Structure.
That’s what new agents need. Yet, they come into real estate to be ‘independent’. And, what happens? Most fail. So, lack of structure hurts their chances of success. In fact, today, managers tell me their average failure rate with new agents is 50-75%--some even higher!
Do You Know When your New Agents ‘Pay Off’?
Most managers don’t know their investment versus return for the new agents they hire. To find out, do a study to see what percent of your new agents actually make a sale in the first three months; what percent make a sale in six months. Now, figure out your investment versus return. Don’t you deserve results faster? And, don’t you think agents deserve results faster, too?
Who should provide structure that assures that fast return? Managers and/or coaches. However, it’s easier said than done. As a manager for fourteen years, I know how difficult it is just to deal with the myriad of crises, challenges, and opportunities managers face each day. To ask managers and coaches to create an effective structure along with their other duties is almost too much to expect. That’s why I created the new agent’s start-up plan, Up and Running in 30 Days. However, it doesn’t work without a managers/coach’s constant ‘inspection’ of activities, motivation, and support. My new program, Managers: Putting Up and Running to Work, shows how to set up a coaching/ accountability program for new agents (or struggling agents), so that managers/coaches can get payoffs faster, agents are happier—and retention rates go way up.
Decide on your Standards Prior to Hiring—and Let your Programs Reflect Those Standards
What did you find out from your survey of your newer agents’ production? Are you happy with your established timelines for results, your fall-out rates, and your recruiting benefits? Most companies are not achieving the goals in these areas they want (when they look at those numbers). So, here’s how to change those results.
First, set some standards for your new agents’ achievements. How many sales and listings sold do you expect in the first 90 days; the first 180 days? When will you terminate?
Now, look at all your systems in place:
• Your recruiting system.
What kind of agents are you attempting to attract? Those who will go to work? Those who want to ‘hang a license’ to see if they like the business? Examine your ads, your cards, your position in the marketplace. Does your marketing plan for recruiting reflect your standards?
• Your selection system.
How do your managers select? Are they selecting to standards, or are they taking anyone, and expecting your training and coaching programs to ‘do the trick’? Are they asking for commitment to your standards, training, and coaching prior to hiring?
• Your training system.
Is it just ‘curriculum based’, offering lots of knowledge about lots of things, or does it teach, monitor, and hold accountable the students to an effective start-up plan?
• Your coaching system.
Does it dovetail with your training, holding agents accountable for activities? Is it supported by your recruiting and selection policies?
When Standards Aren’t Consistent: Trouble Ahead!
Through my Productivity Consultshop Process, a combination of analysis, workshops, and coaching, I have an opportunity to work through a period of months with companies to analyze, re-align, and help them get much better results through their productivity programs. What I’ve found is that companies have some of the processes listed above—but no mutual standards or goals for them. So, managers may be hiring agents to don’t go to work—and coaches may be expected to somehow inspire a non-worker into a worker—or, at least, keep that non-worker from leaving! The only thing that happens in this kind of situation is that non-producers stay, but good coaches, valued experienced members of the company, burn out and leave!
Which Company Be the Leader in the ‘New Wave’?
I believe there’s a ‘new wave’ coming. It’s not even a trend yet. But, it will be. The reason I sense that is that more and more companies are asking me to help them align their ‘people programs’: Recruiting, selecting, training, and coaching--so they attain more productivity and profitability, while keeping expenses down. That wave is the company who realizes that the next step in creating an exceptionally profitable company is not just numbers recruiting, or having lots of training. It’s recruiting, selecting, training, and coaching with standards that are good for everyone. Good potential new agents want a company with standards and expectations. Good agents want to work with winners; Good managers want to work with good agents. Finally, companies make more money with fewer expenses when they have the right balance of ‘quantity’ (enough agents) and ‘quality’ (enough good agents).
