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Why 87% of Real Estate Agents Tank (And How to Dodge That Statistic)

Why 87% of Real Estate Agents Tank (And How to Dodge That Statistic)

Alright, let’s talk about the elephant in the room—why most real estate agents crash and burn within a few years of getting their shiny new license. 87% of them, to be exact. That’s not a typo; it’s a full-on survival rate problem. So, what’s going wrong? Here’s the breakdown:

1. No Plan, Just Vibes

A lot of new agents jump into the game with zero strategy. They think “I like houses, people, and the idea of working for myself. How hard can it be?” Spoiler alert: very hard. The successful agents are the ones with a game plan. They know who they’re targeting, how they’re going to market, and what they’re bringing to the table that makes them stand out. It’s like trying to run a marathon without ever practicing—you’re gonna hit the wall fast.

2. They’re Not Treating It Like a Business

The average agent treats real estate like a side gig that will somehow magically turn into a goldmine. Here’s the thing: you’re running a small business whether you like it or not. Marketing, customer service, accounting, networking—it’s all on you. Fail to think like a business owner, and the business will fail you. You’re the CEO of “You, Inc.” Don’t forget that.

3. Lead Gen? What’s That?

You can’t sell homes if you don’t have clients, and you can’t get clients if you’re not actively generating leads. This is where most agents flounder. They spend more time refreshing their Instagram feed than they do figuring out where the next potential client is coming from. In a world where your competition is using every lead-gen hack in the book, you can’t just rely on referrals from Aunt Karen.

4. Shiny Object Syndrome

One week it’s social media marketing, the next it’s open houses, and then it’s door-knocking—new agents tend to bounce between strategies like they’re trying out every flavor at the ice cream shop. But here’s the deal: you’ve got to commit. Find one or two methods that work for you and get really, really good at them. Otherwise, you’re just spinning your wheels, and sooner or later, the burnout sets in.

5. Cash Flow Woes

This one’s a killer. When agents start, they think the money will come rolling in after they close their first deal. But real estate is feast or famine, and too many agents don’t plan for the famine part. No steady paycheck, no benefits, just a big ol' gap between deals. Unless you’re disciplined about saving during the good times, those dry spells will bury you.

6. No Follow-Up = No Future

Here’s a secret: most agents don’t follow up. And I don’t just mean once or twice—I’m talking about the agents who ghost their clients after a couple of texts. Newsflash: people buy homes on their own timelines, not yours. A good follow-up system (think: emails, calls, texts, maybe even skywriting) is essential. The agents who fail? They let leads slip away because they weren’t persistent enough.

7. Mindset Matters

The grind gets real, fast. A lot of new agents are pumped in the beginning but don’t realize how much resilience they’ll need when deals fall through, leads ghost, and the phone’s not ringing. Those who make it are the ones who know how to keep their head in the game, push through the tough days, and stay motivated long after the excitement fades. It’s mental toughness that separates the ones who thrive from the ones who drop out.

The Bottom Line? 87% of agents fail because they’re unprepared for the hustle, lack direction, and don’t understand what it takes to run a business. If you want to be in that 13% who make it, treat it like a business, focus on building relationships, master your lead generation, and—most importantly—play the long game.