Why 87% of Realtors Fail
More than 85% of real estate agents fail within their first 5 years of being Realtors.
Why is this? Most Realtors are very personable and got into the industry because they are good at working with people and have a passion for real estate. So why is it that some realtors just can’t break through? Is it because other Realtors have a larger network? Or is it that they work much harder? Both of these attributes could give one realtor an advantage over another, but they don’t guarantee success.
The reason most Realtors fail is simple: they don’t have enough customers
Many Realtors will utilize their social and professional networks and if they have a decent enough network will likely gain some business from this this. Best case scenario is a “holy cow” moment when they suddenly have two houses to list and one house to source. They are now very busy. Busy showing homes, following up, negotiating etc. They work hard and score a couple of decent commission cheques.
Now what? Did you know the average funnel length for a realtor is 5 months? You were so busy selling that you didn’t prospect leads for your funnel. This means two things:
1. You are likely 5 months away from your next sale.
2. You better budget out those commissions.
To be most successful in real estate you need a constant flow of leads into your sales funnel. So how do you get that?
Some Realtors have found some success using print ads. I do find this surprising as personally I toss every print ad I get right into the recycling. A few Realtors are able to stand out and get some business from print ads but as soon as the budget dries up and the ads stop there is no residual affect.
A Realtor’s best option is meaningful compound marketing done consistently.
Meaningful in that it accounts for all 5 steps of a customer’s journey: Awareness, Findability, Reputation, Conversion, and Advocacy.
Compound meaning that the efforts put into marketing today have a long-time residual affect that is continually built on and the efforts snowball.
Consistently meaning regular updates and optimizations.
The best way to achieve meaningful compound marketing is through digital marketing.
It is shocking to me to see how small of a percentage it is of Realtors who use digital marketing properly. What makes it more shocking is the ones that do digital marketing correctly are making a ton of money and you would think that the other Realtors would want a piece of that pie.
Some Realtors attempt to do it themselves and google and YouTube how to do SEO and digital marketing. This rarely turns out well. Without having the tools and automations it would take a Realtor 300 hours per year to maintain digital marketing. That doesn’t include the research and knowledge needed to backlink effectively and optimize headers tags etc. At this point are you a digital marketer or a Realtor?
Some real estate agents will hire a large agency that charges them $10 000/month to handle their marketing. This is excessive and not needed for results. Or they might hire Ted the student who does some SEO work in his spare time and charges $100/month. This results in nothing.
Balance is key.
By using a boutique digital marketing firm, a Realtor can have a meaningful marketing campaign for between $2,000 and $5,000 dollars per month, that compounds and provides a huge return on investment.
At Dharma Digital we help Realtors achieve more success. We focus on all five pillars of a customer’s journey to achieve meaningful, long-lasting results.
Book your complimentary consultation today and discover the Dharma Difference.