Transparency – What Do You See?

Transparency is critical today in our relationships.  Broker-Agent, Agent-Consumer, Broker-Consumer and Broker-Franchisor. 

Here is why...

Women make 89% of the purchasing decisions in real estate and comprise the majority of our agent populations.  Women are also excellent BS detectors and transparency is essential for building trust and a working relationship.

Fake and fluff don't sell and will ultimately be exposed.  Keep it real - just like my blog title. 

Transparency equates to trust, genuineness and being real.  People do business with people they trust.  When perspective franchisees visit our office, the first thing I always relay to those individuals is that our company is an open book.  Any and all questions are encouraged and, most importantly, all questions will be answered - even if the answer may be negatively perceived.  When prospective franchise partners visit, we interview them just as much as they are interviewing us.  It is better to learn we're not a fit sooner, rather than later. 

Be transparent and success will follow.  If not...

Is Your Brand Talking to Itself?

I speak with agents regularly and during recruiting meetings, have an opportunity to learn lots about agent perceptions.  In real estate, so many of us talk to ourselves in our marketing.  I'm going to not mention brand names, however, you know who they are if you step away, put your consumer hat on, and observe.  It makes me think of this famous Norman Rockwell paining. 

These are the companies who...

1. Have yet to define a target consumer and direct marketing to this demographic segment.  These companies plug along and are satisfied with the status-quo marketing despite an ever changing industry landscape.  These companies spend their national advertising funds where agents and ownership groups will view their brand vs. where actual home buyers/sellers will.   
2. Have charismatic ownership and thus continue to brand with the names of these owners/founders.  These companies brand themselves in this fashion more so because of agent vs. consumer perceptions.  The names of founders have nothing to do with what is important to a consumer.  A well constructed brand takes advantage of the opportunity to represent what consumers care about and speak directly to them in their terms.     

So, I'm going to pose a loaded series of questions I typically ask in agent interviews when learning why an agent is tied to their brand.  You should start asking these too if you have a brand that actually represents more than a founders' name, appeals to a target consumer audience and directs marketing efforts in mediums where said consumers congregate.   

• Who is your company targeting in its advertising? 
• How is your brand perceived by consumers?
• How do they spend money from the advertising fund where you contribute?  
• What events do they sponsor, and who is watching said events? 
• Is your brand and its model appealing to the real estate industry and ignoring the consumer? 

6 Steps to Effective Hiring

1.  Network - tap into your sphere of influence.  Facebook, Linked-In, Active Rain, and other social networking outlets are easy to use, free and will likely help you find the best candidate.  I interviewed a woman from a competing brokerage last month who I met on Active Rain.  Personally, I dislike the cattle call of resumes received from Monster.com and the time it takes to dig through those. 

2.  Determine an appropriate place for an interview.  Your office is best as the atmosphere, energy and culture will be evident to the candidate.  Another true story... I interviewed someone a few weeks ago at a Starbucks and the broker/owner from their office walked in.  Your office will avoid this discomfort and ensure mutual confidentiality.  At Real Living we love to show off our culture, energy and differences through our office environments. 

3.  Interview - ask the right questions.  The questions you ask during an interview are subliminally setting the expectations for the candidate.  Through your questions you are telling them what you expect and learning how they will want to be managed.

4.  Check references.  This is tedious but necessary.  You'll be surprised what you will learn from these.  I used to assume all references would be good and therefore not call all of them.  Big mistake.  I've called references before who have, through their answers, turned me another direction.  Ask references pointed questions and get specific examples of the employees past accomplishments.  Make sure they include individually they've reported to in the past.   

5.  Monitor - follow up with your employee regularly during the first few weeks of employment.  Make sure they are completing tasks, motivated and remain a good fit.  I personally use regular weekly meetings to monitor performance, enable the employee to ask questions/learn.  During this meeting, I take notes and send a follow-up e-mail reiterating the meeting and include expectations and "to-do's" for the following week.

6.  90 Days - Typically at the end of the employees first 90 days you'll have an accurate view of their ability to perform.  Communicate to the candidate up-front that their first 90 days is a probationary period and set specific goals for them to accomplish before the conclusion of that period.  If they are not a fit, move on.  Life is too short and business moves too fast to spend time and resources on the wrong person. 

Your franchise should be able to provide you a complete hiring and recruiting package.  What have you done to effectively hire that others should follow?

3 Must On-Boarding "do's" For All Managers and Owners

When a new or trasferring agent come onboard with your firm, the first week is crucial.  It is during the first days with your firm that a manager/owner has the opportunity to indoctrinate agents into company systems.  It is also the time agents will form lasting opinions and habits (good and bad) with your company. 

Needless to say, first impressions are important...

1.  Familiarize the agent with your company's technology systems.  Assign relevant business generating homework (using your tools/technology).   Homework should include...

• Import contacts into your company's contact management system.
• Customizing the agent website your company provides.
• Sending e-cards and/or direct mail to their SOI via your system.
• Create and customize the online listing presentation using your company's brand and presentation.
• Create a blog.  The first post should be about their farming neighborhood/area.  Ensure it links back to the agents/company site to improve SEO efforts. 
• Get involved with and join social media outlets like Facebook, Linked-In, MySpace, ActiveRain, etc.

2.  Set expectations.  You only have one opportunity to do this properly the time is now.  Make sure agents know...

• How and when it is appropriate to call you (the manager/owner).
• Provide and review your office manual.  Make sure this clearly identifies who and where to go to find help with key items Clarifying these things will save you time in the future by reducing calls.  This document should also be online in your company's Business Center.    
• Set coaching expectations.  Make sure you both are on the same page.
• Set performance expectations.  Create clear goals. 

3.  Follow up, keep promises and keep everyone (yourself included) accountable.  This is critical and all homework should be completed within the timeframe set.  Most of the homework items are "no-brainers" and business generating so the time frame should be short (under 1 week).  As the saying goes, employees (agents) will not respect what you don't inspect.

Real Living's operation and training systems have a complete on-boarding process and training system for its partners.  Above is an excerpt.  To learn more, connect with me offline.  If you are an agent and your manager is not and/or has not done any of the above, why? 

The Svectionary

I and our internal team often invent and use so many words and phrases that I thought I'd create a "Svectionary" blog.  Here goes...

Scientist (noun) - One who can and does consistently share useful and intelligent knowledge with the Active Rain community.  One who can open the eyes of the industry via the blogs he/she posts.  In a sentence - Scott is not an English major, rather he is a Scientist who continually brings strong game on AR.

Stregerist (noun/verb) - One who has (or can be described as) the ability to formulate and direct a group in the "right" direction.  In a sentence - A-Mag is a strategerist who has a team of agents and company who respects his vision.

Do Work (phrase) - Git r done is played out.  A rallying call for agents and owners in the business to get their heads out of the proverbial sky and wake up.  The late 90's and early 2000's were times of being able to sit at your desk and take lead calls - these days are gone.  However, there is still business to be done, people are still buying and selling homes, it's simply not as easy to connect with them - now we need to "do work." 

  Broker in Drag (phrase/noun) - A team or rogue agent.  This rogue agent/team does not look at all like their company, and when you visit their website or see any of their marketing you cannot connect them with a brand.  These are short-sighted and individualistic agents who should have their own brokerage but are likely not savvy enough or too afraid of the accountability associated with such an endeavor.  Because of their actions they do not capitalize on the value and brand equity of the firm they "represent."  In a sentence - That agent is with (insert brand here)??  You could've fooled me, he's a broker in drag.

            * phrase coined by Scott Hoyt, Scientist

Cliché Brokerage (noun/verb) - A real estate brokerage firm who insults consumer intelligence by branding itself with cliché images (e.g. two agents shaking hands, for sale signs, pictures of homes everywhere on their site, the word realty in their name, etc.).  A typical remark an owner of a Cliché Brokerage would use would be, "how will they know you are a real estate company if you don't have (the aforementioned scenes) in my advertising/on my site?"

Internet Consumer (noun) - A real person who is online and able to find homes and request information on a website.  This is opposed to how many in our industry view them - a "lead."  "Lead" is a term suggesting they are number, commodity, etc. to be tracked, counted, and chased vs. warmed and informed (a Real Living Customer Care phrase).  By the way, this person represents over 80% of the buyers and does not search Sunday newspaper ads for their next home. 

"Get out of your own way" (phrase) - A phrase used to bring a rogue broker/agent to reality.  In a sentence - Instead of advertising on benches, newspapers, and wrapping your Hummer with photo's of yourself, get out of your own way and tell the consumer how you are unique. 

Fit (verb/noun) - An agent or broker who embodies your brand/company/image/culture.  All of the above.  If they are not a fit, hiring or franchising with this person is pointless.  In a sentence - In the interview she came into my office talking about her financial problems, current office gossip, etc, vs. focusing on business - she is not a fit.      

"I'm returning your license" (phrase) - A phrase while necessary is seldom used.  How many brokers actually terminate agent employment with those who do not "fit," are part-time, not profitable, etc.?  Not many... usually they wait for it to go the other way vs. standing up for themselves and doing what is right long term for their company. 

As I think of them or invent them, I'll add more.  What terms/phrases have you invented or use frequently?   

Extra, Extra... Who Is Reading All About It Anymore?

If you read my "Meme," you know I used to deliver the daily newspaper for several years from 1985-1989.  The subscription rate among the 150 homes I was responsible for was almost 100%.  Everyone got the newspaper and while I'd love to take credit for the adoption rate, back then it was one of the only reliable information sources. 

I try to get a work-out in 3-4 times a week at 5:30am.  I typically drive past the newspaper delivery guy in my neighborhood on my way to the gym.  This morning I stopped him to ask how many papers he actually delivers in my neighborhood.  He did not know the answer but said it was about 1 in 5 homes - 20%.  Which matches up with my street of 6 homes where the only one on the street with a paper in the driveway every morning is a retired couple.  As opposed to the 5 others who don't receive the paper and average 2.3 children and all under the age of 40.   

So, it begs the question of who actually reads the newspaper anymore when there are so many more options?   Let's take a walk down media memory lane...

In the 60's we had...

• Television
• Radio
• Newspapers,
• Magazines and...
• Andy Magliochetti's favorite - the 8 track.

In the 80's we enjoyed...

• Newspapers    
• Magazines
• Broadcast TV
• Cable TV
• Newspaper
• Radio
• Cassette tapes (A-Mag is sad because his 8 Track player is rendered obsolete and he cannot listen to or sell his Steve Miller Band collection)
• Walkman
• VCR
• PC
• Video Games

In 2008 we have...

• Newspaper
• Magazines
• E-mail
• Broadcast TV
• Cable TV
• Radio
• Satellite Radio
• PC
• Satellite TV
• Internet
• Mobile Phones
• DVD players
• Blue Ray disks
• MP3
• Tivo/DVR
• Slingbox
• I-Pods
• Blogs
• Online Video
• Mobile Internet
• Video Games
• Text messaging
• Mobile video games
• Podcasts
• IM's
• Social Networking
• And, I'm certain I'm missing some. 

So, my question to all members of Active Rain.... With all of these venues why do brokers and agents continue to spend so much of their advertising budget with local newspapers to promote ourselves and our listings? 

Meme

1. Who is your favorite musical artist?

Kid Rock.  I saw him a few weeks ago and it was the best performance I'd ever seen.   He mixes music genres like no other and plays country, rap, every instrument on stage and even will scratch - old school style.  

2. Who is your favorite artist?

My kids.  I love the art they produce because I'm always in the picture.  It is always so funny to see their interpretation of what they draw.  The recent favorite is a stick figure Spider Man shooting me with a web. 

3. Who is your favorite blogger? 

Marc Davison.  He's a scientist - a title I don't assign loosely. 

Scientist (Noun) - A title for one who can drop knowledge and state facts about the real estate industry.  Must be able to open the eyes of those who have been doing it so long their eyes are closed and have resigned themselves to simply going through the motions.   

4.  What did you want to be when you grew up?

A teacher.  It was all I knew.  My mom was a teacher and my dad a principal. 

5. If you could meet anyone (alive or dead) who would it be and what is the most interesting thing about them?

Tiger Woods - And, since we're dreaming, I'd play 36 holes with him that day too.   

6. What is the most interesting piece of trivia you know?

I'm not a trivia fan. 

7.  If you could live in any point in history what would it be and why?
Prior to the industrial revolution.  To pioneer a "green" effort back then which hopefully would have made a significant impact today. 

8.  What is the most interesting job you have ever held? Paying or non - paying?

Newspaper delivery.  I delivered The Cleveland Plain Dealer for 5 or 6 years.  5am wake-up call every morning - no break.  I especially loved collecting and watching the drama of grown adults scrambling for the money they owed and make excuses for not paying.  You may not think so today, but delivering the newspaper was a power position back then.  The newspaper was one of just a few news sources. 

If a customer did not pay, it would only be few days for Cleveland weather to bring rain or snow and I'd leave that paper outside in a puddle or burry it under the snow.  The next time - I'd get paid.  Waste my time after I get out of bed at 5am to deliver your paper on time !?%?$!&* 

I'll tag...

Linda Altomare

Linda Whiting

Caitlin Murray

Kaira Rouda

Keith Kumler

Spy on Your Competition - The Easy Way

I'm not talking 007 style, but I can't imagine NOT having a Google alert set on yourself today.  I have one and it is awesome to learn every time my name is mentioned.  Google always catches it.  Even with my seemingly obscure last name you'll also be surprised to lean how many others across the world share your name.  There is a teen-aged track star in Michigan who I'm alerted of fairly regularly.   

Google alerts are also a great way to keep up with your competition.  I have an alert set for every major franchise competitor we have.  Through this feature I learn where they are going as soon as they announce so I can relay this information to my team and prospects. 

Knowing how to stay in the know just got a whole lot easier.  See, technology really is your friend when trying to keep up with your competition.  How would you have kept up in the past?  Google makes it too easy today. 

If you are an owner of a company or manager, do you have Google alerts on your competitors? 

Lemonade... $5

This weekend is our HUGE, EVERYTHING MUST GO, neighborhood garage sale.  Making me think of the picture above and the entrepreurs in our company.  And, yes, my little people (ages 3 and 6) are planning to have a lemonade stand on the street, and, despite their ages already have it all figured out.  It was humours listening to their conversation in the car yesterday negotiating the key facts like who is going to get the water, stir, pour, "advertise" (e.g. yell for people to come to the stand), and most importantly how much they are going to charge ($5/glass in their case).  I'm anxious to watch how long the lesson in supply/demand/pricing strategy/competition takes.   

Nevertheless, I'm always asked, "who is Real Living's target franchisee?" 

My typical answer usually drifts into the owners understanding and ability to implement the Real Living brand in their market, or technology.  However, after considering the question further, I'm changing my answer.  That is ok, right? 

When I look at the common denominator of all of our franchisees, I arrive at "passionate entrepreneurs."  Real Living's broker owners in the network today can all be described in this fashion. 

Take Lincoln Crum, our owner in the greater Louisville area.  He exudes passion not only for Real Living but his company, customers and agents.  Just talking to him can get you excited about whatever topic he is speaking about.

Take Tom Grimshaw and Jennifer McCloskey in Coral Gables, FL.  Spend 2 minutes with Tom and Jennifer and you'll know they get it.

Or, Tripti Kasal in Lincoln Park, IL (Chicago).  Tripti's energy about her business is infectious and her business acumen is second to none.

I can only hope that this weeks lemonade stand experience sparks the entrepreneurial fire in my kids and they grow up to be like those I have the opportunity to meet and work with daily.  So, when asked about the composition of our franchisees (current and future), I think I'll change my answer - Passionate Entrepreneurs.   

Ever Feel Like Butthead?

I've been feeling like him for the last three weeks.  True stories below...

1.  Last night I spoke to a friend of mine who just went "in-contract" on his home.  The sale price is $230,000 and the outstanding balance on the loan is $255,000.  Yes, he has to go to closing with $25,000 leaving him very little cash to put down on a new property.  That interest only loan does not look as good as it originally did, huh?  Prior to selling he was considering the possibility of walking away and accepting a foreclosure on his credit report.  

2.  Then, the prior week I spoke to a friend who is in owns his own company building condos.  I've known him for years and he never has anything good to say about Realtors.  You know, "that guy" who refers to Realtors negatively and uses every negative analogy thinkable when speaking of us.  Last week he asked me if I knew a good Real Living agent in a market where he has a large inventory of properties not moving.  Now the dilemma, point out the hypocrisy, refer it to our office and hope his attitude has changed, or refer it to a competitor.  I've still not replied to him. 

3.  Finally, I spoke to a prospective franchisee who called into our office interested in a Real Living franchise.  As usual, before discussing the program, spent a while on the phone interviewing her.  Through this process found out that the woman is planning to file bankruptcy and leave her current franchise (with an outstanding balance) and start a new one.  The startling part of the conversation was how, "matter of fact" she was when discussing the bankruptcy situation - like it was not a big deal.  With knowledge of the bankruptcy and other info I politely referred her to some other brands. 

Beavis?  What will this week have in store?  Anyone need an application for Burger World?