The most common comment I hear from managers and companies when I present my online training option is: “My agents won’t all use this training.” You’re right…at least 25% of them (your bottom quartile) won’t use this training. This group doesn’t show up for sales meetings, doesn’t have a business plan, doesn’t prospect, hasn’t posted a transaction this year and contributes almost nothing to your company. (Unless they’re paying you a monthly fee.) This group actually diverts time and resources away from the rest of your team. In fact, right now, as you read this…they make you hesitate purchasing this training. You won’t spend money on your good agents (the ones who would use) because of this bottom group. Why do you keep them? 1. They’re not costing me anything. Oh yes they are. The costs of your bottom quartile don’t appear on a P&L…leading you to believe that they’re not hurting you. Well they’re using parking spots, desk space, internet bandwidth, toner, postage and office supplies. They take your time and create stress. They cost you reputation and they hurt recruiting because your current agents are uncomfortable brining their friends into that environment. 2. They might list or sell something OK, maybe they will. It could happen. Is it worth the wait? Will the listing be priced right? Will the sale close? How much time will you spend putting out fires. How many transactions would you gain from the other agents if you could spend time coaching them? 3. I want my numbers too look good when I post my agent count For too many decades this industry has rewarded body count. Managers and owners have taken pride in reporting how many agents they have. There’s only one number matters: profit. If you could make the same profit with your top three quartiles, then why would you keep them all? Let them go Here’s how to get more of your agents to training: Accountability plan Put your lowest quartile on a 60-day plan of training and activity accountability. Create an “up or out” agreement during which you show them videos on prospecting and have them demonstrate measurable prospecting contacts. If they reach their activity goals, let them continue. If not, let go. Focus on the top groups When your intermediate and top groups improve by 20% or 30%, it makes a big difference in your bottom line. These are the agents who welcome training and will put the skills into action. Hold regular training sessions for them. Build in discussion and role playing so they master the skill. Group meetings Even some of your good agents may not log in to a video site, but they’ll have to watch if you show the videos in sales meetings and group training. The best to use these videos is in group meeting after which you can have discussion and role play. That’s how you create highest and best use. 
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Swanepoel T3 Group - Saint Charles, IL
I help brokers build businesses they love.
THANK YOU !!!! As a devotee of using all corporate resources available, I am frustrated by the managemnt and admin time that the untrained agents sponge up (not to mention the liability issues they churn up). My brokerage -- Baird&Warner -- is crazy great about providing training. Big offices like mine have a training manager. In addition to the standard BW curriculum, experienced agents are rewarded for creating and running topic sessions: One agent does presentations, I do pricing, another guy does regular sessions on short sales, one fabulous agent who is too busy to think most days of the year is brilliant in her staging session. Our conference rooms have glass walls, so you can always see who's sitting in these sessions. You know what, the best people are always learning from each other!
Video could be better used to capture sessions that more people could benefit from. Thanks for the reminder.
(The accountability plan makes tons of sense but there are restrictions about what can be required of independent contractors.)
Apr 11, 2010 03:42 AM
Retired BC Realtor - Victoria, BC
Accredited Real Estate Consultant
Hi David Points well Made...I see people reach a level and never grow beyond that level, I call it their Comfort level..You Have to Want Something bad enough to keep Learning then Grow.
Apr 11, 2010 04:13 AM
RE/MAX Stars Realty - Howard, OH
Knox County Ohio Real Estate Specialist
David - Great information and very well stated. It is crazy that so many brokerages and managers think that the lower level producing agents aren't costing them money.
Apr 11, 2010 07:01 AM
Local-n-Global Realty, Cleveland and International Real Estate Solution - Mayfield Heights, OH
Local-n-Global Realty, Broker 216-548-4663
David - very important and timely reminder. You are totally right that only in case if you get a monthly fee from your agents it does not matter are th agents productive or not. Maybe that's why it seems that in many pay-per-month brokerages there is a higher concentration of bottom quartile agents?
Apr 11, 2010 10:08 AM
David Knox Productions, Inc. - Minneapolis, MN
Svetlana, thanks for writing. I think the agents who pay a fee are actually more likely to be productive. They pay their own way and are responsible for their income and expense. They're running it like a business and investing their own money.
Apr 14, 2010 06:47 AM
Dickson Realty - Reno, NV
Exceptional Service - Delivering Results in Reno!
David - Heartily agreed. The traditional brokerage style seems to be interested in keeping LOTS of agents on a very part time basis. Even if they only sell 2 or 3 houses a year, that's revenue from 2-3 houses you might have otherwise not gotten. No one ever seems to do the calculations on how much time these 'social agents' burn up taxing otherwise productive agents in the office environments...
May 06, 2010 10:39 AM
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