Posted by: realestatewebtrainer | July 1, 2011

Why is the Real Estate Business so Tough?

The Real Estate Business is not tough at all; Real Estate Agents who are focused and successful at Prospecting always make money; regardless of market conditions.

The Real Estate Business at the Brokerage level is much tougher than many realize; it is a lot easier to make money as an Agent then to build a successful Business built around managing agents. We almost live in a world when agents can literally work for themselves; and the only reason they would wish to work for others is because of something much larger than themselves or the Split they get.

I want to Succeed in Real Estate

The way a Real Estate Career has been sold to agents is what makes it challenging to manage; here is how it is sold to potential agents:

“Do you want to be your own boss? Work when you want? Be an entrepreneur with unlimited potential for income? Dictate your own hours? Take a vacation when you want? Even work part time? Well, then Real Estate is for you!!!”

All of the above is actually true; you can actually do all of the above – but let us talk about the consequences of such ideas:

1. Agents working for themselves means a lack of shared purpose with the grand scheme of the agency. You can’t on one hand say to them that they can work their own hours, and, on the other, force them to attend meetings and trainings. They are either running their own flag or they are employees of yours – You can’t have it both ways.

2. Stop pretending you are telling agents what to do; they hear your demands through a filter called “That was a nice Suggestion!” – not a hardened and fast rule. Managers must understand the prism agents work from; the best thing you can do is suggest ideas and let them choose to accept or reject them. They must also know what You will not tolerate; but that list better be short or no one will join your Real Estate Agency.

3. Yet, in a contradictory manner, Real Estate Agents are driven by Vision, Big Picture ideas, and Strong leaders – so accept that they will have a Love/Hate relationship with you!

4. You must accept that many Real Estate Agents worry about “the Split” and “the Leads” Opportunities your company provides. They are going to be as loyal to you until something else in their radar comes along to make them want the same opportunities with a higher split somewhere else. If you are a manager of a Real Estate Brokerage this is a constant barrage you must confront.

5. Real Estate Agents experience no penalty financially or professionally to move between Brands – in fact, it is a national sport for them. Agents work for themselves and do not have to commit to any “Employment Contract” that makes stay put in one place; this not just the fault of agents – it is the fault of the industry selling 100% Freedom to them.

6. Brokers and managers Sell Agents the Freedom of running their own business; but act like these same agents are their employees… something has to give; Do they work for you? or are they your partners? if I ask agents they see themselves as partners – if I ask brokers they see them as commission-based employees. oh my!

7. The Internet is another entity that is wreaking havoc on the industry; it allows agents to find out about opportunities anonymously and quickly enough – as well as allows brokers to recruit other agents from competitors without a stroll to someone else’s office.

Ask yourself: Why should a successful agent, who believes she can generate all of her business based on her effort, stay with a 70% split company when there is another, out there, offering her 100% with a fixed monthly fee?

Think about it this way; even if the agent finds out she made a mistake by going to 100% company, she can go back to her previous company and they would take her back; and now she is going to negotiate for a 80 or 90% split because before it was only 70. Real Estate is a revolving door of talent that brokerages used to think they controlled – it has flipped all around – brokers and owners work for their agents and these agents want to decide how much the brokerage gets to keep.

The Real Estate Business is Tough if you choose to be a Broker/Owner – be prepared emotionally, mentally, technically, and mostly psychologically!

Happy Blogging 🙂 – Key Yessaad, Real Estate Trainer

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