By Tiana Baur, Content Marketing Manager
In their latest round of funding, OpenDoor scored $325 million in funding. Late last year, SoftBank invested $450 million into Compass. VC money is alive and well, and it’s found a home in real estate tech, pouring into the industry. And as we all saw at Inman Connect last week, the competition is as hot as five-star Thai food. It literally hurts to digest.
In a sea of change…
As all of us in the real estate world are saying, the industry is evolving quicker than most can keep up. It’s a treadmill that only seems to be getting faster and faster with no pause button in sight. What was super cool last quarter is the status quo today. There’s no room for lags and fear. What do these higher monetary stakes and complex competition mean for traditional brokerages? The value prop of your brokerage and its brand is key.
Question: Why should your agents stay at your brokerage?
Staying relevant and valuable to agents will continue to gain in difficulty. Without the money to offer six figure signing bonuses, your brokerage value proposition has to be hard as rock. If I were sitting across from you and asked, “Why do you think your agents should stay at your brokerage versus going somewhere else?” What would your answer be? Do you have a sophisticated tech stack? Do you train your agents on it or just hand it off and hope for the best? Do you continuously stay in contact with your agents or do you forget about them until they tell you they’re going to a different brokerage?
The magic of an open-door policy
There’s a top brokerage in Virginia – that will go unnamed – that is taking a very logical approach: They have an open-door policy. They’ll answer any and all questions – even about Compass. If an agent has concerns, they feel empowered enough to walk into the Managing Broker’s office and ask them, knowing they’ll get an honest answer. Because of that, their retention numbers are insane. They’ve invested in tech, and they’re investing time into their most precious asset: their people, their real estate agents.
- Don’t lose your current agents because you’re only focused on recruiting new ones.
- Don’t let any agent feel like they’re being left in the dark (including on the topic of Compass).
- Build on your existing relationships.
- Let your agents know you care and want them there.
- Implement an open-door policy if you haven’t already. It’ll be the best decision you’ve made all year.
- You can even try hanging a sign on the wall by your office, letting your agents know that they’re always welcome to come in.
- Have a proper recruiting system in place. This will focus your time on top talent inside and outside of your brokerage, making sure you’re getting the full picture and avoiding agents slipping through the cracks.
Brokerages today are worried about losing top producers, concerning themselves over the revenue and sales volume that those top producers take with them if they leave. It makes perfect sense. Losing one agent isn’t going to have a dramatic shift on market share, but it will impact a brokerage’s sales volume. This whole storm is why we created our Moxi Talent recruiting system in the first place. Too often, Managing Brokers don’t pay attention to agents until they threaten to walk. Moxi Talent helps you build relationships with the right people at the right time.
If the grass is greener on the other side, what side are you on?
By Nick Van Valkenberg, Director of Business Development
Growing your brokerage is an ambitious endeavor, especially in the ever-competitive real estate landscape. Two lingering questions are: how do you find the right talent for your brokerage and how can you make the process easier for your recruiting team? I plan to answer both of these questions but first you need to define what you are looking for: is it the “fresh to the industry” agent, an agent early in their career, or a more senior agent?
As the busy season winds down the “low hanging fruit” would be the agent that, well didn’t have a busy season and is looking for help or better yet, a place where they can thrive. If this is who you focus on recruiting, then do you have the systems in place that are statistically proven to increase an agent’s number of sides? Have you made it easy for them to run their business? How about an open platform? Single sign-on doesn’t sound like a whole lot but to the new agent that doesn’t know all of the technologies offered in your brokerage it could mean the world. Open platforms and single sign-on is a whole other conversation but if you don’t have the technology in place for today’s agent you may want to look around because your competitor down the street has this in place creating a very compelling recruiting and retention tool.
The harder agent to recruit is the successful agent. They say the grass is greener on the other side but what happens when their grass looks like the a fútbol field during the World Cup? Do you know your elevator pitch, differentiator, your WHY statement? If you answered NO to any of these three mission critical pieces to the puzzle, then step one is to clarify your message. May I suggest you take a look at the book Story Brand? The premise of Building a StoryBrand by Donald Miller is how to clarify your message, your WHY statement. The idea of a WHY statement sounds easy but really you need to have a smooth couple sentences that clearly state why an agent at any level in their career would benefit from joining your brokerage especially a successful agent. Let that sink in and think about this for a minute. Sure, you can offer a more competitive split but how does that help you the broker out? REAL Trends recently published that the average brokerages margin has been compressed to 14.8%. Talk to us about how you can recruit a top performing agent not because you will take less money but because you have what they need to become even more successful.
Through conversations with your fellow brokers I have found that the structure of a recruiter tends to be the broker themselves or the manager of an individual office. Time is of the essence, with an already full plate how do you add the time to recruit? In a perfect world a “recruiter” should be spending an hour a day dedicated to finding new talent. At this point you may have guessed that I am going to talk about technology, and you guessed right. Honestly to achieve the desired outcome you need to have a solid system in place. Does your recruiting technology incorporate your goals? Is it easy to ingest MLS data so you have insights on your prospects? Does your technology offer next steps and coach you for each individual recruit? Does your technology offer public records data on your prospects? Could you imagine hosting an annual golf tournament and knowing the subset of your pipeline that has golf as an interest? I’m not a gambling man but I would venture to say that you could easily win over some new agents on the links, remember that greener grass metaphor from earlier? Do your “recruiters” have the ability to easily boast about what your brokerage can offer, maybe in the form of a dynamic presentation imbedded with video testimonials, live links, and your WHY statement?
Your Agent Recruiting System
You may have been seeing the recent industry hype around Moxi Talent. The hype is because we have answered all the above questions. Take the time and let us show you not only how Moxi Talent can increase your productivity recruiting the correct agents but how you can actively recruit your current agent. We can even show you statistics on how the Moxi Suite of products can increase the business for your agents, but don’t take it from us, ask around. To quote the legendary football coach and now inspirational speaker Lou Holtz “In this world you’re either growing or you’re dying so get in motion and grow.” Now more than ever things are changing at a rapid pace, there is a time to sit and watch and there is a time to act, now is the time to act. Take a moment this week and reach out to our team, learn why top brokerages are leveraging our platform to outperform their competition.
By Maddie Jostol, Marketing Manager
With new brokerages entering the market with aggressive recruiting strategies, brokerages are universally placing a lot more weight on the importance of recruiting.
It’s easy to spend a lot of cash winning over agents, but we believe the key is to focus on what really matters. What do agents actually want? As you review this list, you’ll notice we don’t talk about commission splits. You already know commission splits are important to agents and we’re sure you’re doing what you can to offer competitive compensation. Here are some other things that agents are looking for when comparing brokerages.
Agents want to join an organization that values technology. A robust, established tech stack shows agents that your brokerage is forward-thinking and supportive of its team. We think you’ll find that tech-savvy agents who embrace the systems you’ve hand-selected for them will likely be some of your most successful. It also fosters a culture of efficiency – technology-focused agents will push each other to streamline their businesses
Coming into a brokerage with a leading tech stack means they don’t need to research and train themselves on their own set of tools. You already have a stack up and running, ready for them to utilize.
Training, support, and resources will prove to your agents that you care about their success and professional development. On top of that, helping them to improve themselves as real estate professionals makes a difference on your bottom line, which is always a win. Agents are looking to work for an organization that offers meaningful training and useful, manageable resources.
Before you get overwhelmed, remember that you don’t have to do all of this yourself. Look at your tech tools and vendors – many of them already offer free training regularly. Just promote those to your agents. Make training resources known and easily available to them so they can get themselves training on exactly what they need, when they need it.
Access to meaningful data can make all the difference. Agents want data that shows how their business is performing. Look through your existing tech tools to see if your agents have a snapshot of their business anywhere. What tools are encouraging their annual goal-setting? Which ones are giving them necessary visibility into their business’ performance to ensure they hold themselves accountable and meet these goals?
The agents looking for this is typically focused on optimization, always looking to improve their business. These are the agents you want on your team.
Even as independent contractors, agents see the value in having a team, which means building a strong community holds a good deal of weight. Focus on building a community that is unique to the people in your office. Valuing diversity and inclusion is vital in ensuring agents feel safe and respected in your community.
When agents feel like they’re a part of a community, they have people who they can trust, rely on, get encouragement from, and learn from. This leads to higher collaboration in closing more sales, as well as higher adoption of technology tools, and more recruiting referrals for new agents.
Tip: When a new agent starts, pair them with someone in the office who has a similar sales history or sales style as them. Send them out to coffee or lunch together so they can begin to build rapport and trust. Having a go-to team member could make all the difference as they settle into your community.
Make core values part of your recruiting process. Outline what values your brokerage and office have. Look for those values in new agents and be transparent about them. Agents who resonate with them will be attracted, and even better, they’ll stick around.
A Warm Welcome
Don’t underestimate the importance of an agent’s first two weeks with your brokerage. It’s all about the little things. If an agent feels welcome when they first join your team, they’ll start off on the right foot. You just recruited them, now start the retention process right away. Make them feel like they’re part of the team and they’ll settle in for the long run.
Everything on this list is about the agent and their success. If your brokerage brand is well-recognized and well-regarded, that box will be checked and agents will start looking at what their day-to-day life will be like at your brokerage. According to NAR, the average agent stays at their current brokerage for just four years. This means you have relatively little time to win an agent over and keep them on your team. Make sure you’re taking actions that truly matter.
Effective recruiting practices and impactful retention strategies are important for the culture of your brokerage, its reputation, and of course, your bottom line.