In commercial real estate agency today you really do need to set come clear goals and plans to keep you on track with the things that you want in listings, market share, and commissions. An agent without this focus will struggle with momentum.
So you need a ‘success plan’ to take you forward. What does a plan of this type look like and when do you create one? It is created once a year and it is monitored monthly.
As part of this process you can then see what is working, changing, and lacking. Adjusting your plan is important to keep you heading to the targets that you need.
Key Performance Indicators
Commercial real estate agency is a personal thing. It is something that is driven from the actions and skills of a salesperson. It doesn’t really matter who you work for, but it does matter what you do as an individual in your job. Every day the key and important things should be done.
Now I know that many agencies will impose on the salesperson a series of key performance indicators for the year. Each week and each month those KPI’s will be tracked by the agency leader or principal. Unfortunately the KPI’s set by the agency are for the convenience of the agency only, and most individual agents will not take ownership or commit to the numbers.
So how do you get around this problem? You work in reverse. You ask the agent or salesperson to set the Key Performance numbers that are real and relevant to where they think that can and should go in performance for the year ahead. I call it ‘Success Planning’.
The individual agent sets the numbers as part of the ‘plan’ and gives them to the team leader. Those numbers can then be merged into the bigger picture. Perhaps they will need shaping, but the numbers are ‘owned’ by the salesperson.
What numbers should you have in one of these plans? Here are some things to help you.
Size of database
Client list growth
Time on market
Sales in $ terms per quarter
Leasing in $ terms per quarter
Property management leads for the quarter
Calls outbound per week
Meetings per week
Presentations per week
When a salesperson commits to a list of key performance indicators like this, they can see what they have to do and how it occurs. The fact of taking action is much easier because the salesperson can see what has to be done. In this commercial real estate market, that is a good thing.
It is a fact that the way you think when you are prospecting will impact the results that you get. This then carries through to the prospecting that you make in commercial real estate.
Has someone told you that you need to prospect and they have given you little facts on how to do it? Perhaps they have told you to get out of the office and start doing something to build your market, yet the facts behind the process seems to be a bit lacking?
It is a very common issue that many salespeople do not know how to prospect at all very well. They simply know that they must lift the telephone and talk to prospects and more new people to see if there is a problem that they can solve.
To help the process here are some rules to help you get better results in commercial real estate prospecting.
It is extremely important to start a contact and prospecting system that you can work to every day at the same time. As part of that process you will need a few tools to use and stick to such as a database or spread sheet to record your contacts.
Track your numbers of outbound calls to meetings arranged. Out of 40 or so calls, you should be establishing 2 or 3 meetings with people that you have not spoken to before. It should also be said that you will not reach 40 people in all those calls; you will be lucky to reach 20. Those that you cannot reach today can go into the system for call contact later.
Protecting your thinking in call contact is very important; many people will decline your offer or your request for a meeting. Over time your conversions to meetings will rise, however it is the first 3 weeks of making the calls where your thinking processes need to be protected. Read some good books on making calls so you understand the importance of the mindset and thinking process in commercial real estate.
Having a reason for the call will help your conversation. If you do not know the person, the best approach is to see if they have a need or an interest in commercial real estate of any type. It is a question that can lead into a telephone conversation. As the local real estate agent, you can keep them updated with market trends and property changes in the local area.
I have coached many salespeople through the barriers of making cold calls. Just about all of those barriers I have noticed are self-inflicted and self-generated with most salespeople. Change your thinking and you will open more doors faster with the people that need your services. Making cold calls professionally will fast track your career in commercial real estate today.