BAM's Key Details
- 70% of new agents stated lead generation is a major pain point, according to a study conducted by Realtor.com®.
- Agents also said knowledge gaps are a challenge as a new agent, citing a lack of training as a reason for not achieving these goals.
During the pandemic, many people turned to real estate in hopes of achieving greater success and freeing themselves from the shackles of a traditional 9-5 workday.
But, as we know, a staggering 87% of agents quit within their first five years, and 90% of the business is done by 10% of the agents.
For the first time, Realtor.com® conducted a study to dive into the reasons why new agents rarely make it in the industry. Here are the top struggles identified in a survey of 2,000 agents—and how to overcome them.
As home inventories hit four-decade lows this year, lead generation has been a pain point for almost every agent–not just newbies. The survey found that 60% of all agents have trouble finding new leads, and that number jumps to 70% for new agents.
It takes years to build a strong network of clients, and agents need to be meticulous and intentional in fostering comfortable relationships. Byron Lazine gave advice for ways agents can gain leads through sweat equity in a recent blog:
- Be a community hero
- Agent referrals
- Open houses
- Door knocking
- Eyeball awareness
- Make your calls
Another way to get past the struggle of finding new leads is to ensure whatever team or brokerage you join has the right training and tools for you to succeed. Learn more about what to consider—along with what questions to ask—in these posts:
Other sources of frustration with lead generation include:
- Converting leads to clients
- Poor lead quality
- Competition from other local agents
- High costs per lead
- Getting a lead too late
- Low connection rates
- The time/effort in managing clients is too high
In a recent blog, Tom Toole outlined how to convert more leads into appointments with three basic skills to ensure you’re connecting with as many people as possible:
- Double tap with back-to-back calls
- Calls, texts, and emails
- Using technology to your advantage
Another pain point for new agents is a lack of knowledge. The most significant knowledge gaps for new agents are:
- Lead generation
- Transaction processes
Agents cited a lack of training as a reason for not achieving these goals. As a new agent, look to join a team that will provide you with education and training to propel your career forward.
According to the study, more experienced agents need help with social media marketing, online ad campaigns, and SEO.
Thankfully, the solutions to these problems live right here on BAM. Here are a few suggestions to stay knowledgeable on the market, social media marketing, and agent tactics: