How to Make More Commissions in Commercial Real Estate Brokerage
Most commercial real estate brokers and agents like the idea of more commissions. The equation is quite simple to achieve that albeit a personal process of prospecting, marketing, and negotiation.
In any property market there are always plenty of property deals to be found and clients to serve. Recently I overheard a telephone conversation from a broker to a client. He was talking to the client about enquiry rates on an existing listing. The conversation went something like this:
‘Mr Client, the property has been on the market now for some time. Enquiry has slowed recently, and that is probably because the upcoming government elections are forcing people to sit and wait. When the election has occurred it is quite likely that the enquiries will open up again and things will improve.’
When I heard this I thought to myself ‘That can’t be right’! You see, when I hear this I think that it is more likely an excuse for the agent’s inability to create enquiry and market the property correctly. The agent in question was ‘junior’ and had been in the market for less than 12 months. That agent was relying on advertising and internet listings to create property enquiry (that’s only a small part of what we do). The reality of the matter is that the agent had very few people in their database and they were not getting out in the market talking to ‘locals’ and ‘property investors’.
The fact of the matter is that the property market is always active. Those real estate agents that fall back on ‘generic excuses’ are not the top agents, and they are not likely to reach that ‘pinnacle’ of market dominance. You must control your market and in doing so you will find the leads. You cannot wait for the market to come to you. Prospecting to new people every day is really important.
So how do you make more commissions? Here is a list of actions to help you focus on the right things:
- Split your prospecting time into 50% current contacts, and 50% new contacts.
- Find at least 10 new people to talk to every day in your market and sales territory
- Ask people about their property needs. Find the people that will need you to help them soon or in the future.
- Stay in contact with clients and prospects. Talk to everyone at least once every 90 days (or sooner if you believe they are active).
- Be a source of property information and knowledge. Brand yourself as the expert that gets results locally.
- Systemise your prospecting model so you know who you spoke to and when. Categorise the people that you talk to into sellers, buyers, tenants, and landlords. Understand what they will need over time to solve property challenges.
These are simple facts and logical processes. They are easy to implement.
I go back to the conversation earlier of the ‘junior agent’. I think we can all see why he was not getting results and traction for his clients with the listings he controls.
In the property industry we all have choices. Top agents make the right choices and are highly disciplined in focus and momentum. What choices do you make every day?
