The real reason why 90 percent of agents fail in real estate. The statistic is within the first five years, 87 percent of real estate agents will fail within the first five years. According to them, if it’s the national bureau statistics of labor, they say that on average most businesses will fail fifty percent for five years, so you have a 37 higher chance of dying in real estate than in any other profession. Why is that well?
Easy to get into real estate.
first of all, the one reason I believe is that the barrier to entry to get into real estate is super easy, right in other words, it takes like 600 hours to get your cosmetology license, but only 35 hours, I believe it was, or maybe it’s 135 hours to get your real estate license I mean it doesn’t take you long at all to get your real estate license everyone thinks it’s so so easy .
One of the most competitive industries is real estate because the entry barrier to getting your license is simple, right? Think about doctors, attorneys, and lawyers. They go to school for all these years, and they have hundreds of thousands of debt. When I was selling real estate full-time, I made way more money than any doctor, attorney, or lawyer that I knew, but it was because I was specialized in what I was doing.
Do not educate themselves.
Most agents fail in real estate because they do not take their industry seriously. They do not educate themselves on how to be innovative, be different, and genuinely serve at a different level and do things that everyone else is not doing.
What is a commodity?
The thing about real estate is that you are valued as a commodity. What’s a commodity is replaceable, and it’s interchangeable, and it’s replicable. It’s easy to copy. Everyone’s doing it when you are a commodity doing what everyone else is. The only thing you have to differentiate yourself is to lower your commission right to drop your prices in real estate. The problem with that is that you will always have somebody who will drop their prices even lower than what you’re able to do, which means that you’re in this never-ending battle of commission wars.
Doing things differently.
what is the opposite of that? the opposite of that is doing things completely differently than everyone else is doing right so for example when i go on a listing appointment and somebody says you know Krista the last agent said that marketing is not important at all i’m like i really appreciate that that they said that to you but the bottom line is mr mrs that is just not true and here is why i talk about and then show them here’s a here’s some statistics that I created from 2021 right and in 2021 I took all the houses in Brentwood in a certain city that sold and i i said any house that sold in Brentwood under um an acre and i showed the average list price and the median list price and i compared what mine were and let me tell you we sold our properties between 16 and 18 higher than our competitors which averaged around 166 000 more that we got for our sellers from those guidelines and mind you it was over 20 properties just that met that creature in that one city and we were able to show not just from one property but over 20 of them that we were able to on average get 16 to 18 more and I explain that and show that and I talk about things that most agents are not talking about well most agents are talking about doing things like brokers tour and open houses and all these things I’m discrediting that and saying why broker store does not work why open houses are ineffective and explaining the difference of what it is that we’re doing how we’re utilizing video and social media and digital marketing to get hundreds of thousands of eyes on their property how to get thousands of engagements how to get hundreds of hours of watch time on every single video property tour that we create and how that affects the seller we let them know that according to the national association of realtors 67 of buyers will walk through a home that they see online and then I compare that to like an open house where maybe all your neighbours and lickyloos come in to eat your donuts and to look at you know what your decorations are or I’m putting your property in front of people where they’re looking and where does people do people start their search well 98 people start their search online and they start their search on average three to six months before they’re ready to take action so it’s my job Mr. seller to put your house in front of sellers and friend of buyers when they’re looking early on and then I can target people and retarget people that were looking at properties that were four bedroom two bath homes like you haven’t that you’re selling right now that was looking three to six months ago because now they’re ready and then I showed them all this data about what we’re doing online how digital marketing works how we’re able to target people how we’re able to re-target people how we’re doing things like the way buyers are looking the bottom line is and we all know it that if you’re holding an open the house you’re holding an open house not for the seller, you’re holding it open for you, you want to meet the neighbours Do you want to meet the lucky loo buyers that have not been qualified yet that hopefully haven’t already gotten snatched up by other agents that’s why you do them it’s the exact same thing with broker store and I explain this to this law you know what they say they go oh my gosh I didn’t want to do open houses anyway and yeah broker store like we all know when you’re doing brokerage store what are you doing you’re calling your agent friends and saying please come to the house so I can you can leave your card and I can show the seller that I actually I’m doing something well everyone’s doing that the reason why most real estate agents’ fails are not willing to invest in their education they’re not willing to invest in differentiating themselves and being unique and being different and offering value .
Unique selling proposition
what’s the difference from being a commodity it is truly to have a unique selling proposition okay before I even show up to a listing appointment and I will tell last year we did I think one point one one million five hundred thousand uh and six five hundred sixty thousand dollars of gross real estate commissions that we took in I am a full-time coach now so I don’t talk to any sellers or any buyers I’ve taught my brother to be me he comes in acting as me right he’s my representative representation and we utilize my system my process my strategy on how we market properties I am the the face of the business
I manage making sure everyone’s doing the process and the design and so we were able to do that kind of Commission without me ever even speaking to a seller or a buyer or going on a listing appointment or meeting with a buyer or seller because what we offer is so unique and so different and our content is helping us win before we arrive what does that mean that means we’re creating content we’re showing not telling what we do with our properties how we market ourselves how we are so different and how that the difference affects their bottom the line they are learning about that they know about that before I even show up to the door meaning
What exactly is real estate?
I am winning before I arrive.
I’m positioning myself as the expert showing that I’m different. In turn, I’m also developing a relationship with them. So before I even get there, they already have made up their mind they want to work with me, and they already know me like me, and trust me, I’ve broken down their barriers I positioned me as the authority I showed my unique value.
The Commission does not come up stop lowering your Commission. Start increasing your knowledge, start growing your value by doing things differently. Suppose everyone else is saying to do open houses and cold calls and door knock. In that case, I say don’t do any of that and start utilizing video and social media and digital marketing and doing things that other agents just are not doing. Then I show the result of why most real estate agents are not making it in this industry. Suppose you are willing to invest in the skill and knowledge to position yourself as different truly. In that case, you can make a significant amount of money in real estate more than any doctor or attorney earlier.
One strategy is just one digital marketing strategy where people raise their hands. And say I would like you to give me a listing mark announced in my home. Just that one, the strategy resulted in 48 closed seller transactions in 12 months, resulting in 760 000 in real estate commissions. The bottom line is learning to be different and to be unique. Do not just be a commodity. Do not let the only thing you can do is reduce your Commission, increase your value, improve your education, and increase your knowledge and skill. That is how you can become one of them, not 13 percent that makes it but one of the top one percent of agents that do you know 99 of the business that’s how you do it.