According to HousingWire, there's a piece that's been getting attention about how the real estate industry approaches new agent onboarding, and I think there's something important here worth thinking about. The argument being made is that we focus heavily on recruiting agents and selling them on our training, technology, and commission structures, but then once they get licensed, we kind of throw them into the deep end and expect them to immediately start closing deals. That's different from actually preparing them to be successful professionals.
The piece points out that measuring success solely through closed transactions early on doesn't make much sense because new agents often can't control whether deals close in their first month. What they can control is activity like how many conversations they're having, how quickly they're following up on leads, and how consistently they're prospecting. The suggestion is that brokerages should set measurable activity expectations first, then focus on production later. That approach builds good behaviors, and the closings tend to follow naturally.
There's also a realistic point about the gap between knowing the right answer on a licensing exam and actually having the skills to handle a real client conversation. The piece recommends structured practice like role-playing consultations, working through sample contracts, and observing how experienced agents handle challenging situations. Creating a culture where new agents feel comfortable saying they need to confirm something with their broker is actually a sign of professionalism, not weakness.
Another insight that resonates with me is about teaching business fundamentals early. New agents get attracted to real estate because of the income potential, but that first commission check can be shocking once you subtract the brokerage split, marketing costs, association fees, technology subscriptions, and taxes. Many new agents are never taught basic business planning or how to distinguish between gross revenue and actual income. That's a significant gap in their development.
The piece also cautions against technology overwhelm. New agents sometimes think the next CRM or AI tool will solve problems that are really behavioral. The recommendation is to start with simple systems that answer basic questions: who's in your database, who needs follow-up, what's due today? Once those processes are solid, technology can make them more efficient.
What I'm seeing locally and across the Bay Area is that retention in our industry depends partly on commission and culture, sure, but also on people feeling like they know what they're supposed to do, that they're capable of doing it, and that they're making progress. When brokerages treat those first ninety days as a serious apprenticeship period with structured learning about contracts, lead generation, financial planning, and supervised real-world experience, agents tend to build confidence and stay longer. Passing the exam is an entry point, not the finish line of preparation.
