Why Fewer Agents Are Succeeding In Real Estate Today?

Summary

More real estate agents today are making less money than ever before…because high producers are winning the game.

What are the factors that are hurting low producers?

1. Sellers can get free and/or discount resources online. 
2. Buyers can get all the information they need online, for free.
3. Clients demand more. They expect better quality service and are more skeptical about agents.

Here’s why you want to be a heavy hitter:

1. Clients are willing to pay heavy hitters full commission to get the BEST service & experience.
2. The best way to stop struggling is to commit to go pro and play at the highest level.
3. Success breeds success. Happy clients will bring you more future business.

The heavy hitter who cares about his or her clients and is committed to being the BEST at what they do is the one who wins.  If you want to succeed as a real estate agent…Go big or go home!

Full Transcript

There are more real estate agents in America today than there have ever been before. And the good news is there are more real estate agents today that are making more money than they’ve ever made before. 

Now, that’s the good news. The bad news is there are also a lot more real estate agents who are making a lot less money than ever before. There are fewer agents who are surviving, who are even making 40,000 to $100,000 a year.

Used to, there was a massive amount of real estate agents that would just kind of do a few deals a year and they would make 20, 30, back in the day, now 40, 50,000, 60,000, 100, $120,000 a year. And they basically did it to supplement another income or because they had a spouse who really made good money and they just kind of did this to create some extra income for the family.

And what we’re seeing is less and less of that happening and more and more agents who are low to mid producers who are struggling to get traction. And the game is being taken over by the heavy hitters, the massive mega producers that are doing hundreds of transactions a year, that are making half a million dollars or more. There’s more of them than ever before and they keep getting stronger and stronger.

So what do we do about it? What should you do about it? Well, here’s what you should do about it, become one of the top producers. And let me tell you, here’s what’s happening. 

Why Some Agents are Struggling Today

Here are the factors that are hurting the low producers. 

1. Sellers get free and/or discount resources online. People want a better agent, because the amount of online resources, whether it’s free resources or discount or flat fee services that they can get as a homeowner who wants to sell my property, if I’m looking for, just I need help, but I don’t want to pay a lot of money for it, then I can get that online. There’s online services. Technology has taken out a whole lot of the heavy lifting in terms of leg work that real estate agents used to do.
2. Buyers can get all the information they need online, for free. Used to, they needed real estate agents as a resource, they needed you for information like what houses were actually for sale. How much did houses actually cost? And they couldn’t just get that. It wasn’t publicly available. They had to go find it somewhere. Now, they could get newspapers and all that, but that tended to be out of date. They needed a realtor to really get there.
3. They’re more sophisticated. They have a higher level of expectation and they have a higher level of skepticism. And so if you don’t know what you are doing, low producers that are not in the game every day, that don’t have the expertise, that don’t know how to handle situations, don’t know how to answer questions, that aren’t walking around with expertise, you set yourself up to get blown out of the water.

Why you have to be a heavy hitter

So why do you want to be a heavy hitter? And here’s what I am going to challenge, this is my public challenge to all real estate agents in America and around the world. If you are going to play in this game, just commit that you’re going to be a heavy hitter. 

The economy and the market is simply going to squeeze out the low producers and those who want to do it part-time. Now, can you do it part-time? Yes. We’ll talk about that in a minute, but right now here’s what I want you to understand.

1. Those willing to pay full commission expect higher expertise. The reason you want to be a heavy hitter or nothing is because those who are willing to pay a full commission, those that are not looking for flat fee services, those that are not looking for the discount, they’re willing to pay a full commission. And by the way, for those of you who are going like, “No, people today, they’re just looking for a discount.” And I know I’m going to get a lot of haters on this that are not real estate agents that are going to say, “You guys are overcharging. You rip people off.” 

Well, here’s the deal. There are attorneys that get paid very low amounts. They get paid flat fees and low flat fees, simply because they’re able to do paperwork. They’re paper pushers. And you have other attorneys that actually represent clients that make millions and millions and millions of dollars a year. Why? Because not all attorneys are the same. Not all levels of service are the same and the same for real estate agents.

The average real estate agent doesn’t have the expertise to really deliver a better result, to get more money for a seller, or get better terms and price for a buyer. And clients who are willing to pay premium commissions for a real estate agent, they expect more. They want a higher level of experience. They want their home selling experience or their buying experience and just the relationship to be a VIP level experience. And they want a higher level of expertise. They want somebody who is doing this all the time and actually knows what they’re doing. And that’s why the heavy hitters always have the upper hand and the advantage.

2. It sucks to suck. I have dealt with too many real estate agents over the years who are always under the gun of stress and freaking out because they suck, their bank account sucks. And they’re like, “What do I do?” Well, stop sucking. You’ve got to do that, commit. You’ve got to commit to go to a higher level. You’ve got to commit to play a bigger game and commit to become the best at what you do.

So it just sucks to suck. If you’re going to do real estate, because there’s so much opportunity and you can make so much money at it, why not commit to be one of the top producers and be a heavy hitter who actually dominates your market and makes a lot of money? One, that’s who I train. I’m not going to work with people who are helplessly struggling and are not willing to commit to go pro and play at the highest level.

3.Success that breeds more success. Once you start making things happen, it becomes easier and it’s a snowball effect. Things get easier. More business comes because you’ve converted more business. You’ve converted at a higher level, you get word of mouth marketing. You get happy clients, they are going to bring you more happy clients. You bring luxury clients, they’re going to bring you more luxury clients. 

The future of real estate belongs to the heavy hitter who cares about the game, who cares about the client, and who is willing to be the best at what they do. So my call today is if you’re going to be a real estate agent, go big or go home.

Now, if you’re part-time or you’re going like, “I can’t quit my job right now,” or, “I want to be a top producer, I want to be a heavy hitter, but I’m not. I’m just too broke. I don’t have the money. I can’t do it right now. What about me?” Well, here’s the answer. You can still do it and you can still succeed, but you have to commit at a higher level than ever before because you have to be willing to make a big game commitment to say, “I am going to go all in.” This, my friend, is not a game for amateurs. This is a game for pros.

Now, I want to hear from you. If you’re a real estate agent, and those that are watching this that are actually producers, what do you think? Do you agree with me that we want to get amateurs out of the industry? Why? Because they hurt it for everybody else. You lower the bar, you mess things up. Top producers that are professional, that have ethics, that care about their clients, you make the game easier for everybody. 

That’s my call. If you agree with that, give this video a thumbs up. Let me know what you think below. I want to hear your comments, even if they’re nasty. Let me hear them and I’ll see you on the next video.