Many agents aren't making the kind of money they dreamed they would make when they entered the real estate business. Frequently, agents say the reason for low earnings is their management of their time. "I'm just too busy...I work so hard and don't seem to get anywhere" are frequently-heard comments. Yet, the only way agents can change their management of time--and their career results-- is to give themselves a time out -- an opportunity to look at their businesses with an evaluative eye. Easy to say--but, how do you do it? The consultative approach. When real estate companies, or any companies, for that matter, want to improve, they call in a consultant. That consultant applies his or her particular analytical system, a series of questions and processes, and approaches, to find out exactly what's wrong. Then, the consultant makes specific, process-and systematized recommendations for change. Wouldn't it be great if an agent could do the same? But, it's difficult to find an agent's consultant--and expensive, too.
The next best thing is, somehow, for the agent to become his own consultant. But, to do that, the agent needs a consulting system--a two-part system that the agent can use to find out exactly what's wrong in his career. Along with the diagnostic part of the system, the agent needs specific, easy-to-follow processes to change that particular problem part of his business. Armed with this two-part system, the agent can analyze his business and make recommendations for his business just as an outside consultant would.
A consultative system for the agent. On Track to Success in 30 Days (the Real Estate Education Co., Chicago, 1996) is that consulting system for the experienced agent, the first of its kind. I wrote it because I saw the need to pinpoint exactly what was going on in an agent's career. Each chapter in On Track deals with a certain aspect of an agent's business--listing practices, selling practices, promotion, etc. Here, excerpted from each chapter, are the ten most common mistakes keeping an agent from creating a successful career--and, the ten most important moves you can make to dramatically increase your business.
1. The first mistake is using the wrong "career roadmap" to plan a real estate business. Most agents have unrealistic expectations from the business. (I did a survey for my book, How About a Career in Real Estate, now in second edition, which showed that the majority of new agents expected a first year income 42% higher than the average income for all Realtors--for all years in the business!). Examining your preconceptions--and misconceptions-- is important to grasping how you got to where you are now--and why. What's your job description? What kind of activities do you spend most of your time doing? To make money, you should have only three priorities: Prospecting, showing and selling. Are you spending enough time doing those activities now?
2. The second mistake is not making the right moves at the right time. With real estate changing dramatically, each agent must know the opportunities and challenges inherent in his stage of the 'career life cycle'. Without realizing it, many agents today are slipping into 'decline', hoping that real estate will go back to the 'good old days'. If you want to move your career ahead, you must consider yourself in the "growth cycle" of real estate. Why? Because the dramatic changes in the business force us salespeople consistently to examine our businesses and adopt new methods--just as we do when we want to grow a business, not merely maintain it.
3. Not managing your attitude leads to lower production. A recent survey showed that agents expect managers to "keep them up". Now, just think about it. How many times a day do you get "down"? Unless you carry your manager around in a fanny pack (that's a picture), and wire him/her into your emotions, your manager just can't 'be there for you' when you need a pep talk. A chapter in On Track to Success shows you how to recognize if you're managing your attitude badly, and what to do about it.
4. Another "sales decreaser" comes from creating a 'peaks and valleys' business. Do you know agents who have a great month, followed by four terrible months--even when the market is good? They do that over and over until it's their business pattern. They've created a 'peaks and valleys' business. How did they do that? Mainly, by waiting for the customer to come to them. But, many agents don't even know that they have created this kind of business. They only know that they seem to be in a slump every few months. A tip: If you're getting more than 25% of your business from re-active sources, (floor time and open houses), you're playing Russian roulette with your income. Your business should be coming from 75% or more pro-active prospecting (you go out to find the prospects).
5. Mistake number five is spending too many marketing dollars on the wrong sources of business. Recently, I was a speaker on business planning at a large regional real estate conference. I asked the agents what their best source of business was. They told me, "Old customers and clients--referrals." I then asked them how much money they spent on that source. Out of 400 agents in the room, only one knew his investment in his best source! A tip on spending your marketing dollars: Plan on spending 60% of your promotional dollars on old customers and clients. They're your best source of business.
6. The next, and critical mistake agents make is not caring enough about your level of service. Less than 25% of all agents send surveys after closing. Evidently, they just don't care what the customer thought about the service. After all, they sold the customer a home. The agent got the check. The level of service is okay, right? According to customer satisfaction surveys today, that attitude isn't cutting it with consumers today. The consumer expects more and more of an agent--and they're not ebullient about the service they receive. In fact, consumers are questioning the commissions charged, for they don't believe they're getting a level of service equal to the dollars they're paying. Building a career based on delighted buyers, sellers, and other agents, assures you build a long-term career. Sales-generating tip: Include a survey at closing with every 'thank you' letter and gift you deliver to buyers and sellers at closing. You'll receive lots of positive feedback to use in your promotional materials, and you'll learn how to create higher levels of service.
7. Mistake number seven is so basic. Yet, many agents don't consider it a major error, although it creates more customer dissatisfaction in our industry than any other agent business habit. Here it is: Listing properties that don't sell. What's wrong with that, you say? After all, you got a sign up. You got sign calls. You made money. But, what about the seller? Was he thrilled with your service? You can bet not. Without knowing it, an agent who lists a property that doesn't sell provides more negative PR to himself, his company, and the industry than all other real estate behaviors combined. A guideline: Be sure that 85-90% of your listings sell within normal market time. It's the way to build a great referral business at low cost.
(Do you know what your success ratios are now? Most agents don't. Do a market review to find out how happy your sellers are with your service.)
8. The next mistake is basic, too, yet many agents still make it: Not qualifying buyers before putting them in your car. When I was a new agent, I put everybody and anybody in my car. My motto was, "Either they get tired and buy from me, or I get too tired to show them any more homes and they don't buy." Not exactly professional (and I corrected that habit). Yet, many agents are still putting too many "non-buyers" in their cars. The buyers' chapter shows you exactly how to create a friendly, yet effective qualifying counseling session, where you raise your value as a 'pro'. The tip on this one: Put together a buyer presentation, so you're sure you're covering all the bases. You'll look much more professional to that prospective buyer.
9. The next mistake is connected to the previous mistake: Not asking directly for loyalty. Recently, an agent told me that he doesn't ask for loyalty. He thinks, by showing the buyers what a good job he's doing, they'll figure out they should be loyal. I've got a secret for you: Buyers don't know that's what they're supposed to do--they don't know the game. How do I know? I tried it that way, too. Your tip for increasing your income: Decide where, when, and how you'll ask for loyalty. Practice your presentation until you're sold, yourself, on your unique value as a selected 'pro'.
10. The last mistake comes from your wanting to be modest: Not building the value of working with you throughout your sales presentation. Let's get blunt: Why should I work with you? What's so terrific and different about you and your service, that, out of the ten agents I'll meet today as I look at open houses, I could spot you as exceptional in a minute? Because, you see, that's about all it takes for a buyer or seller to decide whether they want to entrust tens of thousands of their hard-earned dollars to us!
Your tip to build your value: Write down at least ten talents, skills, and areas of knowledge you possess (not in real estate), which would be benefits to buyers and sellers. Now, attach benefits. Now, say them aloud. Last, create visuals to back up your claims. Why? Because buyers and sellers need reasons to entrust their hundreds of thousands of dollars to you. You--the complete package--is the value-added service you bring to your client--not just your real estate knowledge and background.
Applying the consulting process to your business. Go ahead. Get on track through the process I've shown you. The first part is identifying the mistakes you're making. I've touched on the ten most common--and most dangerous mistakes agents make. In this article, I've pointed out the positive 'moves' you can make to correct these mistakes to make more money, with less expense. To really be precise, though, you should apply a consulting system to each aspect of your business. Then, you can decide on a new plan of action--a plan that will help you leap your business to a new level this year. This is the middle point of 1997. What better time to realize your dreams of a fulfilling career?
