Are You Part of the Problem? How Brokerages Create the 71% Failure Rate

71% of real estate agents made zero sales in 2024.

This number shows more than just people failing. It shows the whole industry has a problem with training new agents. Real estate companies keep hiring new people fast. But at the same time, experienced agents are quitting in huge numbers.

The problem is getting worse. More than 60,000 agents left their jobs in just six months last spring. Most agents only stay at their company for six years. This constant turnover hurts companies badly.

But some real estate companies are doing much better. Companies that invest in good training programs keep 340% more agents than companies that don’t train their people well.

The difference comes from thinking about training in a new way.

Why Losing Agents Costs So Much Money

Most real estate companies focus on hiring as many new agents as possible. They count how many people they hire but ignore how much money they lose when agents quit.

Every agent who quits costs the company money. Companies spend money on licenses, training, office space, and building relationships. It costs over $9,500 to get a new agent ready to work. This takes about 38 days.

When agents quit in their first two years, companies lose all that money. They also lose money from sales that never happened.

Smart companies do things differently. Instead of hiring more people, they help their current agents get better at their jobs.

Why Training Programs Make Money

The numbers prove that training programs work really well. Sales training gives back $3.53 for every $1 spent. This makes it one of the best ways to invest money in a business.

Companies with good training programs make 218% more money per worker than companies without training. In real estate, when one agent sells more, the whole company makes more money. This effect grows quickly.

Here’s how the math works. When an agent sells two extra houses per year because of better training, the company makes about $6,000 more. If a company has 50 agents, that’s over $300,000 more money each year.

Training programs usually cost $200-500 per agent each year. When you compare the cost to the money made, training is clearly worth it.

What Good Training Programs Really Do

Good real estate training does more than just teach basic rules or give pep talks. Well-planned programs fix the exact problems that make agents fail.

Modern training programs like. PWRU, teach agents how to find customers, talk to clients, and grow their business. They let agents practice real situations and test their skills in ways they can measure.

The best programs let agents learn when they want to. They also give agents support from coaches and other agents. Agents learn proven methods while meeting other people who face the same problems.

This helps fix the loneliness and confusion that makes many agents quit. Instead of struggling by themselves, agents learn in a helpful environment that gets them successful faster.

How Training Helps Companies Win

Real estate companies with good training programs have a big advantage when hiring new agents. The best agents now care more about learning opportunities than just how much money they can make.

The real estate business is changing. Agents need to keep learning new skills to stay competitive. Companies that offer these learning resources attract and keep better agents.

Training also makes agents more loyal to their company. When agents get good training, they’re less likely to leave for a small pay increase somewhere else.

This gets better over time. Experienced agents who stay longer help train newer team members. This creates a culture where everyone keeps learning and helping each other.

How to Set Up Training Programs

Good training needs a clear plan, not just random workshops. The best programs create step-by-step learning paths that match what agents need based on their experience and goals.

Technology makes it easier to give training to many people while still making it personal. Interactive content, progress tracking, and performance reports help companies see if their training works and make it better.

The key is to treat training as an ongoing part of the business, not a one-time cost. When learning becomes part of the company culture, it creates lasting advantages over competitors.

Smart real estate companies are already making this change to enterprise-level platforms like PWRU. They know that in an industry where 71% of agents fail to make sales, giving agents the tools and knowledge to succeed is their main value.

The 340% better retention that training-focused companies achieve means more than just saving money. It shows a basic change toward business models that help agents, companies, and clients all succeed together.