base your choice on the office attributes rather than on the size of the real estate office. However, when two companies have equal attributes, let size tip your decision.
Prioritizing your needs and expectations in a company
Before you can determine whether a company is a good match for you, you have to be clear about your own values and expectations so you can see if they’re shared and supported by the company you choose to work with.
Know your values
Ask yourself: What are your core values? What beliefs and principles guide your life? What would you hold dear even if it proved to be a competitive disadvantage in the marketplace? Even if the marketplace or business climate changed, what aspects of how you work are nonnegotiable?
Here’s an example. In my company, Real Estate Champions, one of our core values is “exceptional execution of the fundamentals.” I believe in and have seen the truly astounding results that occur when people apply the fundamentals of sales and business consistently, without reliance on shortcuts or miracle marketing systems. In truth, our company commitment to the fundamentals means that we attract fewer people. Obviously, it’s easier to sell agents on magic formulas that require no work, energy, discipline, or rigorous activity. But in spite of the competitive disadvantage it presents, our company belief in disciplined fundamentals doesn’t ever change. It’s a core value, and it’s a truth we adhere to.
Establish your expectations
What do you expect from yourself over the next 6 to 12 months? What do you expect from your company over the same time period? What will your new company expect from you? What does it consider to be the minimum standard for new-agent production? What does it consider to be average, or good, production? What do you need to earn in income to make this worthwhile for you? What is the most that anyone has ever produced in the company? What is the most anyone has done in your market?
Also, beyond expectations for the next year, I suggest looking a few years down the road. What is the progression of income and units likely to be over the next few years?
Before you choose a company, align your expectations with the company’s by taking these steps:
❯❯ Set your goals and expectations for the upcoming year. Establish your targets for gross income, number of transactions, number of listings taken and sold, and number of buyer sales.
❯❯ Know the expectations and typical production levels that exist within the company you’re considering. If your targets are high, you need to join a company where established inventories and support systems help you jump-start your business for quick success. If your aims are lower, you need to be sure that they match company expectations for new agents.
With all the options for where to “hang your license,” you want to shrink your list down to your top two or three firms quickly so you can really study each one. The upcoming section helps you winnow it down.
Completing your homework
Follow these steps as you research each of your top-choice companies:
1. Rank your top-choice agencies based on your views as a consumer. Before you color your opinion with facts or market statistics, ask yourself: What is each company’s reputation? Based only on information available to the general public, what impression does the company make? I tell you to do this because when you join a firm, you automatically acquire this reputation.
2. Engage the thoughts of your friends and family. You can post a question on your Facebook page about which company your friends would select to represent themselves as sellers and buyers. You will get a host of answers and consumer feedback. Try to get them to focus on companies, not specific agents. Imagine how valuable it would be to know that a large portion of your sphere of influence has had a bad experience with a company you’re considering.
3. Evaluate each company’s market share. Determine the portion of all real estate business that each firm captures in its geographic area. Then figure out what percentage of the market it commands in the specialized area in which you’ll be working. (See the sidebar “Determining market share” for some how-to information.)
Like many real estate agents, I knew I couldn’t cover my whole market area of Portland, Oregon. I knew I needed to specialize in specific bedroom communities and suburbs in order to serve my clients well. In selecting a company, I first evaluated the firm’s overall Portland market share to discover its general market strength, but then I also evaluated the market share it held in the suburban communities I selected.
4. Assess how production is distributed within each company. Ask whether a number of agents contribute to the company’s success or whether a few agents or even just one person carries production.
5. Go online to evaluate presence. Use search engines to see the ranking of the company’s website. The higher the ranking, the more the leads. Also search on key real estate sites like Zillow, Trulia, and Realtor.com to figure out the company’s position on sites with listing inventory. You can evaluate the listing quality, as well as price ranges, locations, marketing materials, virtual tours, and so on. Review the online profiles of agents in the company on the third-party sites. Do they have a lot of reviews? Are their profiles complete and well written? By doing your reconnaissance on a few agents in the company, you will be able to see if the company is helping these agents online.
6. Drive around your market area to determine each company’s visibility. In today’s technological world, you can do much of your research online, but if you’re still stumped, count the number of signs you see for each firm you’re considering. Also, evaluate the quality and array of homes presented by each company. You may discover that a firm has a lot of signs, but they’re all concentrated in a small geographic area or a specific price range. Beware of these firms because they could limit your opportunity. For example, if a company’s business is concentrated at the lower end of the marketplace, securing higher-priced listings may be more difficult.
7. Evaluate each company’s marketing. Monitor media exposure for at least a few weeks to gain a good perspective of the scope and nature of a company’s marketing campaign and its exposure. Check out Craigslist postings for frequency, as well as strategy and information. Check out their Facebook page, Instagram accounts, and Twitter feeds. Review what has been tweeted and posted in the last few months and what responses, shares, and retweets they have generated.
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