So what is up with the Agent Sales Talk motivational topic about failure this week? The market is really good and things seem to be going well economically and we should all be grateful for the business we have and maintain a positive mindset.
Let’s address the elephant in the closet in our industry and that’s the failure rates of agents. “N.A.R. states that 87% of all agents fail and get out of the business within the first five years of their career”. What is more important to us is why agents fail in this business within their first five years?
Top 5 Ways Agents Fail in Real Estate
1. No Planning & No Strategies
Many agents aim for nothing and hit it with amazing accuracy! There are so many real estate professionals we see that don’t have a simple business plan and marketing strategies on how much, of what and by when the activities they need to accomplish their goal personally and professionally. Know and commit to the right activities!
2. Fail to Attract Enough Leads
Having enough buyer and seller leads simply comes out of having enough lead generation funnels. Agents try one funnel a little bit and it doesn’t work and dump it. Try another a bit and dump that. In order to have enough buyer and seller leads agents need a minimum of 4 lead generation funnels in their business at a time. So what are the better funnels? The Core Four in our business:
- Database touches 28-36 touches a year to your database
- Open house where they come to you and meet you and tell if they like and trust you.
- Geographic farm where it is better to be an expert and niche at something rather than average at everything in real estate.
- Online leads are the quick and easy way to get you started and top you and your business up regularly.
3. Poor Conversion
LGT “Let’s Get Together” is the single most important activity and knowing what to say and how to say it starts the conversion. Get the consumers attention by asking about their challenges and fears in today’s market place and then invite them to meet with you and hear your solutions to their challenges in today’s market place. Don’t just give them what they want so easily so they are like a fish that you bring right to the boat and they wink and spit the hook out and just swim away!
4. No or Poor Service
Follow up, Follow up, Follow up. If they are a hot lead follow-up every 2-3 days, a warm lead follow-up every 2-3 weeks. Always do more so you will under promise and over deliver every time! As agents we want to be “insisted” and not recommended and we get insisted by delivering the unexpected and wowing and awing the customer every time! Serve, follow-up, wow and awe them and create raving lunatic fans of you and your business.
5. Run out of Money
Income must exceed the expenses and the key to real estate success is Profit! We need to spend money to make money but more important
we need to track and measure our return on investment with every dollar we spend. It amazes me how many agents don’t even know what the minimum amount of money they need to survive at home monthly or at work monthly is? What your life costs plus what your business costs plus profit equals your annual income goal! Profitability is not a bad word.
So there you have it the top five reasons why agents fail 87% of the time within the first five years in the business. I dare you to take each of these items and sit down and build a strategy and plan to ensure your success and defy the real estate success odds!
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