The first problem is before people even get their license:  false expectations about the business and what is involved to be successful.  During licensing class it seemed most thought it would be a matter of just showing a few houses and getting a big check.  And unfortunately the training classes (at least locally) were focused on how to pass the state exam and zero on how to be a successful agent.

The main reasons are fear of rejection , self confidence and they do not follow up. The stats tell the story!

They get into the industry without having a clue what it takes to succeed; they don't have sufficient financial resources to see them through the first lean year or two;  the entry barrier into the industry is very low; most have no idea of what it takes to run your own business.

Colleen,
It isn’t that people can’t be successful in this business. There are a million different personalities and ways to be successful. The reason people fail is that they won’t do what it takes to be successful.

Constantly jumping around from place to place, thing to thing, and not creating, learning, or sticking with an effective marketing plan, not enough money, and thinking they know more than they really do.

I think some don't realize real estate is a business not a hobby

They are not skilled entrepreneurs, not ready or able to invest long hours focused on income-producing activities, and lack sufficient cash-on-hand to fund their new business and cover living expenses for many months until their start-up career begins to consistently pay off.

Colleen,

They are in the wrong business.  A

they don't focus on marketing ..... it's a discipline...

The common thread in most of these comments is that all of the reasons mentioned are things that have to be learned. If you don't have proper training then you aren't failing yourself, you're managing broker is failing you. New agents NEED training!! They need to be taught how this all works and they don't get that in the course. I'm 2 weeks away from taking my state exam and if it weren't for the solid knowledge that I'd be receiving valuable training from my managing broker Evelyn Johnston I would NOT be going through the class at all. It's OK to not be able to figure out everything on your own, it's OK to need guidance from someone who's experienced. And in my honest opinion, If I've paid hundreds of dollars to take a course (giving up most of my personal time), and another almost one hundred plus expenses to take a state test, and am making a commitment to your brokerage, and potentially making you a large sum of money, then as my managing broker, you OWE me training and I wouldn't expect anything less or I'd be choosing somewhere else to go because after all, I've already shown that I can do what it takes to make a start in this business. 

I thank that the number reason that most agents fail in the real estate business is the lack of good leadership. Leaders that do not see that the agents get good quality training and that includes followship.

     They think that they put people in their car, show them three or four houses, then pick up a commission check.  "Reality TV" has made this problem even worse than it ever was.

They think it's easy money coupled with a lack of effort.

Many people have no idea of the many hats we wear.  It's more of a life change in the beginning. Not 9-5.  So many different niches - one can get lost. They are not ready to comment to learn how to succeed.  Real estate class taught us the laws not how to be successful. Takes determination. 

Number one would be financial. Number two would be not having the mindset to do sales.  Number three would be the inability to self motivate and be self accountable.

NW Real Estate |Colleen Fischesser & CO Serving Seattle-Tacoma area Since 1990! Under capitalized!

False expectations 
Inconsistent & ineffective marketing 
Fear of rejections in follow-up  

Undercapitalization at startup, which can lead to all sorts of other bad business decisions.

These are all great answers and good reasons for failure.  I think the lack of training in the industry and the unwillingness of some of the veterans to lend a hand to the rookies is a recipe for failure.  After all, most of us don't want to fail and most of us in the beginning have no idea how much that we have to work or what we should be doing.  So, let's reach out to a new agent and offer support!

They are not ready to succeed and not willing to work hard enough to get there

They don't work. In other words they think it will be easier than it is and they don't put in the time, effort, monetary investment, education, etc. to get a good return and reach success.

False expectations of this being an easy job!  Not enough finances saved up to survive until their first commission check.  Inability to sell themselves or properties.

Work ethic!

Lack of effort

Some think that it is a great rich business.  They do not believe the number of hours and weekends that we have to do in order to be successful..

Maybe they drove past a real estate company that has a sign that they are "hiring" agents.   It makes one think they are going to get a salary and perhaps some benefits?      

It's not an overnight success proposition.   They want immediate gratification instead of putting in the work to build up a following and developing a great public persona.

They wait for prospects to come to the office . They do not realize this is a lead generation business.

I love the chart that Buzz posted.  It's really inspiring me to pick up my phone and make some 5th calls.

There is no number one. It can happen in many ways and if you look at the history of business of any kind, the failure rate is high.

They don't want to work and think they are just going to get rich quick.  You have to keep going, and keep working every day just like a regular job. 

They don't know enough people and can't make themselves correct that thru Lead Gen !!! (25 Known People = 1 closing)

I think many come into real estate believing what many buyers & sellers believe - all we do is put a sign in the yard and collect a big commission. Easy money-- NOT.

This is exactly why as Chair of our local MLS, we have set up a "new agent series" which are taught by seasoned agents who volunteer their time to address each of the facets of being a successful agent.    It covers financial planning, setting up a business plan, marketing yourself, etc.

they think it's easy money.

They call themselves sales people yet fail to do anything to learn how to SELL.

Most of the required training focuses on doing the paperwork, and few progress beyond this training.

They did not know when they entertained the idea and were unable to figure out what a real estate business really is. 

They got their license, opened their store and invested nothing of value to figure out what the store will be selling, just like any business owner would have done at the beginning.

Then the #2 reason is there is currently exists WAY TOO MUCH MONEY BEING MADE in promoting the existing FAILURE system. Many existing agents contribute willingly to the FAILURE System by suggesting 'get more train'n' is the solution. For decades the FAILURE System keeps grinding up 90% of newbies...and agents keep saying, 'get more train'n."

The #3 reason is blaming the newbie. This is observable in  the denial of the existence of the FAILURE SYSTEM and chanting 'raise the barrier of entry' suggesting it is the quality of the candidate that is the issue. 

Three is sufficient.

what worked 10 years ago does not work for todays market..

marketing is  #1

it's very expensive #2

I'm with Barbara Todaro ..its all about marketing!

Unrealistic expectations.

• they think that they will make lots of money right off the bat.
• they don't fund their attempt.  they should allow a minimum of a year of no income at all.
• they presume that business will come to them... either their manager will dole out the listings, or they can just sit at their desks, and the calls will pour in.

They know little to nothing about how to run a business.

Actually two-fold:  not willing to or understanding that they will be working 7 days a week at the beginning of this career and undercapitilization NW Real Estate |Colleen Fischesser & CO Serving Seattle-Tacoma area Since 1990! 

Pretend you love cows and their milk. One day, your cow doesn't give milk anymore...The love starts to lessen. Then, you look at the cow like it is a burden now, to be fed, housed and kept after. Result? Bye bye cow. Why do agents leave? No milk ($$)!

Unrealistic expectations. This career, and might I say it again...career, is a full time, 24 hours a day work.

Laziness

They don't do the work it takes.

The lack of dedication and preparation to become financially successful.

Lack of focus and planning

No business plan.

#1 one reason they do not have a business plan

just checking on which questions have the most answers here at Activerain, this was one which sure got a good response from everyone.

They believe that it is easy money and no work:)

Discipline . They are just trying to wing it and do not make the time to attend training classes and come into the office to see how the agents that are successful are making it work. They think by doing an Open House on a Sunday will get them enough business to support themselves.

They don't put in the work or "HUSTLE" ..

Some great comments here, there is a common thread. I have no problem helping new agent s but they need to put in the time. A business not grow overnight.

Why do agents fail?  There are a number of reasons, many already noted in earlier comments.

However, in looking at California, it appears that it is way too easy to get a real estate license, the classes don't teach you how to be successful but how to pass the exam, and there is nothing available to teach you how to do things.

This is similar to the legal profession, but at least there are more resources there.  As a lawyer, if you want to start a law practice, there are a number of useful books (practice guides) that provide practical advice on how to do that.  You can also attend continuing education programs that will teach you how to do that as well.  You can also learn by doing pro bono work for the bar association and get mentoring by experienced attorneys.

Unfortunately, in the real estate business, there are no practice guides, the classes that are offered to new agents have no consistency regarding quality (even the GRI classes in CA, now that they are all online, are not helpful), and experienced agents don't want to mentor new agents, mostly because they are afraid of the new agent becoming competition.

How do you expect people to be successful when nobody ever tells them how to do it?

Not becoming involved in their community.  In real estate you need to be a people person.  Join Rotary, Chamber of Commerce, women groups if your female,etc.  Let people know you have a radiant personality and that you are a Realtor.  Wear your R emblem pin, leave business cards at restaurants, try purchasing some placemat advertising, You need to be energetic, outgoing and listen to people you talk to.

Multiple online real estate presence is crucial.  Most young buyers are searching online 3-4 months before contacting a Realtor.  Affiliate yourself with a real estate firm that gets results and is the mover/shaker town office. Learn from the experienced Realtors, take interesting and informative ce classes.  Contact expired listings, if you have kids in sports that is a great way to talk with other parents building a relationship then talk real estate after you get to know them. 

It is easy to be a time waster.  Try to manage your time more productively. Sales calls come on floor time sometimes but don't rely on just that.  It helps if you have a spouse with a regular paycheck job.   

THEY ARE IN IT FOR THE WRONG REASONS AND THEY ARE TOO YOUNG/ GREEN TO UNDERSTAND HOW HARD THIS REALLY IS.. Or maybe we experienced ones make it look too easy!! 

Poor training.  No follow up.  People think the business is easy, when in fact it is not.  I also think most people are too undisciplined to be self starters and from previous jobs they have learned only to tackle the task at hand without thinking about the future.

Frustration.

Not being able to get listings. So it leads to frustration and a loss in self confidence so the agent throws in the towel. 

Lack of trust in the Agent training them.  If you don't trust the person teaching you what you need to do, then you need to change brokerage.

Unrealistic expectations going into it and giving up without putting any effort into it.

I think it has a lot to do with motivation. 

Most agents do not know how to manage a business.  They have mostly worked for someone else and are used to receiving a paycheck every week.  They have no clue that in order to succeed, there are various expenses related to the career.  Plus, business will not automatically come to them.  They must seek it out.  They also don't realize that we, as agents. wear many different hats.  This is something that is not taught in the pre-licensing classes.  If it were, there wouldn't be as much of a turnover.

Proper planning especially the financials.   

I've seen it time and again - wrong expectations - every thinks real estate agents make so much money

Then when they get in the business the reality smacks them in the face - "Oh you mean I have to actually work at this to make money?"

they dont work hard enough... they think it is all going to fall into their lap... Selling real estate is not easy and you have to work. Real Estate is not easy You have to actually work... we wake up every morning unemployed and have to get out and find someone to hire us...

Licensees fail because they don't properly formulate and implement a marketing plan that involves talking to many potential prospects on a daily basis. Once you do good work over a period of time, referrals will naturally emerge.

They don't manage it like a business, but more like a job with expectations.

Lack of understanding of what they are undertakin

Lack of good systems, lack of follow up and lack of focus. 

Dependancy on a steady income when starting out / or the lack of a competant meantor. 

Failure to generate enough leads.  Without enough leads, a promising real estate career usually ends quickly.  With "enough" leads, which can be a different number for each agent, even an apparently below average agent can succeed.

All good answers on why some can not make this job work. My thoughts are most think this is easy and they can just buy a lead and make it work out that way. It takes more than just getting your license to make this work. To each person success is different and why one starts on this adventure is different to each person. 

lack of focus or have a good business model.