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

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.

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.

The Ten Dumbest Things New Agents Do

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:

1. 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.
2. The market in most areas has become more challenging, so new agents can’t get those ‘easy sales’.
3. 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:

1. 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.
2. 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”.
3. Thinking that their manager or office or the Internet will supply them leads. If that were the case, your commissions would be much smaller.
4. Thinking that this business is about tasks and technology. It’s not. It’s about people relationships.
5. 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.
6. 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.
7. 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.)
8. 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.
9. 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?
10. 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!

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

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?

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:

1. Why do you think most new agents fail?
2. What one thing would prevent this failure?
3. How much would you be willing to invest to avoid this failure?
4. 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?
5. For any investment the company or manager makes: Can you measure the results? (If not, don’t invest in it)
6. 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?
7. 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?

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.

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.

What Mode are Your Agents In?

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!