Within a commercial real estate brokerage, every agent and every broker should be providing a sales performance report as part of their weekly and monthly activity. The report is a productive way of understanding what’s occurring in the market and how any adjustments are creating results.
So the report process has benefits for both the salesperson and the brokerage. Here are some base numbers to monitor as part of the overall strategy:
- Track the amount of prospect activity occurring at an individual level. Every broker or agent should be making a certain number of outbound calls on a daily basis. Half of those calls should be to established contacts, whilst the other half should be to fresh new people identified as prospects locally. As a general rule, approximately 40 to 50 outbound telephone calls should be made each day in this way. It will take approximately 2 hours to get those calls made.
- In making the outbound calls, a certain number of meetings should be created with clients and prospects that may have a future property need or challenge. From 40 to 50 outbound telephone calls, 15 to 20 connections should be made. From those valuable conversations, approximately two meetings will occur each working day. Over a five day working week, those meetings should convert to at least one listing or transaction. Over time the numbers will improve due to personal skill and dialogue improvement. You will need to track these numbers at an individual level, and report on them at the end of the week.
- On a listing by listing basis, track the number of open listings vs. exclusive listings for each broker or agent. On average, a top agents have far more exclusive listings than open listings. It can also be said that most top agents will be working approximately 10 to 15 exclusive listings at any one point in time. In working the number of exclusive listings, they will generally be converting 75% of the listing stock to completed transactions. The conversion factor will also be influenced by the type of marketing campaign, time on market, and price or rental adjustments.
- At the end of each quarter, it is interesting to review the amount of commission created from each completed sale and leasing transaction. Divide the commissions earned into the number of listings successfully settled or leased. Over time you should see the improvement in numbers, thereby indicating that the agent is improving listing quality and market share.
- With all of these figures, a performance comparison can occur between brokers and agents within the brokerage. In that way you can see how agents are improving with property types and within territories. Some locations will produce better results than others. A similar outcome can be observed with property types. Understand what works and where the listing opportunities lie within your region or territory. Make the adjustments within your team accordingly.
Whilst many agents struggle with the property performance requirement, it can be a very valuable tool at a personal level. It can help the brokers and the agents to understand where the opportunities exist and how the adjustments can be made. Over time that will mean better listings and further commissions.