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What Percent Of Real Estate Agents Fail?

Have you ever wondered what percent of real estate agents fail in their endeavors? The intriguing landscape of the real estate industry often prompts individuals to ponder over the success rates within this dynamic field.

John Harrison
John Harrison
Feb 20, 20240 Shares46 Views
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  1. What Is The Percentage Of Real Estate Agents That Failed?
  2. Top 8 Reasons Why Real Estate Agents Fail
  3. How To Succeed As A Real Estate Agent?
  4. Frequently Asked Questions
  5. Final Thoughts
What Percent Of Real Estate Agents Fail?

Are you considering a career in real estate, or are you already working in the field and want to be successful? Success in real estate may come with challenges and demands. A lot of aspirational real estate brokers begin with high hopes, but unfortunately, many of them encounter obstacles that lead to failure.

Realizing that you have hurdles is the first step towards conquering them. If you are new to this fast-paced industry or a seasoned veteran, knowing what to expect will help you better prepare for any challenges that may arise.

Rather than discouraging you, our goal is to provide you with the information and abilities you need to rule the real estate market. In this blog post, we will talk about what percent of real estate agents fail, and the reasons why they fail in detail.

What Is The Percentage Of Real Estate Agents That Failed?

 Person Giving Keys to another Person
Person Giving Keys to another Person

Getting into the real estate industry professionally may be a lucrative and demanding career choice. Many in the sector, however, caution against it, pointing to the large number of agents who fail in their first year of business. However, is it as depressing as some claim?

Almost 87 percent of real estate brokers fail during the first five years of their careers. However, according to data provided by the Bureau of Labor Statistics, the percentage of real estate ventures that failed in recent years ranged from around 43 percent to 54 percent.

In any case, this indicates that around fifty percent or more of real estate agents who join the profession lose their jobs, which is a very significant percentage of individuals.

Real Estate Agent in Black Coat Discussing an Ownership Agreement
Real Estate Agent in Black Coat Discussing an Ownership Agreement

Top 8 Reasons Why Real Estate Agents Fail

A few essential components are needed to thrive in real estate. A real estate agent will not be able to compete in the cutthroat real estate market if certain responsibilities are not performed to a high standard.


Outreach and marketing techniques that bring in new real estate customers are referred to as real estate prospecting. A real estate prospector makes contact with possible customers by picking up the phone, sending emails, messages, or even knocking on doors, as opposed to waiting for the phone to ring.

Cold outreach, often known as cold calling, may be embarrassing and appear like a lot of labor for not much return to some agents. But one of the most crucial aspects of an agent's work might be mastering the art of real estate prospecting.

There won't be any business if there are no leads. To guarantee long-term business, many agents set aside a certain amount of their day for lead development or prospecting.

Data-driven digital solutions exist that remove the tedious tasks associated with prospecting. These solutions include information on a variety of topics, including owner demographics, buyers and sellers, active and expired listings, for sale by owner sellers, school details, and nearby amenities.

To make prospecting easier, some software also includes automated calling features. Automated emailing to well-maintained lists and social media blogs and posts are further outreach methods.

Lack Of Proper Training

A primary cause of real estate brokers' failures is inadequate training. Many people join the field without having a thorough knowledge of the abilities needed to succeed and the intricacies of the market.

Navigating the obstacles of the real estate sector becomes challenging without the requisite knowledge and expertise. Real estate agents must have the right training to comprehend the industry and acquire the abilities needed for success.

Agents may find it difficult to negotiate agreements, efficiently interact with customers, and comprehend the legal ramifications of real estate transactions if they lack the necessary training. Investing in extensive training courses and ongoing education may raise an agent's odds of success considerably.

Working Part-Time

For those trying to strike a balance between their personal and professional life, working part-time as a real estate agent may seem like a flexible and enticing alternative. However, in the very difficult and competitive real estate market, this choice often fails.

It is important for anybody thinking about pursuing a real estate profession to understand the many reasons why working part-time in this industry might reduce your chances of success.

First of all, success in the real estate sector demands a great deal of devotion and time investment. You may not have enough time as a part-time agent to invest in developing client connections, researching the market, and keeping up with industry developments.

Being unavailable may result in lost chances and a shaky professional network, both of which are necessary for a successful real estate agent to generate leads and close sales. As a result, the likelihood of you succeeding in the field is significantly reduced.

No Defined Strategy Or Real Estate Business Plan

The number of newly licensed agents who fail to develop a real estate business planor strategy is a significant contributing element to the failure rate of real estate agents. Much too often, inexperienced agents will jump into their jobs and go where the money, homes, and customers are. Although this could be thrilling, it won't position you for long-term success.

Decades of study have yielded several studies that demonstrate the greater likelihood of profitability and a longer lifespan for organizations that develop and execute strategies. A few figures that illustrate the significance of drafting a business strategy are as follows;

  • 71%of rapidly expanding businesses have business strategies.
  • Planned entrepreneurs have a 129% higher chance of seeing their company through to growth and beyond the beginning stage.
  • Within the first two years of operation, more than 40,000 real estate companies in the United States closed.

It is in your best interest to draft a company strategy to counter those frightening figures. Your marketing strategy, mission statement, and precise, quantifiable objectives for achieving them should all be included in your real estate company plan. Never forget to periodically review and adjust your objectives as needed.

Regardless of your prior business expertise, avoid being paralyzed by estimates and budgets. To set yourself up for success, use our free business plan template and real estate business plan tutorial to create a practical and executable strategy.

Inadequate Funds

Any firm you want to start will need funding. But a lot of realtors have very little saved up when they first begin their real estate careers. Should you not have sufficient savings, you may find yourself struggling to keep up with mounting bills. Then, without surprise, you find yourself having to shut down your company since there are no indications of success.

It is advised to have at least six months' worth of costs saved up to avoid this. In this manner, you may keep covering your living and eating costs until you get your first commission check. Once your income starts to meet your needs, you'll be able to go full-time into real estate and earn GCI.

Insufficient Experience With Lead Generation

Running a profitable real estate firm requires finding leads. It may take some time for a customer to sign the deed since purchasing a new house is a significant life event and financial commitment.

You will, however, have more connections to reach out to and pitch your real estate services to if you have a good list of leads. You must be aware of the various lead-creation strategies if you want to complete sales. These strategies include employing internet lead generation tools and holding live or virtual open houses.

Poor Time Management

Effective time management is yet another essential component to being a successful agent. In the fast-paced world of real estate, managing many customers or properties at once without losing out on possibilities or providing mediocre service levels calls for organization and planning abilities.

Consider utilizing project management software or creating daily/weekly calendars that provide you ample time for client meetings and administrative duties like prospecting for new business and managing paperwork if you want to remain on top of your responsibilities and yet deliver exceptional customer service.

Insufficient Networking

And last, because real estate is a people industry, networking is essential to being a successful agent. Make frequent contacts with other experts in the field by going to conferences and trade exhibits, or by joining organizations and clubs that support the development of stronger ties among members.

By doing this, you'll put yourself in a position to get recommendations from those relationships that might lead to profitable new chances, and you'll also get insightful knowledge from their experiences, which could help you succeed even more in this endeavor!

Woman Touching her Eyeglasses
Woman Touching her Eyeglasses

How To Succeed As A Real Estate Agent?

Knowing why 87% of real estate agents fail can help you look at ways to overcome the odds and build a profitable company. Here are some pointers to assist you hone your skills and get to the top of the real estate market.

Organize Your Finances

As you are aware, running out of money is one of the main causes of real estate agent failure. You need to have a solid understanding of your financial status to be a successful real estate agent.

Having stated that to take action, you must comprehend your inner motivation. What do you want to achieve? What must you create concerning your objectives? People often experience a great deal of unwanted stress as a result of the disconnect between their needs and ambitions.

Therefore, we advise you to ascertain your exact financial needs, take care of them, and then make some objectives.

Establish A Morning Schedule

First and foremost, it's critical to begin your day on the correct side of the bed. Establishing a morning routine is a terrific strategy to guarantee that the day will proceed without a hitch. You'll notice great benefits quickly if you include these measures into your morning routine;

  • Repeat affirmations - Write the following affirmation thirty times a day: "I earn X amount of dollars or more." Whatever it is that you think about most will be found and focused upon by your reticular activating system, and you will start to see it everywhere.
  • Create a daily action checklist- You are aware that doing these tasks will help you earn money that day. Make appointments, prospect for leads, accept listings, get offers, and finalize transactions!

Focus On Lead Generation

After getting off to a good start with your day, it's time to get down to business. Your real estate company has to develop, and you must concentrate on lead generation. One of the several reasons real estate brokers fail is because they don't concentrate on leads. Here are some suggestions for real estate lead creation to assist you locate new potential customers;


Spend 15 to 20 minutes a day practicing your scripts so that you are prepared to talk with actual customers and eventually close more deals.

Call Every New Expired Listing, Fsbo, And Make Me Move Property

Don't be scared to make mistakes. Make all of your mistakes. Who cares that you're new to this? You'll discover the errors that agents make when they offer these properties and fail to make it apparent to the seller what steps are necessary to close a deal. or discover if the vendors have any motivation at all.

Lead Follow-Up

Make sure that none of the leads you produce fall into the gaps by following up on them all.

Be The Knowledge Broker

Finally, you must become an authority in the sector if you want to avoid falling into the 87% of real estate brokers that fail. This entails finding a real estate mentor who can guide you through the process, going to networking events and conferences to get firsthand experience, and taking the time to keep up with the latest developments in the market.

Frequently Asked Questions

What Role Do Unrealistic Expectations Play In Real Estate Agent Failure?

Unrealistic expectations can contribute to failure by leading agents to underestimate challenges and overestimate potential earnings.

How Can Ongoing Education And Training Mitigate The Risk Of Failure?

Ongoing education and training help agents stay updated on industry trends, improve skills, and adapt to changing market dynamics, reducing the likelihood of failure.

What Percentage Of Real Estate Agents Experience Burnout?

Studies suggest that around 75% of real estate agents experience burnout at some point in their careers.

Final Thoughts

The field of real estate is difficult to work in, but it also has the potential to be motivating and gratifying. Talking about what percent of real estate agents fail, even while doubters often point to the real estate failure rate as justification for staying away from this line of work, understanding all the reasons why real estate brokers fail demonstrates that nothing is insurmountable.

Your real estate profession will last for a very long time if you can overcome the obstacles by being strategic, using the appropriate resources, and striking a balance between work and pleasure.

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