The #1 Reason Why 87% of New Real Estate Agents Fail
The sooner you embrace this mindset, the faster you’ll see results - and the less likely you’ll become part of that 87% failure statistic.

The real estate industry promises opportunity, freedom, and financial success. Yet, the sobering reality is that 87% of new agents fail within their first five years. Why?
As someone who has spent decades as a broker-owner, I can confidently say the #1 reason is this: most new agents don’t treat their new career as a job - they treat it like a hobby!
A Career, Not a Hobby
Becoming a real estate agent requires more than passing a licensing exam and ordering a shiny set of business cards. Many new agents fall into the trap of thinking that their newfound career will generate results with minimal effort.
They dabble in activities like decorating their office, perfecting their logo, ordering business cards, socializing with fellow agents, designing an elaborate website, or curating the perfect Instagram feed - without focusing on the core task that makes or breaks a real estate career: finding a person who needs to buy or sell a home.
When I first started selling real estate, I drove a friend’s Suzuki Samurai, a tiny two-door SUV. Clients had to climb into the back by flipping the seat forward—but hey, it worked! Driving them around in my Corvette just wasn’t practical.
Real estate is a sales job at its core. It requires relentless prospecting, follow-up, and hustle. When new agents don’t treat it with the same seriousness as a traditional 9-to-5 job - complete with scheduled work hours, measurable goals, and accountability - they set themselves up for failure. And forget about taking the weekends off to be with your family!
The Time Trap of “Getting Ready”
One of the biggest pitfalls for new agents is the endless cycle of preparation.
They spend weeks (or months!) on activities that make them feel productive but don’t bring in income. These include:
- Designing marketing materials
- Setting up CRMs and automation tools
- Building the perfect website
- Attending every possible training session
- Networking with affiliates like mortgage brokers and inspectors
- Obsessing over professional attire
While these tasks are valuable in the long term, none of them will help you close a deal today.
The #1 job of a real estate agent is to find a person that needs to buy or sell a home. SIMPLE! Everything else is secondary.
Why Prospecting Is King
Prospecting is the lifeblood of any successful real estate career. Without clients, there are no deals. Without deals, there’s no income. Yet, many new agents shy away from prospecting because it’s uncomfortable.
Making cold calls (I used to do 100 cold calls every day M-F and earning 100K my first year in the business in 1991!), knocking on doors (you can still knock on doors legally), or attending community events to meet strangers requires confidence and persistence. It’s far easier to hide behind a computer and “prepare” than to put yourself out there. So many realtors I've known are actually acting as "secret agents" - hell, this isn't the CIA!
But here’s the hard truth: If you're not a loud and proud real estate agent - you'll never make it in the business!
If you’re spending more time creating a perfect email signature than you are talking to potential clients, you’re not building a real estate career - you’re indulging in a very expensive hobby.
The Hobby vs. Job Mindset
So, how do you know if you’re treating your real estate career as a hobby instead of a job? Ask yourself:
- Do I have a daily schedule that prioritizes prospecting?
- Am I spending more time on tasks that feel productive but don’t directly generate leads?
- Have I set clear goals for the number of people I’ll contact each day or week?
- Am I avoiding prospecting because it’s uncomfortable or intimidating?
If you’re not spending at least 70-80% of your time actively seeking out buyers and sellers, you’re not treating your career like a job.
And "building up your Facebook friends" IS NOT A PROSPECTING ACTIVITY!
How to Break the Cycle
If you’re a new agent (or even a seasoned one) struggling to gain traction, here’s a simple, actionable plan to focus your efforts:
- Schedule Prospecting First: Block off time every day to call leads, follow up with past clients, and meet new prospects. Make it non-negotiable. I don't give a shit of you pass out business cards at the grocery store... what is it you're willing to do?
- Set Measurable Goals: Aim for specific, achievable metrics, such as contacting 50 people per day, or attending three networking events per week.
- Limit “Getting Ready” Time: Dedicate a small percentage of your week to administrative tasks and training. The rest should be spent on income-generating activities. Also, you don't need an assistant to start, but at some point if you don't have an assistant, you are the assistant!
- Practice Scripts: If you’re nervous about prospecting, rehearse your scripts until they feel natural. Confidence comes with repetition.
- Track Your Results: Keep a log of your daily activities and outcomes. This will help you identify what works and where you can improve.
Did you know you could use a service like AgentPartner.ai to create a cold calling or door knocking script in about 30 seconds? You can create an email drip campaign - even write an introduction letter or Facebook post introducing your new career!
Final Thoughts
Real estate offers incredible rewards, but it’s not for the faint of heart. Success requires discipline, focus, and a willingness to get out of your comfort zone.
The agents who thrive treat their careers like full-time jobs, dedicating their time to activities that directly generate income.
If you’re a new agent, remember this: your priority isn’t to “get ready.” Your priority is to find people who need your help buying or selling a home. The sooner you embrace this mindset, the faster you’ll see results - and the less likely you’ll become part of that 87% failure statistic.
Also ' "training" is over-rated! GO FIND SOMEONE THAT NEEDS TO BUY OR SELL A HOME and then ask your broker or another agent for help! That's how you learn, that's how I learned - this isn't rocket science - screw the 1 year training program!
Treat real estate as a career, not a hobby, and watch your business thrive.
Jeff Hammer, Mindset Architect sold his residential real estate business with 2 part-time employees for 5.5 Million dollars in 2024!
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