Resource Centre

Get free tools & tips
Get updates on the latest tools, tips, technology, industry news & trends delivered free to your inbox.
Subscribe to Express Agent News.

Tell a colleague about us
Want to tell a colleague about us? Simply supply their email address below.

Who else uses Express Commission?

In September 2010 Express Commission provides commission advance s to leading residential, commercial, and industrial real estate agencies and business brokers across Australia.

Our clients are based in every state of Australia and include both independent agencies and members of Australia’s most successful real estate groups including:

• Barry Plant
• Biggin & Scott
• Brock Harcourts
• Century 21 
• Coldwell Banker
• First National
• Harcourts
• Elders    
• Hocking Stuart
• irean independent agency network
• LJ Hooker
• Laing & Simmons
• Professionals
• Pro-Active Real Estate
• PRD Nationwide
• Raine & Horne
• Ray White
• Realway
• Re/ MAX
• Richardson & Wrench
• Stockdale & Leggo

Selected article shown below. See all articles for this issue.

Agent Planning

It's That Time Again: How to Get Your Agents to Love Business Planning

What do you want to bet that 95% of real estate agents won’t have a business plan for 2010. But, wouldn’t it be awesome if could reverse that percentage? Here are some steps that will work for you. I know, because I got 95% of the agents in my real estate offices not only to create plans, but to actually look at them throughout the year. Here’s how.
 

Take Away Commitment Phobia

It’s estimated we are told ‘no’ 148,000 times prior to age eighteen. No wonder we don’t want to commit to try anything! I know from teaching adults to play the piano, that adults are conditioned not to try anything new for fear of not being perfect. To many, writing a business plan means planning to fail, and then getting punished for it. So, the first time you introduce business planning, take away the old downside of goal setting and help your agents move in incremental steps forward, a step at a time, with lots of positive reinforcement along the way. You have to create a safe haven for first-time planners.
 

Eat the Elephant a Bite at a Time

One of the agents in an office where I just did a small group coaching series told me he put a picture of an elephant on the wall, and then literally divided the elephant into bite-sized pieces, with an action step listed on each bite. What a wonderful visual! For many of your agents, planning is just the most overwhelming process they could envision. So, simply start with one or two areas. Personally, I start with 2-3 areas in the Review.
 

What to review
 
My favorite is listings taken to listings sold in normal market time. You would think agents know this statistic, but very few do. It’s so important, because it:

a.      Determines whether the agent makes enough money per listing or not
b.      Determines whether the agent builds a positive reputation or a poor one
c.      Reflects the agent’s value-proposition strategy
d.      Reflects on the office’s productivity and profitability

Your success rate with listings sold is, in my opinion, the one most important reflection of agent value propositions out there.
 
For example:  George Smith, a 10-year seasoned agent, has demonstrated a consistent listing strategy.  George’s ‘success ratio’ is 40%. That is, he sells 40% of his listings in normal market time. What does that say about George’s values proposition strategy? How is George ‘using’ his listings?
 
Sally Overton has a different value proposition strategy. She has a 90% success ratio in listings taken to listings sold in normal market time. Obviously, she is building her referral system—her raving fans. She is making herself more money in less time. She is drastically reducing the number of complaints (and attacks on her self-esteem, too). She is a role model for best practices in her real estate office.
 
Your opportunity: As George’s business planning consultant, you’ll be ‘testing’ George to see if he wants to change his strategy (some agents love being ‘bait and switchers’ too much to change). You’ll have the opportunity to help Sally leverage her awesome conversion rates to obtain even more raving fans. (Nothing succeeds like success).
 
Make it Really, Really Easy to Start
 Have a great business planning process to provide your agents. (Never just ask them to make a business plan, because you’ll get all kinds of formats). Don’t overwhelm your agents with too many planning pages to start. Customize your package with each agent. If you can get each agent to look at 1-3 areas of his business, and plan change strategies for a better year in that area, you’ll have started the process—a process that will continue, grow, and reap big benefits by year three. 
 

by Carla Cross

Carla Cross, is an author of the only internationally published book for real estate agents on business planning.

Do you have any feedback on this article or ideas for a topic that you would like us to cover in future editions?

Email us at admin@expresscommission.com.au