What percentage of real estate agents fail?

What percentage of real estate agents fail?


The real estate industry is known for its competitive nature, with agents constantly striving to succeed in a challenging market. However, not every real estate agent achieves the level of success they desire. This article aims to explore the percentage of real estate agents who fail and the factors that contribute to their lack of success.

Factors Affecting Real Estate Agent Success

1. Lack of Experience: One of the primary reasons why real estate agents fail is their lack of experience. The industry requires a deep understanding of market trends, negotiation skills, and legal aspects. Without sufficient experience, agents may struggle to navigate complex transactions and provide the necessary guidance to their clients.

2. Inadequate Marketing and Lead Generation: Successful real estate agents understand the importance of effective marketing and lead generation strategies. Failing to generate a consistent stream of leads can lead to a lack of clients and ultimately, failure in the industry. Agents who fail to invest in marketing efforts or fail to adapt to changing marketing trends often struggle to build a strong client base.

3. Poor Time Management: Time management is crucial for real estate agents who often juggle multiple clients and transactions simultaneously. Agents who fail to prioritize tasks, meet deadlines, and effectively manage their time may find themselves overwhelmed and unable to provide the necessary attention to their clients’ needs.

4. Lack of Networking and Relationship Building: Building a strong network and maintaining relationships with clients, fellow agents, and industry professionals is essential for success in real estate. Agents who fail to invest time and effort in networking may miss out on valuable referrals and opportunities.

Percentage of Real Estate Agents Who Fail

Determining the exact percentage of real estate agents who fail can be challenging due to the lack of comprehensive industry-wide data. However, various studies and reports provide some insights into the failure rates.

According to the National Association of Realtors (NAR), approximately 87% of new real estate agents fail within the first five years. This statistic highlights the difficulties faced by individuals entering the industry and the challenges of establishing a sustainable business.

Another study conducted by the Bureau of Labor Statistics (BLS) found that the median annual income for real estate agents in the United States was $50,730 in 2020. This figure suggests that a significant portion of real estate agents may struggle to earn a substantial income, leading to a higher likelihood of failure.

It is important to note that failure in the real estate industry does not necessarily mean leaving the profession entirely. Some agents may transition to part-time roles or change their focus within the industry to adapt to market conditions.


While it is difficult to determine an exact percentage, it is clear that a significant number of real estate agents fail to achieve their desired level of success. Factors such as lack of experience, inadequate marketing and lead generation, poor time management, and a failure to build a strong network can contribute to this lack of success. Aspiring real estate agents should be aware of these challenges and take proactive steps to overcome them.


1. National Association of Realtors: nar.realtor
2. Bureau of Labor Statistics: bls.gov