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:
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
- 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
- Engage in deliberate practice of the skills being taught
Rehearsal for presentations
- 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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