Why So Many Real Estate Agents Crash and Burn (and How to Dodge That Fate)

by MyState MLS Team

Let's be honest-real estate looks super glamorous from the outside. Fancy open houses, closing day celebrations, and those Sold! selfies plastered all over Instagram. But the truth? A lot of agents don't make it past their first few years. Why? Well, the real estate industry can be brutal, and if you don't know the common traps, you could be next in line for burnout city. 

We're here to break down some of the reasons for you, plain and simple. No fluff, no sugarcoating. Let's talk about why agents fail-and how you can avoid joining that club.

The Ugly Truth: Most Agents Don't Make It

Have you ever heard the old adage that "most agents don't survive their first few years in the real estate world?" Well, it's true; it's not a myth but a wake-up call. The rate of turnover in the real estate industry is far greater than it is in most other businesses, with some agents slowly walking away or burning out before they're even able to get any momentum. But why do most agents not succeed in the first few years of their real estate career? Let's get into the nuts and bolts of how most newly licensed agents could fail more often than not.


1. Unrealistic Expectations

First of all, most people think that real estate is going to be a walk in the park, an easy money game. You see the potential commissions from million-dollar properties and say to yourself, "Yeah, I can do (sell) that!"

The problem is, no one tells you about the dry spells (either after listing a property or even finding MLS listings, to begin with), the lead chasing, or the deals that fall apart at the eleventh hour. This isn't a 9-to-5 with a guaranteed paycheck. You could spend weeks grinding before a single check hits your account-and that check will likely get chopped up between taxes, brokerage fees, and marketing costs.

How to fix it: Go into this game knowing it's a marathon, not a sprint. You need grit and patience. Budget like you won't get paid for six months-because you just might not.


2. No Business Plan (aka you're flying blind)

So many of these agents think of real estate as a secondary business, but here's the surprise: real estate is actually a real business. Without a strategy, you're winging it. No set goals, no clue what your ideal or potential customers are, and no plan to target them? That's a recipe for disaster.

A business plan isn't just a corporate buzzword-it's your roadmap. Without one, you're wandering aimlessly in an industry that demands direction.

How to fix it: Build a simple but solid business plan. Define your niche (first-time buyers? luxury homes? investors?), set monthly and yearly income goals, and map out how you'll generate leads and market yourself.

3. Weak Money Management

Here's a harsh truth: you can close deals left and right and STILL go broke if you don't manage your money wisely. Between unpredictable income streams and high expenses (think of the things that keep the business going or growing, like marketing, MLS dues, gas, continuing education, and client gifts), it's easy to end up in the red.

New agents especially tend to spend like they've already "made it," splurging on fancy branding, premium CRMs, or flashy cars to "look the part."

How to fix it: Track every dollar. Create a budget, stick to it, and reinvest strategically. Build a financial cushion for slow months. And don't fall into the trap of lifestyle inflation every time you get a big commission.

4. Poor Lead Generation Habits

Without leads, you have no business-period. Far too often, new agents spend their time sitting around, waiting for leads to somehow appear magically or who put all their eggs in one basket, i.e., Zillow or floor calls from their brokerage. That might occur once every blue moon, but it's not a sustainable business model.

How to fix it: Diversify your lead gen like your career depends on it (because it does). Open houses, open listings, networking events, social media, email marketing, FSBOs, expired listings-you need multiple streams funneling leads your way.

5. Forgetting It's a Relationship Business

Sure, you're selling properties-but more importantly, you're building relationships. Some agents treat clients like numbers, focusing on short-term commissions instead of long-term connections. That's why repeat business and referrals dry up for them.

How to fix it: Nurture your sphere of influence (SOI). Follow up after the deal closes, send birthday cards, check in during big life events, and always be top of mind. People work with agents they like and trust-not just ones with the fanciest listing photos.

6. Lack of Continuous Learning

Passing the real estate exam is just the first baby step. The industry shifts constantly, from changing market conditions to new tech tools and regulations. Some agents get licensed and stop learning right there-and it shows.

How to fix it: Stay sharp. Invest in ongoing education, whether that's continued real estate education courses, webinars, mentorship, or even just reading books and real estate industry blogs. And don't just focus on contracts and laws-get good at sales, negotiation, and marketing, too.

7. Burnout & Poor Work-Life Balance

Last but definitely not least, burnout is REAL in real estate. You're on call 24/7; clients expect instant responses, and weekends? Forget about them during busy seasons. Some agents run themselves ragged trying to hustle for every deal, and eventually, they burn out and quit.

How to fix it: Set boundaries early. Not every call needs to be answered at 9 PM. Block off personal time, take vacations, and find systems to automate and delegate wherever you can (hello, virtual assistants and CRMs!).

So, What's the Secret Sauce to Making it in Real Estate?

No one said real estate would be easy-but it can be massively rewarding if you play it smart. The agents who thrive are the ones who: 

  • Treat it like a real business (because it is). Check out and test out our real estate marketing assets page. 
  • Focus on relationships over transactions. 
  • Learn to weather the ups and downs without freaking out. 
  • Become a MyState MLS Community expert. With our local communities feature, you can and will expand your real estate brand as a local community guide.
  • Stay hungry, humble, and always ready to adapt. 
  • Create a MyState MLS Affiliate account. Becoming a real estate MLS affiliate is a great way to generate a passive revenue for yourself in even the slowest of months.
At the end of the day, success in real estate isn't about dodging every failure-it's about learning from each stumble and sticking around long enough to see the payoff.

Final Thoughts

If you're in this for the long haul, recognize early that it takes more than charm and an Instagram account to succeed. It takes planning, grit, financial smarts, and a deep commitment to serving people.So, are you ready to beat the odds?

Here's to making this next quarter your best quarter!

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