Real Estate Blog - Do Designations Equal Success?

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Do Designations Equal Success?

There is a great discussion (now that one unruly commenter has been exorcised) going on over on Randy Prothero's blog regarding professionalism and designations.

What I'm noticing - and this should come as no surprise - is that those of us who have designations firmly believe they are important components that have led us to the success we enjoy, and others who are successful but did not include designations in their path to success for the most part are sending the message that designations have no value.

If one is successful - with or without designations - then one is successful.

I DON'T want to send a message to those that didn't choose to leverage designations as part of their game plan that somehow they missed the boat - because they obviously followed a path that led them to success.

I DON'T want to send a message that in order to be successful or "professional" one MUST have designations - because that is patently false.

I DO want to send a message that in my opinion designations are an excellent way to get the knowledge and relationships you need to be successful - and is an excellent way to jump start your business.

I DO want to send a message that in my opinion if you wait until you're successful to engage in designation programs, you may not have the time available.

I DO want to send a message that in my opinion adding designations enhances whatever level of success you have reached and if leveraged can provide incremental revenue streams.

I DO have a question for those that have become successful without designations and/or have no intention of engaging in designation curriculums:

Excluding designation programs, what would YOU suggest to a new licensee with no background in real estate with regards to how to build their business most effectively and efficiently?

**** UPDATED - HERE IS A LINK TO REAL ESTATE BUSINESS PLAN ***

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Posted by Tony Marriott, Associate Broker, CRP, CLHMS, CRB, CRS ~~ Phoenix Arizona on 06/26/2007 11:22 AM

Comments (46)

designations, success, professional

Originally posted at: Tony Marriott's Phoenix Arizona Real Estate Blog: Do Designations Equal Success?

46 Comments on Do Designations Equal Success?

JUN

2007

Tony--My concern about the designation debate is deeply rooted in my business background...More money for an MBA or PHD or even a BS or BA degree...Mine is a BS degree (Bachelor of Science...not the other!).

While others have had and taken the opportunity to achieve their goals...New agents may not have yet. Some come into real estate with other designations and experience that make them my first choice for a referral. We should embrace differences and not assume that everyone with or without a designation is good or not good.

I applaude the designations you have achieved but I certainly hope that they don't define you.

Encourage...Don't Discourage!

Teri - You raise an excellent point which I had overlooked in the post - qualifications from outside of the Real Estate industry. Setting that aside - do you have any suggestions for new agents that don't have qualifications from outside of the industry in building their unique success plan?

Hola Senor Marriott! I do believe education is VERY important for a new licensee ~ from designations, to training to office/team meetings. Finding a mentor and latching on to them is VERY important as is finding a broker with great support.

I really appreciate all the great advice and verbiage you have shared with me. I had a VERY good mentor also!

Tony--There are many things we all can do to build our businesses. Network. Join Teams. And Educate ourselves. Even a newbie agent has credentials. They did work hard to obtain their license after all...at least in MN the state test is difficult. Also someone who has been in the business but has yet to obtain additional credentials...Sally Cheeseman, though I don't believe she has a CRS would anyone not consider her an expert on Hawaii? The key is how best to expand on them. It all takes time to carve out your own perfect niche'.

I believe AR is a network to bring out the best in people. If we post for localism to set ourselves apart from competing agents, do so with care not to attack others.

Renee - Good to hear from you! A good mentor is a great plus for a new agent!

Teri - AZ has a tough test too - but it's all related to real estate law and definitions - and has nothing to do with how to build a business. As I mentioned above:

I DON'T want to send a message that in order to be successful or "professional" one MUST have designations - because that is patently false.

There is no need to have the designations - however - there should be a business plan. I'm very interested in hearing specifics that don't include designations on the list - I promise this is not an effort to get any sort of acknowledgment that designations are the only way.

Hey, I'll bite:

"I DO have a question for those that have become successful without designations and/or have no intention of engaging in designation curriculums:

Excluding designation programs, what would YOU suggest to a new licensee with no background in real estate with regards to how to build their business most effectively and efficiently?"

First, let me say, David (my father and team owner) has some industry designations: GRI, ABR, CRS. I am almost done with ePro (debatable as to whether this designation is as good as the others).

As you said in your post, successful people will be successful regardles of their designations.

I suggest that a new licensee jump into the business - not focus on education/designations but focus on being in the middle of their business. Too many new licensees get to busy educating themselves and not busy on the business. I think that is the biggest issue.

I personally know of an agent who started in the business a year or two before dad did. That agent has just about every designation possible, teaches, etc. Yet has never really pushed on his business. Now, if he was happy and making the money he wanted to make, I wouldn't say anything (he is an excellent instructor). But, every time he and dad converse, he talks about not making enough money. My thoughts are, he's focusing too much on educating himself and not enough on building his business.

I do plan on getting my CRS and possibly my GRI. But, I'm not even focusing on those this year because I'm building the business. My plan is to build to a certain level and then get one of the two. Then build to the next level and get the other. After that I'll determine if I want/need any others based upon my business plan/goals at the time.

Tony-

Everyone can point out a story of a fifth grade dropout who became a millionaire.

The simple fact is that overall, more education equals more success equals a higher income. And that applies to real estate and medicine and law and almost anything else.

Many of the naysayers point out that this is just alphabet soup that means very little to a consumer, and that is true...Unless you take the time to explain to the consumer what the letters mean in terms of experience and education

Christina - Those without family members experienced in the industry to guide them need to know which direction to jump. Excluding relying on family members and designation programs, can you suggest other resources that would help steer them in the direction of success?

Fred - You and I are on the same page. I know that designations were critical in my business plan - just curious as to other paths out there....

It's not the designations.. most people have no idea what they mean.. but the education you get from taking the clases is what is important.. I take a lot of little classes and read tons of things that give me better insight into my market or ways I can increase my market share..

Tony -

Yes, write a business plan and marketing plan and go from there. These plans can (and should) include designations and education. But, they also include extensive work on the business rather than in the business.

I'm absolutely not against educating oneself (I forgot to mention that I'm working on my broker's license over the next 12 months, sorry about that). I am against too much focus on educating and not enough on business building.

A well balanced business plan is where the newbie should start. Know what they want then build on how to achieve that.

I started and ultimately sold another business just a couple years ago and there really wasn't much 'education' and no designations available within that industry. I just wrote a business plan and marketing plan and knew where I wanted to go. I then built the business (and was able to sell it 18 months later).

All businesses have the same basic anatomy/structure. That's sort of my point.

Tony - I'd also like to respond to Fred's post. He's talking about education for certain professions vs. entrepreneurial. If you look at the successful entrepreneur's and their education levels vs. other professions, you'll find that entrepreneurs actually have less "education" and more "real world experience".

Even a recent apprentice season pointed that out - that education doesn't make a difference to someone who is a true entrepreneur.

Examples? Bill Gates (dropped out of college and started a business in something he didn't know a thing about), Warren Buffett, successful before he went on to college, etc. Take a look at the majority of small business owners - the majority have a 4 year degree or less with even more having a 2 year degree or less.

I am not discounting the value of designations, I'm only discounting the need for a newbie to focus on a designation in an unbalanced manner.

Christina - You raise some excellent points here. One follow-up question I have is what information - and what sources of information - should a new real estate licensee draw on in order to have what they need to construct a real estate specific business plan - and do you know of real estate focused business plan software / web based platforms that help write a real estate specific business plan?

Kaye - We're on the same page!

Tony--I want you to know that I don't disagree with you. I believe education and continuing education is an integral part of any business plan.

I will not take the bait and outline a plan for those without designations...Everyone must select their own path.

I believe Christina's points are valid....She is continuing her education. She is working in the business her father started. She is jumping in with both feet and is very passionate about growing her family business...Read her blog if you doubt her passion. Her point about her father and his colleague is valid. Some choose education first and get many credentials but few sales. Other plans will take the bull by the horns and jump right in to build their business with education as a side note.

Remember it goes both ways: While Fred points out that everyone can point to a fifth grade dropout who is a millionaire. We can likewise point out several well educated real estate agents that are penniless. Additional education costs money and in a tight real estate market, not everyone can afford to pay the money and fees for the designations as much as they would like to be adding to their resume.

My point is this...Whatever your plan is, don't knock someone else's plan...It may be a valid plan. Just different from yours.

Teri - I totally agree with you (not sure what part of my post you saw as knocking others) - and am starting a separate post to encourage all to share suggestions that can be helpful to all of us - I'll be back to update this comment and post with a link once it's "live" in just a couple of minutes.

Here is a link to Real Estate Business Plan

Tony--Not your post personally...carrying some baggage from a previous post...Reminding everyone to keep things positive for all.

Tony,

Great blog and interesting comments. I believe most folks have touched on all the relevant points. Let's not forget the consumer in the process: What can they ascertain about a Realtor's capabilities if they don't know what the "alphabet soup" means?

If you have a designation you should write a few marketing pieces per year as to what that designation means, how it helps you add value. There are many top agents in my area without a formal designation but they have accrued a deep "transaction intelligensia" they continue to rely upon. Perhaps NAR can endorse a "SHK" designation -- School of Hard Knocks.

Tony- I receive my MBA after being in Real Estate 15 years. I will use my business experience's, success and failure to help my clients. I have a Baccalaureate degree as well as a Certify Respiratory Therapist. I achieve all as an active Realtor. I use my education and experience as an real estate investor to stand out. I had a lot of free time and stay busy. Education is great.

Andrew - SHK - who will put the course together? :-)

Frank - Thanks for stopping by and for the comment!

Tony - I do not believe designations define success! One can be successful with or without a designation. I believe all agents should pursue continual education whether or not the end result is a designation. I also highly reccomend the GRI for new agents. My experience was, the GRI helped me make sense of everything I learned in school.

In the beginning I argued with Randy about this...until he nearly knocked me off my feet that it's the education and that I seem to be excluded because not only am I office staff and full time agent I am around real estate more than most. 24/7 just about so in that respect I agree. Also, I only recently got my e-PRO designation only because I could do it online (did it in three days while I had the flu) and no other fees. You see, Tony, I am a very successful Real Estate Agent in Hawaii. I'm not all business as Randy and a couple of others but that is because I choose to have balance...a life...and I have no children to take care of anymore and can enjoy my life as well. I am four years into the business and sold many millions and have made good money. Bottom line, I take more value in the service I give...therefore,, the referrals I get back. Not one so far this year has been other than a referral. A new agent (as I was once) should go out and get education on top of training. I did floor time all the time, went to every weeks sales meetings (still do) but a designation does not define nor dictact how good that agent is. It does say people have gotten more education but I educate every day as well. I have no college degree and even those i may balk at. A real estate attorney knows less about our real estate contracts because they make their own up. Am I babbling...I think so....bottom line.....I'm good...that may help others....but I didn't have the time during the boom and don't want to spend all that money now that it's down some....because I still want to enjoy my life. Did I make any sense? Oh, well. I tried.

There are ups and downs and pros and cons to both sides. How's that?

I agree with Christina. I think a new agent needs to focus on building business and relationships as their first priority. Although I am just getting around to taking designation classes, it was not a priority for me in the beginning and I do not think my success suffered for it. However I do feel it is important to obtain them if you remain in the biz.

Tony, I believe experience in some related real estate business is the key. I have so many designations that I have acquired over the years (in technology, financial services and education, plus I have a background in construction), but I haven't really seen it make that much difference. I really don't think the customer cares or understands what the designation stands for and it really only matters to those who know and understand what it takes to get the designation. Experience and mentors make the difference for me.

JUN

2007

Paula - Points well made - thanks for the comments!

Sally - So if I can paraphrase - you believe that education/experience is critical - not necessarily designations?

Jennifer - I'm on board with you and Christina - just trying to get my arms around where the new agents get the specific "direction" if not from a designation syllabus.

David - Sounds like you're saying that the education and interaction with other professionals is key - not so much the designation?

Excluding designation programs, what would YOU suggest to a new licensee with no background in real estate with regards to how to build their business most effectively and efficiently?

1) Find a mentor.

2) Read, read, and read some more. Books, blogs, whatever. The more you read, the more you learn and the more questions you have for your mentor (see #1 and #6)

3) Begin establishing a "web presence" immediately.

4) Education - be that real estate education, business management education, marketing education, technical skills education. It's all important. Yes, some designation classes will help. They are, after all, education venues. (but there ARE countless education programs outside of designation specific classes)

5) Network. Network with other agents, your local community, your SOI, your farm. Join (and participate) in "social networks" and forums such as AR, REW, AgentsOnline, ReaTalk, etc.

6) Never, ever stop asking questions. (See #1 and #5)

Jay - Thanks for stopping by and THANKS for giving some great specific pointers! Talk to you soon.

Tony: I am staying safe....in between :) I believe whatever works for one is their choice. What I choose to do fits my career and my lifestyle. Critical is the education and experience (I certainly would not have worked with me on my first transaction! But grateful that a friend's brother gave me the chance.,....and I was walked through it step by step...all that education didn't do squat without doing a "hands on" transaction) On the other hand, going through CRS etc. is more networking, education and experience. A good plus as well. So again..what works for me may not work for others and vice versa.

Sally - Thanks for the additional thoughts and you know you are always safe here! :-)

:) thanks

Tony,

Very relevant posting. The Mortgage Business is coming across the same issues with CMPS etc. You make a very good case for it, but I can see where you're coming from on the other side.

On a side note, you were missed at the Blogging Conference. Hope you can make it to the next one.

Thanks,
Shailesh

Shailesh - Good to hear from you and thanks for the comment! Re: the Blogging Conference - by the time I heard about it from Calie I already had an appointment on my calendar for that date & time. Do you have a date & time for the next one yet?

JUN

2007

Tony-

I recently wrote about real estate designations in a post called Is Your Professionalism Killing Sales.

I bashed on the designations a tad. But in all sincerity it was as a device to put focus on where it matters.Sales.

My point was that in the end professional or unprofessional is somewhat of opinion more than some designation can provide (so long as ethics are maintained). In other words designations cannot give one sales. I don't believe anyone sees an acronym next to a name and goes with that agent. It may help. But the good sales man without the acronym has a battery of other marketing to win the contract.

Certainly a designation can help, but I fear while many go after the letters, the "rich" go after the listings and sales.

I personally do not know any top producer ( I mean top 1/4% in the US) that carries a designation. We both know a lady we call Queen Bee that has Zero Designations and resents any affiliation to be in NAR for that matter. She is personally the most successful Realtor I have ever known in my time as an agent and as a vendor. I think her cleints would call her fantastically professional.

Tim - Always good to hear from you - and yes - "Queen Bee" Barb does extremely well without designations - however - I think she is an exceptional person who would (and has) done well in anything she tackled - real estate or not.

what would YOU suggest to a new licensee with no background in real estate with regards to how to build their business most effectively and efficiently?

I am in the licensing phase now - I am scheduled to take the state exam on July 31.

I am very interested in the advanced desginations since I was planning on obtaining the

Graduate, REALTOR Institute (GRI)

Accredited Buyer Representative (ABR)

I simply feel that the additional education you get with these designations is invaluable. Am I wrong?

Irene - I applaud you for having a plan in place and would definitely encourage you to pursue the designations you mentioned!

Irene-

My advice and this is what older Tim would tell Younger Tim when I first got in the biz, go find the top 5 producers in your market or neighboring markets. Do what you can to befriend them. Spend the money you are about to spend on your designations, and offer that for two + hours of Mr. Or Mrs. Top producers time. Take him or her to lunch. Have your questions ready. Fire away. Make them your mentor.

Ask for continuing help from them, even for a cut if you think they will take it seriously. Ask them what they would do -in specifics- if they were you. Suck a plan of action out of that mega producer.

Unless that person teaching designation school can match the advice that the person you take to lunch I know whereI would be spending my time and cash.

Tim - You always did like to schmooze!

SEP

2007

I certainly believe in the saying, "Knowledge is Power." After all, I was a former educator. Wait a minute, I'm still an educator. I educate/consult with clients daily. I have learned so much from the designations that I have earned and am currently working towards. I can say, based upon my experience that there is a direct correlation with revenue and designations.

I remember when I received my "ABR" designations. A few of my collegues and I had set goals within our business plan to achieve the designation. We had heard about the very nice program here. I was so thrilled when I received it. I really enjoyed the classes. The instructors gave some great ideas and other agents really felt at ease and ready to share.

One day, I was in the office on a call-in and I was explaining to the prospective buyer the educational experience I received from earning the designation, as well as the benefits to him. There were a couple of agents who overheard my conversation and made some silly, unprofessional comments. Well, needless to say, I got the guy's business and 10 houses later I am still working with him! And those unprofessional agents, let's just say they are not doing so well now.

No doubt, if you are dedicated, professional and goal driven. You will succeed no matter what. However, if you do not view real estate as a BUSINESS you will be faced with some serious obstacles. Just as there are those who graduate from college and never utilize what they have learned or achieved, there will be those who do so with real estate designations.

However, one thing that the designations point out: Agents that undergo such educational opportunities are investing in their practice. The designations surely make receiving new business easier. I got a call Friday from an agent I met while taking a CRS course out of town. His clients are relocating to my area and he wanted to refer them to me. I know many of us who do have designations receive many referrals and likewise use our network of designees to refer others as well.

I agree with you. It's simple....knowledge equals power. The designation courses are a good source of knowledge. Our real estate market is a forever changing market and it's risky to be that agent that doesn't want to change with it. Education will guide us through.

NOV

2007

I had the wonderful pleasure of attending my very first NAR EXPO this year! I've never seen so many agents willing to invest in their business. It was so inspiring. I did not meet one agent who was pompus or arrogant---or a plain jerk. They were all wonderful, eager to learn, and excited! All tens of thousands of them! I am looking forward to the NAR EXPO 2008 in Orlando Florida!

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