Why do most real estate agents fail?

It’s no secret that the real estate business is a cut-throat one. There’s been multiple assertions that innovation, consumer connection, and growth have never been stronger. Consistently growing and changing, being a real estate agent can be both incredibly hard and incredibly rewarding.

Because of how tough the competition is in the business, it’s no surprise that many real estate agents fail in their first year. But the question is: why?


Self-doubt often keeps many people from trying to achieve what they really want. In the real estate world, self-doubt manifests itself in lack of motivation and lack of belief in oneself.

Because the real estate business is so competitive, it can be incredibly daunting once you actually get into it. Making cold calls, sending follow-up emails and talking to people in person about something with little to no referrals is a hard thing to do.

Many first-timers will doubt that they can succeed and that self-doubt will linger around so long they’ll actually start to believe it, and then quit. Stomp out any self-doubt for the jump.

Lack of Branding

A brand is everything in creating a powerful and effective name for oneself and it’s something people don’t realize until it’s too late. And yes, even singular real estate agents need to have a brand that is unique to them and showcases their work and personality.

The right brand has colors that represent you, your work ethic and how you plan to succeed. A slogan to match. It has a logo as well so people can fall into a brand recognition relationship with you. If people don’t know you, then they won’t work with you and that’s how first-time real estate agents fail.

No Strategy (Financial or otherwise)

Every good business plan has a strategy for everything, whether that be financial or otherwise. Where real estate agents go wrong in the first year is not putting any strategy in place so by the time 6 months has gone by they have no sales, no referrals, and no money. And then they have to quit with no other choice.

Every first-time agent should sit down and line every strategy up to make sure it works. Think about expenses and how long it will take one to get a sale and then get more sales after the very first one.

Lack of Connections and Referrals

Most first-time agents don’t think about how important referrals and connections are until it’s too late and they have no one to recommend them and no one to help them figure out what to do about it. A successful first-time realtor will ask around to current realtors how they’ve achieved their success in their area. It’s okay to ask questions and learn from other people’s mistake.

Referrals and connections are a huge factor in driving performance and sales so it’s not something realtors should take lightly — but many do — and ultimately fail.

Doing Too Much

It’s easy to understand being passionate about a new career and wanting to do everything at once — open houses, marketing calls, networking events and any other thing someone can get their hands on. But doing all of this from the start without easing into it can cause many first-time realtors to spread themselves too thin.

This leaves them burnt out in likely only a couple months with little money, little connections, and an unhappy career. This then leads to them quitting.

The best thing a first-time realtor can do is get a feel for the field and ease their way into it. Test the market in their area, make some networking calls here and there, identify where they could really succeed in the business. That way when things pick up it’s not the end of the world.

Your Brand is Your Voice

Here at Communications Squared, we understand the struggles and the triumphs that come along with being a real estate agent. Our expertise in everything marketing allows you to hash out exactly what the core of your brand is and what you need to create in order to succeed in the real estate industry. Reach out to us on our website today for more information.