Managers: What do Agents Owe You?

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

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? 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.

Agents: What Do You Owe the Company?

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

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.

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’.

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.

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

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

1. It’s a recruiting magnet (who doesn’t want to be with the best?)
2. It’s a production incentive (who doesn’t want to stay with the best?)
3. 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

1. Don’t understand the power of standards
2. Think they actually have standards (when they don’t)
3. 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.

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.

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

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.

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.