With the right mindset and strategies, coach Verl Workman writes, you can avoid the common pitfalls that defeat other real estate agents.
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The line between success and failure can be thin. Many agents find themselves struggling — not due to a lack of opportunity — but because of a series of common pitfalls that can be avoided with the right mindset and strategies.
The primary reason agents fail is simple: they don’t do the work necessary to generate new opportunities. Zig Ziglar, author and sales guru, famously referred to this as “getting cooked in the squat, fixing to rise,” where individuals become too caught up in non-productive tasks that don’t lead to business growth. There is a massive difference in the feeling of being busy, and the reality of being busy doing the right things.
To steer clear of these traps, it’s essential to understand the top 10 reasons why agents fail—and how to overcome them:
1. Lack of understanding their role
Agents should focus on business development or prospecting, and presenting, which means either showing homes or listing homes. If we are not presenting, then we should be prospecting. Everything else is pretty much fake work.
2. Time management
It’s easy to get sidetracked by non-essential tasks. Successful agents focus on dollar-productive activities and avoid wishful thinking in marketing strategies.
3. Follow-up
A Harvard Business Review survey highlighted that the average lead response time exceeds 24 hours, with only half of the leads receiving follow-up. Timely and consistent follow-up is crucial for success.
4. Training and coaching
Knowing what to do is often the responsibility of a broker or team leader. Agents should seek out training programs and coaching to fill in knowledge gaps. How many professionals in any sport or even business do you know of that don’t have business or performance-specific coaches? Most have more than one.
5. Technology
Embracing technology can accelerate success, and tools and artificial intelligence can be leveraged to enhance efficiency and effectiveness. It’s not about buying stuff. We teach our coaches and clients that we lead with revenue, not expense. That means to first use company-provided tools and systems and make sure you are a power user instead of chasing shiny objects. Oftentimes, we find thousands of dollars being spent each year on duplicate tech that the agent has access to but doesn’t like or hasn’t spent the time to learn.
6. Planning
A clear plan is vital. Without it, even the best training won’t yield results. “For a ship bound for no harbor, no wind is favorable.” What that means is if you don’t have clear goals and a clear vision for what you want your business, and more importantly, your life, to look like three years, one year, six months, and 30 days from now, then there is a good chance you are just going through the motions and not making any progress. If you don’t know exactly where you want to go, how will you know when you get there? Agents often fail because they do not have a clear definition of what success looks like and, as a result, don’t know what it is going to take to get there.
7. Resilience
The real estate industry is challenging — and shifting — and many agents lack the resources and resilience to persevere. We must be able to adapt and adjust as things change. So many agents are quitting the business because they don’t know how they are going to get paid in the future or they don’t want to learn to be great. Others are taking market share and dominating. The biggest difference is their attitudes towards change. One thing I know for sure is that change is constant, and as my father used to say, “All progress is the result of change.”
8. Negotiation skills
As a core aspect of the job, negotiation skills can be honed through training and practice. Negotiation is often more about understanding needs and providing alternative solutions to accomplish the goals of both the buyers and sellers. The most important negotiation is often how we negotiate for ourselves as we offer services to the market. One thing for sure is this: If you can’t negotiate for yourself, how effective will you be in negotiating for your clients? My suggestion is you become a master of both.
9. Accountability
This is the most important choice you will ever make. Accountability isn’t something that someone does to you but rather a choice you make to hold yourself in check to keep the promises you made to yourself and your family. Accountability is one of the hardest principles to understand and one of the most important. I have learned in all of my years of leadership that accountability is a choice that the highest performers make, and it is a beautiful thing to watch as they blow away their goals in business and in life!
10. Financial management
Simply put, this means how much of your money you keep. As an industry, we are famous for giving awards to people who can’t afford a rented tux for the awards banquet. How much your gross commissions are can be edifying, and they are fun to celebrate, but the amount you keep — your net profit — is the only number that matters in business. Focus on financial intelligence and make sure you pay yourself first so you have money for a rainy day and your money can go to work for you. Financial benchmarks are available to agents who want to know how much they should spend in every category. Use those benchmarks to determine if your business is in line.
To overcome these challenges, agents should block out daily time for prospecting, manage their time effectively, and commit to continuous training and development. Additionally, developing a clear business plan with measurable goals, engaging a high-performance coach, and choosing accountability will significantly increase your chances of success.
Success in real estate is not a mystery—it’s the result of hard work and a commitment to doing what others won’t. By eliminating excuses and embracing the necessary work, real estate agents can ensure that failure is not an option and pave the way for a thriving career.
Address these 10 reasons real estate agents fail … so you won’t!
Verl Workman is founder and CEO of Workman Success Systems. Connect with him on LinkedIn or Instagram.
