Good Managers: Always Working on Getting Better

Managers study how to attract and keep agents. They learn how to do recruiting presentations that they hope are mesmerizing to their candidates–so mesmerizing that they’ll say yes when offered a position in the company. They don’t rest on their laurels; they hone their skills so they’re better managers, trainers, and coaches. In other words, good managers are always working on how to be better resources, coaches, and trainers for their agents.

What’s the Company Getting from You?

My eighth grade teacher, Mrs. Taylor, had wonderful sayings that she would drop on us at opportune times. These either kept us attentive or scared the you-know-what out of us! They included, “Time passes. Will you?” and “to each his own, as she kissed the cow.” (Well, some were better than others). The saying I’m remembering now, though, was, “Turnabout’s fair play”. In other words, if you mess with Mrs. Taylor, you will get the appropriate treatment! And, if you cooperate and get your work done, you’ll get appropriate treatment, too. So, let’s apply that idea to the relationship and expectations of agents and managers.

Did You Exchange Mutual Expectations 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. Managers should have a list of what the manager and company will do for the agent–and what is expected from an agent. This is the Mutual Expectations agreement. As a new agent, you should have gone over that agreement in the interview. (There is an example mutual expectations agreement in Up and Running in 30 Days, the new agent’s business start-up plan).

Consequences of the Mutual Expectations Agreement

Managers are constantly concerned about retention. Providing a mutual expectations dialogue and agreement is one of the best retention tools in the world–hiring agents who promise to go to work! Experienced agents love the fact that the manager is not hiring deadwood to just get in their way and pull down the reputation of the company.

What’s In It for the New Agent?

In my book Become Tomorrow’s Mega Agent Today, I surveyed hundreds of agents in the business less than three months. I asked them, “What number of transactions do you have to complete in your first year to avoid being terminated?” 71% did not know! Now, would you take any job where you didn’t know the expectations? Yet, most managers avoid telling those expectations–if they have them. And, agents avoid asking because they don’t want to know. However, if you don’t know what’s expected of you, how will you know if you’re achieving? How will you know if the start-up plan your manager is using with you (your manager is using a start-up plan, I hope….) will get you to your goals?

Lack of Expectations Is a Bad Thing…

If your manager didn’t discuss expectations with you, what does that mean? Probably that anything you do will be okay. That is, you can fail. You can fail to achieve your goals. You can avoid doing the work that needs to be done–and there are no consequences. You know that’s not a good thing. So, if you don’t know those expectations, go to your manager right now and get them. That’s a good thing!

In my next blog, I’ll give you 10 commandments that agents should learn and follow to assure they get the best from their company and manager.

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, I’ve created a list of the ten dumbest things I’ve seen thousands do to fail themselves right out of the business. In this blog, we’ll investigate the first five:

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. (Up and Running shows you exactly how to work those numbers to your benefit).
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.

How many of these dumb things have you done? In truth, we learn from our mistakes. It’s not what we do wrong. It’s what we continue doing wrong. I wrote Up and Running to cut your ‘mistake time’!

Stunning New Research about The Realities of Motivation

In his new book, Drive: The Surprising Truth About What Motivates Us, Daniel Pink lays out a persuasive case, backed by extensive scientific studies, about why money, and the traditional ‘carrot and stick’ motivational methods just don’t work for us today. It’s especially true with real estate professionals. Why? Because we in effect work for ourselves. We have to be self-starters, initiators, and tenacious in our pursuit of our goals. That means we have to be motivated by things other than promises of material things.

Why Money Doesn’t Work as a Motivator

First, as Pink points out, money and/or material things are good short-term motivators. (Read Herzberg’s studies on short and long-term motivation). In fact, just take a look at the number of real estate agents who are motivated to visit an open house when there’s food! But, as Herzberg and others have pointed out, money is a lousy long-term motivator. You know that if you’ve tried motivating your kids with money—or threats (the carrot and stick).

I know. You’re thinking, “If I just had more money, I would be fine.” So, let me ask you, what are you willing to do to get that money? Lead generate more regularly? Make more sales calls? We all know that lead generating is the answer to that money problem. Yet, the vast majority of agents avoid lead generating as if it gave us some chronic disease! So, money is just not an effective long-term motivator.

The Best, Deepest, Strongest Motivators We Can Use to Motivate Ourselves

Pink shows, via extensive studies, that there are three driving motivators which we should put to work today to fire ourselves up, keep those fires lit, and achieve what we want to achieve. They are:

Autonomy

Mastery

Purpose

Recently, I did a webinar for the National Association of Realtors’ Learning Library on Motivation. If you’d like me to do that webinar for your organization, contact me at www.carlacross.com. In this challenging environment, knowing all you can about how you and others (like your clients!) are motivated is critical to your success.

In my next post, I’ll go more deeply into what each of these 3 motivators means to you.

Ask your Interviewer: Five Critical Points

If you’re looking for effective training to get your career started fast, you need to choose a training program that has these features. So, in your interview ask the manager if the training program has these attributes:

1. The objective is fast productivity, not just knowledge. When you interview, ask what the objectives of training are with that company. If it’s just knowledge, run the other way! You will know a lot, but you won’t be in business very long.

2. The training program has business-producing expectations and goals. For example, if you expect to make money fast, your training program needs to help you learn to set prospecting goals and attain them. That doesn’t mean lecturing in class. That means you have an activity plan and are working in the field during the class duration. That also means that you aren’t in class all day.

3. The training program is built around a business start-up plan. Ask to see the company’s business start-up plan for you. If it isn’t sales-producing, it isn’t a real start-up plan.

4. Sales skills are practiced by the students in class. How can you expect to be competent with clients if you haven’t gained competency and confidence in the classroom? Clients are very discriminating these days. They expect agents to know what they’re doing! During the interview, ask for a description of how the students spend class time. If the manager says the students listen all the time, pick up your materials and go to the next interview. You need skills training; you don’t need to know everything the instructor knows.

5. Expectations for achievement in sales developing and packaging are clear. Is this a college-level training? In college, students are expected to perform during the course. If you’re not expected to practice outside class, and get your sales packages together (like listing and buyer presentations), then this isn’t a real training. It’s just a time-eating event. Wouldn’t your consumer expect you to have a high level of competence? Then, your training program must deliver.

Armed with these 5 critical expectations, you can choose a training program that is dedicated to assuring you quick results, high sales skill, and confidence with consumers. Why settle for less?

their manager

Yet, what if your manager isn’t the type to catch you at the right time, say all the right things, and provide specifically what you need?

Look Elsewhere to Assure You Get that Motivation

There are two ways to get that motivation, that appreciation, that support you need. Many people think someone else should be in charge of their atittude. But, there’s another method. That’s the method so few of us use: Going inside. We shy away from acknowledging our own efforts. Why? Perhaps your mom (as mine did) told us not to brag. It was unseemly to be immodest.

Not about Bragging

Acknowledging yourself is not bragging. It is not only positive, it is absolutely critical to do if we are to be effective salespeople. We must use all the methods as our disposal to keep ourselves ‘up’, so we can be models for our clients–and those agents who look up to us.

Going inside. Someone you can always count on.

When I was in college, I remember going sailing with a group of people. It was a gorgeous day. We sailed around the large lake, enjoying moderate winds. Then, about 6 o’clock, we decided to sail back to the dock. Problem. No wind. We had no choice but to wait for that wind to bring us back. (or use the little outboard motor, which the purest ‘captain’ was loathe to use.)

Frequently, we count on others to ’sail us back to the dock of positive attitude’ when we’re down. Like the wind, though, they may not be there when we need them!

Draw a Different Conclusion

Actually, though, we have our own outboard motor onboard–our own minds. We have the ability to change our minds about things (especially we women, men say…). We have the ability inside us to re-draw a conclusion about an event. For instance, we managers get ‘down’ when the agent we thought we were going to hire went to another agency. We can look at it as a loss, or as an opportunity to learn from the experience. If we’re good at managing our attitude, we’ll call that agent to find out what attracted that agent to the other company–and learn from the experience.

See Up and Running in 30 Days and The On Track to Success in 30 Days System for Experienced Agents for many motivational strategies.

It is amazing to me that agents wait so long to get organized! I remember, though, how confused I was as a new agent. I just didn’t know what to do first. Luckily, though, I quickly found buyers and started selling homes. I’m going to tell you the bare truth: I was not organized, packaged, or, certainly—systematized!

You Can’t Go Very Fast Unless You Have Packages and Systems

What I found, very quickly, was that I had to have ready-to-use systems to serve buyers and sellers as fast as I wanted to move (I sold 40 houses my first year in real estate!). After years of working on them, I created packages for both buyers and sellers that work.

Here are the Packages you Need for Buyers

Your buyers’ system should include

• A Pre-First Appointment Information Package—to set you apart from the ‘pack’
• A Consultation Package (I’ve created one I call Your Guide to Purchasing a Home, available in my resource The Complete Buyer’s Agent Toolkit)
• The Buyers’ System—a resource you provide only to those who sign a Buyer’s Agency Agreement with you, that takes the buyer much deeper into the process

Capture Buyers’ Loyalty and Respect

Creating your Buyer System not only raises your value dramatically to buyers, it creates a track for you and your team to run on. When you treat buyers with the care and systematization you show sellers, your buyer close ratios go way up, and your time management challenges diminish. Why not start competing with very seasoned agents with your own packages? You will greatly increase your confidence, and find the buyer trust you much more quickly.

A resource to cut your ‘learning time’ down dramatically:  Take a look at The Complete Buyer’s Agent Toolkit. You can see a sneak preview of the complete toolkit there, too. Make a goal for yourself to get your buyers’ process systematized now, and enjoy the benefits.

Do you have the qualities of successful real estate agents? Do you know what they are? In my three decades of working as an agent, and having hired hundreds of real estate agents, I know the qualities that assure success. Here’s the list that I came up with for my book, Become Tomorrow’s Mega-Agent Today. Most of you reading this list will already have been selling real estate. So, read this list and ask yourself which of these qualities is very strong in your character. Which do you find needs ‘shoring up’? To move to the next level in your business, you must exhibit these qualities in your sales and sales management behavior.

1.         High Personal Initiative

Your success depends on your being able to create programs and implement them on your own, with relatively little monitoring.

2.         Tenacity

Only those who “stick with it” will win.  Plan on dedicating one year to establishing your business. Plan on spending at least three to five years building the kind of business you want to have as  a ‘mature’ business.

3.         Mental Toughness

A positive mental attitude is essential.  Others who give up easily will try to influence the tenacious, mentally tough individual to also give up.  It takes courage to keep going in this long-term business.

4.         Belief in Oneself

We each have to know, inside ourselves, that we are capable, that we have the talent and the tenacity to succeed, and that we can depend on ourselves. How are you motivating yourself today to reach higher levels in your business? Do you have a deep belief in yourself?

5.         Willing to Take Direction and Be Accountable to Your Goals

Real estate is a constantly-changing field.  Those who win and keep building a stronger business learn new skills and apply them constantly. They also hold themselves accountable to their goals, and let others hold them accountable, too.

6.         Enthusiastic

A joy in doing, and a desire to accomplish shows itself in an enthusiastic attitude. Does your enthusiasm show to your clients? To your fellow agents?

7.         Creative

In today’s marketing-oriented world, an agent must be truly creative to design programs where he stands out as valuable and different.

8.         Educated and Communicative

Writing skills are a necessity today.  Our sophisticated target markets are well-educated.  Effective verbal communication is also paramount to success.

9.         Team Player

The preservation of our office spirit and cooperation is very important.  We are all more successful together. What are you giving back to your team mates?

I’ll bet you can add to this list. Write a comment here and tell me what you think is an important quality in a successful real estate agent.

Do you use a written customer satisfaction survey after closing? The choices for answers were:

Always

Sometimes

Never

Yes, and survey once or more during the sales process

Should You Care What they Think?

About three quarters of the respondents never or only sometimes used a customer satisfaction survey after closing. On the other side of the tracks, five percent used a survey once or more during the sales process.  So, only about a quarter of the agents surveyed consistently used the customer survey tool to gauge customer satisfaction levels, make changes as needed—and create long-term loyalty.

Our Industry is Far Behind in Customer Service

Every time you go into a restaurant, you get surveyed. Every time you take your car in to get it serviced, you get surveyed. I’ll bet you can think of a myriad of other services and products that survey. Yet, our industry has lagged decades behind others in caring about—and responding to consumer needs. In fact, the California Association of Realtors’ 2009 survey on overall satisfaction with agent used showed that a whopping 4% of clients were satisfied!!!! (See the graph below:)

Real Estate Agent Client Satisfaction Ratings

Your Customer Survey Form is a Click Away

There are so many benefits to using customer surveys:

1. You find out how you did
2. You find out what you need to improve on
3. You have an opportunity to ‘fix it fast’ and get them back
4. You get glowing testimonials
5. You build a ‘tribe’ of committed long-term clients

Click here to download your customer survey. Let me know how it works for you!

The Ten Tips

1. Learn non-verbal skills and apply them in writing, on the phone, and in person to establish rapport in an increasingly ‘cold inquiry’ world.

2. We believe what others say about a salesperson, not what the salesperson says about themselves. Use testimonials; check evaluation websites to see what consumers are saying about you.

Check out www.realestateratingz.com and www.incredibleagents.com.

3. Create an after-the-sale survey and use it consistently. If there’s something wrong, fix it fast.

4. We believe what we see, not what we hear. Show, don’t tell. Use visual presentations consistently.

5. Flip your sales presentations. Ask questions—lots of questions—first. Educate. Finally, sell (well, you won’t have to sell).

6. Tell the truth attractively. Show evidence, don’t try to scare the client into action by predicting  the future.

7. Evaluate the client for long-term relationships. Is the client someone you want to add to your ‘tribe’?

8. Use ‘tough love’ with a client to tell the truth, turn down a client—to stay true to your values. Do what’s best for the client.

9. Re-cap. Regularly, stop and re-cap with the client. Do this, too, when you can’t meet client expectations.

10. Book of Greatness: Don’t brag about yourself in the middle of apresentation. Create a ‘Book of Greatness’ to use in your pre-first visit so your clients get to know you and your approach to sales.

Skill enhancers, time savers, and presentation builders:

See Your Professional Portfolio to assemble an effective ‘book of greatness.

See The Complete Buyer’s Agent Toolkit* to assemble and present your presentations to buyers.

See Your Client-Based Marketed System* to create presentations and systems to work effectively with sellers.

See Objection-Busters for buyers and sellers to handle barriers to a sale.

*tested and recommended by CRS (Council of Residential Specialists)

If I were a manager, or a seller or buyer, and I wanted to find a value-added agent, here’s what I would look for:

1. Has a database, populates it

This agent is committed long-term. He uses a contact management program to manage ‘leads’, so none are lost. After all, it takes much longer today to convert a ‘lead’ to a sale than it used to take. This means the agent is committed to forming long-term professional relationships over time. Has a rapid-response method to deal with Internet inquiries and other inquiries via e-mail. Has a method to follow up on all leads until they ‘buy or die’. As a client, that means I won’t get lost. As a seller, it means my agent will follow up with all leads and give it 100% to sell my home.

2. Invests in the technology and follow-up pros have

This agent makes every decision based on his vision of his career at least 3 to 5 years in the future. For example, instead of selling someone a house anywhere just to get a sale, my value-added agent sells only in an area me defines as his ‘target area’. That way, he’ll get known, and can build on his reputation. The value-added agent has the ‘guts’ to turn down business!  Because he cares more about the well-being of the client than getting one grimy commission check, he learns to ‘tell the truth attractively’, and works harder to retain the client than to make one commission.

3. Works for referrals, not just sales

Learns to ‘tell the truth attractively’, even if the buyer or seller may not want to hear it. For example, if it’s in the best interests of the seller to list his home at a lower price, the value-added agent has the strategies and the statistics to prove that the seller will be not well served by pricing higher. And he has the intestinal fortitude to walk away (but doesn’t have to many times because he creates a stellar reputation amongst his clientele).

4. Keeps the buyers and sellers’ best interests in mind

Makes every decision to grow trust, not to make a fast buck. For example, the agent sits down with a prospective couple, and, finding out they can’t purchase right away, creates a plan with them to save for their down payment. Then, she keeps in touch over a period of months, offering helpful information and market updates.

In other words, this agent practices seller or buyer agency representation, not ‘agent agency’!

Put Yourself to the Test

How many of these points can you claim as your action? What do you want to work on to become a true ‘value-added’ agent?