Karen

I own two franchises and the needs of the agents will vary and there is no one thing that all agents are looking for or maybe there is! They are all looking for the biggest return for their efforts. Since I can’t change our business plan being a franchise, I can tell you how I would do it if I was not a franchise. Start with you commission split. You have to have several different plans available for different agents unless you only want the new agents. We are a 95% office. You can be brand new and receive 95% of the commissioned earned. You pay a monthly desk fee, an annual E&O fee and a per transaction fee. This brings in a lot of agents that were on 50/50 or other arrangements that reset at the first of the year. We also put in place a program that allows agent to refer other agents and receive 5% of what they earn. I would also put in other programs that had no fees but were at reduced rates of commission since some new agents can’t afford desk fees if they are not earning anything. We have gotten around this by allowing other agent to form teams that they take a percentage of the commission while the agent is new but pay the new agents fees. They have to have a way for the agent to get off the program that is fair to both parties.

The next thing is training.  Agents may not ask for it but it is crucial in their success and you reputation. We have on meeting a month that we ask everyone to attend.  They all don’t but those that do come back for seconds. Make training informative and meaningful.  We hold training sessions twice a week.

Agents also want a good office environment. Friendly and state of the art, good computer system with T1 line or what ever is the fastest in your area. Good color copy machine and scanner with email capabilities. Nice conference room to bring clients and above all a good receptionist.

There are a lot of other things that will help but those are some of the most important I could think of. Our business plan is only 5 years old and we have grown from 1 to over 1200 and are now in 17 states. I think we may be doing something right and it is not a bad plan to emulate.

If you want more detailed advice I have my number on my web site and feel free to call me any time. I would be happy to share any information I have with you.

I wish you a lot of success and hope that your agents find there new home a viable environment and you become the next Donald Trump, without the strange hair.

Karen

I got so carried away that I didn’t even address your question. It is late and I do apologize.

In Florida as well as most of the US I believe that most agents are independent agents. As long as they have not signed a “non-compete” agreement they are fair game. I get email daily from competitors trying to recruit me or my agents. I look for agents that have a good track record and pay close attention to the reason they want to leave their present Broker. If it is because he is never there or he doesn’t offer any training, etc… than you can make a judgment on if that is the real reason.  I want agents that I can mold, train and are not cry babies. I terminate any negative agents. The rotten apple really does spoil the barrel. I would let go a top agent if they were detrimental to my other agents, i.e... Stealing leads, causing problems in the office,  etc... Let your gut take the lead. It will tell you if you would want to work with that person.

Karen,

The most powerful recruiting tool is attraction, not promotion.

There is something, or perhaps 2 or 3 things that really make your office special.  What are those things?  Write them down and expand on them.   This is also the nucleus of your mission statement.  These are the things that thrill you to be part of, and those things will also attract other like-minded and driven professionals.

This is key because you are recruiting agents that will bring this mission statement and your dreams to life.  You're not just recruiting, you are building a company - a company that is as unique and powerful as your vision - and just any agent won't do for you.

Have a recruiting plan.  Once the skill sets, production goals and personality traits are written down, you must have an itinerary of how each candidate will be interviewed and integrated into the company.  Will they meet with other key team members?  Will they attend a training session or sales meeting?  How many interviews must be conducted?  Will you utilize personality tests?  All of these things and more must be written down in place and thoroughly explained to each candidate and anyone who is involved in the recruiting process.  And before I forget - check references.  I have noticed that this extremely important step is skipped a great deal in real estate.  Don't take the excuse that 'all my references are confidential."  If someone can't come up with 5 professional people that will speak on their behalf, that's a red flag.

You have to make allowances for confidential recruiting.  If someone is a top producer at a competitor, they most likely will not want to walk in your front door at 2 pm to talk to you.  

Once you have these things in place - remember the most important aspect of recruiting - and believe me this will come into play - "Resist the urge to hire anyone who is not at least an 8, on a scale of 1 to 10."

Under the pressure, and sometimes excitement of business building - someone who is 'almost right' will be very tempting.  You will like them, they will be well-dressed, poised and a number of other things.  But not quite right.  Don't hire them.  

The tangible and intangible costs of hiring the wrong person can be enormous.  Conversely, holding on to your strict values and sticking to your well thought out plan can yield amazing results and drive your company forward.

Wishing you the very best of luck in building your new venture.

Dan

Karen, thanks for posting this as I have been thinking alot lately about bringing someone else on board. I am really fighting this because I am convinced of the need but not excited about the process and time involved. I am a new broker so I will be very very picky. I wonder if there is some kind of blanket ethics test to give prospective agents because this is a biggy with me. Hope you get alot of good responses we can both use.

Gary,

Your office sounds fantastic!

Training is so important in my opinion.  It keeps people on top of things and motivated.  I liked all your points and expect you must be very successful.

Carol