Focusing on CRE Brokerage Profitability
The importance of profitability cannot be overstated, without it the brokerage doors close. Profitability is a compound word. Most of us focus on the word ‘profit’ when we think of profitability. Instead, we should focus on the word ability. Why? Because the broker’s abilities are the source of the profits for them and the company.
They absolutely must have the ability to:
- Generate lead
- Convert prospects into exclusive representation agreements
- Deliver the services that harvest the lifetime value of the account
- Manage their time effectively
- Create lasting relationships
What do all these things have in common? They are skills, none of them are natural talents . Skills are learned abilities. Great managers understand the steps required for skill-building.
Teach the fundamentals of the skills:
- Prospecting, networking, and marketing for lead generation
– Rapport building, presentation, and closing for lead conversion
– Transaction anatomy for sales and leasing for services
– Time management for the effective use of their ‘Golden Hours
– Creating a system for relationship building - Engage in deliberate practice of the skills being taught
– Role playing
– Rehearsal for presentations
– Closing skills - Provide immediate coaching and feedback
– In practice sessions
– The following work with prospects and clients
Motivation without the ability to perform well on the fundamental skills required will not create profitability. The same is true if the brokers lack the fundamental knowledge of the business.
Knowledge and skill are the twin pillars of expertise. The more knowledge and skills an agent possesses the more they will get from each experience. This translates into meaningful, bottom-line profitability. Focus on the abilities of your brokers and profitability will come.
Management and leadership abilities are also learned skills. Schedule your free consultation now, because nobody gets to great alone.