Real estate can be a challenging career for newcomers, and the early struggles to find success means only 4 in 10 new real estate professionals are confident about having a long-term career in real estate, according to a new report from realtor.com® released this week .
Realtor.com®’s new #ThrivePastFive study found that lead generation was a top pain point, 60% of all agents cited finding new leads as a challenge, and the figure rose to 70% among new agents, those with less than two years experience.
Additionally, the report found that only 25% of new agents reported having a network of buyers and sellers that they feel confident about, and 45% said they struggle with developing a new client each week; comparatively, 70% of the most experienced agents surveyed – or those with 11+ years in real estate – are creating between one to four new client relationships each week.
- Newer agents wish they had more knowledge of lead gen, transaction processes and marketing. Meanwhile, experienced agents wish they knew more about social media marketing, online ad campaigns that convert and search engine optimization.
- New agents perceive their struggles are because of a lack of training and startup cash, while the most experienced agents responded it was likely because new agents underestimate the time commitment and the learning curve.
- When it comes to spending, 64% of experienced agents spent $3,000 or more annually, whereas 70% of new agents spend less than $3,000 annually.
- Nearly 9 in 10 agents pay for marketing costs themselves. New agents are most likely to receive marketing support from their brokerage at 15%, versus 9% for experienced agents. About one third of new agents spend $50 or more a month on internet leads, whereas experienced agents spend between $50-499.
- Newer agents tend to have more social media experience, which is likely why 82% of new agents rely on social media and lean into creating their own content.
- Among the different social platforms, Facebook is the platform of choice among survey participants, with 63% of all agents using it to generate leads, and Instagram comes in at a distant second at 28%.
- Despite the popularity of social media, new agents struggle to convert it into leads, and social media ranked No. 5 for lead gen after networking/referrals, email marketing, digital advertising, and internet leads. Among all agents, Twitter, YouTube, TikTok and Snapchat ranked among the social media sites for lowest lead gen (at less than 5%).
- While 6 in 10 agents of all experience levels ranked the tried and true method of networking and word of mouth the highest for offline marketing channels, newer agents also ranked open houses (44%) as a top channel. For the most experienced agents, more than half (55%) call on past contacts/leads as a secondary offline marketing tactic, followed by direct mail and open houses.
“Despite it being a hot career choice for many, real estate is not easy, and every agent faces different challenges, from a lack of knowledge and training at the start of a career to growing a client base and understanding how to effectively convert leads, and too many agents don’t make it past year five,” said the author of the report.
“In a shifting and ultra-competitive marketplace, with twice as many real estate agents than listings, having insights from experienced agents – 80% of whom are confident about making it long term as an agent – about what works best to power business growth has never been more valuable,” said Donna August, vice president of B2B Marketing at Realtor.com®. “With 25 years experience helping agents succeed, Realtor.com® is committed to developing tools and insights to help agents who are just starting out, so they can thrive and find success in their early years.”
For the full report, visit www.realtor.com/thrivepastfive.