87% of Real Estate Agents Fail. Here’s Why.

When you hear stats like “87% fail,” it’s easy to assume the real estate agent success rate is out of your control. It’s not. Those numbers describe what happens when people treat real estate like a hobby instead of a business. If you want realtor success and you’re serious about being a successful real estate agent, you need a plan, a schedule, and standards you follow no matter what the market is doing.

According to the National Association of Realtors (NAR), failure is defined as those who get a real estate license and then leave the industry within the first five years. According to them, 75% of real estate agents fail within the first year, and 87% fail within five years.

That reality impacts the success rate for real estate agents, but it also creates opportunity. If you avoid the predictable mistakes and commit to the fundamentals, your real estate agent success rate goes up fast.

 

Is Real Estate Hard?

Yes, is real estate hard in the beginning, because you’re building a business with inconsistent income and constant rejection. But it gets simpler when you install a routine that protects your lead generation and follow up. That is the path to being a successful real estate agent and creating predictable realtor success.

According to the NAR, in 2023, more than 60,000 real estate agents quit in the first half of the year. Why? Some were trying something new or worried about where real estate is headed. The agents who thrive learn to balance technology with human expertise and double down on the activities that drive the success rate for real estate agents.

A few trends to pay attention to:

 

Why Do Real Estate Agents Fail?

Let’s get specific about why real estate agents fail. Most agents don’t fail because they “weren’t cut out for it.” They fail because they don’t do enough of the right activities long enough. Fix the inputs and your real estate agent success rate improves. That’s how you create realtor success and stay in the game long enough to win.

Here are some of the top reasons why real estate agents fail:

1. Inadequate Funds

A major reason why do most real estate agents fail is running out of money before the pipeline matures. Without a financial runway, one slow stretch turns into panic, and panic kills consistency.

To prevent this from happening, it’s recommended to have at least six months of expenses saved up. This way, you can continue to pay for necessary expenses like food and housing before your first commission paycheck comes in. Once you begin to make enough money to cover your expenses, you’ll be able to transition to full-time real estate earning GCI.

2. Limited Knowledge of Lead Generation

If you want being a successful real estate agent to be more than a goal, you must become relentless about lead generation. Without daily prospecting, you will ride the emotional roller coaster that destroys the success rate for real estate agents. Build your pipeline using online lead generation tools and consistent open house strategy, including virtual open houses.

3. Failing to Follow Up With Clients

One of the most common answers to why do real estate agents fail is simple: weak follow up. The transaction ends, and so does the relationship. But realtor success is built on repeat business and referrals, and that only happens when you stay in contact and provide value consistently.

4. Poor Marketing

Marketing is the crux of any successful business, especially real estate. Another reason why real estate agents fail is inconsistent or outdated marketing. Whether they’re not using social media marketing to its full potential, are producing inadequate campaigns, or have an outdated website, they stay invisible and wonder why the phone is quiet.

As a realtor, take the time to market your business correctly. This means using CRM software, social tools, and email marketing campaigns for keeping your clients and leads informed. These systems compound and lift your real estate agent success rate.

5. Missing a Business Plan

Without a business plan in place, you won’t have a path that can lead you in the direction you’re trying to go. If you want to improve the success rate for real estate agents, you need a written plan that tells you what to do when motivation disappears.

To prevent this, use a business plan template, such as one offered by the U.S. Small Business Administration. In your plan, outline your executive summary, conduct a market analysis, detail your marketing efforts, and more. If you ever find yourself stuck, you can revisit and review your business plan to get back on track and make any necessary changes to keep moving forward.

 

How to Succeed As a Real Estate Agent

Now let’s flip this. If the industry has a low real estate agent success rate, that means the agents who execute the basics stand out. This is the blueprint for being a successful real estate agent and building real realtor success over time.

1. Know Your Numbers and Protect Your Runway

One of the top reasons why real estate agents fail is because they run out of money. To be a successful real estate agent, you have to know exactly what you need to survive, what you need to operate, and what you want to earn.

Get clear on your household costs, your business costs, and your average real estate commission check. Then set goals based on math, not hope. This is how you stabilize your business and raise your personal real estate agent success rate.

2. Create a Morning Routine That Sets Your Standard

Creating a morning routine helps you stay consistent when you don’t feel like it. Consistency is what separates the agents who last from the ones who become part of the real estate agent turnover rate.

  • Repeat affirmations: Every day, write this affirmation 30 times: “I earn X amount of dollars or more.”
  • Create a daily action checklist: Prospect for leads, set appointments, take listings, get offers, and close deals.
  • Control your inputs: Watch or listen to something that gets your mindset right.

3. Time Block for Lead Generation Every Day

The fastest way to improve the success rate for real estate agents is simple: treat lead generation like a nonnegotiable appointment. Failing to focus on leads is one of the biggest reasons why do most real estate agents fail. Use these real estate lead generation ideas to build your pipeline:

  • Role-play: Practice your scripts 15 to 20 minutes a day.
  • Call Expireds, FSBOs, and Make Me Move: Learn by doing, and get your reps in. Expired Listing calls build skill fast.
  • Work your database: Offer a free home valuation and ask better questions. Use your database for lead generation consistently.
  • Follow up: No lead left behind.

4. Become the Knowledge Broker

If you want long term realtor success, become the trusted advisor in your market. That means learning from people who have already done it, including how to find a real estate mentor, and staying sharp on what’s happening locally.

  • Read Keeping Current Matters daily so you can speak with confidence.
  • Study the hot sheets to know your market inside and out.
  • Host open houses every weekend for nine months and you will create momentum.

 

Wrapping Up: Why Do Most Realtors Fail?

Being a successful real estate agent and avoiding some of the top real estate agent mistakes is easier said than done. After all, there’s a reason 87% of real estate agents fail. However, knowing the mistakes these realtors make, such as failing to follow up with clients or not having adequate funding, can help you prepare and grow a successful real estate business.

If you want to increase your real estate agent success rate, stop hoping for confidence and start building proof. Do the work, track the numbers, and stay consistent long enough for momentum to show up. That is how being a successful real estate agent becomes your identity, and that is what creates lasting realtor success.

Tom Ferry’s real estate coaches can help you become the best real estate agent you can be. Whether you’re wondering how to build your brand as a real estate agent or are interested in a real estate agent coaching program, we have the tools and expertise to help you succeed.

 

Recap: Real Estate Agent Success Rate FAQs

Is real estate hard?

Yes, real estate is hard in the beginning because you are building a business with inconsistent income and regular rejection, but it becomes more predictable when you commit to lead generation, follow up, and a daily routine.

Why do most real estate agents fail?

Most real estate agents fail because they do not do enough of the right activities long enough, including consistent lead generation, follow up, budgeting, and marketing.

How many real estate agents fail?

According to the National Association of Realtors, 75% of real estate agents leave the industry within the first year, and 87% leave within the first five years.

What causes real estate agents to leave the industry?

Real estate agents commonly leave the industry due to inadequate savings, weak lead generation, poor follow up, inconsistent marketing, and not having a written business plan.

How can a real estate agent improve their success rate?

A real estate agent can improve their success rate by protecting their financial runway, committing to daily lead generation, following up consistently, using marketing systems, and operating from a written business plan.

What separates successful real estate agents from those who fail?

Successful real estate agents separate themselves by treating real estate like a business, tracking their numbers, time blocking lead generation, staying consistent, and building trust through follow up and market knowledge.