Congratulations! You’ve launched your new career in residential real estate sales! For many of us, once we’re on the ‘inside’ of the industry, it’s not quite as easy as it looked on the ‘outside.’

In fact, you may feel like you’re not as far along as you expected in your first year or two of licensure. This is normal, as no one sets proper expectations with us about what the first year in the business should look like! Here’s my take on what you should expect in year 1 of the business:

Welcome to the World of Real Estate

First and foremost, prepare to be uncomfortable. Your first year will be filled with new experiences and learning opportunities. The key is to adopt a mindset that views all these experiences as investments in your future career. It’s about adopting the mindset that you are playing the long game, where every day, every win, every loss, and every interaction form the foundation for long-term success in the business.

Hard Work vs. Immediate Rewards

It’s essential to manage your expectations about income. On shows like Million Dollar Listing: Los Angeles, the business looks glamorous, the money looks is easy, and the work appears is minimal. Unfortunately, it doesn’t quite work like that, especially in year one! Let me be the first one to tell you if no one else will speak the truth: the effort you put in during your first year will be greater than the money you earn. Let me say it more simply: you will work harder than the money that you make. However, the hard work you invest and the skills, knowledge and pipeline you develop in year 1 is your foundation for your reputation, knowledge, and client base, which are invaluable assets that will pay dividends in the future. In fact, done right, your earnings will exceed your effort as you spend more and more time in the business.

The Stark Reality

It’s a sobering fact that 87% of new agents don’t make it past their first few years in the business. To avoid being part of this statistic, be prepared to adapt quickly and endure through the initial steep learning curve. This requires cultivating a resilient mindset and a willingness to learn from every situation—whether you win a client or learn a valuable lesson.

Four Pillars of Success

1. Champion Mindset: Approach every challenge with the mindset of a winner. We all experience setbacks in our day to day activities. But is that setback a loss, or is it an opportunity to learn and improve? Decide to either win or learn, but never lose. This mindset will keep you driven and focused on growth.

2. Develop Key Habits: Two habits are crucial for your success. The first is lead generation—consistently finding and engaging with potential clients. The second is skill acquisition. There are so many new skills to develop in your first year. The more time you invest in acquiring new skills, the faster your sales will accelerate and the more rewarding (personally and financially!) your career will be.

3. Hone Your Skills: Focus on nurturing your abilities in new business development, client conversion, and enhancing your people skills. These competencies are essential for turning prospects into loyal clients. The better your skills in business development, client conversion, and relationship building, the less friction you will experience in growing your income.

4. Consistency in Business Activities: Whatever lead generation strategies you adopt, consistency is key. Regular effort in lead generation and follow-ups will build a steady stream of business. In fact, I believe that consistency in activity is the unspoken secret to success in this business.

Looking Ahead

While your first year is about laying the groundwork, the subsequent years are where you start to see significant returns on your time and effort. You’ll begin to earn more substantial amounts for the time you invest and refine your ability to manage the demands of the business efficiently. That’s when the industry starts to be really fun!