What to Do in the First Month

Who Will Sponsor You?

BY DIRK ZELLER

You’ve done your research about different professions; evaluated your strengths, weaknesses, interests, and goals; and are now ready to launch your new career in real estate. One of the first decisions you will need to make is selecting a brokerage affiliation—one that will help you establish your career and support you while you grow your skills, experience, and business. In fact, this is one of the most important decisions you will make, because the company you select to first “hang your license” with can make or break your real estate career.

It may appear easy to get started, as many brokers may be recruiting you. (That’s what brokers do. They earn more if they have more associates out there listing and selling.) Many will put together a great presentation and parade past you a couple of sales associates who make $100,000 or more a year. It’s easy to get wrapped up in the excitement and make an impulsive decision, but you need to be in control of the process and do your research to target opportunities with the best companies in your community. Remember, in this case, you are the buyer, and you need to make sure you’re purchasing the right company—including its training, support mechanisms, and reputation—for your career. It’s time to slow down and do some research.

Evaluating Your Opportunities

There are scores of questions to ask and factors to consider in evaluating the best company for you. One of the first is understanding that you will become an extension of the organization with which you choose to affiliate. Before you ever meet with clients, they will very likely already have an opinion of the company in general, and that will serve as the starting point of your relationship. So the qualities that clients consider in selecting a brokerage—strong reputation, outstanding customer service, success in the market—are the same qualities you should consider in selecting your brokerage. But you also should examine the company’s willingness to invest in you from the start and to be generous with the resources you need to succeed.

• Reputation. A solid reputation is essential. You want to work with a company that has a reputation for integrity and success. This is more than advertising; it’s understanding the core values that the company holds and expects its salespeople and brokers to share. Always strive to be associated with the best, and that reputation will reflect on you.
  
• Customer Service. One of the easiest ways for a brokerage to build a strong and positive reputation is to provide the best in customer service and to follow through on promises. This actually starts with you. The most successful real estate professionals are those committed to providing outstanding customer service. Take up this obligation and look for a company that shares your passion. How you treat your clients, past and present, has a direct bearing on getting future clients through referrals and repeat business.
  
• Listings. There’s an old saying in real estate, “You list, you last.” To new real estate practitioners, affiliating with a strong listing office can dramatically help early in their career because they benefit from the high volume of inquiries driven by signs and advertisements. This gives them a chance to get in front of potential buyers and puts their customer service skills to the test. Think of it as your rookie assignment. It’s where you learn the business of buying and selling real estate, and it’s a great way to start building relationships without all the pressure of being entrusted with selling people’s largest asset, their home.
  
  Once you know what you’re looking for—reputation, customer service, and listings—it’s time to explore your top choices more thoroughly.
  
  Research the Details
  
  Find out the company’s market share, how many listings it takes in each year, how many listings sell, how many fail to sell, and how many sales it makes from other company’s listings. Statistics don’t lie. Not only will this information give you the financial bottom line, it will give you more insight into the company’s customer service philosophies and its position in the market. Most importantly, it will tell you a lot about your potential for success.
  
  The companies you’re interested in should be willing to give you this information, but you should take the next step and verify it with the local association of REALTORS® and the MLS. You also should make it a habit to read the business section of your local paper, local business journals, and other relevant publications. These regularly cover local real estate businesses and may even have special real estate editions that feature top-performing companies in the area.
  
  One other thing to look for in your local business journal is rankings. On a weekly or monthly basis, many compile detailed information about industries and use it to rank companies within that industry according to size, scope of service, and sales. Business journals often publish these ranking once a year into a Book of Lists,which is well worth the additional cost if it doesn’t come with your annual subscription.
  
  Your research also should take a more intuitive route. Take a drive around the community that you would like to work in and check out the properties for sale and what companies are representing them. Evaluate which companies are especially active in the area and the quality of properties they’re representing. Then take the time to check out the local office you are considering. Is it in a good business location, convenient, visible, and appealing? Look at it from the buyer’s or seller’s viewpoint. Is it someplace you’d like to go inside? When you walk through the door, does it have the look and feel of a successful business? How is the customer service? Is this someplace you’d like to work?
  
  As you’re driving around the area, make a note of the advertising. A company’s advertising philosophy is especially important for new salespeople, as frequency and volume is critical to generating new clients from random inquiries while you build your personal network.
  
  Look for signboards in yards, billboards, and bus boards. Next, check out the local newspapers. How does the company advertise its local office, its properties, and its sales associates? Does it rely on classified ads, or does it invest a little more in display ads? Does it participate in inserts and feature opportunities? Does it use real estate publications that are often free and available at local grocery stores? When reviewing advertising, evaluate the quality, size, and scope of the ads. Do they have a professional look and feel? Are there company-sponsored pages with numerous sales associates on a page, including space for new salespeople? You need to make sure the company you select is willing to support new sales associates with advertising you can’t afford for yourself right away.
  
  Moving On to the Next Step
  
  As a result of your research, you should have a list of your top choices of real estate companies. Think of the interview process as just another level of research. It’s a chance for you to learn more about the company one-on-one with a broker or with a group from the office. Be prepared to be impressive, but also expect to be impressed.
  
  For your part, offer a killer resume—one that is short, to the point, and nicely presented to showcase your experience, skills, accomplishments, and abilities. Next, focus on your appearance. You only have one opportunity to make a first impression so make it a sharp and professional one. Make sure you look the part of a successful professional. Invest in a good suit, pay attention to details like shined shoes, well-knotted ties, tasteful jewelry, and good manners.
  
  Finally, be prepared with questions and answers. Expect them to ask you questions about your sales experience, customer service philosophy, why you’re interested in real estate, how you expect to generate business, whether you prefer to work individually or in a team, if you’re prepared to work hard, and why they should hire you. Being clear, confident, and articulate in your answers will spark their interest in your sales potential.
  
  In return, have some insightful questions of your own ready. It’s their turn to impress you.
  
• What is your training program for new salespeople? A new salesperson will want as much company-supported and -sponsored training as possible. Ask follow-up questions about how often and how soon training classes take place, where they are held, what subjects are covered and how costs are covered. Do they focus only on contracts and law, or do they provide training in sales skills, scripts, dialogues, prospecting, and lead follow-up? Do they provide ongoing training for all sales associates?
  
• How many salespeople do you train annually? How many are still with the company a year later? The level of experience a company has training sales staff is important. Does it have a tested system that has a reputation for producing the best? You also will benefit from going through the training with a group of people you can learn from, rather than doing it by yourself. Be sure to interview sales associates who have completed training and are still with the company six to 12 months later. If they are still positive about the company and the support they’re receiving, that’s a good sign.
  
• What does it cost to hang my license with your company? Working with a real estate brokerage involves costs to do business. These include real estate board fees, MLS fees, and errors and omissions insurance. Also, who is responsible for paying for business cards, real estate signs, letterhead, postage, lock boxes, and advertising? How costs are shared or subsidized—or aren’t—will have a significant impact on what you take home at the end of a transaction.
  
• How will the company help me generate business? Will the company give you opportunities to share in its listings and leads? Will it let you hold open houses and run ads? Will you have “floor time,” or the opportunity to answer phone calls that come in from advertisements and signs? Covering the phones offers a good opportunity for a new salesperson to convert prospects into clients. Will the company announce your affiliation through a variety of promotions, giving you a good introduction to the community?
  
• How does the company run its office?
  

o Does it have a formal “new associate” orientation, where you learn who does what in the company, what procedures you need to follow, where everything is located, how it works, and who to go to for help? Does it have regular office meetings to update the sales associates and staff on business matters and competitive intelligence and to share ideas and opportunities?

o What would your workspace look like? Would you be in an open “bullpen” environment where there is less privacy and more interruptions, or will you be given a private office—or something in between, such as high-walled cubicles?

o What computer hardware and software are provided for salespeople? Is the database a good one that is easily learned, accessed, and kept updated?

• What is the commission split? Are there other fees associated with the commission? This is a very key issue as it determines how much commission you receive on the sale and how much the company keeps. Many companies start new salespeople with a 50/50 split. This may seem like a high company split, but remember, a good company is earning its “fee” by giving you the best training and support available. Other costs might include a franchise fee or transaction fees to do the paperwork associated with a sale. Be sure you understand exactly what the financial arrangements are before you commit to a company.
  
  A Final Word About Choosing a Brokerage
  
  While gut instinct plays a role, a more analytical approach to the decision-making process can help you select the company that will work best for you in the long term. One way to evaluate all the considerations is to rank the companies in each area outlined below on a scale of 1 (the worst) to 10 (the best) and then list some reasons behind the ranking. Honestly evaluate the company’s strengths and weaknesses in each of the following areas and understand how your personality, style, and ambitions will fit in with each company’s overall operation.
  
• Training
• Office environment
• Other agents
• Broker/manager
• Advertising
• Reputation
• Market share
• Customer service
  
  Pay particular attention to the training the company provides and weigh this heavily in your review. Training is the foundation of your new career and you want to learn from the best. A good training program focuses on contracts, prospecting, quality, lead follow-up, the seller’s listing presentation, the buyer’s interview, handling objections, and closing techniques. These are the skills of the outstanding salesperson, and the company that understands this and provides this training is the one for you.
  
  Source: Adapted from Your First Year in Real Estate by Dirk Zeller (Prima Lifestyles, 2001)
  
  Dirk Zeller is a speaker, trainer, coach, and author of Your First Year in Real Estate(Prima Lifestyles, 2001). He is the CEO of Real Estate Champions, a coaching company based in Bend, Ore.