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22 March 2010

Three Success Factors

Whether you are a brokerage owner or an agent, there are three factors that can ultimately be used to measure your success. A lot of variables go into these outcomes but at the end of the day it is the outcome in these three areas that will shape your tomorrows in this industry.

1) Talent Attraction

Broker/Owners: The back bone of every successfully real estate company is its agents. Attracting and retaining professional, committed  and talented agents must be a focus every working day. A look at any successful brokerage will uncover a successful talent attraction program.

Agents: Agents need to attract talent as well. The perspective is a little different but the dependency on success is consistent to that of the brokerage. Agents need to focus on building their support team- mortgage brokers, title people, home warranty relationships, contractors, inspectors, etc. All the professionals related to the execution of a successful real estate transaction. As the agent, you have the starring role in your client’s real estate transaction, but just like every good movie you need a talented cast of supporting actors in order to make it all work.

2) Revenue

The dollars coming in the door. The need to substantiate our commission rate will never subside. In fact, our ability to communicate and demonstrate the value we bring to the client and the transaction continues to separate the successful from the not successful.

Broker/Owners: As company leaders,  your agent’s rely on you to provide them with leadership and an environment that will help them market their services and expertise to potential buyers and sellers. Your ability to do this is critical. Tools, services and expertise are all key factors in supporting your agents ability to generate revenue. If agents do not feel like you can help them make sales they are going to go elsewhere, and they should.

Agents: You are the front line. The direct contact with the buyer, seller or whomever is the gatekeeper to the transaction in the case of foreclosures and short sales. Your ability to bring value to that relationship will ultimately determines the outcome.

3) Expense Control

There’s a saying that you can’t save your way into profit. That may be true,  however you can spend your way into losing money. We’ve all been through an extremely challenging time and have had to make many difficult decisions in the name of expense control. That must continue. Whether a broker/owner or agent, we have to remain diligent about every dollar we spend. What is the return on investment? How does this expenditure support my revenue generation abilities and strategies? These are questions that we need to ask before we make any financial commitments.

I often hear from industry vendors stories about agents and broker/owners signing up for their services and then never using them. This just doesn’t make sense. We need to be smarter than this.

We are staring down the end of the first quarter of 2010. This is an ideal time to review these three areas of your business and evaluate where there are opportunities for improvement. These three elements are like a three legged stool. Together they provide firm support and steadiness. But any weakness will make your business shaky. And if you’ve ever sat on a shaky three legged stool, you know that’s not a comfortable place to be.

Photo Courtesy of Dexigner.com

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