Conveying Your Value Clearly Will Help Attract and Retain Agents
What is it about a real estate company that makes an agent want to join or stay with a company? Does your firm have a great value proposition?
There are as many answers to that question as there are real estate agents. Every office or company in the real estate industry has its own pay structure, support systems, culture and other attributes that make it unique in its market. But in our ever-changing industry—with options ranging from full-service brokerages to 100% commission companies—how do you communicate your own company’s value to attract new agents and retain the ones that you have by addressing their pain points?
Whatever your model, you need to be able to monetarily contrast and compare it to those of your competitors in order to show agents why affiliating with you is in their best financial interest. Some of the numbers (e.g., agent commissions on “x” amount of GCI or units) will be relatively easy to calculate, while some others will require some estimating.
Consider including the following in any comparison of your model to other companies’ models:
Total and Net Commissions: GCI can be based either on past performance or anticipated future production. Net commissions to the agent or broker would be the amount that they receive after franchise fees, company split or other adjustments to the top-line number.
Transaction Fees: Include flat-fee charges that occur on a per-deal basis in this number.
Recurring Fees: These will include a wide variety of items that will happen monthly or on some other regular basis. They may include desk fees, technology fees, E&O insurance or other charges.
Ad Hoc Fees: These are items that real estate professionals may regularly be charged as part of their business, but on an as-needed basis. Examples include admin support, lead generation, office/copy expenses, signs, etc.
Non-monetary items: This is the tricky part, but an absolutely necessary element of any comparison. What is your brokerage firm worth to the agent’s business? How do they earn money? What is their likelihood of generating more transactions with you versus another company? Use this part of your comparison to quantify the value of their affiliation with you and make it part of your discussion. Any holistic analysis of you versus anyone else would be incomplete without monetizing your value proposition.
After reviewing this with a potential or current agent, be sure to also discuss the unquantifiable advantages of your company like your culture, your brand in the market, etc. While the comparison above is used to make the monetary case for your mutual affiliation, these “soft” advantages must still appeal to the agent and should be highlighted.
When I personally led a region of 13 offices, I maintained strong retention and grew our roster from 500 to 750 agents by using this comparison method to communicate our value proposition, both internally and externally. Use this method to show how being a part of your company is in an agent’s best financial interest, and you will attract and retain more agents as a result.
For a free copy of my Comparison of Brokers form to demonstrate your company’s value to specific agents, click here.
Sherri Johnson is CEO and founder of Sherri Johnson Coaching & Consulting. With 25 years of experience in real estate as an agent, broker and executive, Johnson now shares her proven methods through coaching, consulting and keynote speaking services nationwide. She is a national speaker for the Homes.com Secrets of Top Selling Agents tour and is the Official Real Estate Coach for McKissock Learning and Real Estate Express. Johnson has also been named an RISMedia Real Estate Newsmaker in 2020 and 2021 as an Influencer and Thought Leader. Schedule a free 30-minute coaching strategy session or visit www.sherrijohnson.com for more information.
