Thousands of agents are choosing not to renew their real estate license this year. Many of those agents are fairly new to the real estate profession. If so many new agents are struggling or dropping out of real estate, should you continue hiring newly licensed agents? My opinion is "Yes." In fact, there has never been a better time to bring new agents into the real estate business. But, you have to be selective with those you hire and hold them accountable to the activities that will insure their success. First, let's look at why so many agents are struggling. The 2006 NAR Member Profile indicated that agents with two years or less in the real estate business earned an average of $13,080 per year! What that says to me is that while some new agents are doing really well, most are not! The years 2000-2005 were very strong real estate markets throughout most of the country. Unfortunately, that means two things: 1. There were lots of people who got into real estate because it looked like easy money. 2. Agents were able to earn money without developing their real estate business, and that proved disastrous for many agents. Whose fault is that? I think in many cases, the fault lies with the broker or manager. It's temping to hire someone because "they might make it" or they know a lot of people - especially when the market is strong! But, those are the agents who are getting out, or eating up your profit. Hiring standards should never be lowered, regardless of market conditions. Also, the responsibility to train agents lies solely on the shoulders of the company who hires them. It has been proven that with the right training, the right new agent will out-produce seasoned veterans. I think we are seeing that in this market. I was in a company last week whose new agents are averaging 18-24 units of production for their first year in the business. Why? Here are their standards: 1. They only hire full-time agents. That is a philosophy that I have always embraced as well. If they are transitioning into the real estate profession within 2-3 months, that is the exception. But it must be within that time frame. Part-time agents rarely complete their training because they are at "their other job." It is also difficult to have two successful careers. Are there a few part-time agents who will go on to have successful real estate careers? Sure, but the odds are against it, and I agree with only hiring full-time agents. 2. They are very selective about who they hire. This is also a philosophy that I have always embraced. As commissioned agents, some brokers look at them as agents who could bring in a few sales each year, but don't cost the company that much money. I disagree about how much money the wrong agent can cost the company. Unfortunately, it is a loss that we can not really measure. Costs extend beyond the copier, the phone calls, the listing packets, and the coffee. The real cost occurs when the wrong agent with weak skills is representing your company in the marketplace, and loses a buyer or listing to your competition. Each sale or listing that they lose to your competitors cost you $5,000-$10,000. How many units could they cost you each year? At least 10 -- easily! So, I think hiring the right new agents who will go through your training program and develop their skills is essential to having the right team and dominating the marketplace. 3. They have a great training program that combines education with accountability. Several years ago, a good friend and great business person, Chip Morrison, said, "What if you had a central training center where all the new agents were trained? You could have a specific number of units that they had to sell before they were assigned to an office, and you could hold then accountable to the activity that they need to be successful." I remember thinking, what a great idea. Well, that is what this company does. They have to have a sale and listing before getting assigned to an office. This insures that they get a good start, and you don't have new agents sitting around your office for months without a sale, and then leaving the business. Of course, not all brokers have that luxury. But you can hold them accountable to the activities that they need to do to be successful. Have them sign a partnership ag reement when you hire them that outlines the expectations as well as the activities that they need to do, and then hold them accountable to it! It is your office and you have a right to be represented by the right agents, who have been trained properly.