When you work as a commercial real estate agent, you really do need to set some firm goals and key performance indicators. In this way you can track and measure your progress in market share, listings, and commissions.
Whilst a lot has been said over the years regards the goal establishment process, the same rules still apply today when it comes to agency performance. Without goals you really have no way of knowing whether you are succeeding as an agent with your property specialty in your local area.
Here are some rules to help you as an agent with setting your business plan and including in that process some strategic goals.
- It is up to you to invent your future and opportunities as an agent. The commissions and listings that come to you will only occur through diligent daily business practices. Over time you will have many distractions that will change your focus. Don’t allow things to take over your progress in the industry. Stay on track. You are the person to invent your future.
- Understand your goals on a category by category basis. If you ultimately want to achieve a certain commission income for the year, you will need to work in the reverse to get back to the stages of client conversion and listing activity that can achieve that commission income. The best way to do this is to start from a base of prospecting, moving through to meetings, listings, inspections, negotiations, and successful transactions. Pay particular attention to the quality of properties and clients that you work with.
- The goals that you set will help you understand exactly what you want and how you are moving towards them. They keep your focus on the things that really matter. If your commissions or listings decline on a weekly or monthly basis, it is quite easy to see the things that you are not doing or incorrectly undertaking. You can then make some adjustments.
- Many agents place too much emphasis on the leads that they get from their agency and advertising activities. Many a time you will hear an agent say that there is no inquiry coming in from the advertising. The fact of the matter is that most opportunities will be self-generated through personal prospecting processes. This then says that you need to get out the door into your market every day to meet new people. If your new business leads and commissions rely on inbound inquiries from advertising, you will grow quite poor over time. You have to put new quality clients into the front end of the equation.
From all of the above points, you can see that it is necessary to have an action plan as part of your daily diary activity. The action plan will help you stay on track. Do not let others interfere with your key daily activities. Discipline and focus are the essential requirements of being a successful commercial real estate agent. Track and measure your progress, and make adjustments where necessary.