3 Career Crushing Mistakes 87% of Real Estate Agents Make

Summary

In this video, Mike Regan, a seasoned real estate expert, shares three critical mistakes that agents must avoid to grow their business and maximize their income. These include relying on external lead sources, neglecting past clients for referrals, and cutting commissions to attract clients. Regan explains why each mistake is financially damaging and offers practical solutions to take control of your lead generation, maintain strong client relationships, and preserve your value in the market. His advice aims to help agents build sustainable, profitable businesses while achieving a balanced lifestyle.

Takeaways

• 😀 Avoid relying on others for leads—build your own lead generation system to maintain control over your business.
• 😀 📉 Purchasing leads from others can reduce your take-home income by up to 50%. Investing in your own lead flow is more cost-effective in the long run.
• 😀 🚫 When you depend on referred leads, you're working to grow someone else's business, not your own. Take control of your lead generation.
• 😀 💼 Lead generation should be your most valuable activity as a real estate agent. It’s essential for growing your business and having financial freedom.
• 😀 🧑‍🤝‍🧑 Past clients are your best source of referrals. Stay in touch with them regularly to keep your name top-of-mind and increase future business.
• 😀 📨 Implement a CRM system to manage client information, birthdays, and important dates. A solid system ensures you never miss an opportunity.
• 😀 🙋‍♂️ When you reach out to past clients, don’t be afraid to ask for referrals. ‘No ask, no get’—you won’t get referrals unless you ask for them.
• 😀 💬 Staying connected with past clients can eventually eliminate the need for chasing new leads. Referrals from past clients can become your primary business source.
• 😀 💰 Reducing your commission to win a client can hurt your credibility and income. Stand firm on your value, and don’t discount your services.
• 😀 🔥 Cutting your commission can lead to a cycle where clients expect discounts, which can undermine your business long-term. Avoid falling into this trap.
• 😀 🛑 Not all business is good business. Walk away from clients who only care about the cheapest deal—they’ll likely provide poor results and create more headaches.

Q & A

What are the three major mistakes real estate agents make that can hurt their career and income?

The three major mistakes are: 1) Being dependent on someone else for leads, 2) Not marketing to past clients and asking for referrals, and 3) Reducing listing commission to win clients.

Why is relying on third-party lead suppliers such a big mistake for real estate agents?

Relying on lead suppliers is a mistake because it costs agents more in the long run, reduces their control over their business, and the leads provided are often of low quality. Agents can generate their own leads for less money and effort.

How can real estate agents build their own lead generation system?

Real estate agents can invest time and effort upfront to build their own lead generation system by mastering one method, such as social media marketing, referrals, or content marketing, and consistently using it to generate high-quality leads.

What is the main problem with not keeping in touch with past clients?

The main problem is that past clients are your best source of future business, but if you don’t stay in touch, they’ll forget about you and may not refer you to others. Regular communication is key to staying top-of-mind and getting more referrals.

How often should agents reach out to past clients to ensure they stay engaged?

Agents should have a marketing program that reaches out to past clients at least every 45 days with something of value, such as a market update or invitation to an event, to stay in touch and encourage referrals.

Why do agents often hesitate to reach out to past clients, and how can they overcome this fear?

Many agents hesitate because they fear past clients might still be upset about a transaction. However, most clients are not upset and appreciate the follow-up, often expressing positive feedback. Agents can overcome this fear by focusing on building relationships and offering value.

How can agents make sure they don't end up discounting their commission too much?

To avoid discounting their commission, agents need to clearly communicate the value they bring to clients and stand firm on their pricing. They should also avoid working with clients who insist on a lower commission, as this can harm both their income and reputation.

What is the financial impact of reducing your commission by just 1%?

Reducing the commission by just 1% can decrease an agent’s take-home income by 33%, cutting their earnings significantly and reducing the profitability of their business.

What should agents do if clients ask them to reduce their commission?

If a client asks for a reduced commission, agents should confidently explain the value they provide and stick to their pricing. Often, clients are just testing the agent’s willingness to negotiate and will accept the agent’s response without further issue.

Why is it important to avoid working with 'cheap' clients who don't value your services?

Working with clients who constantly demand discounts or don't value your services can drain your time and energy, and lower your business’s profitability. These clients are often difficult to work with and can lead to poor results, making it better to walk away from such deals.