I never worked on commission before until I got into real estate. I do have sales experience, in elementary school I was that kid on the playground selling candy and toys to the other kids for profit. I had an ebay and paypal account in 6th grade selling odds and ends for profit. I did that through high school and learned a lot about selling and how to sell.

You are a real estate sales person 1,2,3,4 and a Realtor 5th. Your job is to sell the client on your services over the competition rather it be as a listing agent or buyers agent. They are buying your knowledge, skills, time and expertise. Not your personality, good looks or anything else; granted those do help if you look and act like a business professional.

A sales background would definitely help but its not required. Be quick to learn and focus on never ending improvement and always strive to be the best real estate sales person that you can be. Also to get you started read reputable sales, real estate and motivational books that pertain to your goals.

I know you. I was the kid on the same play ground loaning out money to the kids who wanted to buy your candy.

That is a good post you made some valid point.

Real Estate "Sales" differs from other forms of sales in at least two (2) major ways:

All other sales activity that I can think of involves the sales of product that is more or less under your control . . . . when you sell some widgets, there is little no doubt about whether you have the widgets in inventory. In Real Estate, we often have to go out and sell ourselves to the "Owners" just in order to have product to offer For Sale; and just having a Listing doesn't mean that you've got control of that inventory.

In Real Estate, there are other Actors controlling the product (Sellers, Listing Agents, Loan Officers, Title Attorneys, Building Inspectors and sometimes, even Appraisers). We often do a very good job in selling something that subsequently has the rug pulled out from under it and can't be sold, or people get stubborn and refuse to allow the Transaction to go through.

Also, few other forms of sales involve such a long, often unpredictable, delay between the Sale (P&S Time) and the point at which the salesperson receives some form of monetary remuneration (Closing). Successful Real Estate salespeople must be "risk takers" and be born with the Patience of Job, in order to prepare themselves to wait multiple weeks, often months, and sometimes even years to obtain the rewards of their sales activity

There's often a major disconnect between the two activities - the Selling and the Compensating so one must actively work to be motivated by factors other than just the "possible" Commission that might be received if a deal goes through . . . . a Commission that often doesn't manifest itself. Those who require immediate gratification never last long in this business.

Industrial Sales or Military Sales often involves many false starts and lenghty delays; but you'll find that Sales and Marketing folks in those fields are often on a Salary or a Draw against Commissions, and are much better positioned to weather the long delays between the writing of their Contracts and the point at which they receive their rewards and/or bonuses. As a matter of fact, I've only known one Real Estate Firm that paid their Agents a Draw against future Commissions . . . . and that Firm wasn't "firm enough" to weather the current depression in Real Estate.

I know I began working as a waiter for 2.5 years during/ after college making good money, did a few straight commission jobs that never worked out. I'd sell the stuff and there was always a reason why I didn't earn any money. Oh to be young and dumb again. Got a good non commission job with benefits when it was family raising time. Lost that 13yrs later with the market down turn, oh I miss the easy money. Did some soul searching and looked at my strong qualities and figured RE was a good fit for me.

So in this crappy market I began the journey. Did 700,000 in sales the first year with an average sale price of 120k. Hoping to do 7 mil this year now that I have a grasp of the systems. Will work with buyers this year as well. Only worked with 3 buyers the first year and only one purchased.

I don't think having prior commission sales experience is an indication that you'd make a good agent. Certainly though, good interpersonal skills with high confidence and a certain sincerity in dealing with others is what I'd think make a great agent. Of course all that is still just potential without the right direction.

Ive been in commissioned sales my entire life. I actually prefer to work that way. I never could hack it in an hourly job. I always wanted to get paid on results, not time spent. Did it help when getting onto real estate? Yes absolutely. I was already conditioned to being paid that way and I knew how to engage people and sell myself. To all those who say real estate is not really "selling" - it absolutely is. Youre a salesperson before anything else. You just dont sell the inventory...you sell your services.

Is Real Estate a sales business?

Yes and no. I think like others have said the sales involved is getting clients onboard to use your services. I don't feel like I "sell real estate" but I certainly sell the service of representing people who buy and sell real estate.

Sales skills absolutely help, the ability to talk to people, qualify them, close them, keep in touch with them over long periods of time, keep them motivated, etc. Not the kind of sales you see in a store, but the kind of sales you see from high skill outside account sales.

Thats not the end all though. Once you sell the service and get the deal, you have to be the glue that holds it together through to closing...which nowadays isn't as easy as it looks. I know a lot of agents that are great salespeople but terrible Realtors...and their clients suffer for it.

I think many more have even dropped off after the economy started falling. I wasn't in the business when everyone sat by the phone and made 100k a year, but I think those that were "decent" sales agents in primetime were very much even less so when they didn't know how to deal with the economy.

What have you guys found to be the most effective way to generate leads?

OK Bluetortoise, best way to generate leads, my top secret method, look for them, contact them, do business, now please don't spread it around, I have enough competition already.

Yes that is seemly a something something answer, but that type of question is usually the what is the current magic bullet system to get what I want question. And believe it or not it is a real answer, short but real, details cost extra.

As I told one new agent a few years ago, preview every new listing you can when the owners were home and ask the owner how they met their agent, he got a prospecting education plus the feel of the current market. Same thing with recent solds to get the buyer side. You don't have to be new to do this and it is what is currently happening. Go from there, the horse and done deals will provide what you seek.

I have sold many different things before, but Real Estate has nothing to do with selling. It's more like a tour guide. Maybe the name Real Estate salesmen should be dropped because there is no real selling in this business. So do you need sales experience to be a Real Estate Salesmen? I don't think so.

In a normal market, the sales activity is more on the listing side . . . . not in marketing property. The property can sell itself; but Sellers need to be "sold" on you in order to list.

real estate sales is.....SALES. On top of that, it is COMMISSIONED sales. to be a successful commissioned salesperson requires a certain set of personality traits.

my opinion is, if a person is a natural salesperson, they can apply that talent to any field, including real estate sales.

Sales applies to a lot of businesses that people don't generally regard as sales. For instance, the person who gives you an estimate for a home repair is really selling his services, skills and experience. The restaurant server who lists and describes the desserts is really selling you to increase the amount of your check (and hopefully their tip).Perhaps even the fast food worker who asks if you want to supersize.

But while real estate agents have a "salesperson" license in many states, they do a lot more than "sell" because the bulk of the work is done between contract and closing. And someone that is a great salesperson but lacks the mental, organizational and follow up skills needed in this business will be an abject failure.