Why So Many Insurance and Real Estate Agents Fail (And How to Beat the Odds)

The real estate and insurance industries offer incredible income potential and independence—but they also come with a brutal failure rate. According to national statistics, only 13% of residential real estate agents and 7–10% of insurance agents are still active after five years.

Why is the dropout rate so high? What causes talented, motivated individuals to fizzle out so fast? And more importantly, how can you avoid becoming part of that statistic?

In this article, we break down the real reasons why agents fail, what’s missing in traditional onboarding and training, and how you can build a business that survives—and thrives—for years to come.

The Harsh Truth: Real Estate and Insurance Have a Steep Learning Curve

Whether you’re starting out as a real estate agent or getting licensed to sell insurance, the truth is the same: you're building a business from scratch. While the barriers to entry are relatively low (a few classes, a license exam), the reality of success requires much more:

• Strategic planning

• Relationship building

• Marketing

• Consistency

• Self-discipline

• Long-term vision

And here’s the kicker: most people don’t realize any of that until it’s too late.

Why So Many Agents Fail (The Real Reasons)

1. Misaligned Expectations: “Fast Money” Myths

Many agents enter the industry thinking they’ll be making six figures in year one. In reality, it can take 12–24 months to build meaningful momentum. Real estate deals fall through. Insurance policies take time to close. If you expect instant income, you're going to burn out fast.

2. It’s All Commission, All the Time

Most real estate brokerages and insurance firms operate on 100% commission models. There’s no salary, no fallback, and no guarantee of income. Some insurance models offer a small base pay at the start, but it disappears quickly.

When you’re not closing deals, you’re not getting paid. That’s a harsh environment if you’re not mentally prepared—or financially supported—for a long game.

3. You’re a Business Owner (But Nobody Tells You That)

Here’s a critical mindset shift: if you’re a licensed agent, you’re a business owner, not just an employee. You’re in charge of:

• Finding leads

• Marketing your services

• Managing your time

• Creating systems

• Learning on your own dime

Unfortunately, many agents never hear this during onboarding. The “entrepreneur” mindset is missing, and as a result, most agents float without a plan until they quit.

Relationships Over Transactions—But Relationships Take Time

One of the biggest success factors in both industries? Relationship building.

Clients don’t trust just anyone to buy their home or protect their assets. They want someone they know, like, and trust. That kind of trust takes months (sometimes years) to develop.

If you’re focused on building meaningful relationships, know that:

• It’s absolutely the right approach.

• But it will delay your financial returns—especially early on.

This puts added pressure on agents who are already struggling to cover bills while building their book of business.

We Live in an Instant Gratification Society (That Doesn’t Help)

Amazon delivers anything in 2 days. You can watch any movie or show on-demand. You can even order a car or groceries from your phone.

So when it comes to building a business, our brains are wired for speed, but the process is wired for patience.

That contrast causes frustration. People quit before they get traction—not because they aren’t capable, but because they expected it to happen faster.

No Structure + No Accountability = No Chance

Real estate and insurance are notorious for giving new agents no real structure. You pass your exam, get your license, and are left with some YouTube videos and a Zoom training or two.

If you're lucky, you're on a team that has standards, but even most teams don't provide real accountability. There are no quarterly reviews. No mandatory performance benchmarks. No daily coaching unless you seek it out.

You can literally join a brokerage, get your license, and go months without talking to a manager.

That freedom is amazing for some—but paralyzing for others.

The Missing Piece: A Long-Term Success Mindset

If you're serious about beating the odds, you need to start by adopting the right mindset from Day 1:

“I’m a business owner. I’m playing the long game. I’m committed for years—not months.”

That mindset shift instantly reframes:

• How you handle slow months

• How you invest in marketing

• How you schedule your time

• How you develop your skills

Once you treat your work like a real business, you’ll start to approach things with the structure and intensity they deserve.

Practical Tips to Increase Your Odds of Success

Here are some actionable steps you can take—based on real experience from our hosts and guests on Bricks and Risk—to build a sustainable business in real estate or insurance.

1. Get Mentorship Early

Find someone in your industry who’s already where you want to be—and learn from them. Don’t just rely on YouTube. Ask questions. Shadow their work. Offer to help. Learn their systems.

2. Implement a Proven Marketing Strategy

Our team uses real, tangible strategies to generate leads and build brand awareness. Some tools we’ve used:

• Custom Magazines – via Reminder Media (Luke Acre)

• Branded Truckers Hats – via Custom Patch Hats

• Handwritten Notecards – via Moo.com

• Pop-By Gift Boxes – via Market Dwellings

These are not gimmicks. They’re relationship tools—little touches that add value and help you stay top-of-mind.

3. Build Consistency Into Your Workflow

Schedule blocks for:

• Prospecting

• Content creation

• Client follow-ups

• Professional development

Even 1 hour of lead gen every weekday equals 250+ hours a year of building your business. That alone separates you from the 80% who quit.

4. Track Everything

Treat your business like a business by tracking:

• Leads generated

• Conversations started

• Appointments set

• Deals closed

• Marketing ROI

Numbers keep you grounded—and accountable.

Real Agent Wins: The Justin Heath Example

On a recent workshop, Bricks and Risk co-host Tim Garrity shared tools and strategies he uses to grow his team. Justin Heath, an already successful agent with Real Broker, implemented those ideas and saw tangible results.

He adopted the pop-by gifts, started using handwritten cards, and followed up with clients in creative ways. His clients responded positively—and his business grew.

That’s the power of taking good advice and actually applying it.

Why We Started the Bricks and Risk Podcast

We launched Bricks and Risk because we saw a huge gap in real-world training and honest conversation about what it takes to survive in real estate and insurance.

Most people sugarcoat the hustle. We don’t.
We talk about the struggles. The mistakes. The grind.

And we also talk about the wins—because when you do it right, these careers can create life-changing opportunities.

We want to help:

• New agents get on the right track.

• Struggling agents find clarity and momentum.

• Experienced agents scale to the next level.

We Practice What We Preach: Consistency

Since launching, we’ve dropped an episode every single week—no matter what.
Snow days? Get boots. No guests? Find new ones. Running low on topics? Dig deeper.

We’re always recording 2 months ahead because we treat this podcast like a business.

And now, we’re seeing the results:

• 500+ members in our LinkedIn group

• Growing YouTube channel

• Tens of thousands of monthly impressions across all digital platforms

It’s all built on consistency, value, and authenticity.

Final Thought: You Can Beat the Stats—But Only If You Treat This Like a Business

If you’re thinking about getting into real estate or insurance, or if you’re already licensed but stuck in a rut, here’s our advice:

🔥 Stop thinking like an employee.
🔥 Start thinking like a business owner.
🔥 Get committed.
🔥 Get consistent.
🔥 Get accountable.

The failure rate is high, yes. But that just means the bar is low—and if you do things differently, you’ll stand out faster than you think.

💬 Frequently Asked Questions (FAQ)

❓Why is the failure rate so high in real estate and insurance?

The failure rate is high in both industries due to a combination of factors:

• Lack of training and structure – Most agents are thrown into the field with minimal onboarding and little real-world education on how to build a business.

• 100% commission models – With no guaranteed income, many agents run out of money before they gain traction.

• Misaligned expectations – People expect fast income and instant results, but both industries require long-term relationship building and patience.

• Poor accountability systems – Without regular performance check-ins or mentorship, it’s easy for new agents to drift, get discouraged, or quit.

• High turnover business models – Some brokerages focus on mass recruiting rather than agent success, benefiting financially from churn.

❓What can brokerages and insurance agencies do to reduce agent failure rates?

Forward-thinking companies can increase retention and agent success with these strategies:

• Provide structured onboarding programs
  Go beyond the basics. Include systems for marketing, CRM setup, content planning, and mindset training.

• Offer mentorship and accountability
  Pair new agents with experienced mentors. Set up weekly check-ins and clear KPIs for the first 6–12 months.

• Create community and culture
  A supportive environment increases engagement and resilience. Hold regular team meetings, social events, and workshops.

• Reward long-term thinking
  Encourage agents to focus on relationships, not just transactions. Recognize consistency, not just quick wins.

• Invest in agent marketing tools
  Help agents with branded materials, pop-by gifts, CRMs, lead nurturing tools, and content creation.

• Be honest about the journey
  Set realistic expectations about income timelines, lead generation, and what it takes to succeed. This builds trust and reduces early burnout.

❓Is the high failure rate avoidable?

Yes—but only with the right mindset and environment. Agents who treat their work like a business, stay consistent, and surround themselves with strong support systems are far more likely to succeed long-term.

With intentional effort from both the agent and the brokerage, the success rate can be drastically improved.

❓How long does it take to succeed in real estate or insurance?

Success varies, but here’s a realistic timeline:

• 0–6 months: Learning, branding, and prospecting

• 6–12 months: First deals and relationship growth

• 12–24 months: Pipeline and referrals begin to build

• 3–5 years: A sustainable, scalable business emerges

Those who commit for the long haul often see exponential results over time.

Want More Real Talk Like This?

🎧 Subscribe to the Bricks and Risk podcast on Spotify, Apple Podcasts, and YouTube.

📬 Join our LinkedIn Group to connect with other agents and get early content releases.

📩 Have a question or want to be a guest? Email us at bricksandrisk@gmail.com.

Let’s grow together. Let’s stay consistent.
And let’s beat those stats.