your game plan for thriving in 2012 real trends leadership institute

Your Game Plan Your Game Plan for Thriving in for Thriving in

20122012

REAL Trends Leadership Institute

Thriving in the FutureThriving in the Future

Trends that will affect residential Trends that will affect residential brokerage:brokerage: Changing ConsumersChanging Consumers Slow Recovery in Housing SalesSlow Recovery in Housing Sales Pressure on Commission LevelsPressure on Commission Levels New Forms of CompetitionNew Forms of Competition Importance of LeadsImportance of Leads



Trends (cont.):Trends (cont.): Evolution of How Consumers will Select Evolution of How Consumers will Select

Sales ProfessionalsSales Professionals LeadershipLeadership Tougher Regulatory EnvironmentTougher Regulatory Environment



Changing ConsumersChanging Consumers

>71% of new households will be from >71% of new households will be from minority familiesminority families

<50% of families will be traditional <50% of families will be traditional married with childrenmarried with children



Slow Recovery in Housing SalesSlow Recovery in Housing Sales

The “5%” ruleThe “5%” rule



Pressure on Commission LevelsPressure on Commission Levels

19911991 6.10%6.10% 20052005 5.02%5.02% 20102010 5.40%5.40% 20152015 5.00% (projected)5.00% (projected)



New Forms of CompetitionNew Forms of Competition

Virtual brokerageVirtual brokerage Online transaction brokerageOnline transaction brokerage



The Importance of Business The Importance of Business Opportunities and LeadsOpportunities and Leads

Brokerage firms and sales professionals Brokerage firms and sales professionals will grow or not to a great extent on will grow or not to a great extent on how well they can deliver business how well they can deliver business opportunities to their sales opportunities to their sales professionals/team membersprofessionals/team members



Evolution in How Consumers Select Evolution in How Consumers Select Sales ProfessionalsSales Professionals

+/- 65% today chose due to personal +/- 65% today chose due to personal relationshiprelationship

Of remaining percent, nearly half is now Of remaining percent, nearly half is now due to webdue to web



LeadershipLeadership VisionVision AccountabilityAccountability CommunicationCommunication EmpowermentEmpowerment TransparencyTransparency CommunityCommunity DisciplineDiscipline



Tougher Regulatory EnvironmentTougher Regulatory Environment

Qualified mortgages, FTC advertising, Qualified mortgages, FTC advertising, reduction of tax-favored status of reduction of tax-favored status of housing, etc.housing, etc.


How Brokers Can ThriveHow Brokers Can Thrive

Set ObjectivesSet Objectives Build a Leadership TeamBuild a Leadership Team Select a Business ModelSelect a Business Model Define Your MarketDefine Your Market Establish a Strong CultureEstablish a Strong Culture



Set ObjectivesSet Objectives

What are your reasons for owning and What are your reasons for owning and operating a brokerage?operating a brokerage? Equity, Income, or PersonalEquity, Income, or Personal

Build your strategy and tacticsBuild your strategy and tactics Develop the P & LDevelop the P & L



Build a Leadership TeamBuild a Leadership Team

The highest and best use of the time of The highest and best use of the time of the leader of a brokerage firm is in the leader of a brokerage firm is in building leadership talentbuilding leadership talent

Identify, select, and expose talent to the Identify, select, and expose talent to the challenges of leading an organizationchallenges of leading an organization



Select a Business ModelSelect a Business Model

In the future you cannot manage In the future you cannot manage multiple models within one organizationmultiple models within one organization

High value – high priceHigh value – high price Low value – low priceLow value – low price



Define Your MarketDefine Your Market

Who are your sales professionals? Who Who are your sales professionals? Who do they serve? Where is the market do they serve? Where is the market growing? growing?

Which part of the market offers the Which part of the market offers the greatest return?greatest return?



Establish a Strong CultureEstablish a Strong Culture

The behaviors and beliefs of an The behaviors and beliefs of an organization are the “glue” that organization are the “glue” that establishes a relationship with your establishes a relationship with your staff and sales professionalsstaff and sales professionals


How Sales Professionals How Sales Professionals Can ThriveCan Thrive

Set ObjectivesSet Objectives Become an Expert in a NicheBecome an Expert in a Niche Develop Systems for ProspectingDevelop Systems for Prospecting Build a System for Servicing Build a System for Servicing

CustomersCustomers Build your BrandBuild your Brand



Set ObjectivesSet Objectives

What do you want to achieve?What do you want to achieve? How much are you prepared to invest in How much are you prepared to invest in

time and resourcestime and resources What kind of practice do you want to What kind of practice do you want to

build, i.e. individual or as part of team?build, i.e. individual or as part of team? What market niche do you want to focus What market niche do you want to focus

on?on?REAL Trends Leadership Institute


Become an ExpertBecome an Expert

Housing consumers are no different Housing consumers are no different than other consumers; they want than other consumers; they want experts who have specialized expertise experts who have specialized expertise in the areas of their personal interestin the areas of their personal interest

REO, Distressed sales, Luxury segment, REO, Distressed sales, Luxury segment, First time homebuyers, Single parents, First time homebuyers, Single parents, or geographic niches are some examplesor geographic niches are some examples


Thriving in the Future

Become an Expert

Focus your knowledge on the demographics, market trends and other pertinent factors that demonstrate your level of knowledge of the market segment

Use print and social media to reinforce your market expertise


Develop Systems for ProspectingDevelop Systems for Prospecting

What are the best ways for reaching my What are the best ways for reaching my prospects?prospects?

Print, web, social media, direct mail, etc?Print, web, social media, direct mail, etc? What do I want to communicate?What do I want to communicate?

The only prospecting that will work is that The only prospecting that will work is that which is comfortable for the sales which is comfortable for the sales professional, regular and continuousprofessional, regular and continuous



Develop a System for Servicing CustomersDevelop a System for Servicing Customers What do you expect your client base to look like, What do you expect your client base to look like,

how large, etchow large, etc Implement a Customer Relationship Implement a Customer Relationship

Management (CRM) program whether Management (CRM) program whether automated or manual to follow up and stay in automated or manual to follow up and stay in touchtouch

Most housing consumers start their home search Most housing consumers start their home search 8-12 months before they will become “active”8-12 months before they will become “active”


Thriving in the Future

Systems for Servicing Customers

Build a durable consistent approach to communicating with clients

Commitment for the long term


Build a BrandBuild a Brand

Be “Memorable”Be “Memorable”

SimpleSimple CredibleCredible

UnexpectedUnexpected EmotionalEmotional

ConcreteConcrete StoriesStories


your game plan for thriving in 2012 real trends leadership institute

Documents

leadership teamselect

leadership teamthe highest

business modeldefine

business modelin

housing salespressure

housing salesthe

residential brokerage

favored status of housing