Why Realtors Quit
Lacking a Strong Foundation of Referrals
Whether you are a newly licensed realtor or you've been a real estate agent for the last 10 years, you will need a consistent stream of referrals. In short, your real estate business cannot move to the next level if you don't have a referral network.
Unfortunately, most realtors don't pay much attention to building a referral network. And without a strong referral network, it will take you longer to build your business and earn a decent income.
So, if you want to succeed and thrive as a real estate agent, then you need to start building your referral network as soon as possible. The good news is that getting real estate referrals is not as hard as some realtors assume.
To get referrals, make sure you provide exceptional services for your clients, appreciate and reward people who send referrals your way and maintain great relationships with your clients and prospects.
Also, you should establish and build relationships with influencers in the industry and stay relevant by sharing vital and helpful market information. If you implement these actionable tips, you will find it easier to fill up your lead funnel and grow your business.
Poor Lead Generation Strategies
Apart from referrals, you will also need to identify effective means of generating viable leads for your business. Unfortunately, most realtors don't pay attention to lead generation.
Successful realtors invest time, money and effort in generating new leads for their businesses. For instance, some focus on open houses while others mainly use premium services offered by listing companies like Zillow.
Whichever method you choose, making sure you spend enough time nurturing the leads that you've generated. After all, it doesn't make sense to spend time and money to generate leads if you are not willing to nurture them.
Lack of Clear Business Goal
Having a clear set of goals and action plans is vital to the success of any business. Unfortunately, most realtors, especially those who are new to the industry don't pay much attention to goal setting.
After acquiring a license, most new realtors jump in right away without an action plan. The truth is, you cannot succeed in the real estate industry without a clear set of goals.
Successful and thriving realtors are constantly setting and reviewing goals and strategies. At the start of every year, they write down the goals and milestones that they want to unlock and then create action plans on how to achieve those goals.
As the year progresses, they will be constantly reviewing those goals and making the necessary adjustments. For instance, you can write down the number of sales that you want to close, the cold calls you will make in a week, as well as the weekly prospecting emails to make.
When you set goals, strategies and action plans, you will be more accountable to yourself, which will in turn lead to better results.
Failure to Work Hard Enough
Some people assume that the real estate industry is a get-rich-quick scheme, where any realtor can succeed. Unfortunately, that's not the truth. And most of them end up quitting the industry, once they realize it's not as easy as they had thought.
Successful realtors have worked hard year after year, perfect their skills and talents while constantly pursuing new leads. They didn't become millionaires overnight. They earned their place at the top.
Hence, if you want to launch a successful real estate business, then you must be ready to roll your sleeves and work hard. Being a successful realtor is not an easy feat and success will not happen overnight. You need to work hard and manage your expectations.
You may have probably heard a motivational speaker saying that you can start any business you want, even without capital, as long as you are passionate about it. The truth is, the situation is different on the ground.
To succeed in the real estate industry, you will need to spend money on promoting yourself and lead generation, among other expenses. In short, it takes money to run a real estate business.
You will also need money for office expenses, make car payments, pay student loans, buy groceries and pay other bills. And the problem is, it will take quite some time before you close your first deal.
So, before you rush to start your real estate business, make sure you have enough money that can support you for at least 6 months. While getting a bank loan to support your business is an option, it's not advisable to use this approach.
To determine how much money you will need to support you for 6 months, you simply need to calculate all your monthly expenses, including the projected business expenses. You should then multiply this figure by 6 to get a rough estimate of how much you will need to save before you launch your business.
Doing Real Estate Part-Time
Another reason why most realtors fail and quit is attempting to venture into the real estate industry part-time.
As much as you can still succeed as a part-time realtor, it's not always the best approach. And there are several reasons why most realtors doing it end up quitting.
First, most clients are not willing to work with a part-time realtor, since they will not be readily available at all times.
For instance, a potential buyer may want to view a house they are interested in. And if their realtor is not available since they only work part-time, there is a high chance that they will hire another realtor.
Eventually, the realtor will not have any clients, and they will be forced to quit. So, if you are planning to set up a successful real estate business, then it will be highly advisable to do it full-time.
Poor Marketing Strategies
Some realtors fail and quit due to the lack of a solid marketing strategy. Most realtors, especially new agents don't know where or how to market their businesses.
At a minimum, you will need a great website, robust social media presence, as well as a profile on a listing service like Trulia or Zillow. You can then use these platforms to market and promote your listings.
A website will provide you with a platform where you can create blog posts, provide informational content targeting your ideal clients, offer advice and create neighborhood pages with your listings.
Zillow and Trulia, on the other hand, will give you access to millions of potential buyers and sellers. However, these platforms are highly competitive. So, you will need to become a Zillow Premier Agent to boost your visibility.
As for social media platforms, you can choose Facebook, Instagram, and Twitter. But don't over-promote yourself on social media platforms. Instead, share helpful information related to real estate, and you will soon start getting some referrals.
As a realtor, you will be dealing with all sorts of people every day. Therefore, all your clients need to enjoy working with you. If you come across as rude, boring or unprofessional, no one will want to work with you
Being difficult to work with will push clients away. And eventually, you will find yourself without a single client, which means you will be forced to close shop.
Whether you are dealing with sellers or buyers, it's always important to remember that your client could have chosen thousands of other agents, but they instead chose to work with you.
So, if you come across as unprofessional or difficult to work with, the clients will find another agent to work with. And with time, you will start getting negative reviews, which may eventually force you to quit.
Giving Up Too Easily
Real estate markets can change any time. Sometimes the market will be strong and sometimes the market will be weak.
And when the market is strong, most realtors will do well and thrive. On the other hand, if the market is weak, you will find it extremely hard to earn decent returns.
So, if a realtor had joined the industry when the market was strong, they may find it extremely hard to cope with the tough times. As a result, most of them end up quitting whenever they encounter tough times.
But it doesn't mean that you should quit whenever you encounter challenges. Instead, you should plan for tough times. Grow your pipeline continually, save some money for the rainy day and don't get complacent during the high season.