When a real estate agent asks you about your value proposition, how do you usually respond? When agents ask this question, what they’re actually wondering is: “what’s in it for me?” This is the primary concept to understand when formulating your value proposition. With this knowledge, you must find a way to wrap up your office into an appealing offer for recruits.
To begin this process, start writing down all the benefits that your brokerage has to offer an agent. An approachable way to do this is to split up your information into different segments. For example, rather than saying you offer support and training, delve deeper into what kinds of support and training. Show potential agents the types of training and support you supply and how that translates to improving their business. Keep in mind that coaching and training are commonly used terms across real estate offices. For your office to stand out, you should be specific and show how your programs are unique and effective. You can accomplish this by showing your training materials and making a visual presentation.
Also, technology should be a major facet in your value proposition. What is in your technology package for agents? Do you offer a website, social media automation, and lead generation tools? Compile a list of all the technological tools your team gets and then promote that during recruitment.
In addition to training and technology, your physical office space can be a part of your value proposition. The location, outside appearance, and interior set-up can be major deciding factors for a potential agent.
Ask yourself these questions regarding your value proposition:
“Is this the type of environment that a successful agent would thrive in?”
If your office isn’t furnished—or poorly furnished—agents will immediately have an unsatisfactory first impression of the space. Office culture is also at play here. Actively foster a team spirit and friendly energy in your office.
“Are my computers, printers, etc. up to date?”
Agents won’t be impressed by outdated equipment, in fact they’d probably rather bring in their own computer than use a slow one you’ve provided. Broken down equipment could also cost you agents if you don’t work to update or replace your systems.
“Is my location in a high traffic area with great sign exposure?”
In other words, have you picked up walk-in business due to your location? Walk-ins can be the best clients, so this will be appealing to potential agents.
“How’s my lead generation?”
If you don’t currently have any lead generation strategies, there are multiple ways you can start. A simple way to begin is to advertise in various publications or websites, such as Realtor.com, Trulia, and Zillow. Distribute these leads to your agents and use them as a recruiting tool. Agents always appreciate being provided with new leads!
“What are my recruiting incentives?”
Today, varied recruiting systems exist at plenty of real estate companies. These kinds of systems are excellent for attracting agents and keeping them at your office. If you’re an independent brokerage, you may face a challenge of not being able to offer agents long-term or retirement income. This is an advantage of franchise systems, as they often collect commissions as royalties and pay them out over time.
If you decide to use recruiting incentives, keep in mind a few key elements. Top producing agents demand more and earn high commissions, regardless of anything else you can offer them. Systems that are based on a 60% to 80% platform which are difficult to recruit excellent agents on. Multilevel systems—although appearing lucrative by paying multiple people out of each transaction—actually dilute the commission to the point that it is too taxing to the transactional agent. Ideally, you want to have a system that offers a residual/retirement income to the agents plus a competitive commission structure.
Last, but not least, your value proposition must include your actual commission structure. Basically, there are two systems: the conventional split type and the fee system. Both have their advantages and disadvantages, so it is a personal decision up to you as the broker. However, if you use a fee system, try to avoid high monthly fees since they will deter agents. No matter what system you choose, ensure that you have a competitive edge. Remember, you don’t need to be the least expensive option to succeed in the real estate industry.
If you recruit on money, you will lose on money. Price is only a factor in the absence of value; by creating a business with high value, agents will be willing to pay higher fees. A cheaper model will always come along, and if that’s your value proposition, your agents will jump ship. Ultimately, you need to show agents what you can offer and how they will complete more deals through your office.