In this commercial real estate market place, it pays to be a results leader when it comes to the agency performance. Results leadership should be from a base of both agency outcome and salesperson performance.
The traditional commercial agency performance is usually ranked on the basis of one or more of the following:
- Numbers of listings in the marketplace
- Market share for the agency ranked on current listings and assessed by Internet and advertising counts
- The time on market for the average listing to be sold or leased
- The conversion rate of listings to successful transactions against those that are not sold or leased
- The numbers of property managements held by the business and the fees generated per month
- The numbers of quality properties on the books currently and compared sales person to sales person.
- The conversion of listings to completed transactions
- The average commission per sales transaction and per person
- The mean average of the achieved sale prices by property
So all of these factors should be tracked and assessed. This should be done on a monthly basis so you can see exactly how the business is performing (weekly assessments do not show you the shifts quite as easily).
You can take many of these numbers and drill down to the level of individual salesperson performance. From that process you can compare and rank salespeople into one of the three categories being top performers, improving performance, and new recruits.
So how should you rank each member of the sales team to help them understand how they are improving and show them how they can improve? One of the biggest mistakes a lot of real estate agencies make is to only compare salesperson to salesperson.
The reality of the situation is that every member of the sales team is different and on that basis should be assessed and compared to their previous personal best performance. It is a bit like being a member of the swimming team. You know what the fastest swimmer is achieving, and certainly that can be a goal, but the way to reach that high point is through improving your own personal best performance to date. Small incremental steps personally get the process of improvement underway.
When each salesperson is compared to their own personal best performance to date, they can accept the fact of improvement and will do something about lifting personal outcomes and personal performance for the business. The secret to the process is that each salesperson respects and understands their personal skills and opportunities. They then take and more readily accept ownership of the self-improvement and performance process. They know that they can improve and are more willing to do so.