Why agents leave

Welcome to the Leading Lane podcast for Real Estate Pros by Real Estate Pros, with your hosts, Ashley Frederick and Steven Burch. If you're looking for an honest, authentic, and raw perspective, you found it. Hello. We are back this week, and we are talking about why agents leave. And I think that there are a lot of misnomers, a lot of personal things that might come into play. Or what I find is that people always think it's about numbers, and I actually think that that's probably one of the least things it should be about. So today we're going to have an open dialogue about why agents leave. So the. It's actually really funny. I had a call this morning with somebody talking about recruiting, but then she had somebody leave her company last week, and she. I mean, obviously it. To me, it hurts when. When people leave because we invest so much time, money, energy into people trying to help them achieve their goals. But at the end of the day, like, this person that she was talking about, the reason why they left is. And they. They said, oh, I'm not lucky like everybody else. This industry is not about luck whatsoever. Like, it's all about opportunity that you create. So I think that there's a Persona out there that real estate is so freaking easy. I had a friend that said, all we do is stab signs and then we cash $10,000 checks, like, that's it. So I think people somewhat come into this industry with a unrealistic expectation and not realizing how much dedication and everything that it takes to actually make it work in. In real estate. So I just thought that was really interesting. Well, I think that a lot of times reality TV shows have not done us justice. Like, we look at three houses and we buy next. So I think that people think it's super easy and they don't understand that people might not buy for years or that it's not just putting signs. It's the contracts, it's the legalities. It's living in a simple world where everybody wants to blame somebody for something else. So we know that reality TV does not help our industry whatsoever. But let's talk about more on a. On a local level. How many agents, over the years that you've owned your company, have you had leave and exit the company? I have had five. Five total. And so are. Are those. Was it their choice or was it your choice? So of the five, two retired and three was my choice. Okay. Yeah. And then out of those three, are they currently at different companies? They are, yep. What about the, like, the production? Were you able to see or do you, do you pay attention to them any, any longer? Not really. I believe that two of them are not producing much and one was more recent. So that's, you know, yet to be determined. Yeah. You know, I think really, for how many years have you owned the company? Four. Four in a month. So like having five people over the four years exit your company, I don't think that is a bad ratio whatsoever. So I think that that shows that, I mean, how well you're doing as a leader. Well, and I think too right, it, it comes with time, but sometimes you have to figure out like the people that are good and fits and some people aren't good fits. You have expectations to follow. I think, you know, we could do, we should do a podcast about the ideal agent sometimes, which is now what all agents follow in our office. And I let them know that really, if they don't fall into that anymore, then, you know, we look at other options. How about you? You've been in business for. Seven years, I think now, total. Yeah. So compared in stackdex to you. Not that we're doing a comparison by any means, but my numbers are a little bit different. You have way more agents than I,. But over the seven years, I've had a total of 41 agents leave the company. And so when pulling that report, I was like, holy shit, that's a lot of people. Right? But really, like you've already said, like, you kind of have to figure out like, like each other in the personality, each other in the ethics. Right. Like making sure that they're truly a good fit. Are they truly the person that you interviewed and stay true the whole time. I've had people that no longer, you know, meshed with the, the compass of our. My morals. The what. The direction the company was going. And you know, you know, I'm a firm believer that the. We shouldn't just be signing absolutely everybody. Yeah, I signed up 41 people and they have left, but it was because I gave everything that I possibly could to make their career successful. And the reason why they are no longer in this industry is because of them. Like we, we know that we provide the best out there and training, support, etc. Etc. But out of that 41, only 4 of those people are actually selling real estate still. And really, I believe two of those four are because they actually moved out of the, the area. So I mean, that's. Yeah, I mean, so they knew that, you know, they came in, they, they tried and then they, they went out. And I think the NAR, the National association of Realtors is like 87%. So 87% of agents fail within their first year. And so my goal is to be able to get the agents that are a good fit for me, but to be on the other side of that statistic and be successful. Not, I don't want to be a part of the failure rate, but also you have to go through people to be able to learn yourself, like me as a leader. I mean, there's so many things that each time that I've added somebody on and had somebody leave, let it be their choice, my choice. Like I've always learned something to, to be able to better myself and better the company. So I don't look at it as a failure anymore. I would agree. And I think that, you know, we could agree in talking to other brokers that when we talk about a, maybe a bad apple or like a not a right fit in their office, a lot of times I think that that broker might be concerned because they're a high producer. Uh, and I get that thought process. But I think when you take a step back and sure they might be a high producer, but is it actually affecting someone else in the office that could be a high producer? Maybe they're uncomfortable, you know, is it office staff that's not comfortable? So to me, like, I don't think that a, an agent, you know, whether you're deciding to keep them or not, should be, you know, based off their high producer. Because who's to say that there aren't other high producers in your market that are looking to come to your office, but maybe they've had bad experiences. So I think it really goes back to the health of the group and the, you know, respect that's given to the broker, the agents, the office managers. Yeah, I actually did a talk on stage before about an experience that I had of a high producer leaving our company. And this was probably one of the people at the time that I was so excited that we recruited. He did extremely well in sales. I mean he was a typical salesperson type of mentality, but he, he produced. Right. And so in, when he was with our company, like, I didn't see the, the negative aspects of it, but when he saw the number, I saw the numbers, right? Everything was great. We're having fun. Like you're doing well, like you're closing deals, like that's what this is about. But really how he was engaging with other agents, you know, co oping with them and just the things that I found out about him when when he left in the transactions, the way that he left them, I mean, like there was a bill, I think it was like a 10, $15,000 bill that was still outstanding that the company tried to come after our company, but the agent is the one that, you know, left and went to a different company. That's who's ultimately responsible for it. But yeah, you're, you're so correct because there was multiple people there after that. I did recruit high producers way out produced him that they told me specifically, if that person was still with your company, we would have never joined you whatsoever. So you sometimes have to get rid of the people, let it be that they are a high producer or a low producer, but get rid of these people if the they're toxic because they're bringing everybody else down with them. And at the time I didn't see it as a positive, but I'm so thankful that he's fucking gone for my company. But like it is a great opportunity because we truly just, we sprung board right off into great success when we got rid of him or he chose to leave. And he ultimately chose to leave because of just the actual number of percentage that, you know, the, the gross number that he had with this, the company. And at the end of the day, he admittedly said to us that, yeah, that really wasn't the best because I had to pay for this, I had to do this. They didn't have this. We didn't have the support that you guys have offered. And he really started losing money. You even though that he was after that big number. But that's where I think agents sometimes forget too. Like, you know, look at the net. Like, let's talk about net numbers. Like net is actually what, you know, puts food on the table. Correct. Gross numbers, like, yeah, those sound fantastic, but that's not the true realistic number that you're going to be keeping. So being able to analyze what are those different expenses, what are those different fees or charges that these companies are making or charging agents that they are have the ability to make it sound fantastic, but really in all reality, the net number is way lower if you, if you do the numbers. So when I think when we had the last broker retreat, there was a broker there that was talking about recruiting someone in her area, but I think it was that she was, she would never leave. She just assumed she would never leave, which I can relate to, and high producer. And I think we got into a pretty good discussion about that because both you and I could go back to why did we leave? I Mean, I was the top producer in my office. You know, I think a lot of people that become brokers were top producers in an office. And my guess is when you actually talk to them, it wasn't a numbers type of situation, it was a culture type of situation. It was the, what trainings are available, what support is there, what programs are in place. So I think it's, you know, one, I think some agents leave and then they're like, oh shit, like maybe the grass wasn't greener on the other side. But it's even just, you know, not just why they leave but like why they come. I know that I interviewed an agent and our split was less than what he was offered somewhere else. And I really tried to hone down on that net part of it, of what are you paying for xyz? What's the culture? How involved are they in the community? What type of corporate training do you have? What type of on site training do you have? And although that percentage might be different, I think if you actually broke them down side by side of okay, I might make 5% less here I have the option to make more. But all of these things are involved. Really. What is the true comparison then? Right, absolutely. Um, and you know, I'm, I'm actually in like trying to recruit somebody right now and I've had multiple meetings with this agent and it all comes back to the split for this person. And so like when, you know, I did the same thing, just like what you're saying, lay it all out, be able to show them. And they were like, oh yeah, like I see all of those, that's great. But my split's different. Okay, tracking that. But finally I told them like at the end of the day they're in order to grow a business, you can only be able to cut so many different expenses. And when you're hyper focused, like, don't get me wrong, you need to watch your overhead. You need to be able to be, have a pulse on what's going on at the end of the day, like, you can only cut those expenses so much and then that's it, then you're, you're stuck. But if you're able to shift your perspective instead of saying, well, how much can I reduce? How much more is available out there for me that I can make more money? So. So yeah, you're investing a little bit more. It seems that you're investing a little bit more, but how much more opportunity is going to be at your, your lap? Like, how many different tools can we implement to make your life so much easier that you don't have to work so freaking hard. And does that then allow you for more deals or does that allow you to spend time with your kids or grandkids? Like, what is it really you're ultimately after? And so I just think it's really interesting that sometimes again, just goes back to, yes, the. We think it's about money, but it really isn't about money. And here we have a high producer that, you know, we're, we're talking to and like, if we're only about money, then why is he looking to go somewhere else? So, but last week, ultimately I told him, like, yo, we've had multiple meetings. I'm not, I've given you an offer. I'm not running after you anymore. So good luck to you and hopefully we can work and do more deals in the future together. If it comes to a time that you're ready to come over, like, we'll chat then. But that same offer isn't going to be on, on the table. Like, right. I'm not gonna, I'm not chasing people just to join. Just to join. Like, because we're so confident in what we have to offer that, you know, the way I normally see it is like, oh, they're such a, they're at such a loss because they don't know or they can't see it yet. But I think what I would encourage other brokers is that when they are, you know, recruiting or trying to get someone to come to the office, if it's not, that shouldn't be the soul for sole focus of your conversation. And I think we always call it, Is it the, the, like, what do you call it? The bruising or the push the bruise? Yeah, push the bruise. So tell us what that means for you. Yeah, so Imran Pilates is actually the one that taught me that and he has taught me a lot of stuff. So shout out to em. But really it's finding the bruise points, which means like listening to what they are really saying that is happening and not having to spew and just word vomit all of the things and values and everything else that we have, because they're not going to comprehend it. They're not making that connection yet. So I legit. You've met Neva, her story, like, she told me that she was like, I couldn't print at my previous company. And I was like, what? And like they never did anything. And they kept on saying like, oh, well, our printers work fine, our computer works fine. You know, like don't know. But they never helped her. And I was like, you can't even print at your off a. What are you printing? Because, like, they still have paper files, which is to each their own. Um, but, like, that's not acceptable. And so her big turning point, like, yes, she was looking elsewhere, she had other offers. Um, but her big turning point that ultimately like, pulled the plug for her was that she could not print. Right. Like, I have another situation to where, like, their wifi doesn't work. They get irritated. Like, yes, it's all these other things, but there's something that will happen that is not even really real estate bound. Um, and they, like, then it pushes them over the edge. But anyways, so when we were talking, like, and I'll, I'll use Neva when I was talking about her or trying to get her to join the company, like, she's bringing this up. And so I said, well, look out there. We have one, two, three different staff members right now that would be able to help you fix it and correct it. And then we have our corporate member services that will be able to help us. Oh, and we have a tech line that we pay into if we can't get it there. So we have resources, so let's help you. And she was like, I didn't even know that there were other people out there that could help me. So I pushed the bruise of what is it that is really hurting them? Um, the another one that I recruited, the bruise point was their broker was two hours away. Right. Like, the broker doesn't know. Like, they're not in our market. They don't know our contracts. Like, and I know there are models that work out there, and I'm not knocking any of it, but like, for these individuals and, you know, specifically, like, they wanted that broker support. That's what they were looking for. They were already producers. They know how to do it, but they needed, you know, the additional support. And so that's what I kept on pushing. Like, look, your broker's two hours away. Like, you see them once a year, and yet you're paying their office. Yeah. Like, and you're paying all this money to them. Like, let's have a real conversation. Let's talk about how we take money and reinvest into the community. You know, like, so you continue to push those bruises. You have one mouth in two years for a reason. So listen twice as hard as. Or twice as much as you're talking. They'll tell you everything that's wrong and then what you'll be able to do is see within your offer stack that you had like my visual mind. It's like a. I have a deck of cards and each value add that you have is on a single card. And so for each solution that you have for their problem, for the bruise, that's then what you lay onto the table to negotiate with them, for them to be able to see. Like, this is what I need. They don't, they don't know that they need X, Y and Z yet, because this is all that they know. So that's all I want to be able to focus on, is what is most important to them in their bruise points. Yeah. And I think I can relate completely. You know, I had an agent that was on my radar that you and I had talked about again, thinking that they would never want to leave. A lot of times these agents have never been at another office, so. So you don't have anything to compare to. And it was. We were at some get together and her husband made a comment about them, like, not going on vacation often because you can't leave, because real estate. And I just remember being like, that's super sad. You should be able to leave. There should be help when you're gone. And I remember you and I talked about it and you were like, Ashley, hello. I was like, what? And you're like, I think you found the bruise point. And I was like, oh, I did, you know, and it didn't even dawn on me because we get so tracked on what, what we think they're looking for. And it came down to a simple, you know, coffee. Literally telling her that that's what he said. And, you know, it kind of crushed me because everyone should be able to spend time with their family and their grandkids, travel and that, you know, that stack of cards looked very different as to how I presented and what we have to offer if you are away and the staff that can help when you're gone and the agents that can help cover and the, you know, standard of practice we have for when you're on vacation and who covers. And there really wasn't even a discussion of splits or anything. And she's at our office now, and it's fantastic. And, you know, we just had a conversation not that long ago about how even a year ago she wasn't even looking at making a change. And it was one simple conversation that was really just. I. I cared about her as, as a person and she's great at what she does, and I just wanted to be able to help her More. And I think that's where, like, I know we're kind of going away from why agents leave to why we're. We can gain them, but, like, they're. Leaving from another office. Right, Right. Yeah. Very valid. Valid. But, like, that's where like, recruiting is. Like, recruiting gives me the ick. Like, I hate the word. I hate how it's shut down our throats. I hate how people say that's the only way you can ever grow your company. False. 100% False. Like, it just is an ick. It's the red flag for me. But where, like, I changed the mindset is creating the partnerships with these people. And just, like, what you're talking about, the agent that you recruited, like, it's because you genuinely cared. And yeah, you found the bruise point. And yes, you had a solution for them, but they didn't even know that it was really a bruise. I mean, they did, but they didn't see it yet as a bruise until you pushed it a little bit more. Or thought that there could be a solution to it. Right. They don't know what they don't know. We say that all the time. Like, you're the one that told me that, like, don't know what you don't know. And so they don't know what they don't know, and they're not going to listen until it's a genuine personal touch. And that's where they. The total difference of recruiting then happens. You're creating a partnership now because now you want to grow with them. You planted the seed, and you then grow the partnership together versus just, oh, let me recruit you and then never see you or be two hours away and not even help you. Like, it's just. It's scary really out there that that's how some people operate, that they don't even know their broker. They have no idea who they are. They've never seen them. I mean, I just think, and I'm sure you and Ryan can relate, like, the amount of issues that come up in one day just because, I mean, real estate is so ever changing and you can't control necessarily what your buyer does, your seller does, or the other agent. And I mean, I answer questions all day long as far as with a broker hat. And I can't imagine not being available for people or just maybe or they were taught wrong to begin with. I mean, let's be honest. That happens a ton. And being able to retrain them as to, like. So I actually would do it this way because these lines mean this you know, and it's great when people are sponges and I think it makes them better agents all around. Yeah. So Sabrina and Dustin, they were with a different company and this company had a very good split in capping model, which I don't have a capping model whatsoever. And their broker happens to be a little ways away. I don't even know if they ever met them in person. Um, and really what they're, they're like the reason why they came over was for the, the support and response time. And like this is just so mind boggling to me. I will never forget when like they told me and Ryan when we were talking, like, okay, cool. Yeah, we have all of these things, communication plan, you know, we have our internal app that we use for the company. And so anyways was a couple weeks later I was on a call, but I got a text message from them asking a question and I was like, hey, sorry for the delay, but this is what's going on. And Dustin responded back. He was like, delay. That was. You literally responded three minutes after you read. Like my read receipts are on and they're on for a reason. So you know that if I read it or not and that like they know how long it's for me to respond. But it took me three minutes. And I was apologizing because I didn't feel like that was acceptable. But yet then he shared with me that it would be two to three weeks before they would even hear anything from, you know, if they asked somebody in their leadership a question. Two to three weeks, like three. That house is, I mean, how many houses sold in that time? Like so you never know what other people are wanting. And I think we should not have those limiting beliefs and assumptions that we have in our own mind that somebody else wants this or they're never going to leave or whatever the case may be. Remove all of that. Remove the, the aspect that you have to recruit, recruit, recruit. And really ultimately once you get to learn the person and know exactly what they're after, like then they're going, I mean they're going to be your raving fan forever. And it's not about the money. Sabrina and Dustin left the cap to come to a non capping company and they're doing way better. They have more time, freedom, flexibility and that's worth the investment right there. So yeah, absolutely, we are on time. Any other last thoughts that we have on this one? I think it's just, you know, either of you know why agents leave, not necessarily just your own company, but I Think, you know, why they're looking to leave other companies is really important for brokers to be thinking about, but also for agents, you know, if you're considering a, you know, a change, you know, to look at the things we talked about or. Or if another broker, you know, does ask or. Or reach out, you know, you might want to just be open to that discussion because you might not know what's available on the. On the other side. Right. And, you know, I'll. I'll follow up with that. Is that. Have a conversation with your broker too? Right. Like, I. I love that my. My agents are. Or there's other people that are out there trying to recruit my agents. That means I'm doing a good job with them, in my opinion. I've helped them develop them, and they're successful to where other people are after them, which is a. Okay. And I used to be very threatened by that, but I'm not threatened by it anymore. But I love when my agents come and talk to me and say, hey, like, this is what this broker said, or this is what they're doing. Like, I am all open to suggestions. I don't know everything. If there's something that would be a better fit or a better idea, better model, like, I want to know about it. And I would much rather. If you're a good fit, you're happy with the culture and everything else with the company. Let's have an open discussion to see if we can make it work. If we can't, then, hey, that's okay. But at least you were trying to help better me, you, and the company. So don't be afraid to have open conversations all the way around. Yeah, and I think that's great. I mean, somebody else, a broker, I was talking to one of their agents. I think they wanted to change their split, but they already have a pretty good split. But that broker told me that she really likes mentoring, too. So it was kind of thinking outside the box that then I said, well, if she's looking for money, I mean, maybe take some of that off your plate as the broker and offer her, you know, X percentage for each transaction that she mentors someone. And he was like, oh, my gosh, she'd probably love that, you know. So again, it's just different ways. But at least that agent came and talked to him. But then, great. It's nice to have a broker, pool of people you can, you know, talk about these things with. So I think it's always just a matter of learning what we can do different or we can do better. Absolutely. So I think maybe for our next episode, we should talk about, like, retention, keeping your people happy, and making sure that you're following through with those promises that you. You made from the very beginning and that they want to stick with you and be the raving fans of you, of you and your company constantly out there. So. All right, thank you, everybody, for listening. Tune in next time. Appreciate y'. All. Yeah. If you've enjoyed today's episode, please, like, subscribe and share with others. Stay connected. For more genuine insights and strategies to boost your real estate career on Facebook or check out our website. We'll see you next time.