Many agents fail because they can't make enough money in that first year of real estate to pay their bills. They are forced to accept part-time jobs with a fixed salary. And that leaves very little time for real estate. Most successful real estate agents can offer far more benefits than drawbacks of being a real estate professional.
One thing that is rarely discussed about the real estate profession is the alarming percentage of agents who fail to succeed in business. Depending on the source, the percentage of real estate agents who fail in business in the first 5 years ranges from 85 to 90%. If you think about it, nearly 9 out of 10 new agents can expect to fail, which opens your eyes. After working as an agent for a few years, you may decide that you are ready to move on to other things.
Being an agent is an exciting and lucrative career, but the fast pace and tight schedule can become tedious as you move on to different stages of your life. On average, the biggest single increase in revenue an agent will experience during their career in real estate occurs after the first year. The more money you've saved, the longer you can last in real estate while you learn and wait for your real estate income to double. If you're good at a skill that more established agents don't have, such as creating websites or managing social media, you can offer to teach yourself this skill while they teach you to others in the real estate industry.
Much of the clientele of an established real estate agent comes from what is known as a “sphere of influence”. A fairly common reason why most real estate agents fail in business is because they don't understand how or where to market. For example, the top real estate agents in Rochester, New York, didn't drink a magic potion that would turn them into billionaire producers. Being a successful real estate agent means working many nights and weekends and being available by phone or email almost 24 hours a day.
Other factors influenced an agent's salary, in addition to longevity, and could be the reason why more cases of agents doubling their real estate income in the future. Staying in real estate long enough for initial revenues to double is crucial, but it can be daunting to move forward if you don't get the results. Successful real estate agents spend money to build their business because they know how important it is. The real estate market is constantly changing and evolving, so you need to make sure that you are too.
Here are some tips to help new agents succeed in the first year of the real estate industry and increase their profits.