During the past year RECON Intelligence Services devoted considerable effort to monitoring, tracking and profiling the new class of X’er generation agents now entering the industry in record numbers.
In contemplating the available “menu of models,” it’s important to remember that any model must be judged on how well it creates an agent/brokerage partnership that includes an enlightened compensation program.
Research this past year shows that many of our new practitioners are transitioning from strong, supportive corporate environments. This background enables them to take a much more “big picture” approach to both compensation and support.
Conversely, another point is becoming all too clear. Firms offering traditional split formulas that exceed sixty-eight percent generally will not be able to create support packages that meet these agents’ needs from either an economic or operational standpoint.
There are certain concepts that must be built into the model “agent support package.” While the X’er agents appreciate the benefits of a strong corporate culture more than their predecessors, they also highly value a company that respects self-determination and opportunity.
Sound recruitment programs will offer the agent maximum options and choices, albeit within boundaries that ensure a strong, profitable company. New X’er agents are very sensitive about their efforts in some way subsidizing less energetic and competent sales associates. Fairness is a big issue with them, and it must be real and demonstrable.
Today’s agent obviously is interested in generating a good income. The difference is one of loyalty. Unlike the Boomer agents, X’ers appear to be equally interested in forming longer-term relationships and are conscious of the need to affiliate with a strong company that can sustain that relationship.
X’ers also want to be made to feel like they share the company’s destiny and success. The firm’s blueprint for strengthening its overall sales, management and operational platforms, along with its efforts to support its agents, should be shared with them to the greatest extent possible. This is an important factor in engineering the “buy-in” from X’ers.
Here are some observations and recommendations on industry trends for 2004.
Productivity and performance training services
• X’er agents have little interest in remaining “newbies.” They are more focused on
-- learning fast and working smart. Thus, their training should start at the “intermediate” level and proceed as quickly as possible to “expert.”
--The traditional industry focus on training geared to know-nothing beginners and bringing them along slowly should be reduced.
• Companies should review their in-house designation programs to ensure that they
--have been appropriately updated and upgraded. Studies shows those that have are provid-ing excellent and relevant training opportunities. Those that haven’t are simply perpetu-ating the inefficiencies of the past.
• Continuing education is a fact of life. But, outside programs often include messages
--incompatible with a company’s operations. Tailored, private-labeled programs can pro-vide a much more convenient and effective delivery system, while maintaining the com-pany message and spirit.
• High-performance technology training can be effective in matching company tech-nologies to what is clearly a much higher level of technology expertise of many industry newcomers. In 2004, “technophobia” is a disease of personal choice. Brokerages simply can no longer afford to be in the rehabilitation business.
Brokerage technology
• Many new agents are coming from technology environments many times more sophisticated than those offered by today’s brokerages.
• Technology training should emphasize describing and demonstrating the company’s system in terms of how it can enhance performance and productivity rather than access and ease of use.
• In 2004, an effective e-mail system, high-speed Internet connections and wide area networks are foregone conclusions.
• A sixth-generation multi-media company Web site should be on a brokerage’s immdi-ate horizon. Sixth-generation sites are almost totally consumer resource-centric versus the original “look at us” company-centric model.
• On-line forms, document and photo scanning capabilities are already here in most progressive firms and are inexpensive given the productivity gains they represent.
Marketing services
• As a company’s image and core messages grow in marketing importance compared to those of the agent, the firm must be ready to implement and manage the coordination of company and agent efforts within this new context.
• The company’s menu of integrated marketing products should include personalized postcards, Web site design, media kits, flyer design, graphics work, e-mail upgrades and the ability to support personal farming programs.
• While the Internet is fast becoming the centerpiece of most marketing efforts, in 2004 a full “mail room” capability will continue to be important.
Communication services
• Telephone systems that support and subsidize agent productivity while effectively controlling personal use are essential.
• Company emphasis on ensuring customer-friendly telephone answering and message taking must continue unabated.
Lead generation, relocation and referrals
• An increasing percentage of a firm’s overall production will come from company generated leads and third-party referrals. Brokerages must develop their effectiveness in these areas.
• Agent support will include strong company and virtual lead programs.
• Lead program participation policies that support both agent relationships and compa-ny strategic objectives.
• Expect to see the growing use of third-party lead and referral aggregator programs to support agents whose skills are more toward “harvesting” than “hunting.”
• Expect to provide guidance to agents in understanding the rules and common sense of interacting with third-party referral sources.
Facility-based services
These should become the absolute basics of any brokerage’s services.
• Consumer oriented service programs at both the telephone and reception points of access
• Twenty-four hour phone coverage
• Fax machines, copy machines and pool computers
• Effective agent desk space policies and support
• Company marketing materials
• Yard signs
Professional services
• Risk management services, from contract reviews to mandated steps in a transaction
• Contract writing assistance
• Customer relationship management services
• Closing negotiation assistance
Transaction management services
• Listing management system
• File maintenance
• Transaction management
• Closing coordination
Management services
• The industry’s definition and delivery of “agent management services” is changing.
X’ers are demanding a new level of management enlightenment. Boomer managers are not covering themselves with glory in their ability to work with X’er agents. Way too much “been there, done that.”
• Management services should incorporate agent business plan design and coordination.
• Management philosophies must respect and support the X’er work ethic and value proposition.
• Management expertise must include the ability to coordinate and facilitate an overall “team” approach.
Compensation options should:
• Offer real options while supporting overall corporate financial goals and objectives.
• Be communicated clearly and unambiguously.
• Be flexible and allow the agent’s compensation to evolve with enhanced skills and productivity
• Make both the company and the agent responsible for results and outcomes.
Strong management input, performance standards, outcome measurements and clear company policies must be incorporated into all the areas mentioned in this article.
While the New Year offers exciting possibilities for expanded and enlightened agent/brokerage support relationships, the fact remains that uncontrolled expenses based on outmoded management practices and corporate philosophies will continue to be the enemy of profitability.
