How to kick start your first year as a new property agent?
Do you know that due to the low barrier to entry to the real estate industry, the turnover rate for new agents is especially high?
I do not have specific statistics. However, based on my observation, for every 100 agents who joined this industry, half of them will drop out by the first year; another 25 will drop out by the end of the second year.
This turnover rate works out to 25 out of every 100 agents. Hence, we can conclude that only ¼ will survive in this industry after the first crucial 2 years. Out of these 25 agents, 20 of them will be average performers that make a decent living and the remaining 5 will stood out as top achievers and earn an attractive remuneration in this industry. This observation is model after pareto principle rule of 80/20.
Here, how do you survive in your first year as a new agent and how do you stand out to be that consistent 5%? The following pointers should be a guiding light for you.
No 1. Ask Your Manager for Help.
Hopefully you have joined a good manager who is willing to help you. He should spend time to evaluate your activities and strategy. He should propose alternatives and solutions to assist you in your business. A good manager is critical in your initial years because he can highlight potential pitfalls and mistakes most new agents make and help you to avoid them.
No 2. Be Willing To Learn.
As a new agent, there are lots of things to learn and absorb. Stay humble and be willing to learn from your seniors. Try to learn as fast as you can in the shortest period of time.
No 3. You Must Have Enough Savings.
You should have enough money saved up to last for at least nine months without a commission or keep your day job for a while. Interestingly, the breakthrough that you are eagerly waiting for will only be realised after sometime in the job. Therefore, it is important to have sufficient savings so that you will not panic when your funds dry up.
No 4. Be Hardworking.
No pain, no gain. The odds is against all new agents to survive in this career. That is why it is important to be hardworking and to constantly prospect for new business rather than wait for referrals. That dear referral might come one day…but it will be a long wait.
No 5. Have Perseverance.
Many new agents give up because they lack perseverance. It is easier said than done. This industry is an endurance race. Closing a deal is not so straightforward. It could take months or even years to close one. Thus, having a strong perseverance is essential for your survival.
No 6. Partnering With a Senior / Manager.
The best way to learn is to partner with a senior / manager who is more experienced in the industry. You could take a smaller cut of the commission or volunteer to do more leg work in exchange for partnering with him. This valuable experience by observing how the senior works is indispensable.
No 7. Have a Business Mindset.
Most new agents drop out after a while because they treat this business as a job. If you plan to adopt the same employee mindset, you will fail big time. You must treat this work as a career. You must adopt a business mindset right from the start. As in all business, it takes time and effort to see results.
No 8. Doubling Your Effort.
A lot of new agents expect a miracle to happen to them when they step foot into this industry. They expect deals to drop onto their lap. Unfortunately, it will not happen. To succeed in this business, you may need to double your effort to make it work.
I hope my simple sharing can help you survive well in this industry. The real estate business is not difficult. Having the right mindset will help you ride through the challenging times.