Bob I am not sure what companies are offering a 'safety net' to agents.  They all still need to make it happen on their own as independent contractors.

I do not know of any brokerage in my area that offers cushy nets to agents to get started.  

As for me, I had cash reserves and knew it would take time and a lot of training to get started.  I'm closing in on 20 years in the business and so far, all is well in my business. 

By my definition of a "safety net," I have never had one other than my own net. No one else was there to catch me or save me - failure was not an option. 

It didn't say there was a 91% drop-out rate. 

They said that 91% of the agents currently in the business had never sold real estate during a market when the interest rate was over 4%.

Quite a difference.

I'm not sure what the safety net you are referring to is.

I had no safety net, other than my husband's Bank of America income! 

However, I did take recommendations of others in the business to have 6-12 months of reserves.

After I started, I helped a dear friend of mine train surgeons in the OR during first-morning cases and traveled across the state to do that job. I typically left the hospitals at 8 or 9AM, perfect timing to start taking and making real estate calls as I traveled home. It was a nice side-hustle that didn't interfere with my main hustle (real estate) and actually garnered me incredible new business with doctors & nurses that I worked with in the OR!! 

I never had a safety net and am not familiar with them.

I think that multiple income streams are really important to seed a business. Startups are risky and need working capital to succeed. After a time, you get into a groove and it's pretty predictable what you'll earn so you can budget properly. This business is very expensive, and costs never go down!

No pain, no gain.

If there are any brokerages here offering a "safety net", I'm not aware of them. What I can tell you is that when I started in real estate, one of the questions every broker I interviewed with asked if I had cash reserves to support myself for either three or six months (time varied on broker and brokerage). I did so it was not a problem for me but what you describe sounds like draw against commission which is very risky for the individual. When I worked draw against commish (not in real estate) it was only about $200-$300/week which did not go far and was deducted from my pay checks to repay it. Thankfully that did not last, took a job that was salary exempt and don't know how people can manage on the draws. To me it's a little like blackjack where the dealer always wins.

The failure rate is fairly high but not 91%.  I dove into the industry straight out of college with nothing (and nothing to lose).  Took my nose dive right into the housing crash, and built things from there.  So yes, built from hard work, and I'd do it again.  I've never been afraid to bet on myself.

What companies are offering safety nets, and what do these nets provide?

Bob, Depending on outlook, I'm operating with two safety nets.  My engineering job protects us if things go totally south in real estate, and my real estate work protects us if things go totally south in my engineering job (which worst case at this point I could retire from and seek other opportunities).

Hi Bob "RealMan" Timm 

   Are you talking about a draw, against future commissions?  I cannot think of any Broker or Brokerage that offered one.

I have never had a safety net in any of my endeavors.  I did not even know anyone provided a safety net in real estate.

I am unaware of any real estate brokerages offering any kind of safety net. I think people getting into real estate need to have a nice sized nest egg and/or another income stream to help get started - there are a lot of costs involved in starting business and that first paycheck could take a long time coming.

Safety net: I define that as savings equal to 1.5 years of expenditures, after RE startup fees are paid.

The lack of a safety net and realistic expectations is what leads to the high failure rate.  Fix that and you lower the rate. 

I thought there was a safety net but no sales for seven months and no check for eight months that net disappeared.  Fortunately I worked seven days a week for about eleven hours a day.  I had no sphere of influence and no prior knowledge in real estate so I listened and learned on the fly.

Bob, I thought I had a safety net back in 2008, and found it still wasn't enough.  Luckily, made it unscathed.

Not sure what you mean by a safety net? I'm not aware of any company providing a "safety" net. You are an independent contractor and responsible for your own success or failure. The only "safety" net I've seen companies provide is training (a good thing) and call time (sometimes works out).

Never had a safety net that was not of my own making. Have heard, in years past, in up markets of similar programs but they were short lived. In a down market, a waste of money.

I don't know anyone that offers a 'net'. 

I still don't believe that 91% number that's been thrown around over the last few weeks.

That is why trade schools should be pursued as they offer a trade that is a safety net should your other adventures not pan out. Today, the person must provide for their own rainy days and risks. Being conservative is the word

My first real estate job was selling timeshare.  We were paid a meager salary (basically minimum wage) plus commission.  The salary was not a safety net.  The salary meant they fired you if you couldn't sell.

It was a great way to start, not so much because of the salary, but because of the training and environment.  Everyday, I did three presentations.  So in my first month, I have done more sales presentations than most agents do in their first 2-3 years.

They were people who came in to get free tickets to a theme park.  I have two hours to convince them to sign a note for a the price of a new car.  Yep, I learned some sales skills.  

I wouldn't want to make a career of that, but it was a great entry into real estate.  I wouldn't trade it for anything.

I'm not sure what companies are offering one.  I haven't seen any around my area.  I think C-B tried that business model a dozen or so years ago and called it "Blue" but I have neither seen nor heard about it since.

Bob, good question for this market shift. I have never heard of any brokerage doing anything other than focusing on making new agents more dependent. Before I got my license I sold on eBay to put aside the 6K I needed to start this new business. Back then, it was easy to do because I did have to compete with Amazon. Today, I work to keep a year reserves for work and home expenses. 

Hello Bob, I had a safe safety net before I got in Real Estate.  I think brokers sure advice newbie the pitfalls of the business and guide them to be successful in our field.  That the way I do it.

no nets in my market.  And my previous job was commission (20%), but commission + actually I also had an "allowance" for expenses.  So I was used to earning my way and had my first contract less than 2 weeks in.

Becoming a real estate agent is just like opening your own business.
Those business stats historically reveal 80% fail within the first year. (undercapitalized), while 90% fail within 5 years. Real estate is no different.
The real numbers are an industry 'best kept secret' otherwise the obvious deception would reinforce public opinion.
However, one can use the state licensing board to get a better idea of the failure rate.
Now, if one actually applies criteria to "What is failure," (aka. earn a living) the rate will be at CRIMMINAL levels.
But this is what the 'system' called real estate has created.
The criminality lies entirely in the lap of brokers and franchises.
If they were REQUIRED to pay compensation AND/OR publicly display the type of brokerage they are, Kindergarten, old bones yard, the public would be better protected.
The 'safety net' comes in the form of knowledge. 
Understanding you will be thrown into the deep end and if you don't drown someone may notice you. Success depends on a well healed life preserver or a hunger that compels one to do those things that build character. Knowledge is:
Understanding there are many ways to make money in real estate.
Realizing the broker is not your friend.
Having the courage to resist conforming.
Active failures are NOT the same as defeat. They are the pathway to success. That is a pretty good safety net and I would say Old School.

Bob "RealMan" Timm  What is a safety net?  Never heard that term before