For first-year real estate agents, the initial path has its fair share of challenges. Even Stacked Homes’ Partner, Ryan Ong, wasn’t spared the financial struggles and learning curves that new agents face.
In fact, statistics reveal that many agents leave the profession early in their journey. Back in 2012, there were 30,577 agents. 10 years later in 2023, the number of agents is 34,427. That’s a mere 11% increase over a decade, which indicates a high turnover rate.
By avoiding these common rookie mistakes, you are a few steps closer to joining the ranks of best-performing real estate agents who have made their mark in the industry.
Not Having a Business Plan
Being a real estate agent is akin to managing your own business. Without a well-thought-out business plan, you may find yourself spending time and money in ways that don’t yield much return.
A business plan is your roadmap to success. It ensures you stay focused and keep the bigger picture in mind, even while hunting for your next lead.
Here are the essentials of a good business plan:
- What are your goals? Write down what you want to achieve in 6 months and in a year. Ensure they are measurable and achievable. These goals give you direction and a clear sense of purpose.
- Do you have a niche you can build towards? Commercial or residential, projects or resale, sellers or buyers? Focus on districts that you are already familiar with. These help you stand out as an expert.
- What are your projected expenses? Maintaining financial stability is crucial in a commission-based profession. Write down every expense you can think of, such as transportation, advertising, and marketing. Ensure that you have enough cash flow to fund your expenses to meet your goals.
Understandably, newer agents often experience cash flow challenges, as commissions takes months to trickle in. By using LytePay, you gain access to your hard-earned commissions as fast as 1 business day, providing the financial stability needed to execute your business plan successfully.
Not Having a Clear Sales Strategy
Many first-year real estate agents make the mistake of searching for leads only when they’re running low on prospects, instead of having a proactive sales strategy like this.
Success in real estate requires consistent and intentional lead generation. Rely on a mix of strategies such as online marketing, social media, and networking events.
Having a follow-up strategy is another crucial part of your sales plan. Consistent engagement with leads and prospects is a cornerstone of a good strategy. Position yourself as a trusted advisor by sharing timely updates about the market via WhatsApp and on your marketing channels. Although the conversion might not be immediate, it increases your chances of being top-of-mind when your leads are ready to buy or sell their house.
Neglecting Your Marketing Strategy
Many first-year real estate agents lean on their agency’s marketing efforts, overlooking the potential of crafting their personalised marketing strategies.
In real estate marketing, there are two aspects to marketing: marketing yourself and marketing the property. Top property agents have developed a strong personal brand and a marketing strategy to promote their clients’ property.
Determine the right platforms for your target clientele. Not all marketing platforms are equally effective for your audience. Beyond the usual platforms like PropertyGuru, leverage platforms where you have familiarity and a following to tap into your network and grow your online presence.
Set a marketing budget. Many new agents view marketing as an unnecessary cost, yet it’s an essential investment for long-term results. Underspending on marketing can lead to missed opportunities that come at a higher opportunity cost. A good rule of thumb is to allocate 20% to 30% of your total yearly revenue to your marketing strategies. This budget includes paid advertising on social media, printed materials, and buying credits for property listing sites.
Regardless good or slow months, it is paramount to have sufficient cash flow to maintain a consistent marketing strategy. Whilst there are many misconceptions about advancing your commissions, the returns on investment from consistently reinvesting your commissions into marketing activities will far outweigh this cost. This ensures a steady stream of leads to convert into clients, accelerating the growth of your real estate journey. Hear more about why more than 5,000 agents use LytePay here.
The Best Way to Learn is from Mistakes
Steering clear of these common mistakes is a critical step toward achieving success in the real estate industry. A solid business plan, a clear sales strategy, and an effective marketing plan can keep you on track to a thriving career.
Remember, success in real estate isn’t just about your passion but also about your strategy and planning.