10 Reasons Why Most Agents FAIL in Real Estate | #TomFerryShow Episode 134

today we're talking about the 10 reasons why most agents fail and what you should do about it for over 20 years I've dedicated my life to bringing you the very best selling marketing and business building strategies to keep your business thriving get ready to experience the success you've been searching for welcome to the tom ferry show hey are you new to my channel let me give you the backstory several years ago I made the decision that I was going to put out as much value in content into the marketplace with one intention in mind help real estate professionals like you get better and sell more real estate so if you're getting value from this I strongly recommend you subscribe and join our community welcome to the Tom Fairy show episode 134 today I want to unwrap the ten reasons why new agents fail and people that are joining teams are failing every single day now having been in this space for 29 years I can tell you this list could have been a hundred but when I thought through decades of working with new agents watching senior agents bring people into the business watching owners and managers recruit in mass brand-new real estate professionals there were 10 10 reasons why I see people missing the opportunity and not earning the money that they want and ultimately ended up failing from this business let's take a look at what you should do about each of the ten number one is interested versus committed now think about this I'm going into the real estate profession as we all know real estate is generally speaking not a professional you jump in - straight out of college or high school there's not many people on the planet that wake up and say guess what I want to do when I grow up I want to be a real estate agent know the vast majority of the people that get into the space come in in a second third or fourth career and in many cases they failed and failed and failed and this is the last ditch effort an opportunity to strike it rich and make money and yet and yet most of them are just interested you know it's they're interested in success they're interested in doing what it takes they're interested in being the kind of real estate professional that can win the type of business that we all want but we both know there's a big difference between being interested and committed this is a mindset thing my friend commitment is I'm willing to do whatever it takes no matter what for as long as it takes to be successful interested is I do it when it's convenient I'll make my calls when it's convenient I'll learn the script when it's convenient I'll create my plan when it's convenient I'll be resourceful when it's convenient you know the difference let's look at number two they're not strategic I meet with agents all day every day and inevitably when we're talking about planning or their market or growing their business I'll say talk to me about the way you look at your marketplace how strategic are you for example do you look every single day at the hot sheets you know every new listing every pending every sale every price reduction or amendment and are you paying attention to the real strategic pricing trends of your marketplace can you talk strategically to buyers and sellers about the data and the math of your market do you know that condos are not selling and residential selling or you know two stories aren't but those old bungalows that were built a long time ago are being bought and traded and fixed and flipped every single day as an example a big reason why people fail is they go into real estate and they say I like houses and I like people and they basically get excited about whatever's on caravan versus stepping back thirty or forty thousand feet above and looking at the marketplace and asking yourself where do I fit in where can I have the greatest value what market is hot right now what market is percolating on its way up and what has clearly jumped the shark most people aren't thinking strategically so they literally show up like this bang bang bang bang whatever happens happens that's a big reason why they fail let's look at number three fear of mistakes and the desire to look good I get it I mean we see the photos we see the the look and style of many real estate professionals they want to look good but here's the reality to be successful in life and in business especially in business you have got to go make a ton of mistakes every good agent will sit you down and say look let me tell you about all the areas that I screwed up the time that I forgot to follow up the time that I forgot to put a CTA on a direct mail piece the time that I you know did an ad and there was no phone number I mean it's just mistake after mistake after mistake and then learning the lesson that's how the best people get great at this business you have to save yourself if you're new or joining a team that my number one focus is to make as many mistakes as I can and learn as many lessons as I can because from that you have wisdom you become wise you actually know what works and what doesn't and you've got that sort of gap if you will between not knowing and knowing and you've bridged it and that's when you become successful so I would encourage you to make as many mistakes as you can look at number four no or wrong role model I think of the old great line we you know we are like the five people we spend the most time with our income is in direct connection to the five people we spend the most time with well what if you're watching this in your a brand new agent and you're in a class with a bunch of brand new agents and you're looking around at what they're all doing well guess what happens we begin to model the behaviors and the mindset of the people we spend the most time with so as a brand new agent or someone joining a team you need to consciously decide who is my model in the real estate industry and what's most important to me as an example maybe you want to model someone that is highly skilled and highly technical and they've been selling real estate for ten years you know not too far from where you are as a brand new agent or five years and they're ridiculously successful but not just successful in their business in their relationships with their money the way they manage themselves right everything they do is the whole package the mistake that most people make is they have no model so they just get stuck in the minutiae of the agents around them but also aren't selling any houses and like attracts like my friends you get the point who is your role model in this business who are you aspiring to be like who are you looking up to and saying she's the one he's the one and then dissecting how they think how they walk how they talk how they plan how they market everything that they do and then you are indie which is something you're gonna see a lot on the top very show we talked about it R&D right like if you work for a fortune 500 company that a you know a research and development group well in real estate we call it ripoff and duplicate if someone else is doing something successful we want cut their face off change the phone number put our face on hit print and go metaphorically let's look at the next one number five I talked about it all the time there gas station is only open one day a week for an hour you're in a sales and marketing business the number one reason why people fail is they don't bring in enough clients right they don't attract enough clients so as a brand new real estate professional or brand new to a team what I'm gonna stress to you is if you want to guarantee failure do what the masses do don't mark it don't do lead generation talk that talked about things like prospecting is a bad thing and it's not something you're interested and you don't like rejection and all that other BS and I promise you you will have a slow painful death in this business on the flip side if you say to yourself I'm in the sales and marketing business and my number one job is to attract customers every single day and you take on the same philosophy we believe which is there's no wrong way to do it you know yourself know your skills know your DNA and then knew your market and what are the opportunities and be strategic so for an example we talked about the core for if I could wave a magic wand every agent around the world would focus on the core four and then build their business from there their database that's number one right the people you know that already like you and trust you hopefully and you can bring them value and ultimately either win their business or their referrals right obvious number two open houses right open houses are an opportunity for you to be in the marketplace talk to buyers every single day talk to potential sellers and neighbors and if you know what to say you can win a ton of business number three geographic farming right picking a community where the turnover is five or six or seven percent and planting your flag and saying for the next 18 months I'm gonna become the agent the knowledge broker in this subdivision of two hundred five hundred building of two hundred and fifty whatever it may be and become the knowledge broker become the most requested talked to agent in that area lots on the tom ferry show about every one of these so go deeper there and then the last one of course is online and if you've been watching our shows whether it's doing live video advertising on Zillow Trulia realtor and everything else right making sure that your presence online is a track opportunities buyers and sellers are following up and winning those are the core four and what I'll tell you is the big mistake is people think that they can do a little bit of marketing one time a week for an hour and run a successful gas station be really clear agents fail every day in this business not because they have too many listing appointments not because they have too many buyers are working with it's the opposite and the only way you solve that my friends is through marketing and lead generation if you don't get that you're not gonna get the business look at number six Monday through Friday nine to six mentality as I mentioned earlier this is a second and third and fourth career industry so people are coming out of Monday through Friday nine to six 40-hour workweek and exhausted on Friday at five because they put in so much time well what do we know about the real estate industry all the money is made before 9:00 and after 5:00 and Saturday and Sunday this is an industry where you have to say to yourself I'm no longer I don't have a job this is my business that mentality I don't have a job this is my business and I'm going to get from it what I put into it and in the beginning be really clear my friends you got a dig holes like nobody's business you got to roll up your sleeves put in all that time that's sweat equity learning the market understanding the strategy making all the mistakes doing all the marketing doing all the lead generation in many cases it's probably more metaphorically like my mentor Bill Mitchell once said to me growing up on a farm in Michigan he said Tom if we wanted water we had to go outside and pump and pump and pump and pump and only after a minute or two of pumping did water ever show up well that same metaphorical example for you pumping is the time you put in doing the right things every single day and removing the thought of Monday through Friday 9:00 to 6:00 removing the mentality of job and putting it into this is my business this is my business this is my livelihood and the more I put in the better all the money's made before nine or before nine and after five and all the money's made on the weekends get that and you're gonna succeed number seven is knows swagger we know the National Association of Realtors came out decades ago and said the vast majority of people getting into the real estate business came in with no sales and negotiation experience and no marketing experience and the first of my read back quote from Stefan swamp owned one of his trends reports I said to myself the vast majority of people come into this business with no sales no negotiation and no marketing experience in a business that those are the essential skills and I remember writing down that quote and saying the real challenges most maintain did and that's why they failed they failed because they don't know what to say they failed because their fear of rejection stops them from engaging with the prospect from talking to a potential buyer from emailing or texting or making the phone call that fear of rejection my friends only comes from not knowing what to say again go back over here fear of mistakes and the desire to look good I've actually said the new agents before if you really want to become successful in this business if that's really your desire what you should do is put yourself in a situation in the potentially hardest possible selling situation ever do it over and over and over and over learn the objections handle the objections close get rejected get hung up on and by doing that you know what you great you create experience and then when you call a friend it's easy I actually tell people call for sale by owners call expired listings is a brand new agent learn cut your teeth on these people the expires that listed with another agent and it didn't work out and they're not taking personal responsibility they're gonna blame the agent the marketing the lack of the bad communication etc and the for sale by owner the DIY person who actually thinks they can do it on their own even though the stats show less than a percent IRR for sale banners in the US ever sell on their own and yet there's a market of them and if you're a brand new agent and your desire is to become insanely great work with those people for the first year two things will happen first you'll sell a ton of real estate cuz that's the automatic but the flip side of that is guess what you will know what it's like to work with quote unquote the most challenging customers bring tremendous experience when you meet that next person at an open house or you're knocking on a door inside your Geographic farm or you get a referral from a friend right everything becomes easier because you know what to say sales swagger my friends is a game-changer let's look at the next one number eight this will sound funny but no goal broken into the numbers that get measured this is a business and the reason why most people mistake again they fail because they're interested not committed a committed person is going to state a goal I'm going to sell 18 homes and what we know is every 40 to 60 conversations for a new agent every 40 to 60 people I talked to I'm going to generate enough leads and enough interested opportunities to make one transaction to close one sale so we reverse engineer 18 times 60 as an example and that I say to myself therefore I need to talk to this many people every single day new people every single day and I start to do the work and then I measure it because as many people discovered what if you find out that numbers actually only 40 people you have to talk to or better yet what if you discover it's a hundred and sixty three people you need to talk to and you've only been doing 40 expecting to get the one and you find out it's a 163 that's not a bad thing that means you know your numbers right that means you're no longer doing this come on seven but what if I told you instead you could plant the dice the way you wanted to to win time and time again that's how predictable this business can be whether its buying internet leads running an ad on Facebook doing a direct mail piece making phone calls this business is math but it's only math for those of us that have the goal reverse engineer the numbers and track and measure so they can make good decisions big really important point and I think you can imagine there's a big reason why most agents fail here because every day they're just hoping and praying for seven and we both know the person rolling the dice doesn't win the house always wins look at number nine pour schedule or worse week routines you're going into this business it's your business this is not a job this is not a Monday through Friday nine to six thing this is your business I've said to you know a hundred thousand people show me your schedule show me your routines and I can predict your future I've done many episodes on the tom ferry show around the ideal schedule the ideal routines I just want you to think about it metaphorically like this if you tell me this is your goal right I want to do 18 transactions but your behaviors and your schedule are modeling someone that sells three houses a year where do you believe you're going to end up we know whatever your routines and schedule wherever they're lined up that's where you finish so it's important that you break down hey I've got to talk to eight people every day better do that in the morning hey I got to study the market better get that in my schedule hey I need to look at the numbers every single day get that in a buy schedule handy make my phone calls schedule appointments scheduled meeting with my broker schedule schedule schedule schedule schedule schedule and then follow the schedule that makes sense again so many people fail in this industry because I think all I'm going into real estate and what's so great is now I don't have the man telling me what to do or my old boss she was so tough always micromanaging me and now I'm free to do whatever I want generally speaking when people have too much freedom guess what they do nothing nothing people that have excessive amounts of freedom usually end up flat broke dependent upon the government and certainly out of the real estate business discipline is required to build a business and be successful if you struggle with the big D word you're gonna need more help than the tom ferry show my friends and the reality is you're probably going to fail in this industry or you're gonna be in it for 20 years and sell a house now and then and I would call that still a failure now the last one number 10 a lack of financial management surprise surprise you're building a business right what if your broker said to you hey welcome to real estate here's the reality you need a hundred thousand dollars in the bank you need six months of your total cost of living set aside in an account so if you don't close the deal for the first six months you're okay but you actually need more than that because you also need money to build your business you need a website you need leads you need marketing you need this you need that and they actually gave you the list and also in your life wait a minute I thought I can get into real estate make these big giant paychecks and have not a lot of expense can just go see some houses and follow up on some buyers and do some deals the reality is my friends those days are gone it is so uber competitive out there and the mistake that most people make is they have poor financial management and guess what because of that they run out of money or they make investments in their business and they weren't prepared for it they weren't paying attention to the natural cycles of when people are listing and when they're buying and when they're closing and how long it takes to close a transaction I'll tell you a cute story one of our clients Jill Biggs from Hoboken New Jersey said to me at a brand new agent who basically sold their first house and said now when do I get paid and what she meant was she opens an escrow and was looking for a paycheck brand new agent you know god bless her that's super cute but she didn't understand that now we got a 60-day time period for us to get through the inspections and whether you have to do to close the deal bad money management and Jill knows she had to do a little coaching and training with that agent so here's my question for you are you watching this video through the filter of okay Tom I don't want to fail so I'm gonna do the opposite if you are my advice is go back through the Tom ferries show search every one of these points because we've gone in-depth on the tactical practical how-to so you don't have to reinvent the wheel so you can model success and become successful are you listening through that filter or could this possibly be the moment you say you know what if this is what it takes I may have chosen the wrong career and if that's the case I would say to you congratulations now go do something that you're passionate about go go find something that you can work Monday through Friday 9:00 to 6:00 because real estate is not that game all right I can't wait to see the comments I know this is a long show can't wait to read the comments can't see I can't wait to see what you have to say thank you so much for watching remember always your strategy matters and now more than ever your ability to do the opposite of why people fail that's how you win talk to you soon hey thanks so much for watching we have a number of events coming up we'd love to have you there visit tom ferry comm forward slash events and reserve your spot today

Channel: Tom Ferry

Views: 559,295

Rating: 4.9092999 out of 5

Keywords: tom ferry, real estate, real estate coaching, real estate training, real estate school, business, entrepreneur, sales training, real estate agent, real estate scripts, tom ferry show, how to be successful, how to, success, gary vaynerchuk, tom bilyeu, motivation, sales, prospecting, new agent, 10 reasons, fail in, how to succeed, stand out from, beat the competition, reality vs expectations, how to make money, realtor, real estate basics, tips, real estate business, tutorial, video

Id: CWidORDXEdM

Length: 19min 59sec (1199 seconds)

Published: Tue Sep 26 2017