David Coffman

So long to 2008! Hello 2009! We'll have a new President and whether he was your choice or not, let's hope he was the right candidate for the job! Day in and day out we are deluged with negative media 24/7/365. Good news simply doesn't sell. We all, as a society seem to live and die by bad news. I personally think I've heard more bad news and experienced more personal set backs on the personal frontier than any year I remember before.

But real estate was good to me and our Brokerage. Looking at the whole picture, I guess I have less than most to complain about. Or brokerage surpassed our 2007 total sales by July and in Mid November we had DOUBLED our sales. I can tell you why!

Talk with any Top Producing REALTOR in your area and you will find a few things in common with ALL of them.But before you start searching in here for those commonalities, I'll tell you that you need to turn off the news, throw out the news paper and make your own destiny. I know, it sounds corny doesn't it? Well, get over it!

The MARKET is between your EARS! Some of the most successful agents this year were newbies! NOBODY told them it couldn't be done! So they "buckled down" and "Did the Work" like the instructor/broker/coach/mentor told them too.

EVERYONE can do it! And this is what it will take:

(By the way this is also what you will find in common with ALL those Top Producers)

1. They Start their work day by 8:00 or earlier
2. They have a positive mental attitude
3. They don't care how bad the market is, they are just going to make sure they get their fair share
4. They all canvas for business
5. They will pick up the phone and "dial for dollars"
6. They will knock on someone's door for a lead.
7. They aren't afraid to talk to owners of FSBO properties
8. They all network within a small group of people (usually less than 200 people)
9. They aren't secret agents! Most people recognize their name and photograph
10. They all know the value of and working their Sphere of Influence
11. They use a contact manager
12. They are highly organized and manage their time properly
13. They communicate with their broker almost daily
14. They all attend class and continually try to learn more. Whats the adage? If you're not Growing, You're Dying!
15. They track their activities,progress and deficencies. Most will make changes quickly if they recognize the need
16. In most cases they have a support group or even a team to round out their own weaknesses
17. They have their own website or domain
18. They have organized systems for presentations, scheduling, accounting, paperwork, farming ... you get the idea, a system for everything!
19. They invest in their own business. Not just advertising dollars, but equipment, PDA's, Smart Phones, Call Capture Systems, enough signs, directionals, lock boxes ... what ever they need to get the job done right.
20. They have a Coach or at the very minimum, someone that will be honest with them and hold them accountable for the work they MUST do to get the job done right.
21. They get the phone calls, prospecting & follow-up tasks done by noon and are out on the street working, everyday, until dinner time. No stopping at the mall, or Starbucks unless it is to meet a client. They are WORKING.
22. They and/or someone they work with (team member or coworker) hold Open Houses at least two weekends a month.
23. They know who the Buyers agents are in town.
24. They correspond with the top 25-50 producers in town when the have a new listing.
25. They are aware of image and first impressions. They dress for success
26. They give honest opinions to clients and won't take a listing unless it is a SALEABLE LISTING.
27. They know how and when to tell a client NO. Their time is important too.
28. They work EVERY work day. 5-6 days a week, 40-60 hours a week
29. They fake it until they make it!
30. They work hard, play hard and rest well

Now that you've seen the list, I'll share with you a success scale that was given to me many years ago. This applies to all Sales positions. It's about the numbers. It doesn't matter if you're selling cars, houses, televisions or toilet paper!

So ... Don't shoot the messenger! It wasn't my scale. Count the number of activities that you honestly do daily with zealous consistency, and check the score below.

25-30 You are a ROCK STAR and will probably out produce Donald Trump or write in your hero's name in the blank _________________________.

24-20 You are making well over a six figure income. if your not, you lied or fudged on your count! You probably need outside direction to take production to the next level or ROCK STAR. Most agents look up to you and would follow you anywhere.

15-19 A six figure income is knocking on your door. You're well liked, well groomed and you take your job seriously. Your clients are lucky to have your help and guidance. Only your mind and attitude can hold you back. You're getting the job done!

10-14 You are earning more money than most other sales people regardless of the industry. You hit a stride, but you are ever so aware that you have only scratched the surface. The world is your oyster. Be mindful and set your efforts free. YOU are the only thing holding back extreme success.

5-9 You are having a hard time getting it. You've had some limited success, but production is just OK. Maybe 6 -10 Transactions per year. You are definatley working as a full time agent, but lack direction and the personal conviction to really do the work. You are probably waiting for someone to GIVE you the next lead. By the way, this is the score for the Nations AVERAGE agent. $24-$35,000 per year

1-4 You are in the wrong business. Get out before it eats you and your wallet alive!

The average REALTOR® in the US earns $23,000 per year!

Sounds incredible doesn't it! Well this number is watered down because it includes all those "Country Clubbers" that are in it to pass the time or sell Grandmas house instead of Amway or Mary Kay products. Don't get me wrong, my wife's Mary Kay rep is a great person, but I'm not sure I'd trust her to be my REALTOR®! And what is really sad, is the number of people out there that have entrusted their largest single investment to someone that is just not serious enough to do the job right.

These aren't true REALTORS®! If you remove these folks from the mix, the average is closer to $70,000 if you are talking about full-timers. The true professionals in the business are earning over 6 figures and so can you!

There are only two ways to create production in Real Estate!

1. Passive Method
   • This consists of Advertising, Marketing and Branding yourself to the extent that your face and name are commonly known to the market you service. This method is passive because you wait for the client to seek you out through your advertised contact information.
   • This is also the most EXPENSIVE method of creating business, but if you have the cash to do the work for you, it is the easiest provided you have the marketing experience to do it properly.
2. Do the Actual Work - yes, there are specific activities to follow to create business. These activities consist of:
   • Working your SOI through a contact manager
   • Cold Call Prospecting
   • Expired Listings work
   • FSBO Presentations
   • Door Knocking
   • Networking with friends and colleagues
   • Build a relationship with asset managers for REO's
   • And the list goes on

These are your choices! You have to pick one or the other if your going to be successful. Or even better choose a combination of the two. If you aren't spending $10,000 per year or more in advertising and are making less than $70,000 per year, start with number 2 and don't quit until you've mastered all the activities listed there.

This is a SALES position! It's a paint by numbers business. It's always about the numbers! Be Persistently consistent and Consistently persistent!

Get a Coach or someone that you can count on to hold you responsible for these activities. If you chose your broker for the split and they aren't telling you the same things written in the blog, get a new broker that will challenge you & teach you to produce.

Let's face it, no matter how great the split is on paper, if your production is substandard what difference does it make. In this business 100% of nothing equals a net loss, which is worse than nothing! In my opinion, your not even an agent until you can produce at least 4 transactions per year, and really only a part time agent if it's less than 8 per year.

I'm not a coach or self proclaimed guru, but if you're reading this and it makes sense, call me and I'll help you find the right broker for your needs. If your working in Tucson Arizona stop by my office and we can talk about what you need to become successful!

Dave Coffman

Exit Realty 1^st Choice

6763 E Broadway Blvd.

866-734-3948

An Outsiders View of Real Estate?

I have what I feel is a very outside view of the Real Estate industry. Although, I began my real estate career as an investor and my wife has been a REALTOR® for some time, my non-real estate Sales and Marketing career of 25 years gives me a different view of how our industry operates and in some cases fails miserably.

For the last two decades the real estate industry has concentrated on "building your own business" concept which in its raw form is a wonderful thing. In fact, the EXIT franchise I purchased holds this single idea in the highest esteem. The catch 22 comes in when you start talking about the cohesive properties of brokerage firms, company & Agent branding, "team" efforts as it applies to a common company image or goals. And on occasion, you can find the extreme effect of the "Every Agent for themselves" attitude that can be found lurking in dark shadows. To magnify these issues even further, the age of technology has driven an even bigger wedge into the relationship between agent, brokerage and client alike.

I'd like to talk about all of these issues individually, which may seem difficult because they are intertwined so heavily. There are so many different resulting effects that have been defined over the last few decades, that it will take 2 dozen blogs to address all of them. Since I own a brokerage, I'll get my pet peeves out of the way first.

Brokerage image and how to insure it as a singular concept is getting tougher every day. I don't believe it's because we encourage agents to "operate their own business", but something was lost in translation. Agents are only Independent Contractors for the purposes of the IRS. This doesn't mean that the broker and agent don't owe each other the traditional roles of employer and employee. As an owner, there is always the struggle to insist upon standards of conduct and participation to insure a singular company image of quality and competence, while not trampling on the agents idea of their employment. And contract or not, it is employment. Therefore, the agents ARE employees of the Brokerage and as such have specific responsibilities with regard to that relationship. WOW, did I just sound like some third world dictator? Sorry, I'm back on track.

Come on ... It was a JOKE! Well sort of, but you get what I mean.

The loss we're discussing isn't just a loss for the broker alone. In fact, much of the synergy of a brokerage has always revolved around how tightly knit the firm is and just how much its agents interact with one another. How often do today's agents speak with each coworker to learn about each other's listings or what someone's current buyer is looking for in a home? Maybe a simple conversation leads to joining a buyer and seller from within your own office. Perhaps you learn something that is working for someone else and build on it. We are in an ever changing market, are we not? So why do we shy away from time at the office?

Hold on! I'm not preaching "Floor Time" in its traditional definition. I do think that every agent owes it to THEMSELVES and their own business to spend some time at the office to re-energize, stay connected and be a part of something, just as a member of any family would. How dysfunctional would your own family be if it conducted itself as we do as agents? It wouldn't be very pleasant or pretty and who would want to be around it!

From the broker's side, it's nice to see the members of your firm regularly and get to know them and their families on a more intimate level. Having the time to share information about the company, new concepts, efforts to grow the business, share leads and most of all feel confident that the agents you chose to employ are in the field representing your company, equipped with the proper tools, and are displaying the image and company message you want in the market place. How else can a broker know this unless we interact with each other on some regular basis? Hence, the birth of MANDATORY meetings! Wouldn't we all love to do away with these and spend our time on Sales meetings, learning & sharing?

Then you have the affects of Technology! Technology is wonderful, but if used to its best and most purposeful end, does tend to "unplug" us from other people on a tangible level. I'm not talking about connection in the electronic meaning. I'm talking about being touched, shaking hands, seeing a smile or experiencing a laugh, not some LOL on a cell phone screen! We're all human and our bodies and personalities scream for this tactile input. What better place to get it than from our own families and coworkers. Real Estate is a people business! You must stay in tactile contact with everyone, Clients and coworkers alike!

Although EXIT Realty is the 5^thlargest real estate company in the US, and my office is not huge, but it's growing with quality agents every day. No matter how large or small our office is, whether there are 25 agents or 500, we will always run it as though we are a family. I want all of my friends/agents in the business to enjoy what must have been one of the most valuable reasons to be an agent ... FREEDOM. But unless we all do a better job at policing ourselves for the best use of our time we suffer the consequences together as an industry.

Do yourself, your business, your clients and your broker a HUGE favor ...

Get involved at your office and reap the lost benefits of doing so!

Next time ....... Let's talk about OPEN HOUSES

Let's be honest, if there were such a thing as a 100% office, how would a broker pay the electric bill and rent for the brokerage building? EVERY real estate brokerage counts on their agents that create the front line revenue by selling property! The devil is in the details!

After countless agent interviews and studying so many brokerage fees, discount tables and dues, I've yet to find any brokerage (national or regional franchise) that comes within even 10% of the fabled 100%. In fact some structures are so complicated that I'm not sure if the broker building it really knows the true commission split. But one thing is for sure, the broker always gets a big enough cut to insure the bills get paid or the company ceases to exist.

EXAMPLE STORY:

Years ago I worked for a major national distributor of consumer products. At that time, discounted goods were only seen during true promotional or seasonal periods and a 10% discount of the wholesale list price was rarely seen. One of the national distributors decided to raise their list price by 8-12% and give a blanket 10% discount to anyone that purchased product. I was always amazed that when a price was compared to any of their competitors, they were usually more expensive after the discount.They became a major force to be reckoned with for one simple reason: MOST RETAIL CLIENTS WERE TOO LAZY TO DO THE MATH! ---SAD BUT TRUE!

MORAL OF THE STORY:

The same holds true for most REALTORS®. Many of you don't even have clue what your real commission split is. Do the math!

Add up the desk fees, monthly fees, broker referral fees, relocation fees, copy fees, long distance fees,Technology fees, web link fees, E&O fees, Franchise dues .... and the list goes on and on!

Then subtract the total of those annual fee costs from the gross commission earned for th year and divide that subtotal by the gross. MOST OF YOU WILL FIND SOMETHING AROUND 72-86% DEPENDING ON THE LEVEL OF YOUR PRODUCTION.

What is your real split?

If you would like to discover a true way of earning more I invite you to call me!

Dave Coffman

Owner/Marketing Director

Exit Realty 1st Choice

520-323-3948