September means Back to Basics here at Inman. As real estate navigates the post-settlement era with new commission rules, real estate professionals from across the country will share what’s working for them, how they’ve evolved their systems and tools, and where they’re investing personally.
Today’s real estate leaders are on edge, ever concerned that they must navigate their relationships with their agents without pushing too hard, lest they push them into the arms of a competitor.
With all the change in our industry, is it even possible for a leader to lead in the direction they choose? Or are we in a tail-wagging-the-dog situation where agents can set their own course, sell how they want, and be compensated on their terms without regard to the needs of the brokerage?
But, what if tough love was exactly the thing managers need to offer to strengthen the agent bond? Here are five examples of that type of tough love.
1. Turn up the volume on top producers, and ask them for more
Top producers love a challenge. They already possess internal motivation, and that motivation needs a spark every now and then to stay lit. Ask them to update their goals to reach higher. That may be in units or in volume, or, perhaps, encourage them to do more self-generated business that doesn’t have referral fees attached.
Ask them to up their price point, charge more for their services or delve into a market they haven’t explored before, such as luxury or new construction.
Let them be the people within the company who test a new idea or platform, thus giving them more opportunities to contribute to the greater good.
Hold them accountable, be prepared to support their efforts, continue to push if they slow down and celebrate publicly when they achieve. In the end, managers who enable ever-increasing success are seen as respected partners.
2. Force struggling producers to ride without training wheels
As tempting as it is to hold on to the bike to keep it upright while a struggling agent concentrates on pedaling, they will never ride on their own unless you let go. Give them small goals with short timelines. Ask them to hold three open houses a month.
Challenge them to enlarge their sphere of influence by 25 people in two weeks’ time. Teach a marketing tool, then have them implement it within a week and report back.
Just like a parent lets go of the bike but stands at the ready, a manager must be ready to make quick adjustments and remain close at hand.
Once these small victories are achieved, they are emboldened to try the next thing and then the next. Grow confidence gradually, and remind them of their achievements to keep them moving forward.
3. Set your company’s compensation requirements, and don’t apologize
You can set your own company’s fees. No lawsuit settlement can tell you what to charge to keep your business running and healthy. You know what you need to bring in to cover expenses and make a profit. Your sales force is empowered with the support you have chosen to give them, and that comes with a price.
You are able to require that your agents stick to an amount you set, and they must get agreement from their manager if there is any deviation from that amount.
Don’t apologize for the cost you charge for doing business — champion it. Consumers trust companies with values and costs they understand and tend to distrust those whose fees fluctuate from deal to deal.
4. Proclaim your ethical and service standards and discipline when required
Successful brokerages conduct hundreds, if not thousands, of transactions each year, and no brokerage is immune to the chances of an ethical slip or problem with an agent’s service.
Dealing with these issues swiftly and thoroughly can help mitigate the expansion of the issue. But if an agent seems to find themselves in the ethical or service hot water often, it’s time to take stronger action.
Depending on the infraction, that may just be a simple redirection. More egregious problems may mean warnings, write-ups or even dismissal. Although it’s hard to let go of someone who contributes to the top line, doing so protects the culture you’ve worked to establish, as well as the company’s reputation.
In today’s world of testimonials and reviews that are readily visible online, it’s best to hold firm when lines are crossed. Agents know who is and isn’t doing a clean book of business, and if you don’t stand for their behavior, you’ll gain respect.
5. Be true to your model and expect compliance
Whatever model your company embraces, make that your identity. A full-service company that provides a lot of tools, services and support naturally has more expenses than a discount brokerage. Therefore, agents should not only expect to pay more to work at a full-service shop, but they should also fully understand what they get for the price and subscribe to the idea.
Providing a constant stream of instruction, ideas, troubleshooting and updates is a must if the services are to stay top-of-mind and top-of use with the agent population. Keep ‘em coming.
Reach out to agents who have not engaged with your services, and offer them individualized assistance, or let them know about classes they should attend. It’s OK to push them into exploration. Many don’t know what they have until they see it.
Claudia Stallings is the COO of Wallace Real Estate in East Tennessee. Connect with her on Facebook or Instagram.
