Stay Paid Podcast Episode Summary
Episode Title: Why Most Agents Are Failing
Hosts: Luke Acree and Joshua Stike
Guests: James Dwiggins and Keith Robinson, Co-CEOs of NextHome Inc.
Release Date: April 21, 2025

Introduction

In this insightful episode of the Stay Paid Podcast, hosts Luke Acree and Joshua Stike explore the critical reasons behind the high failure rate among real estate agents. They are joined by James Dwiggins and Keith Robinson, Co-CEOs of NextHome Inc., a forward-thinking real estate franchise. Together, they delve into industry challenges, share personal experiences, and offer actionable strategies to help agents thrive in a tumultuous market.

Co-CEO Dynamics and Leadership

Managing a Dual Leadership Structure

Luke Acree begins by addressing an intriguing aspect of NextHome Inc.: managing a business as co-CEOs. James and Keith humorously discuss the potential for conflict, emphasizing their strong partnership.

James Dwiggins [02:25]: “The funny part is we actually used the box together and we're very different shapes. So I'm very, very tall and half anorexic and Keith is not that.”

Role Differentiation

Keith Robinson explains their complementary roles, highlighting how James focuses on the external aspects of the business while Keith manages internal operations.

Keith Robinson [03:56]: “James handles being the face of the company and helping the industry with the direction and voice that it needs.”

Current Market Landscape and Challenges

Market Volatility and Preparedness

Keith emphasizes the current volatility in the stock market and its impact on real estate rates, introducing the concept of "the year of stay ready."

Keith Robinson [06:32]: “I call 2025 the year of stay ready.”

Overwhelming Lead Generation Issues

James discusses the paradox of abundant online leads versus the low transaction rates, pointing out that approximately 70% of agents haven't closed a deal. He criticizes the over-reliance on technology and AI, advocating for fundamental relationship-building.

James Dwiggins [09:21]: “Just focus on your damn sphere and just talk to people in your sphere and just focus on that, you will get your unfair share.”

Psychological Barriers for Agents

Emotional Intelligence and Rejection Avoidance

Keith explores how high emotional intelligence in agents can lead to increased rejection avoidance, which hinders effective lead generation.

Keith Robinson [11:34]: “Good agents mostly, in my experience, have really high emotional IQs. The downside is you're more rejection avoidant.”

The Nature of Real Estate as a Relationship-Based Business

The hosts and guests discuss the inherent challenges in real estate being a relationship-driven industry, where rejection is a frequent and expected obstacle.

James Dwiggins [16:14]: “It's a contact sport. You got to pick up the phone and if you call 10 people and not interested, call 10 more...”

Strategies for Success

Staying Ready and Leveraging Market Shifts

Keith introduces the "stay ready" philosophy, urging agents to be prepared to act swiftly when market conditions create favorable transaction windows.

Keith Robinson [06:32]: “As rates come down, the agents who are paying attention... will get their unfair share.”

Consistent Outreach and Sphere Focus

James underscores the importance of relentless follow-up and maintaining relationships within one's sphere, emphasizing personal outreach over solely relying on digital tools.

James Dwiggins [09:21]: “Just focus on your damn sphere and just talk to people in your sphere and just focus on that, you will get your unfair share.”

Challenges with Brokerage Models

Unsustainable Brokerage Splits

James critiques the traditional brokerage split model as unsustainable, leading to a "race to the bottom" where agents receive minimal profits due to high splits.

James Dwiggins [22:57]: “From a company standpoint... it's a race to the bottom where you have agents that are receiving a majority of the split.”

High-Touch vs. High-Volume Models

Keith discusses the necessity for brokerages to choose between high-touch, high-service models or high-volume, low-margin strategies, avoiding the inefficient middle ground that leads to financial instability.

Keith Robinson [38:57]: “Either offer great stuff and charge them for it or you've got to be high touch, high service... or low touch, high volume, low margin.”

Industry Regulation and Professionalism

Call for Stronger Licensing and Accountability

James advocates for stricter licensing requirements and greater accountability within the industry to enhance professionalism and consumer trust.

James Dwiggins [30:30]: “There needs to be much tougher licensing laws and there needs to be more accountability.”

Balancing Industry Image

Keith acknowledges the industry's poor reputation but emphasizes that individual agents often build strong, positive relationships with their clients, highlighting a disparity between general perception and personal experience.

Keith Robinson [34:30]: “While the perception of the industry is one thing, the individual who works with an agent, their perception of that individual is very, very different.”

Future Directions and Recommendations

Ancillary Revenue Streams and Consolidation

Looking ahead, Keith and James predict consolidation in the industry and stress the importance of brokerages developing additional revenue streams beyond traditional commissions.

James Dwiggins [39:02]: “The industry is going to go through consolidation... rounding out the margins with additional services is going to be crucial.”

Emphasis on High Service Levels

For competitiveness, brokerages must offer high levels of service, leveraging technology and supportive systems to retain top-producing agents.

Keith Robinson [38:57]: “Be really high service where you're kind of taking care of everything...”

Conclusion and Action Items

The conversation wraps up with actionable advice for agents to "stay ready" by being prepared to act when interest rates drop, leveraging their sphere through personal calls, and maintaining consistent, relationship-based outreach.

Luke Acree [42:26]: “Stay ready. Watch the rates. When they drop, reach out to your sphere.”

Keith and James encourage agents to overcome their fears of rejection and embrace a persistent, proactive approach to client engagement.

James Dwiggins [16:39]: “This is just the human being, it's all a matter of...”

The hosts express their appreciation for the insights shared by James and Keith, encouraging listeners to connect with the NextHome team through their podcast and other channels.

Notable Quotes with Timestamps

• James Dwiggins [02:25]: “The funny part is we actually used the box together and we're very different shapes. So I'm very, very tall and half anorexic and Keith is not that.”

• Keith Robinson [06:32]: “I call 2025 the year of stay ready.”

• James Dwiggins [09:21]: “Just focus on your damn sphere and just talk to people in your sphere and just focus on that, you will get your unfair share.”

• Keith Robinson [11:34]: “Good agents mostly, in my experience, have really high emotional IQs. The downside is you're more rejection avoidant.”

• James Dwiggins [22:57]: “From a company standpoint... it's a race to the bottom where you have agents that are receiving a majority of the split.”

• Keith Robinson [38:57]: “Either offer great stuff and charge them for it or you've got to be high touch, high service... or low touch, high volume, low margin.”

This comprehensive summary encapsulates the key discussions, insights, and actionable strategies from the podcast episode, providing valuable takeaways for real estate agents aiming to overcome industry challenges and enhance their business practices.