In November and December, I’m be featuring business planning. Suggest to your agents they check out Up and Running in 30 Days, my blog for achieving agents. I’ll provide lots of planning tips and free documents.
This post’s ‘gift’ is my after sale survey. See the link in the body of the blog.
I hope you are coaching your agents through the business planning process.A�A�Here are three areas of their plans that you should help them look at,A�that, with small adjustments, can pay huge dividends.
1. Where’s the money been going? It makes sense that the moneyA�agnets invest in theircareersA� should be givingA�thempay-offs equal toA�their investments. Unfortunately, many agents don’t know where they spent the bulk of their money last year. As you coach each agent, have them go back over the past four months.
Add up the moneys they’ve spent to generate business in each ofA�their ‘target markets’–those identifiable groups of people that they build programs around to get business (geographical farm, first-time buyers, etc.) Where areA�they spending most of your money? AreA�they getting a good enough ‘return on their investment’? They will use this analysis to buildA�their budget for next year, too.
From working with agents in my business planning course, I’ve observed that many agents don’t build a business plan around their best source of business: ‘sold’ customers and clients. Marketing surveys show that it costs six to nine times as much to get a new customer as to keep an old one. So, ifA�agents spend more money onA�their best source, and less on theirother sources, they’ll optimize their investments.
2. What areA�their ‘success’ ratios? Most agents don’t know this one: What are their ratios of listings taken to listings sold? How many ofA�their sellers are they making happy? How many of those sellers are so delighted withA�the service that they will refer more people to the agent? In my opinion, a good agent should targetA� a 80-90%A� success ratio in this area.
Why? We all know we need to promote ourselves. The most successful, believable promotions are based on our success records–what we’ve done, not promises. If you have a sign on your desk that says “If you don’t list, you don’t last”–tear it up. Instead, put up a sign that reads, “If your listings don’t sell, you don’t last. Small adjustments, big dividends. (Plus you’ll save lots of marketing dollars.)
3. How ‘delighted’ areA�those customers? Most so-called ‘business plans’ in real estate merely are goal-setting grids. Focusing only on the ends suggests that the ends justify the means. However, the consumer sure doesn’t think so! These goal setting grids alone lead agents to miss the point of the decade: Top-flight customer service begets more business. That is, not just what you do, but how you do it.
What level of customer service are your agents providing? Is it just good enough to get through the transaction? Or, is it so great that your customers and clients are thoroughly delighted? (Delighted consumers refer business to you–less cost and more effort equals big pay-offs, right?)A� What canA�agents build into their business plans to assure thatA�the are regularly delighting those they work with?
One of the agents in featured in many of my books, Rick Franz, now provides surveys weekly during the time he works with buyers and sellers. He wants clients to know he cares how they feel about the service, and that he’s dedicated to providing the best service they’ve ever had. Pretty competitive, yes?
Click here to get my after sale survey, one of the dozens of strategies ready to use in my business planning systemA�for real estate professionals.
Although there are dozens of areas to scope in your plan, just taking one hour out of your day now to assess these three areas–and plan adjustments–will assure your agentsA�make more money this year–and createA�better, more pleasant long-term careers.
Want to see more on business planning? Check out my online programA�Beyond the Basics of Business Planning. All the instructional webinars and documents are online, and very easy to complete and implement. This is a program created exclusively for real estate owners and managers. And, when you purchase the manager’s package, you also get access to all the agent’s planning videos and documents.
Complimentary Business Planning Webinars
I’ve recorded 2 webinars for you to help you get inspired to plan for next year–and to give you information on what I believe are the biggest success strategies for the coming year. One webinar is for agents and one is for leadership.
