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.

by David

Posted on July 21, 2010 Filed Under Real Esate Marketing, Real Estate SEO, Real Estate Software, Real Estate Web Design, Real Estate Website, Real Estate Website Design, Real Estate lead generation, Strategy, Wordpress, agent recruiting, lead generation, leads, real estate, real estate internet marketing | Leave a Comment

LogicClassroom Session 1 – Online Lead Generation for Real Estate Agents and Brokers

We had a number of attendees both on the phone and in our office for our first LogicClassroom!  This session was an overview of the fundamental principles involved in online lead generation for real estate brokers and agents. Our future classes will delve further into many of the topics we touched upon.

But don't worry if you missed the first session. We'll make sure that you're not left behind. When we start each LogicClassroom, we'll be careful to start with the basics and then get to the good stuff. Also, below you can find the presentation that I gave. Enjoy!

Our next LogicClassroom will be on 12/8. Learn how to turn a blog into a traffic and lead generating machine!

by David

Posted on November 12, 2009 Filed Under LogicClassroom, Real Esate Marketing, Real Estate SEO, Real Estate Software, Real Estate Web Design, Real Estate Website, Real Estate Website Design, Real Estate lead generation, Search Engine Marketing (SEM), Sequoia Real Estate Solutions, Strategy, agent recruiting, lead generation, leads, real estate, real estate internet marketing, social media, twitter | 2 Comments

Satisfaction

Humans are motivated in strange ways. It's hard to explain.

If you hadn't noticed, we launched a new website and blog today and you're reading it right now. It's immensely satisfying to finish a project. Really, great websites are never done, but reaching a milestone like this is, well, it's very satisfying.

What makes us feel satisfied? Why are we happy in our professions and in our work? I've recently spent time with two separate brokers helping them craft a recruiting strategy.  Here are the tent poles of what we created.

Motivation comes from three (maybe 4) sources.

1. Autonomy - employees, real estate agents included, like to feel and be independent. They want to feel like they're at the controls of their life. Sitting in the driver's seat, they'll be most at home and most successful.
2. Mastery - We love to learn. We like to achieve goals. We like to get better at things. If we progress, we feel accomplished and satisfied with our own doing. Give your agents this kind of satisfaction and they'll remain loyal.
3. Purpose - We all want a sense of purpose. We want to build something. We want to be a part of something bigger. A 9-5 doesn't exactly motivate. A job at a company where you get to make things happen and where you contribute to progress and success, that's motivational.

The best businesses are the best systems. If you can embody these principles in your business, you'll recruit and retain agents far more effectively.

For more information on our agent recruiting services and consulting, give us a call.

by David

Posted on September 10, 2009 Filed Under Real Estate Web Design, Real Estate Website Design, Real Estate lead generation, Sequoia Real Estate Solutions, Strategy, agent recruiting, real estate, real estate internet marketing, social media | Leave a Comment