Coaching - The Profitable Broker: What it Takes in Today’s Market
Posted by David Bennett Mon, 09 Oct 2006 14:36:00 GMT
A focus on fundamentals will be more important than ever
By Maria Patterson
RISMEDIA, October 9, 2006—While we all knew it would be impossible to sustain the record real estate market of recent years, many brokers are experiencing varying degrees of concern—from worried to panicked—about maintaining profitability in the changing market.
Ensuring a profitable brokerage boils down to one thing: profitable agents. And to keep agents profitable, brokers and managers need to focus on several factors, including a renewed dedication to the fundamentals of the real estate business.
According to former broker and Buffini & Company trainer J’aime Sans Souci, to maintain profitability, “We’re going to have to tighten our belts a bit, build our skills more, provide more value, and articulate that value. Agents will have to see the value in being with our brokerage and they will have to be productive…or it will be impossible for us to keep our doors open.”
Looking at Profits? Look at the Budget, First
In order to create what Sans Souci refers to as “the ultimate real estate office” and maintain profitability, brokers need to begin by reviewing the budget. Now is the time to cut what doesn’t work, and invest more heavily in what does work.
“As we go into this new market, our budget has to run lean and mean,” says Sans Souci. “We can’t be out there spending money on all methods of marketing and advertising. We have to truly take a look at where our best return on investment is.”
According to Sans Souci, in a shifting market, many brokers mistakenly stop investing in their business and in themselves. “That’s the number-one worst thing you can do,” she explains. “To continue to build a thriving company, brokers must invest in their business, but do so in diligent ways. Do some research and see what’s worked historically—stop the madness of investing everywhere.”
Since many great leaders are not necessarily the numbers’ type, Sans Souci recommends that brokers and managers “ABC” their expenses accordingly:
A – Represents needs
B – Expenses we have some control over
C – Fluff
This exercise will help brokers and managers more easily identify areas of the budget that can be cut.
All Systems Go
Profitability in the changing market will also be largely contingent upon the systems a broker has in place for his or her company, from recruiting systems to training systems.
“In the next phase of the real estate industry, we will have to look at how we are helping our people—what developmental systems are we providing for them,” says Sans Souci. “Bottom line, the focus for the next ten years has to be on agent productivity. We have to ask ourselves, ‘How can we, as brokers, take a vested interest in helping agents become more profitable?’ If we do that, they will stay with us, they will help us recruit and the better our company will be.”
According to Sans Souci, brokers need to provide the right systems and structures within which agents can achieve and maintain profitability. Programs such as Buffini & Company’s 100 Days to Greatness fit the bill, as do other programs that are geared toward helping agents hone their skill sets.
Systems and training programs that brokers put in place to maintain profitability should focus on the fundamentals. “We moved away from the fundamentals because the market was easy,” says Sans Souci. “Getting back to the fundamentals is crucial because it’s the only thing we have control over—the activities we choose to do each and every day in order to make our offices more profitable. The activities agents do each day will determine the success or failure of any business.”
“Spend a little time with your agents and recommend that they come up with the top three to five activities that are the highest and best use of their time,” advises Sans Souci. “This will be a little different for everyone,” she adds, but will give brokers a sense of which activities each agent should be focusing on daily.
These activities should include making phone calls, writing personal notes, and conducting Pop-Bys to let clients know how much they are appreciated. Whether it’s a broker and his or her agents, or agents and their clients, the goal is to get “face-to-face” and “voice-to-voice.”
Last…but Far From Least
As the current real estate market may become increasingly more stressful for brokers, Sans Souci stresses that brokers and managers take the appropriate amount of time to decompress.
“It’s more important now than ever not to drive yourself into the ground physically and emotionally,” she explains. “Brokers need to make sure that the focus is not just a profitable brokerage. It’s crucial that they step away from the business so they can be better equipped to deal with the business.”
In the changing market, the need for brokers to serve as a role model for agents will become more critical, Sans Souci adds. “To have a productive environment, they need to be the calmest person in the room. They need to lead by example.”
For more information about Buffini & Co. visit www.buffiniandcompany.com.
Source: RISMedia’s Real Estate magazine, October 2006.
By Maria Patterson
RISMEDIA, October 9, 2006—While we all knew it would be impossible to sustain the record real estate market of recent years, many brokers are experiencing varying degrees of concern—from worried to panicked—about maintaining profitability in the changing market.
Ensuring a profitable brokerage boils down to one thing: profitable agents. And to keep agents profitable, brokers and managers need to focus on several factors, including a renewed dedication to the fundamentals of the real estate business.
According to former broker and Buffini & Company trainer J’aime Sans Souci, to maintain profitability, “We’re going to have to tighten our belts a bit, build our skills more, provide more value, and articulate that value. Agents will have to see the value in being with our brokerage and they will have to be productive…or it will be impossible for us to keep our doors open.”
Looking at Profits? Look at the Budget, First
In order to create what Sans Souci refers to as “the ultimate real estate office” and maintain profitability, brokers need to begin by reviewing the budget. Now is the time to cut what doesn’t work, and invest more heavily in what does work.
“As we go into this new market, our budget has to run lean and mean,” says Sans Souci. “We can’t be out there spending money on all methods of marketing and advertising. We have to truly take a look at where our best return on investment is.”
According to Sans Souci, in a shifting market, many brokers mistakenly stop investing in their business and in themselves. “That’s the number-one worst thing you can do,” she explains. “To continue to build a thriving company, brokers must invest in their business, but do so in diligent ways. Do some research and see what’s worked historically—stop the madness of investing everywhere.”
Since many great leaders are not necessarily the numbers’ type, Sans Souci recommends that brokers and managers “ABC” their expenses accordingly:
A – Represents needs
B – Expenses we have some control over
C – Fluff
This exercise will help brokers and managers more easily identify areas of the budget that can be cut.
All Systems Go
Profitability in the changing market will also be largely contingent upon the systems a broker has in place for his or her company, from recruiting systems to training systems.
“In the next phase of the real estate industry, we will have to look at how we are helping our people—what developmental systems are we providing for them,” says Sans Souci. “Bottom line, the focus for the next ten years has to be on agent productivity. We have to ask ourselves, ‘How can we, as brokers, take a vested interest in helping agents become more profitable?’ If we do that, they will stay with us, they will help us recruit and the better our company will be.”
According to Sans Souci, brokers need to provide the right systems and structures within which agents can achieve and maintain profitability. Programs such as Buffini & Company’s 100 Days to Greatness fit the bill, as do other programs that are geared toward helping agents hone their skill sets.
Systems and training programs that brokers put in place to maintain profitability should focus on the fundamentals. “We moved away from the fundamentals because the market was easy,” says Sans Souci. “Getting back to the fundamentals is crucial because it’s the only thing we have control over—the activities we choose to do each and every day in order to make our offices more profitable. The activities agents do each day will determine the success or failure of any business.”
“Spend a little time with your agents and recommend that they come up with the top three to five activities that are the highest and best use of their time,” advises Sans Souci. “This will be a little different for everyone,” she adds, but will give brokers a sense of which activities each agent should be focusing on daily.
These activities should include making phone calls, writing personal notes, and conducting Pop-Bys to let clients know how much they are appreciated. Whether it’s a broker and his or her agents, or agents and their clients, the goal is to get “face-to-face” and “voice-to-voice.”
Last…but Far From Least
As the current real estate market may become increasingly more stressful for brokers, Sans Souci stresses that brokers and managers take the appropriate amount of time to decompress.
“It’s more important now than ever not to drive yourself into the ground physically and emotionally,” she explains. “Brokers need to make sure that the focus is not just a profitable brokerage. It’s crucial that they step away from the business so they can be better equipped to deal with the business.”
In the changing market, the need for brokers to serve as a role model for agents will become more critical, Sans Souci adds. “To have a productive environment, they need to be the calmest person in the room. They need to lead by example.”
For more information about Buffini & Co. visit www.buffiniandcompany.com.
Source: RISMedia’s Real Estate magazine, October 2006.
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