What Makes Real Estate Companies Grow
When you get to the bottom of it all, real estate companies can grow one of two ways.
First, they can raise their head count. If we assume an average number of deals/agents - then the more real estate agents on your roster, the more real estate sales your real estate company will be a part of and the more commissions the company will receive. You can raise your head count by hiring more real estate agents or by buying other real estate companies. Sounds simple enough. Revenue is pegged to headcount.
Alternatively, a company can work to make ALL of their agents more effective. Remember that average number of deals per agent. Well, let's assume that the company doesn't want to hire more agents, just have their agents do more deals. The goal would be to raise that average. If your agents are doing 10 deals/year, on average, and you raise the average to 12, all else being equal, the office will make more money. By the way, so will the agents!
This somewhat assumes that the office is working on a classic split model - or does it?
Let me propose something radical. The best way to hire more agents is to have successful agents
at your office. If your company has a reputation of making agents successful, then agents will want to work for you! Then it doesn't matter if you're on a desk fee model or a split.
Broker/owners, just imagine - instead of having 25 agents who do $50MM in transactions/year. You only have 10 - and they do the same sales volume! Sounds easier to manage, doesn't it. Or even better. Imaging you had 25 agents, 10 of them did $50MM and get a better split, the other 15 do another $50MM. You win either way.
So, how do you get your agents to produce more. Well, this isn't rocket science. First, they need leads. They need buyers and sellers reaching out to them. The office needs to be noticed. You have to stand out from the other guys in town. Next, you need to give your agents the tools they need to close deals with those leads. I'm talking about lead management, I'm talking about online marketing, I'm talking about social media and a great real estate website to serve as the foundation for it all.
If all you do is work on hiring agents and you don't give them the tools to succeed, they will come and go. They will under perform. Agents thirst for support, they want leads, and they want a company that gives them both. Real Estate agents will stand by a company that helps them succeed. If the agent was making $50,000/year at their last company and is making $60,000/year at your company, they're likely to stick around.
Also, the agents in town will take notice. They'll see your brand and your agents involved in lots of sales, on dozens and hundreds of yard signs. The agents will want to work for your company because you have the best website and your site has the best search engine placement.
Our clients see it all the time. Agents today want to work with a company that gives them what they need. They want a brokerage that provides leads and promotes their services.
The result is simple. The broker wins, the agents win, everybody wins.
Related Links:
Posted on July 21, 2010 Filed Under Agent Recruiting, Lead Capture, Lead Generation, Real Estate Internet Marketing, Real Estate Lead Generation, Real Estate Marketing, Real Estate SEO, Real Estate Search Engine Marketing, Real Estate Software, Real Estate Web Design, Real Estate Website Design, Real Estate Websites, SEO Strategy, Search Engine Marketing, Social Media, Wordpress Blog Leave a Comment
Comments
Leave a Reply