Choosing a Broker

The business of real estate sales is a high stakes, make or break opportunity and only the persistent and resilient survive.  At the start there’s an enormous amount of learning that must take place at a rapid pace.  A new agent must rely on their chosen broker to provide the training and support necessary to effectively launch their new career within weeks or serious doubt can creep in and sabotage an otherwise productive career.  Herein, lies challenge number one, choosing a broker.  

Agents typically interview with one, two, or three brokers but rarely know what to ask or how to compare companies in terms of their own career goals.  Most agent interviews are more of a sales pitch, sometimes accompanied by a detailed presentation. A new, unsuspecting agent will often be flattered that the interviewer wants to “hire” them, not realizing that the manager's primary objective is to hire many agents.  Chances are excellent that almost every manager or team leader they meet with will offer them a position.

So, how do you choose the right broker, for you?  Should you go with a big company or a small one?  Should you join a team or work independently? What questions should you ask during the interview?  What criteria should you use in making your final decision?  

Know Thyself

Before you can begin to make a decision, it’s important to do a little soul searching and be clear about your work behaviors and your specific goals for the future. 

Do you enjoy being a member of a team or are you motivated by singular achievement?  There are many advantages to starting out with a team but if your nature is entrepreneurial you may quickly grow frustrated.  

When you join a team, you learn how that group runs their business first hand, may have immediate opportunities to work with established clients, and will share commissions earned.  If you work as an individual, you will learn through the company training (or one-on-one), will develop your own client base, and will not share commissions earned.  

Teams usually operate under one agent’s identity and brand.  If you would feel a loss not having your name in lights (actually on signs/riders, etc.) then being part of a team may not be right for you. Either way, your first decision should simply be whether you desire to build your business as an individual or as a member of a team.

Consider Company Size

There are many advantages to associating with a small firm as well as a larger one and this decision is really a personal one.  Ask to see each company’s listing presentation and standard marketing plan and compare as if you were a seller choosing a company to attract a buyer.  What, exactly will you be able to offer your seller clients?  How will the company’s reputation and standing help you get business?

Systems, Support & Materials

Ask about systems, support, and materials available to help you grow your business, and compare them, side-by-side. Don’t forget to ask about the cost of said systems, support and materials!  Keep in mind that the more services a company offers, the higher the monthly or quarterly expenses. It's important to know which services offered are mandatory and which are optional.

Commission Splits

There are an amazing array of commission structures to consider.  Keep in mind that It’s never a good idea to make your choice of a broker based solely on commission. After all, an offer of a high split doesn’t mean much if you have little or no commission to split.  

Choosing is Serious Business

Choosing the right broker is serious business.  It's critical that you choose a manager that you feel has your best interests at heart and can be generous with their time and energy to help you get up and running in a short period of time.

After you have gathered all the information and compared & contrasted systems, support, materials, and fees, choose the manager and company that best supports your future success.

Why Are Some Agents So Seriously Successful?

Seriously successful agents are those peak performers who, time after time, astound us with their numbers.  They sell in double digits, such as 10, 20, 30+ million dollars in closed transactions.  We applaud their serious success.  And we ask ourselves, “How do they do it?  Is their career path paved differently that mine? What do I have to do to achieve double digit production?”  The answer to these questions lies in understanding the four stages in a developing real estate career and doing those things that average agents simply do not do.

Stage One:  Enthusiastic Beginner

New agents enter the business with the attitude of what author, Ken Blanchard calls, “the Enthusiastic Beginner” – excited about a new career and committed to doing whatever it takes to build a business, but perhaps lacking the knowledge of exactly what to do and how to do it.

With time and effective training, we quickly realize that in order to build a solid base of business, it’s going to take a real commitment to consistent prospecting and effective marketing as well as refining a myriad of other skills, such as negotiating, closing, mastering technology, etc. These all sound fine, even exciting until it comes time to make that first cold call.  Our palms sweat, our hearts pound and it is precisely at this moment when we adopt a new attitude and move into the second stage of development as a Disillusioned Learner.

Stage Two:  The Disillusioned Learner

As  a Disillusioned Learner, we know what to do and how to do it, but are not necessarily happy about it.  The commitment to do whatever it takes to build a business is now laced with a whole host of fears – fear of intruding, fear of being pushy, fear of rejection, etc.  It is precisely at this stage that we realize we must make a decision to aim for serious success by prospecting consistently and marketing effectively (or not) and settle for average (or less than average) production.

Stage Three:  The Reluctant Contributor

The Reluctant Contributor stage is where that decision is mulled over, fought with, and ultimately worked through – if we stay in the business.  For the Reluctant Contributor, confidence and motivation are volatile and variable.  One day it may reach an all-time high with a new listing, only to drop to a new low when a buyer cheats on us with another agent.

Some agents get stuck in this stage and never leave it.  Thus, sentencing themselves to a career of highs and lows evidenced by a lot of complaining and periodic threats of getting a “real job with a real paycheck, on a real regular basis." Sometime Reluctant Contributors hop from broker to broker in a fierce attempt to find an easier way to be successful, preferably without having to prospect for business.

Sadly, when an agent decides to leave the real estate business, it's usually when they are in the Disillusioned Learner or Reluctant Contributor stage.  

Stage Four:  The Peak Performer

Agents who are truly committed to success are able to accept the realities of the business and after perfecting their skills, find joy in prospecting and marketing.  They analyze their numbers and ratios, and are intimate with the number of contacts it takes to get a lead and the number of leads it takes to obtain a listing or make a sale. They do things the average agent simply does not do.  And so, they move from Reluctant Contributor to Peak Performer, the fourth and most coveted stage in real estate career development. 

I’ve had the unique opportunity of working with Peak Performers throughout North America for many years and although there is no one prescription for success, each award-winning agent did two things really well.  You guessed it, prospecting and marketing.

   

If you’ve been plodding along the real estate path at an average pace or find yourself stuck in one of the stages, why not make a commitment to become a Peak Performer today?  Tomorrow we’ll be applauding your double digit achievement and raising our glasses to toast your serious success.