The real estate industry is widely known as a “dog eat dog world”, yet thousands of new agents line up every year unprepared. Ninety per cent fail short of their 25th month after taking that leap, where the top 10 per cent of agents take 90 per cent market share of real estate transactions. Not very encouraging statistics.
Why is that?
Are they not as smart as the top producers?
Do they have a smaller network?
Are they going at it solo?
There are many reasons why agents fail, but the common thread among every agent, successful or not, is that they all started from the ground up. They didn’t just instantly achieve success overnight.
The key differentiator between successful agents and those who fail is their mindset. Their mindset of being an entrepreneur who looks for those big opportunities, ways to scale, ways to stay consistent. The hustle and drive are the bare minimum to what they bring to the table.
They invest in themselves and plan for the long haul, while sticking to core principals of generating real estate business. When asked what are the best ways are to produce leads, Matt Nguyen, a top producer from KW Silicon City in San Jose, Calif., says, “The fundamental concepts like mailers, flyers, door knocking must happen consistently.”
Almost every agent will do this but where they fail is their consistency. They try once, twice and by third time they give up, not fully grasping that consistency means you may not generate a lead for a few months, but with consistency they will come – and sometimes in groups – that turn into closed deals.
Top producers try new tools/techniques. They throw away what fails and keep what works or is practical. They surround themselves with successful agents. The No. 1 advice from a top one per cent producer at Intero Real Estate in San Jose, Samit Shah, says “Join a producing team. Be ready to make cold calls and door knocks. Have a schedule and be consistent.” Again, another agent using the keyword, “consistent”.
Top producers are entrepreneurs, taking risks and benefiting from them. Many fail at one endeavour or another. Nguyen says it best: “Love to love losing.” Their grit and hustle don’t let them stop from progressing.
Agents who are starting their careers or struggling must ask themselves why are they entering the market. Are they thinking they can benefit quickly? Are they going to just tip toe in and give it a 50 per cent effort? What’s their strategy to stand out?
With any endeavour, especially when it comes to a business decision, going all in gives you every opportunity to succeed. Giving a 50 per cent effort opens the door for excuses.
Author and speaker Grant Cardone preaches, “Your network is your net worth.” Anyone can network. All it takes is going out and meeting people and building relationships both online and offline.
A key stat every agent should keep in mind is that 74 per cent of homeowners only interview one agent, according to the National Association of Realtors. That means consumers are not shopping around.
Many successful agents try to generate new business through open houses. When you are face to face with a prospect, statistics are on your side to win them over. How prepared are you to capture them? Your sales pitch is probably like many other consumers have heard. How can you be unique?
If you get a lead, you must respond quickly. Gregory Charlop, founder of The Real Estate Flash on Amazon’s Alexa, noticed among top producers he’s interviewed that what they do well is “they have strong inbound marketing and respond immediately to incoming leads.”
Any agent who can embrace technology and leverage automation can make the playing field even, knowing that 74 per cent of prospects only interview one agent. Agents need to do what has traditionally worked well – door knocking, cold calls and open houses – but spin their efforts with technology.
Who will you partner up with to help reach your goals? Entrepreneurship is a lonely path, but it doesn’t have to be in this digital world we live in.
Michael Lam is the founder and CEO at Kaydoh Inc, a technology company providing agents on-demand reporting solutions that capture and qualify leads through automated texting. He is also the co-founder of GoHire, where he built the award-winning international recruiting chatbot on Facebook Messenger, “GoBe – the Job Bot.” At the 2017 Recruiting Innovation Service Awards, the bot received the Most Innovative Social Media Solution award. In 2018, GoHire was nominated for Recruiting Startup of the Year at Hiring Success 18. Visit his website or email him.