Here’s our advice on how new agents can thrive right from the beginning.
Many agents get into this business because they want to help people and provide a needed service. What many people don’t realize is that real estate is a marketing business, a self-promotion business, and a sales business. If you’re not doing one or all three of these things, you’re going to struggle. If you understand these key concepts, you will have a huge advantage when launching your career as a newly licensed agent:
1. Align yourself with a brokerage that cares about your success. 95% of agents don’t even make it in the first three years. Brokers know this and are all too happy to keep collecting your monthly payments while you try to figure things out through trial and error. For instance, a lot of new agents don’t know how to build a pipeline of clients. Our brokerage teaches agents the business fundamentals so they can hit the ground running and start having success right away.
2. Tell everyone you’re in real estate. Put yourself out there and announce to the world that you’re in real estate and eager to start building your business. People forget quickly, so don’t be shy about reminding them. We can teach you how to do this by using phone calls, emails, and social media to stay top of mind so when people think about real estate, they’re thinking about you.
3. Figure out your numbers. See how many families you need to serve and how many closings you need to have to reach your real estate income goals. Let’s say the average sale price in your market is $250,000, and the average commission is 3%. If you split 50% of that commission with a broker, you’re left with $3,750 per closing. You’d have to do 27 closings in a year to make $100,000 in profit.
When you align yourself with the right brokerage, you can find places like ours that offer a 100% commission structure. This means you’d only have to help 13 or 14 families in a year to reach that six-figure status. When you know your numbers, you can relay those to your prospects to help find more clients and referrals without being pushy. Once you tell them that the average person knows three to five people that are moving in a given year, you can let them know to contact you when somebody they know is thinking about buying or selling.
4. Work hard. Sometimes it’s just this simple. Apply the training you’ve learned, and get to work. Host an open house where you canvass the neighborhood and invite the neighbors and anyone else they know who might be thinking about buying or selling. Also, if you’re doing a virtual open house, you can still canvass the neighborhood, letting them know about the virtual open house and how to register. This is a great way to get buyers and sellers because they see the work you’re putting in and will want you to sell their home as well. Trust me, I’ve done this, and it works.
Following these tips will help you make six figures in your first year in the real estate business. If you have any questions or would like some more guidance, don’t hesitate to reach out via phone or email or check out our website for training content, to subscribe to our newsletter, or register for our three-hour business training clinic. We look forward to hearing from you soon.