As market conditions change, we see some Agents starting to struggle and it's something you need to address quickly before it goes on too long...or you could end up one of the 82%.
It may be you don't have the support or infrastructure around you to be super competitive in a tightening market. It comes down to your training and ability to generate business for yourself and the skills of the people around you. It's all sweet when the market is on fire, selling property is that bit easier...but once it goes back to normal, you will realise pretty quickly where the gaps are in your skillset, and you may need to look at making a move.
As Real Estate Recruiters, we see Agents in Real Estate who still treat it like "normal job" or "part-time job"...but it's just not. It's like running your own business. Most business owners work around the clock, up early, go to bed late and they are on it 7 days a week. It's no different if you want success in Real Estate....
We see loads of new to industry Sales Agents with stars in their eyes thinking their going to get rich quick. They come in with unrealistic expectations. No one tells them how it really is, but as Recruiters, we educate them as best we can for what's ahead...
Sure you can make lots of money...but nothing is given in Real Estate, as 82% of people find out...and Agents who have been in the industry for years, already know how it works all to well...
The stark reality is, more than 50% of all Agents selling Real Estate would be averaging around $60k a year or less. It's the other 50% that realised if they want to make a good go of this industry, they need to get themselves set-up properly, dig-in and do the hard yards...
If you've been in Real Estate for more than 3 years and your not selling more than 20 Properties a year...you're either doing it for fun, not that good at it...or, you could be investing your time in the wrong Agency!
How do you know what a good Agency is? A good Recruiter can be your best ally, with an in depth knowledge of different Agencies and help you work out which ones are the most suitable, for whatever stage of your career you're at! Placing you in the right Agency with the right culture can make a world of difference to your GCI, but you need to be prepared to do the work...
Surprisingly enough, most Agencies aren't hunting for Agents doing 55 Sales a year (although they wouldn't knock them back), their looking for those Agents doing 12 - 25, who want to sell 55 + per year...
Good Agencies know they have a strong value proposition for those Agents looking for traction, through robust systems, brand, exposure, training and previous track-record with other top performing Agents, to help you get your career humming...
82%, what's that you might ask?
That's the soft statistic of how many "Agents" don't renew their Real Estate License in Australia each year... yea, pretty high right...so there must be a reason...
It's attributed directly to effort Vs reward. If you have no idea about what's really involved, no money before you start Real Estate or no one to support you for the first 12 - 18 months...you could be lining yourself up for financial ruin.
The shier amount of hours, 6 or 7 days a week, hard work and commitment it takes to do Real Estate well enough to call it a stable career, would put a strain on anyone. The Agents you see in the REB Top 100 list are pretty much married to their work and non of them joined Real Estate in the past 2 years... they have been doing it a long time already! It takes time...
The Grind...
Sure, the Real Estate market has been on fire recently....but some Real Estate Agents have been waiting years for this, and are only just hitting their straps... It's the work they did 2 years ago that's paying off now...
Newcomers to Real Estate, like anything new, have to be trained...and training will take on average 12-18 months before becoming a "Stand Alone" Agent, entitled to the full whack of your commission split.
It's super important you know what you're getting into and even seeking out advice from people already doing the work, your recruiter or even a Real Estate Coach.
In the initial stages, you will be required to call reams of contacts, walk the streets in 30 degree heat handing out leaflets, door-knocking and doing open homes on weekends. The first 12 Months in Real Estate can be the hardest thing you can do effort wise Vs financial rewards...
Make no mistake... If you don't join the right Agency and get the right training, you could easily become one of the 82%.
Tell it how it is...
The stark reality is, no-one starts in Real Estate getting the full commission split for selling a house (unless your family own the Agency).
You may get paid a modest wage of $45k - $50k and you may get a small bonus for generating the leads that result in selling a property...but that's about all you should hope for in the first 12-18 months, no matter your age or background...
Any "Lead Agent" taking on a new Sales Associate, is basically committing to sharing their hard work with you, with the hope they can train-you-up fast enough to bring more listings to the table than they could hope do on their own...which should result in more sales and more commissions.
Most new Agents simply cant grasp or appreciate what a Lead Agent had to go through to get to a point they can confidently pay for someone to come in an help them... They are taking a huge risk in taking you on...
Millennial Sales Associates spending 30min snapping selfies of themselves for Instagram, next to the Boss's Porsche, out the front of a $2m listing they just sold, and think they are entitled to the lions share of the commission, obviously never had anyone explain to them how "it really is"...
Make no mistake...Real Estate is a commission only industry!
Nothing is given in Real Estate! It has to be "all you" to make big money, and you have to be ready for that. If someone else is involved in your sale, you are sharing money.
It all comes down to your entry plan. If you enter the industry with enough savings or support, do the right work consistently, get the right training, understand nothing is given and appreciate your place in the process...you shouldn't fail...no matter what Agency you're with, but you need to set yourself up properly before you begin!
Why most Agents do it wrong...
Before getting into Real Estate, you need to be confident you can support yourself while you learn and you need to have the buy-in of everyone at home. They need to be prepared that money is going to be super-tight in the early years and you will hardly ever be home...
If you think getting into Real Estate is going to be the answer to all your financial troubles, think again. 82% of people who start working in the industry soon realise just how long it takes before they will see any real money. Their the ones that bail-out and get a "normal Job" before they end up homeless...
If you're finding it super-hard to get a start in Real Estate, it's not because of you personally. It's because all the Agency Principals or Managers that interview you, already know the statistics and probably looked through you like a glass window...assessed where you're at, and figured you are in the 82% basket without you even knowing it!
If you can show them you have a plan to enter the industry, have support or savings that will see you last long enough to get some real results, have the right attitude and communication skills to grind and sell...then they might take a harder look...
On the home front...
If you have a partner that wholeheartedly agrees with you getting into Real Estate, even then, it's a hard pill to swallow when the reality of what you do actually sets in.
You only have ask around any Real Estate office. There are a huge number of people that have thrown themselves into this career, only to burn things up at home...
The initial discussions around the dinner table about how your going to get rich, take the family on holiday's every year, buy nice cars, a bigger house etc, etc, etc...can be absolutely shattered once you're having an argument over who's going to pay the power bill...
Divorcee statistics are rampant in Real Estate...
There are loads of Agents whom are either divorced (maybe twice or more), some are going through a divorce or some are about to...why?
The answer is pretty straight forward...their hardly ever home & money is tight...and most "partners" didn't fully grasp the commitment needed to be successful in Real Estate...
Load all that up with a workplace full of intimidatingly good-looking, outgoing people, and it's easy to see how those long hours away from home, with not much financial reward, can quickly escalate to far-fetched arguments at home about "you must be seeing someone else".
When it works, it's a beautiful thing...
You can easily become wildly successful in Real Estate if you commit.
You need to be partnered with the right Agency, get the right training, be prepared for the lead-time of 12-18 months before earning any real money...prep the family, agree together and go all-in with their full support. If you don't do it like this...you will become one of the 82%...
It's the Agents that come into the industry the right way are the ones we see thriving. These are the Agents that have been able to stay in the game long enough to do the numbers and these are the Agents you see in the REB top100, and yes, these are the Agents you see cruising around in Porsche's....
Some Agencies even like to meet the Agents Partner during the recruitment process...not to see how they look, it's so they can prepare the partner a bit for what's to come and get a gauge on what their new Agent might face on the home front...
Real Estate is hard enough...but many don't discuss the battles that happen behind closed doors at home. Those battles can chip away at an Agents ability to perform and can ruin any chance of Agents ever having a full shot at getting good at Real Estate and becoming successful.
It's ok to say your not doing ok...but only you can take immediate steps to change it...
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Placed Australia - Real Estate Recruitment have unique insights to the inner workings of Queensland Real Estate. If you are looking for Jobs or Staff, please reach out to us today for a chat. Contact Andrew Turnbull on 0474 947 545 or andrew@placeduastralia.com.au
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