18 Apr Why Realtors Fail In 2017
Why will many realtors fail in 2017? They’ll fail for the simple reason that they have not yet learned how to succeed in the industry. They’ll fail because they keep on applying wrong tactics to the business. According to a report by National Association of Realtors (NAR), 87% of new realtors fail in the first few years in the industry. Just 13% of new realtors make it through the first five years. The same trend is expected to recur in 2017.
Remember these real estate agents leave the industry not because they made a lot of money from it but because they never made any and probably ended up making huge losses.
Here are some of the reasons why a good number of realtors will fail in 2017:
Lack of commitment
There are many realtors who are in the business just to “try out” real estate and see if it will work or not. The idea of trying something out shows a serious lack of commitment. Many who get in the business just to try it out do it simply because they saw another professional realtor succeed in real estate. However, they hardly take the time to consider all the efforts the realtor put in to succeed. They don’t consider the years a successful realtor spent working nonstop for other agents.
Realtors fail because they focus more on getting the best results without what it takes to get such results. It is like wishing to have a best-seller without bothering to write a book. It takes more than ambition and interest to succeed in real estate. You need to be fully committed to the business. Don’t bother to go into real estate business if you are not ready to commit yourself fully to the demands of the industry.
Lack of a good plan
Getting into real estate without a good plan is like trying to bake a cake for the first time without a recipe or the right ingredients. Your efforts are doomed to fail if you lack a good plan to follow.
A good plan will dictate every step of the journey that you need to follow to get where you want. If you are starting out without a plan, better take a step back and come back to the industry with a good strategy to succeed. You can even learn a few things about planning your business from free real estate plan templates available online or via webinars on selling real estate. Most importantly, you should develop your own plan and follow it through. The plan will help you to assess your current position and show you how to get where you want to go.
Realtors who come into the business without a plan are bound to be frustrated easily and will always quit after a short while, especially when they don’t get instant results. If you are not fully committed to the real estate business and don’t have a solid plan, you’ll find it very hard to succeed.
Lack of a digital marketing strategy
We live in an age driven by digital sources of information more than anything else. It is the digital age and you cannot afford to ignore the importance of going digital and hope to succeed in any industry, including real estate. You’ll fail if you don’t embrace digital marketing strategies to promote your listings on the Internet. The NAR states that 82% of home buyers start their search on the Internet. Without a strong online presence, you are real estate business is invisible to 82% of serious buyers.
Gone are the days when home buyers relied solely on traditional advertising solutions such as newspaper and TV ads to locate their dream homes. You need to reach buyers where they frequently visit or hang out. Almost everyone has a smartphone nowadays and can access the internet anytime anywhere. The completion among realtors is also getting fiercer by the day, so if you are not yet using digital media to advertise your listings, you’ll find it hard to succeed in 2017. Here are a few digital marketing strategies you can rely on to enhance your chances of succeeding in the industry.
A responsive website
You need to showcase your listings online via your website. The site is the front of your business in cyberspace. It is where prospects will learn more about your listings and other services that your company provides. Build a clean responsive website that can easily be displayed on both desktop and mobile devices. The site should have enough crystal clear pictures of your listings to entice visitors to contact you for more information.
Your awesome website serves no function if nobody else besides you knows of its existence. Search engine optimization helps to rank your website high on search engines to give you organic traffic from buyers actively searching for the best premises to purchase. With the help of professional digital marketing agencies, you can have your site ranked on the top pages of search engines.
Paid search strategies such as Pay per Click (PPC) help to attract potential buyers to your website where you showcase your best listings.
Social media marketing
Almost everyone has a social media account today, which means promoting your listings on social media marketing has a great potential of driving buyers to your site.
Compared to traditional marketing tactics such as newspaper and TV ads, digital marketing strategies are way much cheaper, easier to implement, can be measured, and are more effective. Realtors who don’t employ digital marketing strategies in 2017 will find it extremely difficult to survive in the industry.
Failure to anticipate marketing and operation costs
Another key reason why realtors fail is because they fail to anticipate the costs of running their businesses. For example, if you are running both PPC and Social Media Marketing ads campaigns without an appropriate budget for each campaign set aside, you’ll hardly be in full control of your marketing expenses. You won’t be able to tell if the campaigns are giving you a positive return on investment (ROI) or simply draining away money from your coffers. There are many tools and services today that can help you measure the performance of your marketing efforts to help you anticipate your overall running costs. Set aside a budget for every operating or marketing activity or you’ll run out of money long before you have accomplished your goals.
The lone ranger mentality
Succeeding in a new business is not easy, and real estate is no exception. If you are not familiar with all the nitty-gritty aspects of the business, you’ll find it hard to succeed. You have to crawl before you can walk so don’t be afraid to seek for additional training and help from seasoned realtors who’ve been in the industry for many years. In short, don’t go it alone. Walk with other agents to learn more about the industry. Realtors with lone ranger mentality will hardly succeed in 2017.
Failing to listen to clients
Most realtors fail simply because they didn’t pay close attention to what their clients said. For instance, you’ll lose clients and eventually fail if show them downtown homes when they asked for a three-bedroom home in the suburbs simply because you weren’t listening to your client’s needs. It is good to make recommendations but do it after you have listened to your client and understood his or her needs.
Finally, most realtors fail because they worked with the wrong brokers. Choosing a broker is crucial to the success of your real estate business. For instance, choosing to work with a broker who has the lowest fees but very high commission split is not good for your business. Find a qualified broker who‘ll help you keep your business afloat.
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