(This is the 4th post in a 9 part guide, please read them in order)
Okay, there really isn’t a wizard behind the curtain. But there are things that you need to know about the sandbox you’ll be playing in.
Lets start with some truths about the real estate profession:
This is not your own reality show
Sometimes I wish they left our industry alone and never produced those real estate shows on TV. They are fake, purely for entertainment and are a misleading portrayal of a typical real estate agent’s day.
As a consequence of these shows, many agents have been brainwashed to believe that they need to drive an expensive car and wear perfectly-tailored designer clothes to impress clients. I beg you, don’t let this be you. This is the fastest way to digging yourself a money pit. Believe it not, many agents that you see on social media living the ‘so-called life’ are financially irresponsible and swimming in debt. Most are busting their asses just to pay for their inflated lifestyles.
Furthermore, your day will not consist of you driving around town, fielding endless calls from clients begging you to list their properties.
No, there won’t be lavish agent open houses with champagne and goose liver pâté. And nobody is going to applaud when you walk through the doors of your local coffee house.
Real estate is a tough career. It comes down to relentless lead generation and you chasing people (never the other way around). The only reality show it’s going to resemble is Survivor, but without the coconuts.
There is no brokerage that is the best
In fact, there are all kinds of different brokerage business models offering a wide range of services, support, and commission structures.
The truth is, every brokerage has a roster filled with top producing agents and agents who have done zero deals. In this game, you get to choose which one you’ll be no matter what company you join.
So how do you know which brokerage is best for you?
- You have to know EXACTLY what you need from a brokerage.
Some agents need a lot of training and support. Other agents just need a reliable place to drop off their paperwork and get paid on time. For other agents, it’s important to have office space because they can’t get any work done from home.
It’s important to know exactly what you’re looking for so when you interview brokerages, you can ask the right questions and determine if it’s the right fit for you. - Don’t believe everything you hear on the interview with the recruiter/manager.
Brokerages gain more profit by increasing their head count. They make money from you a number of ways:
– monthly fee
– desk/office fee
– transaction fee
– commission split
– franchise fee (if applicable)
That’s why when you meet with them, it’s going to feel like a sales presentation and they’re going to tell you everything they think you want to hear. Their objective is to convince you to join their roster. Also, brokerages like to brag about how many agents they have – it inflates their egos.
Make sure to not get pressured into signing on the spot – take your time and do your due diligence. This could mean asking to attend sales/training sessions first as a guest, or calling random agents on their roster to get feedback on the company.
It might be very expensive to move later if you change your mind, so take time to think this through.
There is a big difference between a real estate salesperson and a realtor.
Aside from the obvious distinction that your association allows you to use the REALTOR® trademark, I put agents into two categories (and these are my personal definitions):
- Real Estate Salespeople
These are agents who focus strictly on the transaction side of the business. They are great at finding clients, negotiating deals, and getting paid. They are often on most leaderboards and collect the biggest awards at the end of the year. - Realtor
These are agents who not only do deals, but they also take a more elevated view to the profession by getting involved in the community, volunteering for real estate boards, participate in advocacy and seek to understand legislation. These are agents who want to make money but also care about the industry as a whole.
One isn’t better than the other, and I couldn’t really argue that one would make you happier over the other. Just know that there is more to real estate than just sales, and in my experience people who focus strictly on sales tend to burn out quicker than those who embrace the profession in it’s entirety.
This is a rewarding profession but it will challenge you every single day
I work with agents who make $50,000 a year.
I work with agents who make $500,000 a year.
I work with agents who make $1,000,000+ a year.
It doesn’t get easier when you make more money. The Notorious BIG was right… Mo’ Money, Mo’ Problems.
Every day you’re going to be dealing with highly emotional people who have a lot of money on the line, and you’re always going to be in the middle. It’s a tough spot to be in.
Here’s something I’ve learned over the years: A seller will always feel like they didn’t get a high enough price, and a buyer will feel like they paid too much.
As you grow and scale your business, you’ll be juggling more sets of buyers/sellers simultaneously who all have a singular purpose of winning a negotiation. Dealing with the human side of the business is going to be challenging enough, and that’s separate from the actual logistics of running your business and all the moving parts that will require your attention.
It takes tremendous resilience and patience to run a thriving real estate business, and on most days will require every ounce of your energy.
Stock that wine fridge, my friend.
Lets proceed to Level 5: Understanding The Different Methods Of Real Estate Prospecting