Companies are profitable today because they have done two things: cut expenses and positioned themselves for growth.
You can cut expenses only so much because you still need to keep the lights on – and so it’s the second part that I’ll consider here.
Growth can be determined two ways in a real estate company – recruiting and retention – hiring new talent and developing what you have. Allow me to explain. First, retention – what do you have in place that will ensure that an agent will continue to develop and produce in this market? It comes down to a dynamic training program that ensures that an agent is learning the skills this market and consumer require. It is my belief that if a company does not have a program that demonstrates results for the agent – there is no reason for the agent to work with the company.
Second, is a one on one coaching program. I believe that a solid agent-coaching program is the highest level of support a company can provide an agent. Properly done, coaching allows time between management and agent to focus on what’s getting done and what’s not and most importantly, whether the weaknesses are a motivation problem or a skills issue. In short, helping the agent become better at what they do and improving customer service as well.
In terms of recruiting, how else would you recruit to your company without offering the above to a prospective agent? If you’re recruiting based solely on split – there’s always somebody out there with a bigger carrot – and unless the agent is learning what they need to be productive today – well, one hundred percent of nothing is still nothing.
Finally, real estate companies have to be run like a business. Consumer-centric practices and procedures benefit both consumer and agent and find their way to the company bottom-line.