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How To Succeed As A New Or Slumping Real Estate Agent

In this video, Tom Ferry discusses why 87% of all real estate agents fail after they become real estate professionals and then how new agents can take this and achieve success.

This is geared towards new agents or veteran agents who have been in a slump and need to start over.

If you came and asked the question, “what do I need to do to succeed as a real estate agent”, you need to expect the truth, not some answer trying to sooth you and make you feel good. This is going to be an extreme answer to the question.

The goal is to get you moving quickly out of your slump and very quickly on the path to success.

87% Of All Agents Fail After Just 5 Years In This Profession

The NAR, gave a statistic and it says that 87% of all real estate agents fail in their first 5 years. This is a startling stat.

The fact is, real estate professionals don’t leave the industry because they are making loads of money, they leave because they’re not making any money.

So let’s look at the things you need to do to make sure that you are not one of the 87% of agents who fail.

Know Why You’re In The Field (What’s Your Internal Motivation?)

The first thing you need to identify is what’s motivating you? You need to truly be honest with yourself. You need to ask yourself the question, “what do I need out of this business?” This may be in contrast to your goals which may actually be different than what you need to achieve. In fact, the gap between what we really need to achieve and our goals can create a lot of tension that is not beneficial.

So identify what you need, then make sure that’s all covered, then you can start to set other goals.

Let’s look at an example:

What does it cost for you to live each month? What’s the cost of your mortgage, rent, kids, food, clothing etc… You need to know the cost of everything it takes for you to live.

Then you need to identify what it costs you to run your business each month.

Let’s say this all adds up to $8,000 per month. So in this example you need $8,000 to live each month.

Next, how much income do you have outside of your business? So if your spouse is working and makes $6,000 per month, then this means you only need to make an extra $2,000 a month from your real estate business.

Next, determine what your average commission check will be. So if your average commission check was $8,000, this means you only need to sell a house every four months to make the extra $2,000 needed for you to live.

This allows you to then determine how many properties you need to close each month.

Here’s the formula:

How much do you need to live each month – how much outside income you have = Equals dollar amount you need to make each month.

Then take what your average commission check is and divide that by what you need to make each month and this tells you have many properties you need to sell each month.

Let’s look at this again:

Need $8,000 each month to live – $6,000 outside income = $2,000 need to make from business each month.

Average commission check is $8,000 divided by $2,000 = You need to sell one property every 4 months. You would only need to sell 3 houses a year to make up the amount to have income to live.

You see, doing this takes the pressure off. It allows you to see exactly what you need to do to meet your minimum standard. Once you know this, you can set realistic goals.

New Agent Plan For Success To Avoid The 87% Failure Rate

In this next section we are going to talk about the disciplines and steps you need to take to become an amazing success in the real estate industry.

So, for example, if you need five closings a year, what we discuss will help you do that and much more!

Your Morning Routine

You need to develop a morning routine. Do this EVERY morning without fail.

1. Write Affirmation

As part of this morning routine, write down your daily affirmation. Write out your goal “I earn X amount of money as a real estate agent”. This is your goal.

Write this out 30 times every morning. The reticular activating system which is something in the brain that whatever you think about the most will be what you see yourself doing.

Be careful about what you affirm. What you think about the most is what you will see yourself accomplishing. So if you want to make $55,000 per year, write down $110,000. If you want to make $100,000 a year, write down something larger, say $250,000.

To show you this as a real life example, let’s say you want a new car. In this example say you want a new Toyota Prius. What do you begin to see everywhere? You see the Toyota Prius everywhere. This is what the reticular activating system in the brain does.

2. Daily Activity Checklist

Write out exactly what you need to do that day to achieve your goal you set in the previous steps above.

3. Listen To Motivational Material

Use this time to put ONLY positive material into your brain. Don’t listen to negative news or anything that gets you down. Use this time to get fired up for your day.

Lead Generation

The next step is to take action steps to actually put into practice the daily activities you will need to succeed.

1. Role Play

Every day make sure you role play for at least 15 to 20 minutes. Read this over and over until the words come out naturally and become second nature. This allows you to think about the person you’re talking to and not what you’re saying.

Most people fail because they have no idea what to say to potential clients. If you don’t know what to say, then you’re afraid to make any calls. If you’re not sure what to say, you live in fear of talking to anyone.

If you have fear on the phone it’s only because you have not taken the time to memorize your scripts.

2. You Call Every Make Me Move (MMM), New, Expired, and FSBO

Take this time to learn and make mistakes. It’s ok to make mistakes and screw up. This is how you become good at what you do.

3. Call 5 People You Know

After you learn how to make calls to people you don’t know, then call 5 people or friends you know and ask them if they would like a free home valuation. Ask them who they know who may be buying or selling a home.

Don’t start here though. So many people say, “I will just call my family and friends”. Don’t you think that’s what all the 87% of failures have done? Don’t do the same thing. Overcome your fear by calling potential clients as listed in number 2.

4. Lead Follow Up

Be sure that you take the time each day to follow up with leads. Don’t be like so many others who never do the crucial step of follow up.

Become The Knowledge Broker

1. Read Keeping Current Matters (KCM) Everyday

Reading KCM will help you learn the trend of the real estate market. This allows you to feel confident and speak confidentiality to a customer about why buying a condo may be better or why selling in the fourth quarter may actually be better than the first quarter.

2. Be Sure To Study The Daily Hot Sheets

Nothing’s better for a new agent or an agent trying to rebound to know what listed, what cancelled, what sold, what closed and for what prices. The key is to know the market so you can speak with confidence to your potential clients. This is all about becoming the knowledge broker in your area.

When you know everything there is to know about your market and know the smallest details and trends, it makes you want to get in the phone and make phone calls.

By reading and knowing the daily numbers and knowing what is going on, you become the knowledge broker for your area.

Two Open Houses

The last step on your road to success as a new agent or as an agent who is on the rebound, make sure to have two open houses every single weekend.

If you do all of these steps as a new agent or a rebounding agent for 9 months, you’re going to create an amazing amount of momentum plus you will become the knowledge broker for your area. This is going to allow you to win and become part of the 13% that make it as a real estate professional.