What is the difference between real estate sales and other sales positions?

 

 

Real estate, as a sales profession, is unique in several ways:

 

1. A real estate sales professional must generate their own leads.  Rarely does the real estate sales organization give leads to its agents.  Regardless of what you may have previously heard or been told by others… there just aren't enough referral leads generated for new agents to earn a sustainable, livable income.  While there is an occasional referral generated into the office (i.e. relocation, office to office, etc.) do not expect a volume of these “miracles" to fall your way.  That is not the reality of this business.  You must work diligently and consistently on procuring your own leads from your sphere of influence - personal and business.

 

2. The costs associated with lead generation can vary.  Referral fees and costs of getting referrals from a broker's referral network may be substantial.  How much of the actual referral fee retained by the agent versus fees charged for the referral itself can run from a few hundred dollars to several thousand dollars!  Many times the costs of personal marketing will be the responsibility of the salesperson.  Newsletters, brochures, giveaway items - each of these has a unique cost which may or may not be shared by the broker.   Suffice it to say, there are no freebies in the world– no free lunch!

 

3. Corporate advertising alone will not provide the level of activity a real estate agent must maintain in order to generate a livable income stream… let alone the flow of potential clients necessary to produce a high level of income.  The majority of your time must be spent generating new client leads, prospecting for buyers and sellers.  Waiting for the phone to ring is not the most productive way to make this business work for you.

 

4. There are usually no assigned territories in the real estate business.  You must be prudent in approaching where you will work and disciplined to maintain your consistency of your effort.  While you have a license that allows you to sell throughout the entire state of California, you must fine-tune your activities to a specific marketplace in which you and your broker can easily service.  Additionally, you'll probably need to maintain a focused approach to the type of real estate in which you wish to specialize (i.e. commercial, industrial, residential, vacation property etc.).  This is an age of specialization and the intricacies of the profession usually will not allow a broad brush stroke to be applied.  The broker will want you to stay within an area of specialization that is best managed to the capabilities of the brokerage.  This reduces the broker's risk and exposure to litigation.

 

5. Real estate salespeople generally work on commission.  Your entire income is earned on a commission basis – a percentage of the fee paid to the broker for his/her services to the client. Usually, there is no hourly wage, minimum salary, or draw against future commissions offered or paid.  It would be prudent, therefore, to have monies set aside to assist you in paying your living expenses and bills as well as to invest in your own personal marketing programs.

 

6. Many people enter the real estate field because they want to become their own boss.  No more punching the clock are working the 9-to-5 shift.  Certainly this profession affords you tremendous autonomy and independence.  However, this can be two-edged sword.  A person would be naïve to think that working only “banker’s hours” - implying a minimal investment of time actually worked each day - will reap untold riches.  (My apologies to all the bankers out there).  It is not unusual for a person just breaking into the real estate profession to work a 50 - 60 hour work week for the first year or so.  Once you have generated a continual flow of referral business then you will find the opportunity to take some time off and to scale it back a bit.  But not so in the beginning.  If you are really committed to building an independent lifestyle then you will need to pay the price for that autonomy in the beginning of your career.

 

The real estate industry enjoys unparalleled opportunity for the licensee.  Those who work diligently and with a focused plan will enjoy the rewards of their labors.  Where else can you work as a salesperson and receive commissions as generous as those found in our industry?  You're earning potential is unlimited!

 

An excellent tool to assist you in deciding whether the real estate profession is right for you should be the reading of the newly revised book written by Carla Cross entitled Become Tomorrow's Mega-Agent Today.  This is an excellent primer for anyone thinking of the real estate career.  It is an outstanding guide and will assist you in determining if the real estate profession is right for you.  Visit her web site at http://www.carlacross.com/ or order directly by phone at 425-392-6914.

 

An additional reading resource for you would be the Complete Idiot's Guide to Success As a Real Estate Agent by Marilyn Sullivan.  This book is available at most locations where business books are sold such as Barnes & Noble, Borders, or may be ordered online at http://www.amazon.com/.