KGCI: Real Estate on Air - What Are the Top Reasons Why Real Estate Agents Fail

Episode Date: February 27, 2025

Welcome to To To Toe, a podcast for Realtors where you'll witness a battle of opinions about topics affecting your real estate business. There are many ways for realtors to achieve success. The secret is to find which approach will work for you. Now, always in your corner. Here are your hosts, Jen Mertland and Monica Weekly. Welcome to another episode of To To To To, I'm Jen Mertlton. and I'm here with my constant opponent, Monica Weekly. You are the best.

We've got to stop that. Each episode, we choose a different real estate topic to battle about and go toe to toe arguing our differing opinions. Our number one goal, as always, is to help you, the realtor, find your authentic path, the path that feels right to you. And then you can feel confident as you build your business and ultimately build the life you want.

That's all we're trying to do here. So welcome back. And today during our throwdown, Jen and I will be duking it out over this question. What are the top two reasons agents fail? What are the top two reasons agents fail? All right, Jen, I can only imagine. Well, I want you to start today.

You go to start. I mean, first of all, I want it noted, I don't think it's fair that you're making me only have two. If you have a laundry list? No, I'm just kidding. I love my realtors. Well, let's talk about this before you get started. The facts on the intranet, as you and I know, that's where all facts lie. All everything is true.

But it's a pretty common fact that you'll see on the internet that 75 to 85% of all agents will get out of the business within their first. five years. And then you and I were talking about what is that in the first year. I think it's also pretty significant. It's probably, I mean, it's got to be more than 50%. I have to believe it. And I think it is a shame. And that actually leads me to my first point because I don't think it's, I think it's bigger than why do agents fail. I think it's bigger than like tasks that they do. The biggest reason and the biggest reason I think people and agents fail is because there's no real training program. And it's, I'm not talking about at the brokerage level. Like each brokerage has their own training, but it's just not enough. Like we need, in my opinion, we need like an apprentice

program where you cannot be an agent until you have, you understand business. Like you sort of get a mini MBA almost. You're running your own business and most realtors can't do math. That's ridiculous. So you want these agents to have to, in an apprenticeship, you mean like sort of operate under another agent for a while before they can ever sell a single house? Exactly. I think it should be like two to three years. I think that it should be under a high producing agent where they have to, they get training and in exchange they have to share part of their commission on the leads that they find. Mm-hmm. Mm-hmm. So how do you think that? works from a standpoint of getting the lead agents that would be appropriate for that role.

That's a great question. And I feel like I'm an idea person and you're more. No, the problem is we're both idea people. We don't have any execution. But I don't really know because nobody is, I don't really know. I don't have it detailed out. I just know that that stat is not acceptable and I know that what we're doing and what we've been doing is not working. So then I think in my life, if something is not working and it's a pattern, then I just try the opposite thing. So see if that works. So in the Cincinnati MLS, for instance, I believe there's approximately 5,000 agents. It could be a little bit more, a little bit less depending, right? How many agents do you think if we employed your idea of an apprenticeship and we're five years into your idea,

How many actual agents do you think we have in the Cincinnati MLS? Well, that's a great question. So I think that, well, they just did like the Real Trends report for the nation. And there's like what, 1.5 million. Or something. Yeah. Something like that. Over a million real estate agents.

But there's really like the top 1,000. Those are the ones that should be the ones applying to do the training. Of course, like to your point, not every one of those agents is a good leader, a good trainer, are a good fit for that. Certainly their process works. So if there's a way that doesn't take up their time from doing the business necessarily, but also builds into our industry as a whole, I think we can figure that out. So your question, five years down the line, we're in this, how many realtors are there really, given the 1.4 million currently? I mean, I would say to 1 to 5% of that.

Right, right. It would be significant, right? Because we'd lose our part-timers. I don't necessarily think you would lose a part-timers, because I'm not saying if you have to do a hundred deals in order to be a real estate agent. I'm saying like, well, I mean, you know what I feel about part-time agents. But I think there are, I think there are part-time agents that are very business savvy and are very excellent real estate agents. I also think that. think that there are full-time people and part-time people that are not. So I think the barrier to entry needs to be increased. I think that it is a business. And so we as a profession need to learn how to run a business, need to learn about math, need to learn how to track our numbers, things like that. Right. We need to learn how to sell. We're salespeople. You don't have any sales experience and we give you a license. Oh my gosh. All right. So that was your number one reason is just pure like, like, More than training, but like a true infrastructure that changes the industry. Okay.

Yeah, that's like one. So then one A, which is also, we'll just call that too, I guess, but it kind of falls on the same thing. It's freaking starting on time. Tell me more. Your whole, when you have a job, you have to get there on time. And because that sets the tone for the rest of the day. Just get there on time.

And start at the same time, every day, create a structure for yourself of how you do your business. Personally, I would start with the most important thing first, which is always lead generating, however you want to do that, do that first. And then all of a sudden, you've accomplished your goal. Like, you know, when you wake up in the morning and you wake up at the, you wake up to your alarm, you don't hit snooze, don't you always feel better? Yes. And don't you feel like, yes, I accomplish.

this goal today. And then you go, you have momentum to accomplish the next goal. Yes. Did you ever see the military, um, leader that did the speech? I think it was at a college and it was about make your bed, make your bed because it starts everything. Oh, yes. It was so good. That is really good. We should, I wonder if we can link that if we could find that again. I can try it. Yeah, I mean, I, they're sure we can find it. It's really good. And to your point, it's one accomplishment leads to the next accomplishment, leads to the next accomplishment. And so you think that is one of the main reasons, agents or us as entrepreneurs and business owners fail, is this whole concept of time or time management or discipline around time?

Is that fair? I don't even think managing time is stupid and it's an illusion personally. But like, yeah, just do what you say you're going to do. And one of those things is to start on time. You said you're going to have a business and do a business and start on time. All right. Okay. So apprenticeships and starting on time.

Those are your two reasons. Got it. All right, cool. So my two are, I'll start with this one. I believe that real estate agents have the wrong notion of exactly what it is they're doing in real estate as a realtor. And I don't mean the nuts and bolts of it, the writing the offer. I don't mean that. I mean they have the wrong notion of their job and what it takes for success. For instance, when you look at a couple of things, you look at a couple of things, you look of the language we use, we call it selling real estate, right? We call take a listing. I'm presenting myself or listing presentation, right, or marketing myself. Those are so inward facing. They're so about me getting something, right? What are you changing it to? Well, I will, I will let you know that. because first of all, I'm not selling anybody on anything. I'm not talking anybody in. That's how sales works. Fluencing, right, I'm not selling.

But we use it commonly. I'm not holding anybody against the fact that we use that language. It's just very common language, excuse me, in our industry. And I think it sets a really negative mindset. Right. So if we understood that coming from contributely, contribution, that sharing information, showing your expertise, demonstrating how you help people on a daily basis, explaining the facts to people, understanding supply and demand, like truly

coming from the seat of an expert because I've been doing this for five years, 10 years, 12 years, two years, 16 years, I have access to things you don't. I want to share this with you. And oh, also I want to help you get whatever you want in life outside of real estate. We as agents think our job exists in between the start of a contract and the end of a contract. This, when you have that mindset, this is why agents fail. So it's like for you, it's like the mindset of more of a transactional versus relational. That's right. So they get in here and they think, I need to be a real estate agent. So that means I need to get a contract. And so that's all they focus on and they don't know how to do that. You can't do that, that's a result. Getting a contract, getting a listing, getting a lead, going to a closing,

those are all results. So we as agents don't understand what to do in between the dots. Do you know what I mean? Listing presentation. I've heard people that are talking about changing the language to a consultation. Consultation and Amy Brokhammer here in Cincinnati calls it a marketing strategy session. And I think that's such a awesome. She's super smart about. all that stuff. And it really sets up the tone of, hey, I'm coming to give you information and you're going to get the information. We're going to discuss the strategy together because we're in this together. But for me, that answer and to sum it up, because I could go on and on about this is it's a mindset that agents think I have to sell something. I have to go get something.

And if you drop that. Don't you think that that like the apprentice program could help with that too because how they wouldn't know any different because all we're doing is teaching them how to pass a test. They're not teaching them anything else, not even not any sales skills, not relationship development skills. Right. We're just good luck. And to your point, if I wasn't able to sell for the first year and all I did was create my human base and love on my people and get into relationship and show them that I'm learning stuff

and whatever. and I did that for a year without asking for anything, life would be very different. So there's like a combination to that. So my second one is this goes deep to a lot of people call this the big why, but I really believe that most entrepreneurs, which we are as business owners, we're 1099 in the eyes of the IRS.

That means we're business owners. Exactly. I believe that most of us are not 100% attached to the reason we want to succeed. So here's the deal. If you're listening to this, and let's say you have a child, and I said, I need you to get a listing appointment by Friday or else something bad is going to happen to your child. And I, of course, I don't want to be done. Wow, you just. I know, but I'm trying to make a point. I'm trying to make a point. And so this is a terrible point. Fair with me, guys, I'm not trying to hurt your child. I love your child. And you love your child. And that's my point is you have an attachment to

the health and well-being of your child. And so if I said, go get a listing, I ask agents this all the time. And without fail, they all say, I would freaking get on the phone. I would knock on every door. I would go to Walmart. I would stand with a billboard in front of, like a, you know, a sandwich board. I would do whatever it took. Right. Because you're a hundred percent attached to the result that you want because you have an emotional reason to do it. I believe that if we don't, in anything we don't do, whether it be real estate or freaking whatever. weight loss, like any goal. Are you looking at me when you say weight loss?

No, I was looking at myself. Do you see the mirror go up? If you don't have that emotional clarity on what the hell it is, this amazing business is going to do for you and your family and your future in your life, you don't get that. Then every single day when you wake up and your little baby, six-year-old self doesn't feel like doing it to your break. Doesn't feel like showing up?

Guess who wins? Dave, yeah. I mean, not you. Right. Right. So those are my two things. I believe that a true, like a freaking balls out, can I say that on our podcast? Yes.

I don't care. We had an explicit advisory on another one we did. Oh, really? When we have a super clear and highly emotional attachment to what it is we need to accomplish, I believe every single agent I know can accomplish it. Agreed. is you're capable of it. Yeah. It's just you don't care enough. You're too comfortable. Your food is paid for you. Definitely when you're back. I know we've all experienced this. I mean, I have for sure. When my back is

against the wall, like I perform at such a much higher level. It's so annoying. I wish I could capture that. It's hard. You're right. You're right. Listen, if I needed to pick a teammate and like I knew that you were going to be uncomfortable about it, I'd pick you every day of the week because you, you would do it. And when things matter, like, if it has to happen for some reason that I'm attached to, I will find. You will do it. Yeah, and you'll do it quick, too. That's right.

And so, well, our listeners, so if you're listening to this, I know you have that in you. You just haven't spent any time peeling back the layers about seven layers. Why do you do this business? Oh, I want freedom. Well, what does freedom give you? Right. Freedom, that's bull. Oh, I want the extra money.

We need it for my family. Why? What does it do for your family? Until you cry, you haven't. That's right. That's right. All right, Jen, geez, we went deep there today. I know.

I'm sweating. That was really good. I think we should go back to our corners. I think we should. I think there's a glass of wine waiting for us there back there. Something. All right. We're going to take a short break and hear a word from our sponsor.

And when we return, we'll have the final punches. All right, welcome back. Now, we took this question into the streets to find out why you think most agents fail. Monica, would you find out? All right. So we did a survey. We got all kinds of great answers. People have a lot of insight. By far there's a lot of reasons. There's a lot of reasons. You're right. One of the most common things was people believe agents just have a general fear. Not only a fear of doing the things you need to do, but a fear of success somehow.

Like, how does that change my life? What does that look like? And we could go down a whole podcast on fear, I'm sure, right? I'm sure. Like fear of success or fear or failure. So just like general fear. General fear. And then of course, along with that is just like the getting ready to get ready and fear lies in that.

like, oh, I'm going to get this together and then I'm going to get this and I'm going to get my marketing plan and I'm going to get my getting my marketing together. They don't actually do anything. They're fearful of doing it wrong or failing when they do it or whatever. So that fear piece is huge. And then the other thing a lot of people said is they just don't have a plan. They just don't have a plan. And I think there's something to that for sure. Something to that for sure. Okay. So, let's, what do you think? We're going to do our final like, rounds or? Yeah, let's do it. Okay. Okay. Jen, you have one minute to summarize your two points. Let's go. All right. Well,

my point. Summary it. Jeez. All right. I think that we need to have an apprentice training program for all real estate agents entering the business. And this program needs to be two to three years long. We need to stop letting people do the business without knowing how to run a business and never having been in sales. Okay. Two to three years, this is a long time. Like, is that the doctor's length? No, I mean, I don't care. I mean, I can become a physician. Then do that. We make a lot of money and we help a lot of people. And this is people's largest asset. It is nothing that we just are now going about a willy-nilly. Like anybody can do anything. I mean, even the state of Ohio just this year put into effect that they actually do

background checks before there were a bunch of criminals running around. It's not funny. I'm sorry, I'm laughing. It's not funny. It's awful. We need to step up our professionalism and do better. All right. So my two reasons I believe that agents fail in all my years of watching that happen, unfortunately is the first is I believe agents step into this business with the wrong notion of what their job is and where they serve and we think too much about the sort of nuts and bolts of being a real estate agent and we don't understand the concept of you are now licensed and you have a gift that you can help people sell the largest asset they likely are going to sell and there's a lot that goes into that and you have a lot of knowledge.

And instead of coming from contribution, helping people get what they want, which is sales tactic number one in any sales, right, business, instead of that, I believe agents fail because they just look at it wrong. They look at what they're going to get. And it's all about them and it's all about the next paycheck. And that's what gives us the reputation we have as well. So flip that on its head. And then the second thing is that agents are not 100% attention.

attached to why it is they're working and what it is they want the outcome. And I just, I think it's very rare that actually somebody's really clear on that. Right. That's a great point. And actually, you made me think about in during your first point that most of the time people are buying and selling a home because something else happened. That's right. So either they are having kids or the kids are leaving or somebody died or I mean, they're getting older. I mean, there's always something super emotional in there. And we are lucky enough to be able to help them with that transition. Yep.

So, yeah, you're right. It's really about the people. You're right. The top stressors are why people move, right? New job, new baby, divorce, death, like the worst of the worst. You know, in my referral revolution membership program, we talk about the, a little pub there, no. We talk about the formula, which is show up as a human. being plus you can always do that unless you're an alien then you should show up as an alien well it's the

number one component of the formula to to referrals and success is show up as human being and fly a real estate flag and that's where referrals are it's not because that's some magic thing that spits out referrals it's because that's why people want to do business with you right business with you because you've demonstrated that you know what the hell you're doing and that you do it quite often and that you actually care about them. Well, yeah, you should care about people. Geez. Oh, geez. I think we solved the world's problems today. Mert, what do you think? Yeah, double mic drop. Yeah. All right. I think that's going to have to be the end of today's battle. Do you think there was a knockout? I don't know if we threw any punches, really, but as Jen, did I hurt her?

Did she hurt me? What? No. No, we just solved the world's problems. You're welcome world. All right, real estate rock stars. I hope you enjoyed today's battle. And I hope that you heard something here that can help you get clarity on your path and your standards for success. Yay. All right. Superstars. See you next time. Thanks, Jen. Bye, Monica. Thanks for listening to this episode of the To To To To To Podcast. Make sure to hit the subscribe button so you get updates when new episodes are available. And we truly love and would appreciate all likes, reviews, and suggestions for future topics.