Becoming a real estate agent is pretty easy. Sign up for real estate school, memorize some stuff you’ll probably never really need, pass an exam and boom, you’re an agent. Lots of people pass the exam, few go on to have a career in real estate.
So what’s the deal? Why are 85% of new agents out of the business within two years? There are a lot of reasons, but we’re going to focus on thing things you need to do to still be in business in a couple years. Bottom line, we’re going to show you how to become a successful real estate agent.
1) Choose The Company With The Best Real Estate Training For New Agents
As a newly licensed real estate agent, did you think to yourself, “now what, what do I do now?” You’re not alone. Passing an exam and having the skill to help someone with the biggest purchase/sale of their life are two different things. You need training…and not just any training, you need the best real estate training for new agents.
Keller Williams has long been known to have the best real estate training programs. For new agents and those that need a refresher, there’s Ignite. It’s a four week training program that takes place in your local office, taught by top real estate agents in your office. It’s four weeks of learning how to grow your book of business, get appointments and adopt the habits of successful real estate agents.
Ignite is the foundation of your real estate business. Since the training is taught by current top local agents, you know you are getting the best up-to-date-information to thrive in any market condition. Here’s the best part. You don’t have to reinvent the wheel. You’re simply modeling the behavior of the top agents around you. It’s as simple as A-B-C!
2) Hold Yourself Accountable – Have The Mindset Of A Successful Real Estate Agent
Being a real estate agent has its perks. You get to be your own boss and set your own hours. This doesn’t mean you get to sleep til noon each day. Gary Keller, Co-Founder & CEO for Keller Williams Realty and the author of a NY Times Bestseller, The Millionaire Real Estate Agent book, discovered that the most successful real estate agents have a similar mindset when it comes to success.
These are the key points encompassed in the 6 Personal Perspectives. These six steps take you on the road from mediocrity to success. Learning the process is just one of the ways that Keller Williams shows you how to become a successful real estate agent.
- Step 1: Commit to self mastery. (Have a vision for your future self and a commitment to never-ending improvement)
- Step 2: Commit to the 80/20 principle. (Focus on your most important priorities)
- Step 3: Move from “E” to “P”. (Moving from entrepreneurial to purposeful. This is the difference between just doing something and actually mastering it.)
- Step 4: Become learning based. (You are willing to be taught and actively pursue learning to be the best you can be.)
- Step 5: Remove your limiting beliefs. (Dive into ways to remove and redirect limiting beliefs.)
- Step 6: Be accountable. (Learn to focus on things you can control to effect positive change and overcome obstacles.)
3) Have A Real Estate Business Plan
Having a real estate agent business plan is crucial to your success in this industry. With changes in the economy, you have to match the market of the moment. If you just get your real estate license and dive in with passion and energy, you might see some success in the short-term. In the long run, having a proven business plan to follow is essential.
Keller Williams has mapped out a proven real estate agent business plan that works in all markets. By focusing on helping agents grow their own businesses, rather than only looking out for the owner’s best interest, KW has been able to see phenomenal growth through all economies.
Take the recession that hit our country from 2007-2012. Over a million agents left the business because they couldn’t adjust their businesses to the current market. Keller Williams was the only real estate franchise that grew in agent count during the entire recession. Our market changed, so we changed with it. Having the support of your office leadership, your fellow associates and the Millionaire Real Estate Agent Business Plan (PDF) to guide you through every change in the economy will ensure you become a successful real estate agent.
4) Follow A Proven Real Estate Business Model
When you follow the best real estate business model in the industry, you start to see some great results. Keller Williams is not only the largest real estate brokerage in the world. We are also ranked as the US leader in agent count, closed units and closed sales volume. It’s the Triple Crown for the real estate industry. No other company has ever achieved this!
This can be attributed to adding more agents that plug-in what we offer. New and experienced agents have transformed their business with the introduction of the Career Growth Initiative. This valuable tool provides agents an unprecedented view into their businesses so they know exactly what needs to be done to see the results they desire.
Following a proven real estate business model that works in every stage of the economy, you have a recipe for success. Keller Williams stands behind you, not in front of you.
5) Know The Costs Of Starting Your Real Estate Career
Just like with any new business, a career in real estate does require a financial commitment. Licensing course fees, Board of Realtors membership dues, continuing education and other business expenses are just a few of the expenses you need to consider when getting started in your new business.
The average start-up costs associated with these real estate agent fees range from $1000 to $1500. Keller Williams agent fees vary from office to office. Expect to see monthly agent fees between $50-$85.
6) Make Sure You Get Something For Your Commission Split
Commission split is an important area to cover. There are so many companies to choose from, so how do you determine what’s a fair split? It comes down to what the brokerage provides. Do they provide training, leads, support, technology, etc?
The three brokerage business models listed below will give you a better idea of which type of company is best for you.
Independent – 100%
Independent real estate companies are where you get your best splits. The reason…they don’t provide you anything but a place to hang your license. You either pay a monthly fee or have a per transaction fee and keep 100% of your commission. There’s no support and you better know what you’re doing. A good slogan is, “100% of zero is always zero.” This is where the one-percenters hang their license. They can create success out of thin air and have a good business sense to thrive without any support or training.
Dependent – 50%-50%
Dependent real estate brokers want you to rely on them for business. They use their name to build their business. Even though you are an independent contractor, you are treated like an employee. The may provide leads, but end up taking the majority of the money since they generated the business. Typical commission splits start at 50-50 and can go up from there based on experience. FYI, know that if a brokerage provides you leads, they aren’t doing it out the goodness of their hearts. They will take another 25-30% referral fee for generating the business. That leaves you doing all the work and taking home only 25-30% of your commission. This model is best if you are looking for a job, not a career.
Interdependent 70%-30% (Cap On Commissions)
If you are truly entrepreneurial and want to take control of your own business, the interdependent real estate business model is probably best for you. Keller Williams operates this agent-centric model. It’s all about the agent. The company is only in business to help the associate to grow their business. You generate your own leads and grow your own business. You are truly in control and Keller Williams provides the training/support and technology. Learn more about
The Keller Williams commission split is the same for all agents. Every agent is on a 70/30 split. 70% to the agent and 30% to the brokerage. Since KW is a franchise, there is a franchise fee (6% on each transaction up to $3,000) which is included in this calculation. The best part about the Keller Williams commission structure is the ‘cap’. Each office has a cap on commissions based on economic conditions and operating expenses for that specific market center. Once an agent reaches the set amount of production (cap), they are no longer required to pay the office a split, meaning the agent receives 100% commission on all sales until their anniversary year starts again.
7) Real Estate Technology – Are You Using It?
Technology is changing everything, including the real estate industry. Big tech is coming in and trying to capitalize on this profitable industry. You know who Zillow is, right? Zillow is a tech company that has made it public knowledge they plan to come after agent commissions by using technology to replace us. Will they gain market share? Yes, but what is the one thing Zillow and other tech companies like them don’t have? Relationships. Face-to-face relationships. Most people will always want to have a live person helping them with their real estate transaction. Our role in this industry is changing, but we’re writing the script on how we play the role.
Keller Williams Technology – Changing The Real Estate Industry
Keller Williams is the largest real estate company in the world. Currently, we have over 180,000 associates worldwide. Technology using artificial intelligence relies on data from these relationships. This is where we have other tech companies beat. We have the relationships. Our new real estate technology, KW Command, is the first of its kind in the real estate industry. We use the data our agents gather from their clients to provide a customized user experience for each of their clients.
It’s like your Netflix or Amazon account. No two people see the same data when they log in. What you see is based on your searches, wants/needs or interests. Keller Williams is the only company that has created this technology, with the next closest company years behind. What does this mean for you and your real estate business? It means you have a unique opportunity to provide better service to your clients based on the technology KW is providing you. Along with KW command, you also have access to your own personal assistant, Kelle. She’s like Siri or Alexa, but for Keller Williams agents. She will be your personal assistant, taking care of tasks automatically so you can focus more on building your real estate business.
If you’ve read this far, you are more than likely taking your real estate career seriously. Keller Williams is not the brokerage for everyone. We are the best place for agents that truly want to run their own business. We promise to provide you the tools, strategies, resources, empowerment, technology and family-like culture to show you how to become a successful real estate agent. Contact us today to start your journey of building the real estate career you’ve been dreaming of!