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Production Quotas? No, Thanks

By
Education & Training with Sell with Soul

An agent friend of mine is in a quandary. In a nut, my dear friend is under the gun from her broker to produce at least one listing and one buyer sale every month. Here it is March 26th, and she has no listing prospect in sight. What to do, What to do? 

Traditional wisdom would have her knocking on FSBO doors and calling Expireds. After all, you can't exactly call up your Sphere of Influence and try to convince someone to move who doesn't really wanna. But that's not what this blog is about.

When I joined Coldwell Banker back in the 90's they had an annual award if an agent got one listing and one buyer sale every month for the calendar year. I wanted that award, and I got it. Because I WANTED to, not because I was told to! Had my broker told me I had to have one of each every month, I'd have definitely rebelled, or maybe even come up with all kinds of excuses why I couldn't do it!

Here are my thoughts on Production Goals: (this is excerpted from my book, Sell with Soul):

"...make your goals meaningful to you. I don't advise making specific production goals - as in "I'll sell five houses this month" or "I'll have three closings every month." The problem with these types of goals is that much of what it takes to meet those goals is out of your control, or should be.

What do I mean by that? I mean that if you are working with buyers, the inventory of the market is out of your control. The perfect home for your buyer may not be available right now or your buyer may need more time to decide. It is not soulful to push your buyer to contract on a home, just so you can meet your goal.

Likewise, there's not much you can do above and beyond your regular marketing to get your listings sold and closed within your specific parameters. You don't want to motivate yourself to manipulate your clients for your own purposes; you might find yourself forgetting who you represent. However, you can  motivate yourself to go get buyers and listings; you just can't necessarily control when they buy, sell or close.

So instead of making general production goals, make your goals a little more specific and 100% within your control. For example, how do you feel about these annual goals?

By the end of March:

  • Adding 40 people to your Sphere of Influence (SOI)
  • 100 homes previewed
  • 3 new home neighborhoods visited
  • 15 lunch dates
  • 25 "outings"
  • 5 open houses
  • 3 SOI e‑mails sent out
  • 1 mailing that included your business card
  • 1 continuing education class
  • 50 thank you cards sent

By the end of June:

  • 80 names added to your SOI
  • 200 homes previewed
  • 6 new home neighborhoods visited
  • 30 lunch dates
  • 50 "outings"
  • 10 open houses
  • 6 SOI e‑mails sent out
  • 2 mailings that included your business card
  • 3 continuing education classes
  • 100 thank you cards sent
  • 1 dinner party for friends

By the end of December:

  • 140 names added to your SOI
  • 400 homes previewed
  • 10 new home neighborhoods visited
  • 60 lunch dates
  • 100 "outings"
  • 20 open houses
  • 10 SOI e‑mails sent out
  • Your two mailings plus an end‑of‑year mailing (calendar, newsletter, holiday card, etc.)
  • 6 continuing education classes
  • 200 thank you cards sent
  • 2 dinner parties for friends
  • 1 housewarming party for a client

These goals are all completely doable and 100% within your control. If you meet these goals, you will have consistent business, no question. Did you notice that I didn't include any cold‑calling or any for‑sale‑by‑owner prospecting? If you want to add some more traditional prospecting methods into your goals, go for it. But if you don't want to, don't worry about it-you'll have plenty of good business without bothering strangers.

If you have business coming in regularly, go ahead and include some production goals. But again, don't make goals that will encourage you to pressure your clients inappropriately. Perhaps you can set a goal of $70,000 gross commission for the year and simply monitor your progress toward that goal every month. Or, strive to increase your commission split by a level or two (if your split is determined by your production). If you're not on track, take a look at your prospecting goals (above) and make sure you're meeting those."

 

 

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Comments (122)

Joe Virnig
RE/MAX Gold Coast REALTORS, Ventura County, California - Ventura, CA
No Ordinary Joe
Whenever I'm low on business the recipe is 5 calls to SOI and 5 notecards.  Easy to do and it makes the phone ring!
Mar 27, 2008 04:42 PM
Ryan Vivo
Gateway Realty - Fairfield, CA
NRBA Realtor Solano County, Gateway Realty 707-384-5894
I really like this blog and your perspective on quotas.  Sometimes trying to reach quotas can be stressful for some people and motivation for others.  Everyone does have a different view.  I like how you have given us your views on quotas.
Mar 27, 2008 05:28 PM
Shelby Morris
Realty Exchange - Columbia, TN
I couldn't represent a broker that told me what my goal is.  I work for a great guy that lets me set my own goals and run my own business.  He is supportive and helpful in any way he can be.  I call him, he calls me, we run ideas by each other and we have mutual respect for each other.  Every once in a while I get an e-mail or note from him that tells me that he thinks I am great.  That is motivation!  My goal is to be one of the 20% doing 80% of the business.  I work hard, advertise myself and my company, handle all transactions and interactions in a way that creates/maintains a positive image and remain friends with all of my clients long after the sale is over.  I like your goals and I appreciate you sharing them. 
Mar 27, 2008 05:32 PM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes
As independent contractors we are a bit outside of someone setting production goals for us. If we are going to make it we all need to set what works for each of us. Your lists sound doable but for some they will have different doable lists they will make. Good post.
Mar 27, 2008 06:46 PM
Anonymous
Anonymous

Well, I'm fairly new to the real estate side, but I have worked both title and mortgage.  This may be a broker problem.  We're all adults here.  You need to set your own goals for a changing market.  I'm with a broker that let's me do loans and real estate.  There's not a lot of "goodies" that I have access to the in office, but the good news is that I do my own marketing plan, I set my own goals at my own pace.  We have agents that make up to six figures, so there 'ya go. 

The quota thing reminds me of a bad job situation.  Isn't that why we're in real estate, to get away from the corporate grind?  I'd rather watch "The Office" than work at "The Office".   Hang in there, if it doesn't work out, go to another broker where you'll be a better "fit" as they say.  You should love what you do.  Don't let someone drag you down with a system that sets you up for failure.

Mar 28, 2008 04:59 AM
#107
-- Casey Brischle
Columbia Bank - Spokane, WA
Spokane Home Loan Mortgage Professional
you definitely love lists!  I love it.  Great post.
Mar 28, 2008 08:58 AM
Jeremy Blanton
Myrtle Beach Homes Blog - Myrtle Beach, SC
Myrtle Beach REALTOR®- myrtlebeachhomesblog.com
good post Jennifer.  I just recently re-evaluated my goals.
Mar 28, 2008 09:43 AM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents
Yes, if I had only learnt 1 thing from you, this would be it.... Learn to set goals within my reach! This business is so much dependent on others. If I kept thriving only on the way others perceive me, I'd be totally down and unhappy all the time.
Mar 28, 2008 02:38 PM
Jennifer Allan-Hagedorn
Sell with Soul - Pensacola Beach, FL
Author of Sell with Soul

So many incredible comments - I wish I could respond to all of them individually, but I agree with everyone who says that we are adults, we are independent contractors and we should be allowed to pass or fail based on our own motivation and drive.

Telling an Entrepreneurial type what to do simply doesn't work!!! I know my friend's broker means well and I also know that my friend really likes her broker and feels supported; I just think the broker is missing the mark on this one.

THANKS everyone!

Mar 28, 2008 07:04 PM
Lisa Marie Thomas
Prudential - Salt Lake City, UT
i have my own goals thet i set and, like other agents hae expressed, we are all adults.  i think your friend needs to have a talk with her broker or find anothr company
Mar 29, 2008 03:31 PM
Tina Gleisner
Home Tips for Women - Portsmouth, NH
Home Tips for Women
Fantastic set of measurable & achievable goals. Thanks
Mar 30, 2008 05:51 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices
Very good post, and congratulations on the feature
Mar 30, 2008 05:53 PM
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re
I also think activity goals are best for me if I do the work the business will follow. Thanks for reinforcing my thoughts.
Mar 31, 2008 01:51 AM
Ron D'Aniello
Exit Realty Advisors - Tampa, FL

Another outstanding post, as a part time agent I will have to adjust my numbers but I appreciate you making it simple to understand.

Mar 31, 2008 01:21 PM
Cory Clure
Tamarack Realty - Spokane Valley, WA
Great perspective, much easier to adhere to than production standards. Thank you for the insightful post.
Apr 01, 2008 07:40 PM
Ravinder Pilson
Intero Real Estate Services - Santa Clarita, CA
Intero Real Estate in Santa Clarita, CA

Great post! I like your specific goals. They will lead to your bigger goals.  I can't believe her broker is setting her goals for her!

Apr 02, 2008 03:25 PM
Patricia Beck
RE/MAX Properties, Inc., ABR, GRI, SRES - Colorado Springs, CO
Colorado Springs Realty
I like how you make the goals more focused instead of "I need 3 closings a month"  It makes sense that doing the things that are in your control will bring you the x# of closings a month.  Being under pressure like the agent you mentioned in your post does not work for most people!
Apr 23, 2008 01:08 AM
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI
Great outline of what it takes to be a successful agent. And presented in bites that anyone can swallow. You're one smart cookie!
Apr 25, 2008 01:27 PM
Anonymous
Anonymous

What a challenge Jennifer! You've got my minding working in overdrive. Thanks for this great post.

Dec 15, 2008 05:16 PM
#121
AMBER NOBLE GARLAND - Top Real Estate Expert, Property Tax Appeal Specialist & Author
Strategic Marketing Expert & Relocation Specialist Serving New Jersey and nationwide! - Marlboro, NJ
- The Agent You Can Trust To Deliver REAL Results!

What a challenge Jennifer! You've got my minding working in overdrive. Thanks for this great post.

Dec 15, 2008 05:30 PM