The real estate industry isn’t for the faint of heart. Most real estate agents quit (or at least consider it) within the first two years.
Some new agents have trouble working efficiently and effectively, while others have difficulty motivating themselves to work through the tribulations of self-employment. Whatever the case, it is not easy to succeed as a new real estate agent.
Even the most promising new prospects fall victim to simple mistakes. For new agents, it is vital to build a strong foundation for referrals, scale your marketing budget, and set achievable career goals.
- Invest in a comprehensive CRM to nurture client relationships and grow your referral base
- Study your ad analytics and increase spending on the ads the perform best
- Write out a positive and negative future for your career, and make concrete plans for the positive
If you’re ready to throw in the towel or just concerned about your future, take a few minutes to read these 5 common reasons agents quit after two years.
1.You Didn’t Build Yourself a Strong Enough Foundation for Referrals
Almost everyone will tell you that building a referral network is crucial to taking your career to the next level. What they always seem to forget is that if you don’t have a solid strategy in place for your first year or so, you will have to work almost as hard for the same results the next.
That means it will take many years to build your business and income beyond what you made your first year. Experience will give you incremental improvements sure, but nowhere near big enough to become wealthy, that’s for sure.
If you want to become truly successful, you need to steadily increase the percentage of your clients that are referrals every year.
How to Avoid This Problem: Invest in a Relationship Focused CRM
In order to both close more deals and build a strong referral network, you need to get a great CRM, and set up a nurturing plan as soon as you start getting leads.
A decent CRM like Contactually will help you automate your nurturing and stay organized enough to touch the right lead, with the right message, at the right time.
Second, and almost as important as having a great lead nurturing plan in place, you need to actively try to generate future referrals.
That means you need a plan. Generally speaking, that means both straight up asking your former clients and leads, as well as staying top of mind with drip campaigns and personal follow up calls.
2. You Didn’t Increase Your Lead Generation Spend as You Got Better
“It takes money to make money” is a cliche for a very good reason. As long as you have a strong work ethic, a bit of natural talent, and a willingness to learn and adapt, you can almost literally buy your way into a successful real estate career.
That’s not an exaggeration. If you’re working the right niche in the right farm area, doubling your lead generation spend can actually double your clients, and double the number of deals you close.
How to Avoid This Problem: A/B Test Your Lead Gen ads & Increase Spend on ads That Work
While identifying scalable ad spends is not easy, like the lottery, you will never win if you don’t play.
The trick is to study your ads scientificially and increase spend incrementally until you discover a formula that can scale. Once you do, throwing a ton of money behind that strategy can have a massive ROI whether you advertise on Zillow, Facebook, or Google.
3. You Didn’t Start Building Your Team to Help Manage Lead/Client Overload
Here’s a hard truth. Let’s say you implemented a strong lead nurturing and referral generation plan during your first year or so. You also tested and tweaked that plan to fit your market, and invested enough money into lead generation and marketing to get a steady flow of leads.
If you did all that properly, you should be starting off your second year even stronger. That means at some point during your second year, you will have too many leads to handle effectively even with a great CRM.
How to Avoid This Problem: Hire a Virtual Assistant or Junior Agent
In order to deal with more than a few hundred leads a month, you’re going to need help. Human help. That means hiring an assistant or even better, a junior agent.
Hiring a full time virtual assistant from overseas will run you around $500 per month, and a part time virtual assistant roughly half that. Not cheap for most agents, but what if hiring that assistant meant closing one more deal per month on average for this year?
Remember that more leads = more clients = more closed deals = more referrals.
If you follow this formula by gradually increasing your ad spend, and hiring a virtual assistant to handle the volume, you’ll be well on your way to running a team in a few short years.
After that, if you continue the formula, growth can be exponential. That’s not an exaggeration. We sat down with Pearson Smith’s Eric Pearson who grew his team from nothing to 700 agents on just two years.
4. You Never Set Concrete, Achievable, Goals for Your Career
A recent study on goal setting found that simply by writing down your goals and coming up with a reasonable strategy to achieve them boosted academic performance dramatically. Even better, it did so across cultures and gender, which means the effect is close to universal.
The trick was that the researchers asked the students to think carefully about what they really wanted for their future five years out. They then asked them to think about what they didn’t want their futures to be like.
How to Avoid This Problem: Write Out A Positive & Negative Future, and Make Plans for the Positive
If you want to be more successful, than having concrete, achievable goals laid out for you is a proven way to motivate yourself more effectively. Start by writing about where you really want to be in five years, then come up with a plan to get there.
Next, write about where you might find yourself if you give in to all your bad habits. If you sleep in every morning, skip calls, and only show listings that are easy to show… Fear can also be a great motivator.
Here’s David Greenspan Vice President, KiTS on the benefits of setting goals:
“Too many have a sheep mentality of just doing what they hear is popular. Constantly chasing the roller coaster of marketing ideas. Spending too much, and having to work too hard. Hype doesn’t sell homes. It’s about practicality and a plan.”
5. You’re Not Passionate About Your Career or Goals
Here’s the deal, you can most definitely live a comfortable life working as an agent without being passionate about it. If you want to get to the next level and become a top producer, you need to be passionate about real estate.
If you want to get to the top one percent, then you’re going to have to be passionate about all aspects of the industry, including cold calling.
How to Avoid This Problem: Change Your Perspective
Unless you have a major life changing epiphany, chances are if you don’t love working in real estate after a year or two, you’re not truly passionate about it.
That said, sometimes all that’s missing is the right brokerage, the right team, or the right niche. I know that my passion for real estate was flagging until I joined a luxury firm near my home.
So if you find yourself burning out or losing interest in real estate after a year or so, start casting your net for a new brokerage to join.
Who knows, you may find all the pieces fall together for you and (re) discover your passion for real estate.
View the original article at The Close