Focusing on CRE Brokerage Profitability

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Cash Flow pie chart on a blackboard. As a business, it is important as part of your business plan to record income minus expenses to calculate the profit on which tax must be paid.

Focusing on CRE Brokerage Profitability

The importance of profitability cannot be overstated, without it the brokerage doors close. Profitability is a compound word. Most of us focus on the word ‘profit’ when we think of profitability. Instead we should focus on the word ability. Why? Because the agent’s abilities are the source of the profits for them and the company.

 

They absolutely must have the ability to:
Generate lead
Convert prospects into exclusive representation agreements
Deliver the services that harvest the lifetime value of the account
Manage their time effectively
Create lasting relationships

 

What do all these things have in common? They are skills, none of them are natural talents . Skills are learned abilities. Great managers understand the steps required for skill building.

 

Teach the fundamentals of the skills

  1. Prospecting, networking, and marketing for lead generation
    Rapport building, presentation and closing for lead conversion
    Transaction anatomy for sales and leasing for services
    Time management for the effective use of their ‘Golden Hours
    Creating a system for relationship building
  2. Engage in deliberate practice of the skills being taught
    Role playing
    Rehearsal for presentations
    Closing skills
  3. Provide immediate coaching and feedback
    In practice sessions
    Following work with prospects and clients

 

Motivation without the ability to perform well on the fundamental skills required will not create profitability. The same is true if the agents lack the fundamental knowledge of the business.

 

Knowledge and skill are the twin pillars of expertise. The more knowledge and skills an agent possesses the more they will get from each experience. This translates into meaningful, bottom-line profitability. Focus on the abilities of your agents and profitability will come.

 

Management and leadership abilities are also learned skills. Schedule your half-hour no-cost consultation with Bob right now, because nobody gets to great alone.

 

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