Council of Real Estate Brokerage Managers

What Do Your Agents Want?

2008-06-27T17:00:00.007-05:00

Pretty simple question really. What do your agents want? Hmmm? Have you thought about it. It isn't an unreasonable question, or a hard question - it's just a question that deserves and begs an answer. However the industry norm is for us to design one-size-fits-all offices that will service the masses. Sometimes we even attend a conference, a class or network with peers and collectively copy each others best practices not even taking into consideration that the best practice might or might not fit your agents, retention plan, company culture, recruiting strategy or overall profitability of your firm. Over the years I have spoken to so many failing brokers that chose to "do it their way" caught up on the wind of a new idea or practice of another.

Back to our question....what do your agents want?

Over the last week there has been much dialogue on this topic on the real estate blogs. Especially one blog and subsequent post that was authored by Teresa Boardman, a Keller Williams associate broker in the Twin Cities. Teresa received numerous comments and feedback from agents and brokers all over the country. This week she updated the blog with another post in which she states exactly what she is looking for in a brokerage. Both posts give considerable insight into the mind and emotions of a typical agent. Not to say that Teresa is "typical" as she is an independent thinking, tech-savvy agent who operates remotely from the office. Take a few moments to visit the AgentGenius blog and her first and second posts by clicking on the highlighted words (active links).

After reading the posts you might find that you do not agree with Teresa, yet again, perhaps there are several points you do agree with or that might you have an "aha" moment. How would you know what your agents want?? Do they tell you?? Are they demanding?? Do they put a slip in the proverbial suggestion box?? "Well, Jonathan, I'm a broker that is "in tune" with what my agents want?" Oh really? Unless your office is bugged, you have several internal "moles" or hidden webcams in the ceiling - chances are that you don't know that you have some disgruntled, disappointed and disillusioned agents in your midst.

Here's another question.....when was the last time you asked them what they wanted? I know, you're most likely afraid to ask it, aren't you? Perhaps you're afraid that you'll open a can of worms or Pandora's box? Just how could you accomplish this?

There are many ways, but here are just a few:

1. An Internal Survey

2. Agent Focus Groups

3. Virtual Suggestion Box

An internal survey is easy enough. Just send out a 10 to 20 question survey on an annual basis to your agents. Ask about training, staff, culture, atmosphere, responsiveness, policies, procedures, equipment, marketing.....any number of things, but remember to keep it short and sweet. You can deliver this through an online service such as SurveyMonkey or Zoomerang.

Have you ever attended a focus group or have you been called on to give your comments or responses to a user-group? 1000's of companies worldwide utilize external and internal focus groups to design marketing plans, products, systems and strategic plans. Yet focus groups are rarely mentioned in real estate environs. Take a cue from the Fortune 500 who wont make a major decision without the needed research. Your office should be no different. Focus groups are just that.....groups focused....on a particular idea, area of consideration, plan, etc. You want their feedback, you need the research. Host such a group of selected members or several groups selected by interests, talent, specialty or production. I've utilized this method for every major marketing or product decision that I faced while running a multi-billion dollar real estate firm. Agents want to tell you, they want their voice heard and it speaks volumes about your culture if you just pose the question and provide the process to give them voice.

Create a virtual suggestion box. How?? I'm sure you have email, right? Just set up another email account at yourcompany.com. Perhaps name it: creativeideas, winningsuggestions or agentsspeak. Announce the creation of the virtual suggestion box at a company sales meeting, by email and by memo (remember it take at least three to five touches). Please remember to tell everyone that this is a complaint box, gripe box, soap box, etc. This is for positive feedback and ideas. If they have a gripe or complaint they can present that in person. Don't be upset if agents don't bombard you with emailed suggestions. In fact, you'll get very few, however you've done something that will impact the culture of your organization. Even if you never get one suggestion, you've provided the agents with a system to tell you what they want. They will realize this - especially if you keep the system in front of them and don't sweep it under the carpet.

In closing, a qualified consultant can help you with all of these methods. By using a consultant you'll elicit a more objective, forthright response from your organization. Agents will say things to a third party that they wouldn't say to your face. Consider utilizing the services of a professional if you'd really like to get inside the minds of your agents.

Managers: What do Agents Owe You?

2008-06-26T18:46:00.001-05:00

We read article after article about how to attract and keep agents. We learn how to do recruiting presentations that we hope are mesmerizing to our candidates—so mesmerizing that they’ll say yes when we offer them a position in our company. We hone our skills so we’re better managers, trainers, and coaches. We worry about retention, and spend thousands of dollars a year just to attend workshops on retention techniques. We spend thousands of dollars on retention! So, I’m going to turn the tables, and ask, what do those agents owe to you?

You work hard. If you’re an owner, you’ve also put thousands and thousands of your dollars at risk to start and run your real estate company. It’s my opinion that agents owe you in certain ways. I’m not talking about commissions. I’m talking about actions.

Mutual Expectations Exchanged in the Interview

The real estate industry is the only industry I know that hires with a “trust me” from both the manager and the agent. No mutual expectations here, just promises! It may have worked in the past, but it won’t work in the future. A challenging market means we’ll have to do things differently. Right now, make a list of what you expect—and have a right to expect—from an agent. Draw up a Mutual Expectations agreement. Go over that agreement in the interview. Get it signed. Doing it after you’ve hired the agent is way too late!

Consequences of the Mutual Expectations Agreement

Worried about retention? This is one of the best retention tools in the world—hiring agents who promise to go to work! Your experienced agents will love the fact that you’re not hiring dead-wood to just get in their way and pull down the reputation of the company. Your new agents will get right to work, because they understand that is the expectation. Will you miss hiring a few people? Sure--the ones that didn’t intend to go to work.

Doing My Best to Help you Out

Last year, Dearborn Publishing Company published my third edition of Up and Running in 30 Days, the business start-up plan for the new agent. I’ve added as much management support in it as I possibly can, including a Mutual Expectations agreement that is tied to the Up and Running 4-week business start-up plan. This plan expects a lot from the new agent, but I know, from my surveys, that the new agent expects a lot—fast—from the business! (That’s why it’s such an aggressive ‘get out there and run’ program—perfect for a challenging market, too). I thought you’d enjoy reading my take on what new agents should contribute to their manager (and their office):

Ten Commandments to Get the Best from your Manager

Do the work.
Don’t argue.
Don’t make excuses.
Don’t tell the manager you’ve been in the business two weeks and you have a better way.
Do thank your manager.
Do tell other agents that you appreciate your manager’s efforts.
Do tell other new agents you meet in other companies that you have a great manager.
Don’t bug other people in the office to find another answer because you didn’t like your manager’s answer.
Don’t change the program because you don’t like it.
Don’t miss a coaching appointment!

I’d love to hear what you think of my ‘ten commandments.’ Are there others you think are important? Why not make your own ten commandments and discuss them in your interview process. Then, turn the tables and ask the agent about his expectations of you and the office. Getting agreement on what we both expect before we decide to work together is key to a happy partnership. The only surprises I want you and your agent to have after you start working together are good ones!

Carla Cross, CRB, MA, is president of Carla Cross Seminars, Inc. and Carla Cross Coaching, specializing in real estate sales and management. Cross, an international speaker and coach, is the author of 6 internationally published books, 20 productivity programs, and is a winner of the National Association of Realtors’ National Educator of the Year award. Contact her at www.carlacross.com or 425-392-6914.

Technology, It Does Your Schedule Good!

2008-06-19T13:21:00.007-05:00

OK first, I apologize to the Milk people for using a variation on their famous campaign. Secondly, WAIT A MINUTE! Technology?? Even though technology and REALTOR have shared the same sentences since the 80's, it was never good! We'll, most of the time is hasn't been so. Now remember, it wasn't too long ago that we thought the sky was falling and technology would be putting us out of business. Just like the day the fax machine was first delivered to my office in 1988. Though some still pontificate the possibilities of it destroying our existence. I digress....

So here goes....technology can do much good for your business if it is utilized as a tool to make you more productive, efficient and balanced. Now there's a paradigm that should be embraced. Technology can either crowd out things that matter by consuming your time, or it can be harnessed. Question is who has the control? Technology or you??

Here's a tool that I'm completely sold on: Jott. If you've not experienced Jott, you're in for a treat, but the real question with any new technology is how to implement it into your routine to actually make you better at what you do. It is easy with Jott. I've shared this little jewel for over a year now in classes, seminars and with clients. Go to http://www.jott.com/ to find out all you need to know. For the purposes of this post I thought I'd share a few of my favorite uses.

If you've ever known a REALTOR who drives with one knee, drinks their coffee and text messages all at the same time while careening down the highway at 70 miles an hour - then you've probably met my wife. (sorry Dee) And yes, in the interest of full disclosure - I'm guilty too. Jott is so perfect for this scenario. Just call 1-866-JOTT-123. The voice says, "Who do you want to Jott?" You answer, "Agents!" Jott then confirms you said agents....then you hear a beep. Go ahead, don't be shy....send a message to your agents. Something like....."Hello everyone! At tomorrow's sales meeting we'll be sharing with you our new minimum standards program. Plan on being there early as I'm sure we'll have a packed house." Within moments, all of your agents will get a text message and email referring to a message from you. The voice message will be transcribed into text for all your agents to read, and there will even be a link in the message that will allow the agent to hear you in your own voice. Wow....that saved some time. Now, as an aside, I really do think you should talk to them about Minimum Standards at the next meeting. See Carla's earlier post on the subject. If you leave them that exact message through Jott....I promise a full house. Just in case, you might want to have security present at the meeting as well.

But WAIT, there's more! With Jott you can create groups of people like: potential recruits, vendors, agents, sellers, buyers, past clients, friends, family, soccer club, etc. You can now communicate with all of them with one message, or you can send individual messages one-by-one to people in your contact list. Jott also provides with the ability to have departmentalized lists. For instance a to-do list for business, home, assistant, etc. You can Jott yourself reminders to each of those lists for future follow-up. With a headset, traffic and your starbucks in hand -Jott can keep your insurance bills down too! (This statement has not been endorsed or reviewed by the management of Jott or your insurance agent.)

The latest and greatest from the fine folks at Jott is the ability to add "feeds" to your account. So now I can subscribe through "feeds" (think RSS for the bloggers out there) to my favorite information, blogs, websites, news, weather, etc. While I'm driving to the office I can have Jott read me all of the updates that I choose to subscribe to. No more mind-numbing moments in front of the computer reading every one's blogs, updates, twitter, etc. Better yet, if you are a blogger like me, you'll find that you can dictate your entire post to Jott and it will magically appear anywhere you direct it to post to like: facebook, twitter, blogger, wordpress and many more.

Enough said, I think I've proven that this can be a great tool. Give it a try and let me know what you think. Think of all the uses like: recruiting, office announcements, to-do lists, reminders, praising agents, etc. Now go forth and implement....uh, er....Jott!

Agents: What Do You Owe the Company?

2008-06-16T14:27:00.003-05:00

I’m not talking about the commission splits. I’m talking about a much more significant contribution. You’re a new member of your organization. Has the organization asked anything of you? It should, if there is pride in belonging to the organization. Surprisingly, though, today many companies either have no standards or don’t communicate to their associates that there is a fairness issue—an exchange of responsibilities and accountability so the company and all its associates are better from the affiliation of the newest associate.

Mutual Expectations Exchanged in the Interview

My Take on What Agents Should Contribute to the ‘Team’ and to the Manager

Last year, Dearborn Publishing Company published my third edition of Up and Running in 30 Days, the business start-up plan for the new agent. I’ve added as much management support in it as I possibly can, including a Mutual Expectations agreement that is tied to the Up and Running 4-week business start-up plan. This plan expects a lot from the new agent, but I know, from my surveys, that the new agent expects a lot—fast—from the business! (That’s why it’s such an aggressive ‘get out there and run’ program—perfect for a challenging market, too). I thought you’d enjoy reading my take on what new agents should contribute to their manager (and their office):

Ten Commandments to Get the Best from your Manager

1. Do the work.

2. Don’t argue.

3. Don’t make excuses.

4. Don’t tell the manager you’ve been in the business two weeks and you have a better way.

5. Do thank your manager.

6. Do tell other agents that you appreciate your manager’s efforts.

7. Do tell other new agents you meet in other companies that you have a great manager.

8. Don’t bug other people in the office to find another answer because you didn’t like your manager’s answer.

9. Don’t change the program because you don’t like it.

10. Don’t miss a coaching appointment!

I’d love to hear what you think of my ‘ten commandments.’ Are there others you think are important? Agents: What do you think the company should expect as your contribution to the betterment of everyone? What should the manager expect from you?

Let me know! I’m working with companies internationally now to help them create pride in association, standards of practice, and the kind of performance expectations and measurements that have clients jostling to be served from ‘one of the best’.

Successful Companies Do It, So Why Don’t Managers Lead with Standards?

2008-06-16T14:20:00.005-05:00

In these challenging markets, much of my work has been with management teams, designing actins that move their offices into profitability. I’ve identified three strategies that managers are failing to implement that cause them to go into the red. The most glaring mistake I see managers making is that they don’t have performance standards in place for their offices. What are performance standards?

Minimum production standards

How well (competency) one performs certain tasks

Do You Know Any Great Companies—of Any Type--Without Standards?

It constantly amazes me that real estate companies don’t have production standards. Would you buy a car from a car maker that didn’t have pretty high production standards for how they constructed that car—and how they service it? Of course not. Would you buy a home from a builder who had just thrown the home together with little regard to production standards (that would be very low standards)? Of course not. Would you buy a home from an agent who was a lousy agent? Of course not.

Three Reasons Companies Need Production Standards

It’s a recruiting magnet (who doesn’t want to be with the best?)
It’s a production incentive (who doesn’t want to stay with the best?)
It’s a performance enhancer (we all do better when we’re around better performers)

Would You Join a Real Estate Company that had Lousy Agents?

Only if you were a poor agent! Likes attract, and good agents know they will do better with other good agents. Good agents are attracted to a company that’s ‘picky’—that doesn’t just take or keep just anybody. Think of the recruiting opportunities companies miss because they don’t have production standards in place……

Pride of Belonging to Something Exceptional

Think of an association, family, business, club—that you were proud to belong to? Did that entity have low or high standards? High standards, of course. Not only do you have pride of belonging, you know that you must maintain those standards to maintain membership!

Question of the day: If Production Standards Have all These Benefits, Why Don’t Companies Embrace Them?

What do you think? Email me and let me know. From my coaching leadership, I’ve found that leaders

Don’t understand the power of standards
Think they actually have standards (when they don’t)
Are afraid of setting standards

From taking over 2 failing real estate offices and one floundering region for one of the world’s biggest real estate franchises (and turning all of them around), I know the steps it takes to turn a red bottom line into a very healthy black one. Let me know your feedback about standards, so we can help the industry put pride of ownership and pride of performance back into our industry.

The Secret Component of Highest Productivity

2008-05-29T11:38:00.002-05:00

A few months ago, I was a speaker again at the NAR 2007 convention. (I think that was my 16th year!) I talked about the four components of ‘new’ leadership. Why is switching leadership style so important? The world has changed, and, if you’re an agent or a manager, you need to lead effectively in all situations (lead your clients, lead your fellow agents, lead your team). And, there’s one style component that has a huge impact on both culture and productivity, yet few of us realize it:

1. Standards-driven organization: In almost every presentation I do for leadership, I ask attendees if they have productivity standards (minimum expectations) in their companies. Out of 200 attendees, about three will raise their hands. No wonder agents don’t believe they must be ‘on the team’, pulling their own weight in production. No wonder managers are wondering how to get their agents to go to work. No wonder there are challenges recruiting and retaining! No wonder agents are having great challenges attempting to get their buyers’ agents to pull their load. And, no wonder agents are wasting time with buyers who won’t buy and sellers who overprice!

How to Assure no One will Work very Hard

Having no standards de-motivates. In a recent study by The Ripple Effective of Negativity Leadership IQ, 87% of the 70,305 executives, managers, and employees interviewed said working with a slacker actually made them want to change jobs; 93% said it hampered their development or decreased their productivity. So, without standards, real estate leaders are de-motivating their good performers!

Here’s what Roy Disney says about effective leadership, from the New Leadership Paradigm:

Leadership is the ability to establish standards and manage a creative climate where people are self-motivated toward the mastery of long-term constructive goals in a participatory environment of mutual respect compatible with personal values.

There are many theme parks, but they aren’t Disney. What is the difference? One huge difference, and you know this if you’ve visited various theme parks, is that Disney has high standards.

Agents: What would it mean to your time management and bottom line if you had high standards for your clients? (Studies show that top producers qualify carefully and ‘tell the truth attractively’ to both buyers and sellers, so they don’t waste anyone’s time).

Agents: See my new for 2008 program, On Track to Success in 30 Days System for Experienced Agents. It has a 30 day program with standards that assure your success.

Managers: See the coaching system for On Track to Success, Managers' On Track to Success Coaching for Experienced Agents. I’ve given you dozens of tips on how to create standards and hold agents accountable to standards and goals.

Real Life has Standards

A few months ago, I hired a personal fitness trainer. Do you think she has standards? You betcha. Are they higher than I would like to exert myself? You betcha. Is this making me more fit? Right again. It’s true any time we get coached. Our coach always urges us to do more than we would be willing to do on our own. So, we get better faster.

High Standards has a Positive Message

Working with people with high standards sends a message to each one of us:

You’re worth it. You can do it. I believe in you.

Obviously, you would not be working with that leader if that leader didn’t think you ‘had it’, would you? That belief drives us to do much better than we thought we could do. It’s inspiring. And, in this challenging real estate market, we need all the inspiration we can get! So, we’re all in leadership, whether it’s with our clients, with other agents on our team, as a manager, or as a parent. Setting standards and encouraging meeting them is the greatest gift you can give to someone—or can give yourself.

Experienced Agents: From ‘On Accident’ to Successfully ‘On Purpose’ in Challenging Markets

2008-05-29T11:34:00.002-05:00

If you’re an experienced agent, you may have gotten the shock of your life this year: Instead of selling homes like hotcakes, you’re slumping like watery syrup drifting off pancakes! I know why: The hot market brought you sales ‘accidents’, and you capably help those people buy and sell. But, in a challenging market, people don’t just ‘turn themselves in’. It’s time for you to get ‘on purpose’.

Do you have the ammunition to change from ‘on accident’ to ‘on purpose? Here are 10 questions that will reveal whether you have the plan and the support to pull yourself out of that slump and provide yourself the insurance plan that allows you to thrive—no matter the market:

1. Do I have a ‘start-up’ plan—a plan that tells me what to do, when to do it, how to do it, and why to do it? (Or, do I just come to the office and ‘go with the flow’)

2. Am I waiting for someone to tell me what to do each day, or do I have focus and purpose with my plan? (it doesn’t work to ask your manager what to do each day, and, as a newer agent just told me, your manager answers, “Mail some postcards.” You wouldn’t expect a Starbucks franchise to ‘guide’ the new franchisee that way, and you’re not going to get a business start with that kind of piecemeal ‘advice’!)

3. Do I have a daily schedule that is prioritized with the business actions most important to me to assure I make money? (If you’re just relying on your office for its floor time and meeting schedule, you aren’t in the business!)

4. Do I know the best methods of lead generation—and how to implement them? (You can’t wait for ‘training’ that starts in 3 months to start your business!)

5. Do I know the numbers? (how many contacts does it take to get a lead, how many leads to get an appointment, how many appointments to get a listing, showing, how many showings to get a sale, how many marketable listings will sell) (If you don’t, you are destined to be an ‘on accident’ agent—only selling someone something when the stars are aligned).

6. Do I know how long it will take to get a sale? To get a listing? To get a listing sold? (so you can project your income) (New agents tend to wait, and wait, and wait, to get into the business ‘stream’, thinking that there is no time frame to buyers’ decisions—wrong!)

7. Do I have a method of setting goals and tracking accomplishments in the areas above—so I can analyze my specific strengths and challenges in this business? (Most agents never track what they do, so they don’t know what worked—or why what they’re doing isn’t working).

8. Do I have a budget so I know how much money I should be spending in marketing myself/marketing my listings?

9. Do I have someone to talk to regularly, to coach me, to keep me on track, and to help me if I fall off my start-up plan (to keep me from failing)?

10. Do I have a method to keep myself motivated and inspired to keep on keeping on (like a coach or your manager)?

If you can’t answer the questions above with authority and confidence, you need much more business direction than you’re getting now. It’s time for you to get serious about real estate as a business, and grasp a start-up plan and the support you need to assure your success.

Resource: See Up and Running in 30 Days, www.carlacross.com. It’s a comprehensive new agent start-up plan with enough training to get you into the field, and focused, starting with your first week in the business. It answers all the questions above. Most people would call it a ‘business plan’, but it’s not. It’s specially created as the appropriate ‘start-up plan’ for the new agent, just as all successful franchises provide their start-up plans for their new franchisees.

Managers: My survey of hundreds of agents under 3 months in the business showed that the majority expected a sale their first month in the business. Guess in what month they are mentally and emotionally out of the business? Month two.

Especially in a challenging market, it’s your job to provide them a comprehensive start-up plan and coach them to it, to assure your investment in them pays off—and their investments in themselves pay off, too.

Seasoned but Stuck: How to Get your ‘Mature’ Business Back to ‘Monster’ Status

2008-05-21T12:23:00.001-05:00

Excerpted from the new On Track to Success in 30 Days System for Experienced Agents, Carla Cross Seminars, Inc.

If you have been in the business for over five or eight years, chances are you are acting like a 'mature' agent. You are getting most of your business from repeat and referrals. You have built up a strong enough business that you do most of your business based on pre-built trust and confidence. You are admired in your office (and perhaps your whole company) for your leadership and mentorship.

The challenges of the ‘mature’ agent. Because the mature agent gets most of her business from referrals, she may not be prepared to compete against more aggressive agents—or agents trained with the latest presentation methods. This happened with one of my mature agents, Martha. She was referred to George and Betty Smith, who wanted to sell their home. But, George and Betty also were referred to John Schlock, of ABC Realty.

Martha knows John Schlock, and she thinks his last name is appropriate…... Of course, though, she can not say this to George and Betty. Martha's in kind of a bind here. She relies on word-of-mouth for her business, and she relies on this word-of-mouth building her credibility to the point where she has no need to build it herself. This works fine when she is not competing with another agent, and the sellers already think she is the best thing since sliced bread. It does not work so well when she is competing with another agent—especially one who will tell the client whatever they want to hear!

Martha relies solely on her ‘known’ reputation. Martha has no testimonials in writing, no Professional Portfolio, no visual marketing presentation, and no statistics systematized to teach George and Betty the principles of how real estate works. Why not? Because, Martha does not need these credibility-builders very often, like those newer agents need. And, when she does, it is too late to create them.

This ‘mature business’ attitude results in lost listings or over-priced listings. This makes Martha mad, but, to do anything about it, Martha would have to admit she needs to quit acting like a 'mature' agent and push herself back into the growth phase. Just like Taurus, she needs to 're-tool' herself. You, dear reader, may be like Martha. Congratulations on taking the risk to even look at your business today. Many ‘Marthas’ in real estate are just waiting out the inevitable--their descent into decline.

What to be aware of if you are in the 'mature' career phase. With real estate practice changing so dramatically--so fast--I think, for companies, offices, managers, and agents, this 'mature' phase is the most dangerous. The danger of lulling ourselves into complacency in our 'mature phase' is that, without our knowing it, we have slipped into decline. So, to find out if you are in the mature phase, ask yourself:

Am I relying almost solely on old customers and clients to send me referrals? (and am I waiting for them?)
Am I relying almost solely on my reputation to list properties at the right price?
Am I losing listings, or pricing them too high, when I do not have strong enough credibility with sellers?
Am I resisting putting my credibility statements in writing (and/or my marketing program) because I rarely need to establish my credibility?
Have I introduced a new business practice into my business in the last two years?
Have I looked at my business as though I was a new agent--in the last two years?
What is my attitude about technology? Am I waiting for it to 'go away'?
If I had to sell my business tomorrow, could I? (Do I have the systems in place that someone could take over? Do I have my database in top condition? Do I have all my marketing programs running at full speed?)

The Mature Agent’s Need? Re-generation and Motivation*

How does someone re-generate oneself and motivate oneself again? For the mature agent, it is putting those talents and skills to work for others. You need appreciation and compliments. You need to know you are needed. You need to know you are making a difference. Consider teaching and coaching others, taking part in Realtor® events, gaining a leadership role in your company. It is time for you to flex those dormant leadership skills, which will re-energize you and your career.

*For more tips on re-energizing your career, see the new On Track to Success in 30 Days System for Experienced Agents, which includes a 4-week re-generation plan for dramatically increasing your business.

The Ten Dumbest Things New Agents Do

2008-05-07T16:30:00.000-05:00

We all want success easily. We all want to ‘do it our way’. And, if we’re honest, in our quest for easy success, we’ll all done dumb things. That is, we realized they were dumb—after the fact. So, just because I’m picking on new agents here doesn’t mean I haven’t done many more than just ten dumb things! I’m listing these here, though, to help you avoid the mistakes I made as a new agent, and the mistakes I’ve observed thousands of new agents make over the years I’ve managed, trained and coached.

Some dumb actions don’t cost us much, but, when an agent fails, it costs money to everyone—agents, offices, and consumers. It’s estimated that it costs a manager $15,000-30,000 for every agent hired who fails! So, that agent isn’t a profit-center, she’s a cost center! In addition, an agent who fails spends at least $5000-15,000 just in ‘subsidized living’ and real estate expenses the first three months in the business. Finally, the consumer loses, because the agent is out of the business before serving the consumer.

Heads Up

New agents don’t come into the business to fail. But, they don’t realize the effort and skill it takes to succeed. In addition, there are increasingly difficult challenges for new agents:

The gap between consumer expectations and agent performance is widening quickly and dramatically. New agents must have better training, coaching, and commitment from their brokers.
The market in most areas has become more challenging, so new agents can’t get those ‘easy sales’.
The committed, career-oriented agent is taking much more of the market share.

It’s estimated that 50% of new agents fail and get out of the business in their first year, and 75% are out in two years. That seems to me a huge waste of resources—and a huge contributor to that expectations gap I listed above. We need to stop that attrition now. So, new agents, here are the ten dumb things I’ve seen thousands do to fail themselves right out of the business:

Thinking that there are lots of ways to start the business. There aren’t. Real estate sales is sales, and sales is a numbers game.
Thinking they don’t have to lead generate, because they’ll “do it differently.” Don’t talk to people consistently and in great numbers and you’ll be flipping burgers before you know it! (Not that there is anything wrong in flipping burgers, but you won’t be “selling real estate”.
Thinking that their manager or office or the Internet will supply them leads. If that were the case, your commissions would be much smaller.
Thinking that this business is about tasks and technology. It’s not. It’s about people relationships.
Treating the business like a ‘next’ business. It’s not about finding and selling a customer. It’s about finding and keeping the customer for long-term referral business.
Starting the business part-time, with no ‘drop dead’ exit plan from your other work. I know. I started part-time, but, within three months, I realized that I could not serve my consumer honestly when I had to run to another job. The truth is that you just don’t care much about the consumer if you’re not committed and working a real estate at least 50 hours a week. If you have to start part-time, give yourself a deadline to become full-time. Managers, don’t hire without that dead-line in writing. You’ll be wasting your time training and coaching.
Not getting a commitment from your manager that he/she will consistently and frequently coach you to a game plan. If your manager can’t rise to that level of commitment, how successful to you think your manager intends you to be? (Side note to managers: I believe you need to be 100% committed to your agents, or else the likelihood they will fail is 100%. Use a precise, consistent, proven game plan like the 3^rd edition of Up and Running in 30 Days to put your agent to work, and coach your agent with Managers: Putting Up and Running to Work, now in its 3^rd edition to match the new, expanded agent’s start-up plan.)
Thinking that the best commission plan is the best place to work. As the old song says, “Nothin’ from nothin’ is nothin’.” You need to sell lots of real estate—lots and lots of real estate. Choose the place where you think that will happen. New agents who figure out they only have to sell three homes a year to pay those fees are thinking like losers.
Not investing in the business until they ‘get successful’. When would that be? Why do you get to be successful without an investment? With that attitude, how are you going to compete with those great agents—and how are you going to meet those amazingly high consumer expectations?
Going into the business to see if they like it. I’ll bet 50% of new agents don’t really go into the business to make it a career. They go into the business to ‘try it out’. If that’s your attitude, how do you expect your manager and your company to be 100% committed to you, when you’re 25% committed?

A Great Manager Plus a Great Plan Plus Accountability = Success

Harsh words above, but true. If you want to succeed, find a great manager who will coach you and hold you to a start-up plan. Find a manager who will tell you the truth—even when you don’t want to hear it! Find a manager who is 100% committed to you, and you will be one of those 50% who survive their first years, and go on to great careers.

Carla Cross, CRB, MA, is president of Carla Cross Seminars, Inc. and Carla Cross Coaching, specializing in real estate sales and management. Cross, an international speaker and coach, is the author of 6 internationally published books, 10 productivity programs, and is a winner of the National Association of Realtors’ National Educator of the Year award. Contact her at www.carlacross.com or 425-392-6914.

Caution: Merger Ahead!

2008-04-30T20:07:00.005-05:00

The other day I was surfing the net (that is code for avoiding the things that really need to get done) and ran across the new Honda Coupe website www.why-merge.com. I have to admit that I was a little curious due to the title alone. Of course the website is a great Gen Y marketing tool and had a great irreverent undertone. After clicking through a couple of pages I began to think about the application to real estate - especially in today's market. Why merge? Interesting. Why would a company want to do that, not to mention - now?

What better time to concentrate on the subject at hand. We're obviously in a market that has caused broker/owners to consider why the heck they are in this business. Others are realizing that there really is a reason why they are called: BROKE-ER.

It's no secret that financial pressures are taking their toll on some organizations. Yet others are humming along still churning out single to double digit profits. Yes, their profits are down from historic highs, but through the proper financial planning they were prepared and are now surviving. Surviving in order to take advantage of this market by growing their operations. Fold-ins, acquisitions, mass-recruiting are all road signs of our industry, no matter where you're located.

No matter how many times I've broached this subject in a consulting meeting with a brokerage owner, I typically get these same excuses:

1. No one is for sale.

2. No one will talk to me.

3. It takes too much money.

4. It won't work in this market.

These are all myths that are unfounded and based upon a lack of knowledge of exactly how and exactly what to do in a merger/acquisition scenario. After all there is a great big unknown out there, sadly made larger than life by fear. Of all the mergers, acquisitions, fold-ins, buy-outs, exit strategies that I've been involved in or helped orchestrate as a consultant, I've only seen a handful require any substantial money upfront. No different than a seller carry-back mortgage, many brokerages are transferred under similar terms. Thereby providing a long-term income for the selling party. Of course, fold-ins typically require zero investment other than an override and attractive split for the broker/manager who is folding in their operation.

Reasons #1 and #2 above are easy to overcome. A couple of years ago I was consulting with a brokerage firm in the Ohio Valley. The owner was looking to grow her operation through recruiting alone and had never really thought about acquiring market share through an acquisition. After educating her on the merits of such a strategy, she gave me the old #1 and #2 and added a couple of other reasons why it wouldn't work. I asked her to move forward in blind faith. Here's what we did. First, write a letter to the offices that fit the acquisition profile: selling brokers, small Ma & Pa, rumored financial problems, agent unrest, tired management, etc. Let them know that you are excited about the prospects of the market and would love to entertain discussions about how we can accomplish more together than as individual companies. Go on to pay a compliment and let them know that you would welcome a conversation to explore opportunities to work together. Confidentiality assured, of course!

The Ohio Valley broker did just that the following week. She sent out a dozen letters in her small town - where no one would ever entertain selling out, and received 5 immediate responses that resulted in the acquisition of two local competitors. All as a result of a little 3 paragraph letter that took no more than 10 minutes to write. I guess some of the owners that gave me the excuses in the past were right. It really doesn't work.........if you don't try it.

Musings on Talent: Why We Lose it and How to Find it to Prosper

2008-04-20T23:57:00.002-05:00

As a lifelong musician, I’ve noticed that few adults realize the talents they have. So, I’d like to talk to you about your talents—and what you’re planning to do with them this year. No, it doesn’t matter if you’re an agent, a manager, or staff. We all have talents, those unique sets of gifts that somehow came together in one personality with your name on it. Now, don’t tell me you don’t have talents. Everyone does. Sometimes, they just don’t know it! Or, more often, they discount their gifts, not realizing how valuable and powerful they are.

Everyone teaches us something.

Once when lots of bad things had happened in my life, I read several books about why we were on earth, and what was the point to all this. One of the authors said we were here to teach others something. Having been the daughter of a teacher, and doing some teaching myself, that seemed a good way to look at it. As I decided to write this to you, I started thinking about what various people in my life had taught me. As you’re reading this, you’re thinking, probably, of those stand-out mentors you had in your life. It’s easy to see what they taught us. But, let’s think of some unlikely candidates.

My uncle Bud, for one.

Bud worked for my dad, never married, was an alcoholic—and a nice guy. He died when he was 45. So, what gifts did he have? What did he teach us? When Bud was a little boy, his teachers said he was dumb. Later on, it was discovered he wasn’t dumb. He just couldn’t see. So, Bud didn’t go to school much, and besides, his parents wanted him home to work on the farm. Bud drifted through life, working and drinking, and ended up in little Lebanon, Oregon, working for my dad.

Similar Physical Limitations, Different Outcome

My mother, who also had eye problems her whole life, started out much like Bud, unable to see well. But, her parents got her the best medical care available so she could do the best with the sight she had. Her parents encouraged her scholastics, so she was able to skip a whole school year that she’d missed because of her eye operations and go into second grade, barely skipping a beat.

Bud and my Mom—Great Teachers

Some people weren’t very nice to Bud. But, my mother felt great compassion and empathy because of their similar eye conditions. Every day Bud would have lunch with us, and I watched my mother interact with Bud, showing him respect, while others didn’t. That made me curious. I started to learn other things about Bud. Even though he had been teased and berated as a kid, (and later, too), I observed that he was kind and thoughtful to others. I also found out he was very musically talented. My mother’s interest and compassion in Bud showed me that everyone has unique, sometimes undiscovered talents. Sometimes their situations teach us what we need to learn, even in an oblique way. Watching Bud and my mother interact taught me to appreciate others’ struggles and find compassion for them, no matter their situations.

By our actions, we are teaching every day. Make it the best lessons.

I hope, by this time of year, you have written business plans, set your goals, and are prepared for an exceptional 2008. But, there’s much more to achievement that the ‘hard’ information. I wanted to have a different way of helping you create the best YOU there is! All you need to do is to develop those gifts, those talents--and have the confidence that you can do it. So, expand your scope a bit, and decide on the gifts and talents you are going to use next year to help others. That will provide the fire and enthusiasm you need to push yourself to that next step, to be the best, excellent you that you were really meant to be. Here’s to that YOU!

Carla Cross, CRB, MA, is president of Carla Cross Seminars, Inc. and Carla Cross Coaching, specializing in real estate sales and management—the people issues. Cross, an international speaker and coach, is the author of 6 internationally published books, 20 productivity programs, and is a winner of the National Association of Realtors’ National Educator of the Year award. Contact her at www.carlacross.com or 425-392-6914.

Investing in Yourself: What’s your Best Investment and What Should You Expect from It?

2008-04-09T14:08:00.001-05:00

Real estate agents are really in business for themselves. That means, as any business owner, they must invest in themselves. But what and how much? I’ve been pondering the relative investments companies and agents are willing to make in their successes. Unfortunately, many of the moneys and effort expended don’t seem to show any pay-off in sales or retention (more than 50% of new agents fail in their first year in the business, and I estimate that less than 10% of new agents make a sale in their first three months in the business). I’ve been asking myself:

What investment, if any, should the new agent make in himself? (Managers must be asking themselves, “If these failure rates are so high, does any investment make a difference?”)

What investment, if any, should a manager/company make in the new agent?

What investment is most important?

How would the new agent know that it’s worth the money?

I know that new agents and managers are given sales ‘spiels’ every day about how some technology or method is critical for the new agent. I want to ‘arm’ the new agent and the manager with some really tough questions to ask, and to answer honestly, before spending money on any method, technology, or service.

Tough Investment Questions

So, if you’re a new (under 1 year) agent, or a manager who hires new agents, I have some tough questions for you:

Why do you think most new agents fail?
What one thing would prevent this failure?
How much would you be willing to invest to avoid this failure?
Right now, which investment the company is making in new agents has a measurable pay-off in fast sales per agent? For retention of successful first year agents?
For any investment the company or manager makes: Can you measure the results? (If not, don’t invest in it)
Managers: How much is it worth to you to invest in a new agent to assure the agent makes a sale within three months? Within one month?
Managers: For agents who fail, how much money, effort, motivation, and team spirit did you lose? How much did it cost you in recruiting?

After you answer these questions, ask yourself: “If I were a McDonald’s franchise, what would be the one most important thing I would get from the franchise?” Answer: A start-up business plan with a systematic approach to building the business, coupled with strong, committed leadership to hold the franchisee accountable to the plan.

Bottom line: Investing in a start-up plan with high accountability (you can bet the McDonald’s consultants hold the new franchisee to a very high performance standard!) assures a much higher rate of success—and it’s measurable. Is it worth $100, $1000, or $3000 for you to avoid failure? It’s up to you to decide, and invest your dollars in the best method possible for you to assure business start-up success—fast enough that you stay motivated and inspired to handle the huge rejection and challenges new agents face.

Carla Cross, CRB, MA, is president of Carla Cross Seminars, Inc., and Carla Cross Coaching. Her 3^rd edition of Up and Running in 30 Days, the new agent’s start-up plan, is the only internationally published plan available to give new agents specific prioritized action plans to lead to a sale in 30 days. It’s coupled with the manager’s coaching companion, with dozens of tips on how to coach new agents to a fast sale. See them at www.carlacross.com, or contact her at 425-392-5914. Also, Carla speaks to real estate associations and companies internationally on increasing productivity.

Are you ‘Wringing your Clients Dry’ for Leads?

2008-03-26T17:02:00.000-05:00

We all love it when some seminar guru tells us we just have to take care of our present and past clients and we’ll get rich. The first part of that statement is true. We DO have to take care of our present and past clients, and that’s an important part of re-creating our business. And, the sad truth is, many real estate agents do a very poor job of that. So, we do start there.

Real Estate Agents May not have enough Clients to Get the Leads they Need

Here’s where the difficulty comes in. In many instances today, a real estate agent, even a seasoned one, does not have enough past clients to provide the necessary leads to grow his business in a challenging market. My experience, having been a top salesperson, and directly managing hundreds of salespeople, has taught me that the truth is in the numbers. You must have at least 100 active, identifiable past clients, in your up-to-date database, to drive your business upward. And, in some markets, that may not be enough.

Other Exceptional Sources of Leads for the Experienced Agent

In my new resource for the experienced agent, On Track to Success in 30 Days System for Experienced Agents, I’ve worked really hard to help experienced agents see where they’re ‘missing the boat’. Too many get stuck in a career rut. Or, they may put barriers in front of themselves that keep them from reaching that next career level. Besides helping them put their careers under a microscope to find solutions, I’ve also provided solutions that work in this challenging market.

In the new On Track, I have identified 5 sources of leads for you that most agents never think of. They are especially good for experienced agents, because you have been in the business and you have a wealth of knowledge and experience. Putting these sources of leads into your lead generation and marketing plans will dramatically increase your business. In this article, let’s talk about the first source, the ‘client orphans’.

In this article, we’ll explore how to contact the first course, the client ‘orphans’.

The Good and Bad News about those Orphans

What are client ‘orphans’? These are buyers and sellers who closed transactions with an agent in your office. The agent has left the business. Now, the client has no one to turn to. You can step into this breach. If you need business, and are willing to create and implement a marketing plan to reach out and communicate or time with these ignored people, you can ‘adopt’ them. Who is keeping in touch with those ‘orphaned’ buyers and sellers? No one.

Orphans May be Unhappy with the Company

Be aware, though, they may not be too accommodating when you first talk with them. They are disappointed that someone has not cared enough about their interests to keep in touch. (This is a great lesson to all of us. Never, ever, love ‘em and leave ‘em!).

Note: A recent survey showed that less than 1/3 of agents who closed transactions went back to the buyers and sellers they worked with AFTER the transaction closed. No wonder clients think we love them and leave them. We do!

How to ‘Adopt’ Those Orphans

When someone leaves your office, go to your manager and get a list of their 'orphaned' buyers and sellers. Call those people, and explain that the manager has asked you to keep in touch. They will be thankful and appreciative. You will gain another source of business, and the industry's image (and the company’s image) will be maintained--or raised.

Manager’s tip: Create a system to re-assign those orphaned buyers and sellers to an agent willing to form a relationship with them. If you do this regularly, you will save lots of marketing dollars (remember, it costs 6-9 times more to get a new customer), and you will increase your company’s reputation as a company who cares. Also, you will provide lead sources regularly for your agents.

Building your Business AND the Reputation of the Company and Industry

You and I both hate it when a client says the agent didn’t get back to them or keep in touch. Many times, that’s because the agent was either an uncommitted part-timer or out of the business. By adopting client orphans, you can prove that real estate agents care more than just a commission. This not only raises your image, but the image of your company and of the industry. Plus, it provides you another source of ‘leads’ who learn to love you.

What Mode are Your Agents In?

2008-03-26T13:18:00.001-05:00

Noted author and speaker Seth Godin posted the following on his blog today:

“You can have grand visions for remodeling your house or getting in shape, but if there's a fire in the kitchen, you drop everything and put it out. What choice do you have? The problem, of course, is that most organizations are on fire, most of the time.”

An interesting point that Godin brings up, and for many real estate professionals and agencies the statement is true. Yet, most agents tend to spend the bulk of their time thinking about what they’re going to do, and telling their selves the market is going to turn around soon, then I’ll get busy with my real estate plans. The reality is, there’s a fire in your kitchen, and you need to put the fire out now! Case in point, my own business www.RealEstateSalesMeetings.com is a new venture I started where I provide weekly sales meetings, audio interviews and more to brokers around the country. One way I thought to help build my business was through blogging, podcasting, and other free promotional ventures on the World Wide Web. I started out in full speed, posting, recording, adding new twists and turns everyday through these “free” electronic mediums. The results were amazing, but like most normal business professionals I began to pile more “to do’s” on my plate, allowed myself to be pulled into other directions, and the fire which was once under control and remodeling that was off to a “great” start quickly died. I lost my focus and my sense of urgency to continue with my task at hand.

So I have two options with my new business venture:

1. Tell myself that the plans and drawings for my newly remodeled kitchen will be awesome, “someday.”
2. Fix it!

As real estate professionals if you want to succeed, you must always be in mode #2, (fix it). Telling yourself what the outcome will be like is okay, if you’re busy and hard at work fixing it, however if you’re just sitting there dreaming and thinking about it, the project will never get finished. Listen to how Seth Godin finishes his blog on this subject of “Managing Urgencies,” and follow his advice:

“Add up enough urgencies and you don't get a fire, you get a career. A career putting out fires never leads to the goal you had in mind all along.
I guess the trick is to make the long term items even more urgent than today's emergencies. Break them into steps and give them deadlines. Measure your people on what they did today in support of where you need to be next month.
If you work in an urgent-only culture, the only solution is to make the right things urgent.”

To read Godin’s entire blog, click here!