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Judy LaDeur International
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By Judy LaDeur
Judy LaDeur International
Most brokers make the same mistakes when it comes to recruiting. These mistakes are costly! They cost you money as well as time and frustration. Recruiting is the number one way to get your office outrageously profitable. However, many brokers don't want to deal with the "hassles" of recruiting. The truth is that recruiting can be easier than listing and selling - when you aren't making these seven mistakes...
1. Only Focusing on Top Producers
Many brokers only look at the top producers in their market. The truth is that recruiting top agents is just like selling million dollar houses. It takes more time, more money, more patience, and more skill to recruit top producers. It can actually be more beneficial to hire average agents and agents from smaller offices. Here's why:- Average producers can easily increase their production in a larger office with more market share.
- It's easier to upgrade average agents than it is to try and convince a top producer, from a company that is stronger than you in the marketplace, to switch to your firm.
- Sometimes you'll wind up giving top agents so much that you'll have less profit
Bottom line: There are a lot of agents out there you can have. Focus on them! Remember, by increasing your staff, you increase your market share and top agents will come to you!
2. Neglecting the Relationship-Building Stage
It's not surprising that agents avoid managers who continually walk up to them and ask, "So when are you going to join with me?".
The courtship process is very important for recruiting experienced agents. Most agents are expressive in nature. This means they are emotional decision makers. Agents who are emotional decision makers need to like the person they work for. You need to develop a relationship with these agents so they feel comfortable with you. That means using letters, phone calls, gifts, postcards or just "being a friend." Your phone calls and written correspondence need to educate them about who you are and what you can do for them if and when they decide to make a move. Let them get to know you first. They'll let you know when you can propose!
The number one rule when recruiting experienced agents is: It's not what you do that makes them leave, it's what their broker does or does not do that makes them leave. It's what you do that makes them pick up the phone and call you once they make the decision to leave. It is just timing and patience.
3. Focusing on Just One or Two Agents at a Time
Most brokers only focus on a few agents. The truth is, to be a successful recruiter, you need to develop a list of 50 to 100 agents you want. I call this your "hit list." Your "hit list" needs to be made up of the right combination of rookie, average and top agents. By targeting the right number, and the right kinds of agents, you will be able to create a steady stream of agents joining your office.
4. Not Taking the Time to Set Up a Recruiting System
Once you have your "hit list" in place, you are ready to choose a recruiting system. There are many different systems out there that vary in effectiveness. If you don't have a recruiting system in place, you have to spend a lot of time and effort contacting and following up with your target agents. This is one of the reasons that most brokers only focus on a few agents at a time. But by having a "plug-and-play" system in place, you can keep in touch with up to 100 agents a month in less time with much better results.
The best systems create a strong recruiting foundation for your office. The most cost-effective and efficient is a simple letter system that educates the agents in the marketplace as to who you are and what you can do for them. Then you need to follow the letters with phone calls to see who is interested in getting together. Your letters should always address the uniqueness of your organization and be on your personalized stationary.
5. Not Educating Themselves About Their Competition
Most brokers are like ostriches when it comes to their competition. In order to successfully recruit, you must find out what your competition has to offer. This involves research. Start with a list of the unique reasons agents should join your firm. Then look to see how each of your competitors compares to your firm with regard to those particular reasons. The key is to always have your firm look the best. You need to be able to sell your systems and un-sell your competition's systems by showing how your services are superior.
A few ways to get that information are:- Ask your agents who used to work for your competition
- Question newly hired agents who interviewed with your competition
- Ask agents whom you are interviewing. Tell them, "This is how we do it, how does it compare to your company or other companies you've talked to?"
Along the same lines, you also need to know where you stack up in market position on a month-to-month basis. There are three reasons you must have this information:- It's important to know where you are so you can know where you are going
- It focuses your recruiting efforts on those offices below you in market share
- It lets you recognize which offices are increasing market share as well as those that are losing it. Offices that are declining in market share are prime targets for a "raid." Also, you need to see when you are increasing your market share and market position so you are encouraged to continue doing the things that will carry you to your goals.
Offices that are declining in market share are prime targets for a "raid." Their agents are usually experiencing fewer calls on floor time and less synergy in the office. On the other hand, an office continually increasing its market position will have record-breaking sales, listings and increased profits. If you focus your efforts on recruiting experienced agents, you'll dramatically increase your market position, even in a declining market.
If you recruit a two million dollar agent, you increase your market position by $4 million. That is because the competitor loses $2 million in business and you pick it up which gives you a $4 million net gain in the marketplace. If you recruit 10 agents who are doing an average of $2 million each, you increase your market position $40 million in one year! All this is done through recruiting versus focusing on production.
6. They Don't Know What Makes an Office Vulnerable
The broker or manager who can master the art of recruiting in a vulnerable situation can very quickly build an empire of agents with little effort. The key is to stay aware of what is happening in the marketplace at all times and to maintain contact with the agents on your "hit list."
What makes an office vulnerable? Almost anything! For instance...a management change creates vulnerability, but only if the manager was well-liked and was doing a good job. Ownership change or name change creates vulnerability because agents develop a comfort zone with a company and the way it does business.
Change creates fear of the unknown, and many recruiters use that to their advantage. They might say, "As long as you need to switch the name of the company that you work for, why not use this as an opportunity to check out other companies as well. After all, your company name is going to change one way or the other. Why don't you make that change after you know all of your options?".
Changes regarding policy or compensation also create vulnerability. I recommend whenever a change will take something away from the office, use that time to introduce something that is being added to soften the impact. Or, if you are rolling out a new and exciting program, use that time to analyze your existing programs to see if any changes are needed. If you make a change that could have some negative repercussions at the same time that you introduce something new and exciting, you dramatically decrease your vulnerability. Of course, these suggestions are designed to make you less vulnerable. However, do not make the mistake of thinking your competitors are this smart. When they make changes, or they are vulnerable, contact the agents in their office and see how they feel. You should be able to hire at least one agent, if not more.
But what is the one change that makes an office most vulnerable? Whenever a good agent leaves a company, that company is vulnerable for up to 10 days. Why? Most agents don't leave the day they become unhappy. They spend up to three months interviewing with other companies and telling the rest of the staff what everyone else is doing. Because the grass is always greener on the other side, the other companies always look better than their company. And the day the agent leaves to go to that new company, a giant sign goes up in the back room which says, "The grass is greener over there. You should check it out too.".
If any manager calls the agents in that office within 10 days, they should get some interviews. It is always best to call the agents you know first. And if you hire an agent during those 10 days, you have another 10 days to hire another one. In fact, with each agent you hire, you increase the vulnerable setting in that office another 10 days.
Important Reminder! You do not have to hire the first one to get the second one. You just have to call that office whenever an agent leaves
7. They Haven't Taken the Time to Develop Strong Presentation and Closing Skills For a Recruiting Appointment
The ability to develop strong presentation skills is probably the most important step to being a successful recruiter. After all, we can't make anyone join. What we can do is present our company in a way that makes them want to join. Most brokers already have good presentation and closing skills for listing presentations. However, most brokers don't take the time to turn the skills they already have into strong recruiting skills.
A strong recruiting presentation should always tune into that particular agent's needs. Each interview with an experienced agent should be unique and different. Because no two agents are alike and each situation is different, learn how to focus in on the "what would it take?" idea.
The first step is to spend the first 20 to 40 minutes asking questions that will tell you why they are unhappy at their current office, what they are looking for in a different firm and which of your systems would enhance their real estate career. Then, based on their responses, you should present only those systems and opportunities that would make a difference to them. I usually recommend that you present five to seven opportunities or systems. With regard to presenting your systems, there are several things to keep in mind. First, they only care about what it means to them and how it will affect their career.
Whenever you present a system, always let them know, "Here's what that means to you.". You should also use a visual to reinforce the value of that system and get feedback from them as to how they will implement that system into their real estate career. Ask them to verbalize what the long-term financial rewards will be to them.
Now, think about what we have done up to this point. Instead of starting to sell them right away on why they should be with you, we first see what they want and what they need. We then present only those things to them. So when we trial close them and ask them, how does it sound so far? What should their response be? They should say it sounds great (if you have done a good job of identifying their needs and matching their needs with your systems).
The next step is to present details, such as compensation and answering questions they may have prior to making a decision. If it still looks good, just close. Sound too simple? Try it. One of the things I have discovered when working with brokers all across the country is that when it comes to recruiting, their closing skills need help. The most common close that I hear is, "Well, ah... what do you think?". For the record, that is not a close and, in fact, usually prompts the stall, "Well, I want to think about it.". You need to develop a closing phrase for recruiting just like you did in listing and sales. It could be as simple as, "Let's go pick out your desk.". But say something that causes them to take action. It's not the end of the world if they don't jump up and say, "Where do I sign?". I have found agents are just like buyers and sellers. When it comes to signing, they will have some fears and doubts you will need to address. Handle the agent's stalls and objections the same way you have worked with buyers and sellers. You will be amazed at how well this works on recruits.
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