1. You are a statistic - Also known as "Spaghetti Against the Wall." The more spaghetti the Brokerage throws against the wall, the more likely some will stick and earn.
2. Be Sure You Understand the Broker's Business Model - Some brokerage models are all about hiring in mass. The reason is in #1 above. That being said, some brokerages are structured to profit based on the number of new agents they bring into the firm. Because so few succeed, these broker models are structured to collect their profit on you at the start of your relationship (whether you e
ver sell a property is irrelevant) through training, insurance, technology, and coaching fees, which may be billed monthly, or all due in full at the start. If you ever actually successfully close a sale, that's an unexpected financial gain for the brokerage.
3. Licensing School DOES NOT Train You for the Business? Licensing School is about laws, rules, regs, terminology, and concepts. Basically, your aptitude is being tested. Realizing that you will be handling the most significant asset of the buyers and sellers you assist, you can begin to understand why pre-licensing is so tough. For this reason, once you make it through pre-licensing, you MUST ensure on-demand access to an experienced person who will be in charge of walking you through post-licensing training. Classroom training is great, but you will need in-the-field real-time assistance for a minimum of 3 closed transactions.
4. Mentors and Productivity Coaches - A good Mentor/Productivity Coach is the key. How many new agents is this person currently assisting? How many of those agents are still in the business a year later? How accessible will this person be? Is the Mentor your competition?
5. What are the Fees? What are the upfront, monthly recurring, and annual fees the brokerage charges? How will you compensate your Mentor Coach and how many transactions will you be required to compensate this person?
6. This work will be extremely hard – if your goal is to make real estate your full-time gig and not just a side hustle to finance extras, there will be no “off button in real estate sales.” You will need to be available 7 days a week in the beginning. More importantly, you will need to figure out how to generate buyers and sellers. This should be covered in your post-licensing training.
7. Clients believe they know more than you - and they are very right, at least in the beginning. You will need to educate yourself on the areas you serve in order to be a reliable source of information to your buyers and sellers. Ultimately, Buyers and Sellers choose Agents based on their competence and knowledge.
8. Once the Brokerage Signs You, You are Basically on your Own! In most cases, this is the truth. Finding a brokerage that will cultivate your skills over the long haul can be difficult.
9. Approximately 86% of agents sell six or fewer homes a year - This is a national average. Individual areas will be different.
10. You will have income only for as long as you manage to close transactions. If you quit, get sick, take a vacation, so does your income - This is why, long term, you must plan to scale your business by building out a team, potentially your own brokerage. This allows you to duplicate yourself and earn off others.
11. No Free Leads - If you are under the impression that your Brokerage will hand you a certain number of leads, weekly or monthly, think again. Most leads are forwarded to the Listing Agent whose property originated the inquiry. This is why your focus on procuring listings is always the best way to control your business and your income. Generic leads, without a specific source of generation, are distributed to top producers who have made the company money and can be trusted to convert the lead. New agents are at the bottom of the pecking order.
12. This business can be brutal, and it’s not for the timid or easily offended. You will need to have very thick skin to slough off the massive amounts of rejection you'll endure initially.
13. Hyper-Competitive Business - Numerous agents compete for every single listing and in some cases buyers. How will you separate yourself from the pack? Why value will you bring to the Seller or Buyer?
14. Love of Homes & HGTV is not Training - in fact, it is at best very misleading. These shows are scripted. The outcome has been determined at the start.