This is another Ask the Broker question best thrown out to everyone:
It looks like I did Project Blogger one better. I actually hired on a new agent yesterday. As in brand new. The guy is an attorney, formerly in-house counsel for a non-profit, he just got his real estate license and wanted to hang it with us.
So what things would you say to a brand new agent in this market? What are the “New Basics”? I plan to tell him BloodhoundBlog is must reading. But whither from there?
I’ll lob a softball to get things started: I don’t want to seem to endorse Tom Hopkins, because too much of his real estate sales advice turns on what I consider to be deceptive tricks. But something he said has stuck with me forever:
Am I making the most productive possible use of my time right now?
That may not be an exact quote. The point is to make sure that, when you’re working, you’re working on things that will improve your present or future income potential, not spinning your wheels. The other end of the argument is, when you’re not working, make the most productive possible use of that time, giving your spouse, family and friends your undivided attention.
There’s much more than this, of course. What say you? Should a new agent go hi-tech — or go door-to-door. Farm and pray for rain or pay for leads? Go it alone or fill a hole on somebody’s team?
Technorati Tags: real estate, real estate marketing
Jonathan Greene says:
Still trying to figure that one out for myself, actually.
April 1, 2007 — 8:30 am
Jeff Brown says:
Greg,
I never knew how much of a problem this was for new agents until I worked for Prudential California for seven years. Their ‘mentor’ program was, shall we say, not impressive.
My observations:
1. New agents (na) spend the vast majority of their time and energy doing one thing – avoiding conversations with anyone who might list property with them. Of course they’re not avoiding listings, they’re avoiding potential rejection. It’s difficult to watch.
2. While doing #1 they hold open houses for agents who aren’t afraid of strangers saying ‘no’ to them. They also sign up to take general ad calls. Sooner or later they end up with either another profession or working for a producer as a buyer’s agent.
3. Once they figure out they can only make money feeding off real producers, and can only acquire clients via passive means, (i.e., potential clients must come to them or they’d never have one) the realization sinks in. They’re not going to make a lot of money working this way, and they’re not willing to do what it takes (risk consistent rejection) to correct that reality.
Your new guy needs to figure out what form of prospecting he’s willing to consistently work. Then he needs to do that six hours a day 5-6 days a week. If he worked for me he wouldn’t be allowed to take on buyers for the first 90 days. Any buyers acquired during this 90 day period should be handed over to you and Cathy with him getting some kind of referral fee.
If he’s not prospecting, he should be doing CMA’s, listing presentations, and prospecting follow-ups.
It was this approach, taken with me as a new agent, that set the tone for my career. By the end of my first year (I was a full time student, part time agent) it became clear to me that agents who insisted on handling buyers only had made the conscious decision to limit their potential income. It also became equally clear to me that they survived only through the success of those who weren’t fearful of being rejected.
As I read this I realize how harsh this may sound, not only to new agents but to those who represent buyers only. To those who feel slighted, I mean no offense and offer my apologies to those who are offended. I also know they see themselves and their thought process of long ago in my comment here.
April 1, 2007 — 10:14 am
Jeremy Hart says:
Focused activity breeds success … it will take time, but do it well and do it often.
April 1, 2007 — 11:54 am
Austin Realtor's Wife says:
Jeff has this mostly covered, but I would add “get in face time.” What I mean by this is that new agents decide that they are self employed and they are going to sleep on Wednesday instead of go to a ribbon cutting or shopping downtown or to mass or any other endless sea of people. MANY transactions happen by being in the right place at the right time, so when the option of sitting at the desk presents itself (and you’ve read and written as many blogs as you can until your eyes BLEED), get out of the office!
Some people farm door to door, others blog, others make calls, etc- marketing ideas are endless. BUT the best asset you have is yourself, so immerse yourself in your community… go look at jewelry, go to a baseball game or have a coffee- many buyers and sellers don’t even know yet that they ARE buyers and sellers and sometimes it takes is the inevitable “oh you’re a Realtor? How’s the market?” conversation!!! NEVER SIT STILL!!!! Good luck to ALL new agents!!!!
April 1, 2007 — 12:00 pm
Brian Brady says:
I like Jeff’s idea of the “apprenticeship” for the first 90 days. He highlights two things that I think are essential:
1) 5-6 hours daily of a prospecting discipline. There are so many creative ways to do this. I can tell you from experience that “cold walking’ works; I’ve had to do it twice in the past 13 years:
http://prospectingprofessor.blogs.com/prospecting_professor/selling_history/index.html
2) No customers for 90 days. Learn the trade first.
I can not overemphasize the benefits of “cold walking” businesses in a community. Edward D. Jones Securities requires a new FA to have had 500 financial conversations before they place a trade for anyone.
There are so many ways your new agent can do this. he can promote one of your listings. He can solicit opinions from local business owners. He can solicit business from local homeowners. He needs to do this 20-25 times a day. This will be a tough sell to a professional with an advanced degree. The art of “peddling’ is a lost one but a crucial one, nonetheless. He WILL learn humor, entertainment, humility, and how to identify opportunity from practice in the art of “peddling’.
April 1, 2007 — 1:40 pm
CJ, Broker in L A, CA says:
In the interest of full disclosure and transparency, I thought I should reveal that I am the person who initially put this question to “Ask the Broker”.
I wondered how Greg and other contributors would respond. And quite frankly, I am a little surprised at the number of comments stressing old school prospecting.
Bob and I intend to treat this agent as a team member/apprentice for the first six months or so. And since we are fairly well known and well established in our little niche of the community, the notion of a new agent needing to walk the streets to find prospects had not yet even crossed my mind.
And how did we become well established? By supporting and participating in the community, networking with community members. Doing a lot of the “face time” thing, but not a lot of “peddling”.
In fact, here’s the first bit of new agent advice that I thought of: Say NO to all the salespeople, vendors, house-dot-this and home-dot-that search-engine-placement-scavengers that will flood your message box and email. And since I believe in the Golden Rule: Do NOT interrupt other people’s time with annoying and intrusive sales calls.
April 2, 2007 — 4:34 am
Chris says:
Keep it coming guys, as a new agent this posts are priceless.
When I start next month I think I’m going to concentrate on two areas:
1. Website. I happen to know someone who owned a very large professional add agency, and he can design amazing websites. Extremly professional. So he is going to create an excellent site for me.
2. Listing farm, I’m thinking 200 houses to start with, maybe more. I figure I’ll go door to door and talk to as many owners as possible. And follow it up with mailings; something usefull though not just junk mail. Maybe a report on what’s going on with home sales in their area.
April 2, 2007 — 9:12 am
Jeff Brown says:
Chris – You have the right idea.
>Listing farm, I’m thinking 200 houses to start with, maybe more.
200 homes is WAY too small. Before moving to the investment side I was a ‘farmer’ myself. I knocked doors Monday-Friday every week. 50 doors daily was the norm. Sometimes it took a couple hours, sometimes more. But the 50 doors were hit before I drove away.
By the time I’d been there only six months I literally was pulled off the road by a home owner one weekend, telling me he was moving and wanted me to list his place! Of course, I’d been doing business there before this happened, but he was only going to list with me.
If you’re interested in the details of how I farmed, please contact me through my blog. We can arrange a phone conversation.
Sounds like you have your website set-up well in hand.
Good luck!
April 2, 2007 — 9:24 am
Jackie Colson-Miller says:
Really interesting comments about new agents…
Let’s assume he already has a “network” of people that he knows…as counsel for the non-profit, he should already have a mailing list for his first “farm”. He should be mailing to that group,and networking with them like crazy.. as they already know and (let’s assume), respect him. Far easier than knocking on “stranger doors”. I don’t think new agents should join a team…too easy to just handle someone else’s leads without learning to generate your own.
As far as technology…he needs to embrace it wholeheartedly..website..Treo..all of it. Clients expect agents to be “tech savvy” and communicate via email.
April 2, 2007 — 10:46 am
Brian Brady says:
Let me explain the term “peddling”. I don’t think you and I are far apart, CJ. I supplied the link to show that the “art” takes more than just showing up (although most won’t commit to even doing that).
There is a balance of showmanship and professionalism that goes into every good sales effort.
“Do NOT interrupt other people’s time with annoying and intrusive sales calls.”
Don’t make them annoying and intrusive, Cheryl. Make them informative, polite, and entertaining. Done correctly, people in the community will welcome your weekly visits.
Prospecting Professor is an invaluable resource for someone not trained in the art of salesmanship
April 2, 2007 — 10:57 am
Jeff Brown says:
Jackie – You’re right, knocking on strangers’ doors is not the most appealing activity – just one of the most profitable.
I’ve yet in my nearly four decades in the biz, met a mega producing agent who relied solely on his ‘network’. In short, those who produce the most volume are doing the things that aren’t easy. And they’re doing it every day.
April 2, 2007 — 11:03 am
Chris says:
Thanks Jeff, I’ll get in touch with you in a few weeks. I’d love to have a chance to pick your brain.
I’m starting full time the end of May after this semester is over. Right now I’m just kind of hanging around the office and doing odd things here and there.
April 2, 2007 — 3:34 pm
Jeff Brown says:
Chris – Super! The sooner you get set up, the faster you’ll be going when the rubber hits the road. I’d call right after your hangover from finals clears up. 🙂
April 2, 2007 — 3:40 pm
Chris says:
Yeah thats the idea, I want to have all my ducks in a row in early May. Then take finals and drink a lot; so I can hit the ground running late in May…
April 2, 2007 — 7:20 pm
Sean Purcell says:
Ah, finals and drinking… I sure do miss those days in high school 🙂
Many great ideas here and I will throw my 2 cents worth into the ring. I always taught my new trainees (mortgage or real estate) to concentrate on a three legged stool of marketing:
The first leg is your internal farm; i.e. your existing list of everyone you know well enough to say Hi. This list should be as long as possible and always growing. If you are new to an area (or alienated most of your acquaintences with too much “legal talk” or late night “drunk calls”) then one great way to add is Thank You cards. I required my trainees to mail a minimum of five Thank you cards per day. This meant that they actually get out of the office, notice what people are doing and especially notice people doing something helpful, get their name and acquire their mailing address. In effect, this forced them to get out and interact with the community. Plus, no one sends Thank you cards anymore and so you are spreading some great Karma.
The second leg is a traditional farm, which Jeff Brown has covered here with great insight.
The third leg I called a “you pick ’em” and the idea is relatively simple: we sit down and look at the trainees background. There is always some past job or interest that the trainee can get behind. The ultimate objective is to donate time and money to this cause. Get involved in something you really care about (because if you are doing it purely to market you will be seen for what you are) and take action. Some examples: one of my trainees was ex-military and began working with the Marine/Navy Relieve Society. He donated 10% of his commission for every transaction wherein the client mentioned that group. He began to get a lot of military business. Another trainee was a former Division 1 basketball player and later a coach. She created a “Bucks for Basketball” program that she marketed to all the high schools and jr. colleges in the state. Again, 10% of her commission went to that school’s program for any transaction mentioning that school. I think you can see the emphasis here: make sure you truly care about the cause because you will spend a lot of time (and some of your money) with them AND (more importantly) find a way to get other people involved in your marketing.
Having said all of that, the most important trait you will see in any successful real estate agent is that they commit and they take massive action. Motion creates emotion and we are all in a business of emotion.
Best of luck!
April 3, 2007 — 10:44 am
Peter Maclennan says:
Thank you all for your valuable information. I appreciated the creativity in some of the marketing schemes.
Just getting started in the business, I am thankful for everyone’s generosity in sharing with all newbies. I just hope to apply all that I have learned.
Thanks again!
April 7, 2007 — 10:30 pm
Carl says:
wow, I know it’s been a year since this blog was posted, but I found it quite by accident today. Some inspiring and honest feedback for a new Agent trying to get his hands dirty. Thank you.
March 14, 2008 — 11:32 am