Buffini says he has seen plenty of companies build their own coaching programs, but when he coaches clients in those same companies, they’ve increased production five-fold, much better numbers than what their own in-house program provided.
“Firms and franchises already have so many things on their plate and I believe they can do a great job with support, training and events—that’s why we’ve created training programs to support broker/managers in that endeavor,” he says. “However, the coaching relationship requires the confidentiality of a confessional and the safety of having someone not too close to the situation.”
Outside coaches can afford the time and personal scrutiny for the particular needs of their coaching student, whereas a manager or company trainer would most likely find it challenging to keep up with each agent in real-time. In fact, many of the top outside coaches have measurement metrics to prove their services result in more sales and, ultimately, more profitability for both the agent and their company.
Workman thinks outside coaching shouldn’t replace in-house training from firms, but complement it. He also says that sometimes it makes sense to bring in more than one coach to expose agents to innovative thinking and to find the person who best resonates with them.
Doing the Math
According to Murphy, the most successful brokers know that anything “free” translates to no value. Some brokers will offer subsidized coaching and are very hands-on during the process. Their teams/agents need direction, and a smart broker listens and responds.
There are always going to be some who don’t want to invest money into coaching, feeling the financial obligation might be too much, but if management stays engaged with the coaching initiatives and their teams, the bottom line will show it’s a smart investment.
According to Scott, the investment in coaching and training is critical to the bottom line and, therefore, an integral part of John L. Scott Real Estate’s culture. “It’s just what we do. It’s who we are. Seventy-five to 80 percent of our work is direct repeat business. That doesn’t happen without transactional excellence. Training and coaching keeps agents inspired and gives them new concepts to try.”
Buffini notes that when it comes to success, everyone’s expectations are different; therefore, he allows individual agents to articulate what success looks like for them.
“We have all types of people, all the way from someone who makes $85,000 a year up to somebody who makes $5.5 million a year in income,” explains Buffini. “That’s their goal; that’s what they defined as success in their business and we have the system to ensure we support both types of clients. Of the thousands of people we work with, the average income is just under $300,000 a year. For $439 a month, we can get someone a 5,400 percent return on their investment. A lot of people throw their numbers out there without validating; we validate all our numbers for our clients’ sake, so they’re running their business in a business-like fashion, and for our sake, so we can have the credibility behind our messaging.”
Keeping the Formula Fresh
Coaching methods and offerings have evolved over the years to stay relevant to both changing market conditions and changing agent needs. Along those lines, Ferry’s business model follows a well-known Peter Drucker quote: “Business has only two functions—marketing and innovation.”
“The real estate market is in continuous change and requires the ability to adapt to those changes,” says Maryann Vitale Alles, president and CEO of Berkshire Hathaway
HomeServices Select Properties in St. Louis, Mo. “Coaches help professionals stay focused and help push them forward by using their own skill set, while classes and training help agents stay abreast of market changes.”
“In order to give our clients the best coaching, we must evolve. For example, in 2009, I recognized the importance of YouTube and began teaching our clients how to maximize the use of video to increase their business,” says Ferry. “I personally spend my time reading, testing and analyzing what’s new, what’s working right now and what’s coming to ensure our clients are first to market with new marketing techniques. Continuous innovation is the only way to ensure our clients are getting the best possible training.”
“Our industry changes weekly, and we need to adapt,” agrees Schlott. “Training is a reflection of where the industry is, at the time, so training needs to change with the industry.”
Buffini’s a big believer that principles don’t change; tactics do. “We have a very simple and easy-to-follow system for building relationships in such a way that you can generate a steady stream of high-quality referred leads to your business,” he explains. “It’s based on principles that don’t change—how to take care of existing clients in such a way that they continue to use your services, and also refer you to others.”
However, on a tactical level, he’s invested millions of dollars in creating several technology platforms, such as a CRM (Client Relationship Manager) based on the very lead-generation systems he coaches clients on; and in building his own TV studio, which broadcasts nationally and internationally on the Buffini TV channel.
“Although agents love coming to live events, we’ve created an opportunity for them to participate in both classroom training and tune into our live Success Tour events. They can stay at home and watch the broadcast, or watch it in groups at their office,” he says. “This year, I’ll do six Success Tour events and even though there’ll be a couple thousand people in attendance at each event, we will simultaneously broadcast it to tens of thousands of locations tuning in either individually, or in groups at an office.”
Getting Personal with Technology
Technology offers a plethora of new communication tools that coaches can utilize to improve service and communication to the masses in a simple and economic way. The same holds true for agents. After all, you basically are who Google says you are, so it is critical for an agent to develop a well thought-out digital “footprint.”
“Social proof is one of the key connectors to the Gen X/Y/millennial market segment, and unfortunately, agents have not embraced the power of these great channels to become the ‘go-to resource’ or celebrity authority in their marketplace,” Murphy says. “Having a cohesive Web strategy is more than a website and a Facebook page….it must drive home your individual brand of service and position in your industry. I am a strong supporter of a fully integrated Web and traditional marketing initiative as a critical component to a comprehensive business plan.”
Buffini believes that having a presence on social media is as important today as having a business card was in the past, and while it’s a wonderful way to connect with people, provide value and stay in touch with how and where people are communicating, he warns not to get too caught up in the space.
“We also hold our clients accountable to not get lost in social media because it can become a distraction to the real work of building relationships, generating referrals and making sales,” he says.