Let us face the facts. Like a broker, your number 1 job is recruiting agents. Anybody who states otherwise does not appreciate this business. Our industry comes with an agent churn of 40%. Quite simply, 40% of the agents can change brokerages this season. Whether it’s under that, you are succeeding. And if you do not still recruit, it’s really a few time before you’ve got no agents.
So, like a broker, which agents would you target? Many brokers concentrate on recruiting top producers. I do not. I recruit agents at each level, and here’s why. I would like my company to become like Burger king. I’d rather not rely on the very best agents to create my earnings. The truth is I create a greater gross margin from my lower producing agents.
Consider creating a stock portfolio. You would like diversification. Why? So no individual stock’s performance will impact your earnings. Like a broker, my thinking is identical. If my earnings is associated with 70 average agents, I’m able to predict my revenue. However, if it’s associated with a little number of top producers, if a person would leave me, my earnings might change drastically.
Here’s one more reason. Who’re probably the most employed agents within our industry? You heard right. The very best producers. However, who’s nobody recruiting? The typical producers. I concentrate on recruiting all of the agents within my market. Sure, I really like top producers, however i am pleased with all of them. Medium producers pay us a greater split and aren’t very popular, so I enjoy recruit them.
Now, if you’re the broker or who owns a Re/Max franchise, go for that top producers. In the end, your model needs agents who are able to manage to pay your rent each month. However if you simply operate a typical brokerage, concentrate on recruiting regular agents — average producers — and you’ll prosper. The bottom line is getting plenty of average producers and never a couple of super-stars. This way your company is not at the disposal of only a couple of agents. The diversification could keep your brokerage making consistent money.
Now let us discuss how you can recruit them. I have faith that recruiting agents comes lower to getting a an engaging value proposition for agents. I have found three stuff that assist me to to recruit and retain agents. OK, maybe four. These are: money, business, training, and time.