mistake is, people think that they can do a little bit of marketing 1 time a week for an hour and run a successful gas station. Be really clear. Agents fail in this business, not because they have too many listing appointments, not because they have too many buyers are working with, it's the opposite. And the only way you solve that is through marketing and lead generation, if you don't get that, you're not going to get the business. 


6. Monday To Friday - 9:00 To 6:00 - Mentality. 

As I mentioned earlier, this is the second and third and fourth career industry. So people are coming out on Monday to Friday, from 9:00 to 6:00, 40-hour workweek and exhausted on Friday at 5:00. Because they put in soo much time. What do we know about the real estate industry, all the money is made before 9:00 and after 5:00 and Saturday and Sunday. This is an industry where you have to say to yourself "I don't have a job this is my business" that mentality I don't have a job this is my business and I'm going to get from it, what I put into it and in the beginning, be really clear, you got to dig a-holes like nobody's business, you got to roll up your sleeves, put in all that time that's sweat equity, learning the market, understanding the strategy, making all the mistakes, doing all the marketing, doing all the lead generation, in many cases it's probably more metaphorically. 

Doing the right thing every single day and removing the thought of Monday to Friday, 9:00 to 6:00. Removing the mentality of job and putting it into this is my business, this is my livelihood and the more I put in, the better. All the money made before 9:00 and before 9:00 and after 5:00, and all the money's made on the weekends, get that and you're going to succeed.


7. No Sales Swagger

We know the National Association of Realtors came out decades ago and said, the vast majority of people getting into the real estate business came in with no sales and negotiation experience, not marketing experience, those are the essential skills, that's why they fail. they fail because they don't know what to say, they fail because their fear of rejection stops them from engaging with the prospect, from talking to a potential buyer, from emailing or texting or making the phone call, that fear of rejection only comes from not know what to say. Go back to fear of mistake at step 3 and then desire to look good.

If you really want to become successful in this business, if that's really your desire, what you should do is put yourself in a situation in the potentially hardest possible selling situation ever, do it over and over and over. Learn the objections, handle the objections, close, get rejected, get hung up on and by doing that, you create an experience and then when you call friends it's easy. 


8. Lack Of Financial Management

You're building a business, what if your broker said to you hey, welcome to real estate, here's the reality, you need $100,000 in the bank, you need 6 months of your total cost of living set aside in an account so if you don't close the deal for the first 6 months, you're okay, but you actually need more than that because you also need money to build your business. You need a website, you need leads, you need marketing, you need this and that. And they actually gave you the list and you say to yourself, wait a minute, I thought I can get into real estate and make these big giant paychecks and have not a lot of expense can just go see some house and follow up on some buyers and do some deals. The reality is, those days are gone.

It's so uber-competitive out there and the mistake that most people make is they have poor financial management and guess what? Because of that, they run out of money or they make investments in their business and they weren't prepared for it, they weren't paying attention to the natural cycles of when people are listing and when they're buying and when they're closing, and how long it takes to close a transaction. 




Conclusion

I want you to search every one of this point online, so you don't have to reinvent the wheel, so you can model success and become successful. Or could this possibly be the moment you say, you know what? if this is what it takes I may have chosen the wrong career. And if that's the case, I would say to you congratulation. Now go do something that you're passionate about, go find something that you can work Monday to Friday from 9:00 to 6:00 because real estate is not that game. 



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