The Secret to Why Most Real Estate Brokers Fail, with Amber Brown

Name: The Secret to Why Most Real Estate Brokers Fail, with Amber Brown
Uploaded: 2026-02-11T00:32:04.000Z
Duration: 2 h 12 min 21 s

Understanding the Real Estate Industry's Challenges and Opportunities

The Motivation Behind Entering Real Estate

The speaker emphasizes that their work is driven by a desire for impact rather than financial gain, highlighting a significant issue in the real estate industry where approximately 80% of brokerages fail within the first five years.

They express concern over the lack of support and guidance from brokers, indicating a systemic problem that needs addressing.

Building a Supportive Community

The speaker advocates for open conversations about personal alignment with business goals, stressing the importance of self-awareness in building successful ventures.

They aim to create an inclusive environment where everyone feels heard, reflecting on their initial motivations for entering this field.

Transitioning from Fitness to Real Estate

The speaker shares their background in fitness and how they transitioned into real estate after moving to Texas, noting similarities between helping clients achieve health goals and assisting them in business.

They highlight their coaching mentality as central to their approach in both industries.

Addressing Misconceptions About Brokers

Acknowledging the negative perceptions surrounding brokers, the speaker aims to counteract these views by improving professionalism and ethical standards within the industry.

They recognize that some brokers contribute to these misconceptions but choose to confront these challenges head-on through education.

Launching a Passion Project: Broker Series Program

The speaker introduces their passion project—a comprehensive program designed for aspiring brokers or struggling existing ones—aimed at providing essential knowledge and skills needed to succeed.

This program consists of ten modules over four months, guiding participants from initial interest in brokerage to launching their own businesses effectively.

Understanding the Challenges in Real Estate

The Desire for Impact and Professionalism

The speaker expresses a strong desire to make a positive impact in their industry, feeling frustrated by unethical behavior encountered frequently.

They highlight that many agents struggle due to a lack of training rather than malicious intent; often, they simply don't know what they don't know.

The speaker emphasizes the need for brokers to help agents become successful business owners, challenging the stereotype of real estate professionals as "overpaid used car salesmen."

A significant issue is identified: approximately 80% of brokerages fail within the first five years, indicating systemic problems in supporting new agents effectively.

Common Mistakes Made by New Agents

The speaker notes that many new agents rush into obtaining licenses without considering essential aspects like technology and operations.

They stress that while getting licensed is straightforward, it’s crucial to understand the broader system and plan accordingly.

There’s an emphasis on providing comprehensive advice beyond just obtaining a license; understanding all facets of running a business is vital for success.

Entrepreneurial Mindset in Real Estate

A recurring theme is that new agents often do not recognize themselves as entrepreneurs; this mindset needs to be cultivated from the start.

The role of brokers extends beyond client fiduciary duties; they also have responsibilities towards their agents' success and development.

Educational Approach and Personal Experience

The speaker shares their journey through various roles in real estate, which informs their educational content aimed at helping others avoid common pitfalls.

They aim to provide genuine insights based on personal experiences and lessons learned throughout their career.

Raising Awareness Among Aspiring Brokers

There’s an acknowledgment of the challenge in making aspiring brokers aware of what they truly need to succeed—understanding entrepreneurship and responsibility is key.

The speaker aims to elevate standards across the field by ensuring individuals entering brokerage roles are well-informed about their duties.

Understanding the Responsibilities of Entrepreneurs

The Importance of Authenticity in Business

Entrepreneurs have a responsibility to their clients, ensuring that they are not wasting anyone's time and genuinely doing what is best for them.

Working with authenticity is crucial; if entrepreneurs are not genuine, it can lead to dissatisfaction both for themselves and their clients.

Addressing Pain Points in Real Estate Education

There is a significant lack of training for brokers, which creates an opportunity for those who understand this gap to provide valuable education.

Many agents recognize the deficiency in training and education available, making it easier to communicate the need for better resources.

The Role of Passion and Purpose

A common reason many entrepreneurs fail is due to a lack of clarity about their "why" or purpose behind starting their business.

Understanding one's passion and aligning it with business goals is essential for success; merely going through the motions without purpose leads to failure.

Challenges Faced by Brokers

The process of obtaining a real estate license involves minimal training, especially at the broker level where there’s no apprenticeship required after passing the exam.

This lack of preparation contributes significantly to high failure rates among new brokers as they may not be equipped with necessary skills or knowledge.

Strategies for Effective Communication and Marketing

To effectively reach potential clients, it's important to utilize various platforms and build relationships within industry associations.

Establishing connections through committees aligned with personal goals helps in spreading awareness about educational offerings in real estate.

Understanding the Role of Brokers in Real Estate

The Importance of Targeting Passionate Groups

Discussion on identifying common passions among brokers that could help in targeting specific groups effectively.

Emphasis on the potential for a niche market to test initial product offerings, suggesting that focusing on one dedicated group can ignite broader interest.

Strategic Partnerships for Launch

Introduction of a partnership with the Houston Association of Realtors, which has over 30,000 members, as a strategic move to gain traction.

Collaboration with leadership committees to refine course content and gather feedback from experienced members enhances credibility and relevance.

Initial Course Launch and Feedback Mechanism

The first course is set to launch as a beta program on February 19th, offering discounted rates for early participants who will provide valuable feedback.

Acknowledgment that the real estate industry is dynamic; thus, ongoing adjustments based on participant input are essential for success.

Target Audience Identification

Focus on agents with established production teams as ideal targets due to their existing follower base and leadership authority.

These leaders can leverage their influence to attract their teams when launching new brokerages, ensuring immediate income generation.

Transitioning Roles and Responsibilities

Highlighting the shift in responsibilities from production-focused roles to brokerage management roles once agents become team leads or open brokerages.

The program aims not only to prepare agents for success but also to help them assess whether entrepreneurship aligns with their skills and aspirations.

Misconceptions About Entrepreneurship

Addressing common misconceptions about entrepreneurship being either overly glamorous or daunting; emphasizing a balanced perspective is crucial.

Discusses the financial implications of becoming a broker versus remaining in production, stressing that managing a brokerage requires significant time investment away from direct sales activities.

Wealth Perception and Financial Planning

Reference to a quote about wealth: understanding living costs helps individuals gauge what they need financially; having savings equivalent to 25 times annual expenses indicates wealth.

Challenges conventional views by questioning if enduring business headaches is worth sacrificing long-term financial stability.

Understanding Brokerage Costs vs. Income Potential

Agents often overlook operational costs associated with running their own brokerage while focusing solely on retaining commission percentages from closings.

This oversight may lead them into underestimating the complexities involved in managing an entire company compared to simply closing deals.

Real Estate Insights: Balancing Ego and Business Strategy

The Importance of Collaboration in Real Estate

Staying with your current business model may be more profitable than seeking change, especially if you can collaborate effectively with others who have complementary skills.

Buyers prioritize their needs over individual identities; thus, real estate professionals should focus on providing value rather than letting ego dictate decisions.

Understanding Your Role and Strengths

Expanding services or taking on additional responsibilities should be driven by potential profit and alignment with personal goals, not just ego.

It's acceptable to delegate tasks that fall outside your expertise to avoid overwhelming yourself and ensure quality service.

Personal Journey in Real Estate

The speaker reflects on their initial expectations of real estate aligning with their fitness background but found a better fit in education within the industry.

Transitioning from production to education allowed the speaker to align their work with personal strengths, emphasizing the importance of self-awareness in career choices.

Behavioral Insights and Career Alignment

Training in behavioral styles revealed that sales roles were not suitable for the speaker, leading to a rejection of opportunities misaligned with personal values.

Understanding one's strengths through tools like Culture Index can guide career paths and help individuals make informed decisions about job roles.

Teaching Future Brokers Effectively

Aspiring brokers must recognize that success doesn't always require deep knowledge of every aspect of business; effective management often involves delegating tasks to passionate experts.

The goal is to create a program where experienced practitioners teach aspiring brokers based on real-world experiences rather than theoretical knowledge alone.

Community Impact Through Brokerage

There’s an emphasis on the significant community impact brokerage can have when done correctly, highlighting the need for knowledgeable guidance in this field.

Acknowledging one’s limitations while striving to improve others’ skills is crucial for fostering growth within the real estate community.

Brokerage Education and Community Building

The Role of Brokers and Instructors

The speaker discusses the commonalities in teaching brokerage, emphasizing that much of it is rooted in human psychology combined with technical data.

There is a growing need for more experienced coaches and brokers who can effectively teach others based on their extensive experience in the field.

Finding Qualified Instructors

The process of identifying instructors involves networking within the industry and ensuring they have substantial experience, including resumes and referrals.

A rigorous vetting process is described, where potential instructors must demonstrate a strong reputation within local real estate associations.

Collaborative Teaching Approaches

The speaker plans to launch a program with a co-instructor who has significant experience running her own brokerage, highlighting the value of diverse perspectives in teaching.

This hybrid approach combines both physical classroom settings and digital formats to accommodate various student needs.

Creating Supportive Communities Among Brokers

The intention behind structuring classes as a close-knit group is to foster support among brokers, allowing them to share experiences and challenges.

By creating this community, brokers can connect without competition, focusing instead on shared knowledge and growth.

Addressing Challenges in Brokerage

The discussion highlights the competitive nature of brokerage work which often leads to isolation; establishing supportive networks aims to counteract this issue.

There's an aspiration for a shift towards better practices among brokers by separating those committed to ethical standards from those focused solely on profit.

Passion vs. Grind in Business

Acknowledging that many lose passion due to overwhelming workloads, the speaker emphasizes the importance of rekindling enthusiasm for one's business.

There’s concern about students experiencing burnout or losing motivation; strategies are needed to help them maintain their passion amidst challenges.

Understanding Personal Integration in Business

The Role of Personal Motives in Business Success

Successful business owners can merge personal motives with existing structures to create effective tools and strategies.

It's essential for students to understand their true selves, including strengths and passions, to integrate them into their work effectively.

Self-Discovery as a Foundation

Initial modules focus on self-awareness, exploring personal values and aligning with suitable agents or partners.

Open conversations about identity help filter out distractions from social media, allowing for genuine connections and growth.

Emotional Intelligence and Vulnerability

Emotional intelligence is crucial; pride may hinder transparency but recognizing one's strengths can lead to success.

Many individuals wear a mask of success that obscures their true selves; authenticity is vital for building trust in business relationships.

The Importance of Genuine Communication

Transparency is necessary when teaching others; one must be genuine to foster trust among clients or team members.

Promises made by brokerages often set unrealistic expectations, leading to disappointment; focusing on genuine support rather than monetary gain is essential.

Industry Perceptions and Future Directions

The real estate industry often perpetuates a facade starting from the licensing process; changing this perception is critical for future relevance.

Technology poses a threat to traditional practices in real estate; adapting behaviors and perceptions within the industry is necessary for survival.

AI's Role in Streamlining Business Processes

The Impact of AI on Efficiency

Discussion on how AI can eliminate human errors and streamline processes, emphasizing the potential for unbiased operations.

The speaker suggests that as AI becomes more integrated into various sectors, roles traditionally filled by humans may diminish, particularly in trust-based systems like escrow.

Human Element vs. Automation

While acknowledging the importance of human interaction, the speaker believes that AI will enhance operational efficiency and allow individuals to focus on their core competencies.

Emphasizes that AI should serve as an extension of personal capabilities rather than a replacement, especially in relationship-driven industries.

Practical Applications of AI

The speaker shares personal experiences using AI to assist in course content creation, highlighting its efficiency compared to traditional methods.

Discusses the analogy of using heavy machinery (like excavators) over manual tools (like shovels), advocating for leveraging advanced technology for better outcomes.

Overcoming Misconceptions about Technology

Addresses common misunderstandings surrounding new technologies and stresses that early adopters who effectively utilize these tools will gain competitive advantages.

Highlights the need for agents and brokers to understand tech solutions that can simplify client interactions and improve service delivery.

Integration Challenges in Real Estate Technology

Advocates for greater involvement of AI in contract management through smart contracts to reduce redundancy and increase reliability.

Critiques misconceptions about blockchain technology stemming from its association with non-essential applications (e.g., NFTs), arguing for its practical benefits in business workflows.

Future Directions for Brokers

Expresses a desire for streamlined systems where brokers can access all necessary tools within one platform instead of piecemealing different services together.

Points out inefficiencies caused by disparate systems requiring agents to navigate multiple platforms for various tasks, which complicates client interactions.

The Rise of Integrated Platforms

Cites Compass as an example of a successful integration model where agents operate within a unified system enhancing productivity and communication.

Warns against losing personal relationships due to tech-centric models like Compass’s approach, stressing the importance of maintaining consumer connections amidst growth strategies.

Understanding the Role of Technology in Brokerage

The Importance of Human Relationships in Brokerage

The speaker emphasizes that smaller boutique brokerages maintain closer relationships and human trust compared to larger companies with extensive systems.

Expresses frustration with multiple sign-in portals, indicating that complexity can lead to disengagement from tasks and negatively impact job satisfaction.

Technology's Impact on Brokerage Models

Discusses how Compass, as a tech company, identified pain points in the brokerage model and adapted their approach to fill those gaps effectively.

Highlights the importance of personal relationships for brokers, stating that a shift towards a tech-centric model could jeopardize these connections.

Core Values and Business Identity

Stresses the need for brokers to retain their core values while integrating technology into their business models.

Suggests that having clearly defined values can help individuals articulate their "why," which is crucial for maintaining focus amidst technological changes.

Leveraging Technology for Human Interaction

Mentions the potential of creating user-friendly tools that prioritize human interaction over mere transactional processes.

Advocates for designing dashboards that emphasize personal connections by showcasing previous interactions and interests.

Challenges in Integrating Technology

Acknowledges the complexities involved when technology aligns with business goals but encourages embracing it rather than fearing it.

Shares experiences building systems across various brokerages, noting fragmentation within associations complicates integration efforts.

Navigating Real Estate Tech Landscape

Describes challenges faced when combining website functionality with CRM systems, emphasizing the need for seamless integration between different platforms.

Points out high costs associated with managing multiple MLS memberships and technology solutions tailored to diverse markets.

This structured summary captures key insights from the transcript while providing timestamps for easy reference.

Building Tech Systems: Challenges and Solutions

The Daunting Task of Building Tech Systems

Building tech systems is described as time-consuming and daunting, especially for team leads who excel in connecting and selling but may struggle with technical tasks.

There’s a concern that forcing these individuals to work behind a computer screen could lead to burnout or disengagement, potentially causing them to quit.

Future Goals and Launch Plans

The speaker expresses uncertainty about the timeline for launching their project but acknowledges having many future goals.

A discussion ensues about revisiting the project after it goes live to evaluate what worked well and what didn’t.

Course Structure Overview

When asked to summarize the course structure, the speaker describes it as a blueprint that includes personal investment through spreadsheets and worksheets.

Key components include foundational elements like legal aspects, tech systems, leadership training, coaching, support, oversight, and supervision.

Certification Aspirations

The speaker considers whether their course could evolve into a state-recognized certification similar to those available in other fields.

Currently labeled as a certification but functioning as a standalone product; there are aspirations for nationwide recognition while maintaining customization per state laws.

Addressing Market Needs

The speaker notes that existing courses often provide broad overviews without practical implementation guidance necessary for running a brokerage effectively.

They express interest in tailoring their course content to meet specific state licensing laws and market needs across different states.

Networking Opportunities for Boutique Brokerages

Emphasizing the isolation of boutique brokerages compared to franchises that offer extensive networking opportunities.

The goal is for their program to be recognized as an indicator of competence among brokers, enhancing their reputation within the industry.

What Defines You Beyond Business?

Exploring Personal Interests and Passions

The program aims to create a nationwide network for broker owners seeking support and advisory systems.

A discussion begins about personal interests or hobbies that define individuals outside of their business roles, highlighting the common lack of such interests among business owners.

Amber identifies as a problem solver, stating that critical thinking and puzzles are integral to her identity, which enhances her professional capabilities.

She emphasizes her role in coaching, where she listens to others' problems and helps them formulate solutions without implementing them herself.

Amber describes herself as a high achiever who prefers to accomplish tasks efficiently before moving on to new challenges.

Identifying Ideal Course Participants

The conversation shifts to potential course participants; those engaged in problem-solving activities like Wordle may resonate more with the course's objectives than those seeking easy solutions.

Individuals with a victim mindset may not benefit from the program, suggesting it is tailored for proactive learners willing to engage deeply with the material.

The ideal candidate is someone eager for hard work and understanding the rules of their industry rather than expecting ready-made solutions handed over.

Amber clarifies that this course is designed for brokers who want to create their own path rather than simply follow a blueprint provided by others.

Emphasizing Industry Inclusivity

There’s an acknowledgment that positive change can occur when individuals understand the rules of their industry, allowing them to make informed decisions.

Amber expresses hope that her program will help people recognize where they fit best within the industry, promoting self-awareness regarding career choices.

She stresses the importance of humility in recognizing whether being a brokerage owner is suitable for someone or if they might excel in other roles instead.

The message encourages authenticity—individuals should not conform strictly to external expectations but instead pursue what genuinely resonates with them.

Tools for Success

Amber concludes by reiterating that brokerage serves merely as one tool among many (like real estate or construction), emphasizing adaptability based on individual preferences and strengths.

Insights on Leadership and Responsibility in Various Industries

The Urgency of Action

The speaker emphasizes the importance of taking action without waiting for perfection, suggesting that even initial efforts can have a significant impact from day one.

Common Challenges Across Industries

Discussion highlights the shared struggles in leadership across different sectors, indicating that issues are not isolated to real estate but are prevalent in various fields.

Overlapping Leadership Principles

A comparison is made using a Venn diagram to illustrate that 80% of leadership principles overlap across industries, with specific operational, legal, and technical aspects distinguishing them.

Responsibility in Authority

The speaker stresses that any position of authority comes with substantial responsibility, underscoring the need for leaders to understand their specific "rules" or frameworks within their industry.

Learning the Rules of Engagement

An analogy is drawn between parenting and professional roles; both require an understanding of rules and responsibilities. The speaker notes that many people enter these roles without fully grasping what is required.