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SEP/OCT 2014 • VOL 67 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS For Managers, Brokers and Owners PLUS WHAT TO ASK BEFORE SIGNING A FRANCHISE AGREEMENT IS THE SELLING YOU’RE TEACHING OUT OF DATE?

IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

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Page 1: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

SEP

OCT

2014

bull V

OL 6

7PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS WHAT TO ASK BEFORE SIGNING A FRANCHISE AGREEMENT

IS THE SELLING YOUrsquoRE TEACHING OUT OF DATE

Now recognized by the NATIONAL ASSOCIATION OF REALTORSreg

E A R N Y O U R S R S T O D AY The skills and tools that turn ldquoFor Salerdquo into SOLD

+ EXPERTISE ACUMEN STRATEGY +

wwwSRSCouncilcom | wwwTraining4REcom

The SRS designation is the premier credential in seller representation It is designed to elevate professional standards and enhance personal performance

Agents brokers and managers from all over the US and Canada say this course exceeded expectations and provided cutting edge tools to outperform the competition

Find a Course near you wwwTraining4REcom

Learn more

wwwSRSCouncilcom

PROVEN EXPERTISE MAXIMUM RESULTS

For Managers Brokers and Owners 2014 SepOct 3

Survey Says hellipWho is the Council of Real Estate Brokerage Managers Of course the Council is comprised of real estate brokers owners managers and team leaders involved in all aspects of the real estate industry But who are our members What kinds of business relationships do they have with their real estate firms How old are they How long have they been in the real estate business How many offices and agents are involved What is their net personal incomeTo better understand our membership CRB regularly surveys its members asking those questions and others about basic demographic economic and professional characteristics of CRB designees and candidates The results of this survey enable Council leadership to construct a profile of the typical CRB and provides us with information we can use to plan for the future needs of members and develop and market products and services to meet those needs As a member you can use the profile to see how you compare to the typical member and how your firm measures upAmong the highlights of the 2014 Member Survey are the followingThe typical member mdashbull Is a 59 year old male with 29 years of real estate experience and

17 years of brokerage managementownership experiencebull Is affiliated with an independently owned non-franchised firmbull Manages two offices and 50 sales associatesbull Is licensed as a BrokerBroker Associate and his main function in

the firm is a Broker-Owner with SellingThe median net income by main function in firm is not only impressive but further demonstrates the value of the CRB designation and the quality of the education delivered by the Council

Median Net Income by Main Function in Firm

I encourage you to review the full survey report which we have uploaded in the ldquoMembers Onlyrdquo area of our website Click here to access the reportCRB has had a long standing impact on my real estate career and the successes my business has enjoyed Whatrsquos your story Wersquod love for you to share a testimonial on our LinkedIn andor Facebook pageSincerely

For Managers Brokers and Owners

Presidentrsquos Message

Jean Crosby CRB CRS GRI SRSPUBLISHER

Council of Real Estate Brokerage Managers

EXECUTIVES

2014 President Jean Crosby CRB CRS GRI SRS

Chief Executive Officer Ginny Shipe CAE

Editor-in-Chief infoCRBcom

TEL 8006218738

FAX 3123298882

WEB wwwCRBcom

EDITORIAL ADVISORY COMMITTEE

Chair John Mayfield CRB e-PROreg GRI

Members Michael Bindman CRB GRI

Sandra Fernandez CIPS CRB CRS GRI PMN SFR

Jim Kinney CRB CRS GR

Jeff Nelson ABR ABRM CRB CRS

Robert Wagner CRB CRS e-PROreg GRI RSPS

Nancy Van Valkenburgh CRB CRS GRI

PUBLICATION MANAGEMENT

Council of Real Estate Brokerage Managers

430 N Michigan Avenue Chicago IL 60611

TEL 8006218738

FAX 3123298882

WEB wwwCRBcom

Managing Editor Gabriella Filisko

gabifilrcncom

Creative Director TEC Graphic Arts Management

thomtecgraphicartscom

Advertising Sales Ginny Shipe

gshipecrbcom

Real Estate Business (ISSN 0744-642X) is published bimonthly by

CRB 430 N Michigan Avenue Chicago IL 60611-4092

All Real Estate Business articles and paid advertising represent the

opinions of the authors and advertisers and are not necessarily the

opinions of the Council

Copyright 2014 by the Council of Real Estate Brokerage Managers

All rights reserved

Sales Agent CRB earns 295 more ($90416 v $22900) Associate Broker CRB earns 216 more ($90714 v $28700) Broker-Owner without Selling CRB earns 189 more ($129957 v $44900) Broker-Owner with Selling CRB earns 173 more ($104989 v $38400) Manager with Selling CRB earns 87 more ($82236 v $43900) Manager without Selling CRB earns 32 more ($85326 v $64400)

4 SepOct 2014 wwwcrbcom

SepOct 14Vo

lum

e 67

fea

ture

s 1

1

6

0

What to Ask Before Signing a Franchise Agreement

Is the Selling Yoursquore Teaching Out of Date

dep

artm

ents

1

22 Recruiting

24 Social Media Marketing

28 Sales Strategies

PLUS

3 Presidentrsquos Message

6 CRB Briefcase

160

For Managers Brokers and Owners 2014 SepOct 5

PROVEN EXPERTISE MAXIMUM RESULTS

Join us in New Orleans during the REALTORSreg Conference amp Expo

November 5-6 2014

Early-Bird Pricing of $229 through

October 10 2014

Donrsquot miss your chance before new

Elective

Requirements take effect on Jan 1 2015

Now recognized by the NATIONAL ASSOCIATION OF REALTORSreg

E A R N Y O U R S R S T O D A Y The skills and tools that turn

ldquoFor Salerdquo into SOLD

Taught by one of the industryrsquos premier

instructors

Barbara Fairfield ABR CRB GREEN

GRI SFR SRES SRS

wwwSRSCouncilcom | 800-621-8738 | CustomerServiceSRSCouncilcom

6 SepOct 2014 wwwcrbcom

CRB Briefcase

ACCESSTHE REPORT

Member Survey Report Available

As a CRB member you have access to key highlights from our 2014 Member Profile amp Needs Assessment Survey The median net income of a CRB Designee licensed as a BrokerBroker Associate is 202 MORE than other REALTORSreg

Survey highlights include

bull Business Characteristics

bull Office amp Firm Affiliations

bull Income amp Expenses

bull Communication amp Technology Products

bull Lead Generation amp Listings

bull Social Media amp Networking

bull Services amp Communications to Members

bull CRB Chapters

bull Education

bull Demographic Characteristics

For Managers Brokers and Owners 2014 SepOct 7

wwwCRBcomhere

here

A Preview of the CRB Business Meetings

A Preview of the CRB Business Meetings

New Orleans LA | November 5-7 2014

Hall of Leaders amp Inaugural Reception Friday November 7 2014

Visit wwwCRBcom for details and to purchase tickets for this special eventClick here to preview our tentative meeting schedule

Registration is now open

Be sure to register early to secure your preferred hotel choice

The CRB Council business meetings will take place at the New Orleans Downtown Marriott at the Convention Center

A reminder to check CRB under the Primary Affiliate section A portion of your registration will be credited to the CRB Council

Click here to access the registration site

Honoring2014 Hall of Leaders AwardJ Nicholas DrsquoAmbrosia

CRB CRS GRI

Installing2015 CRB PresidentBette McTamneyCRB CRS GRI SRES

8 SepOct 2014 wwwcrbcom

As of press time the following members have completed all requirements and earned the CRB Designation

Congratulations

CONNECTIONS

Thomas Berger CRB Boutique Real Estate Corporation

Toronto ON Canada

Elizabeth M Dalton CRB Long amp Foster Real Estate Inc

Blacksburg VA

Dierdre Haines CRB Coldwell Banker Bain

Lynnwood WA

Hiba Jaber CRB MENA Properties Services LLC

Dubai United Arab Emirates

Sunny L Lake CRB Coldwell Banker Bain

Bellingham WA

Chris Little CRB Chris Little Real Estate Services

Sacramento CA

Keith D Newman CRB Ebby Halliday REALTORS

Plano TX

Katelyne Nguyen CRB Advance Estate Realty

Westminster CA

Allison C Stine CRB Long and Foster mdash Bethany Beach

Bethany Beach DE

Teresa Burkhart CRB Long amp Foster

Huntingtown MD

Denise P Kinney CRB Coldwell Banker Sea Coast Realty

Southport NC

Richard Martinez CRB Golden Crescent Realty

Victoria TX

Anthony Montanaro CRB Sutton Group mdash Central Realty Inc

Brampton ON Canada

Rebecca Sparks CRB Apollo Realty Inc Cocoa Beach FL

JULY 2014

AUGUST 2014

CRB Briefcase

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

For Managers Brokers and Owners 2014 SepOct 9

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

10 SepOct 2014 wwwcrbcom

Is the SELLING YOUrsquoRE

TEACHING Out of Date

Is the SELLING YOUrsquoRE

TEACHING Out of Date

For Managers Brokers and Owners 2014 SepOct 11

By GM Filisko

To hard sell or not

to hard sell That is todayrsquos

question

Is the SELLING YOUrsquoRE

TEACHING Out of Date

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 2: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

Now recognized by the NATIONAL ASSOCIATION OF REALTORSreg

E A R N Y O U R S R S T O D AY The skills and tools that turn ldquoFor Salerdquo into SOLD

+ EXPERTISE ACUMEN STRATEGY +

wwwSRSCouncilcom | wwwTraining4REcom

The SRS designation is the premier credential in seller representation It is designed to elevate professional standards and enhance personal performance

Agents brokers and managers from all over the US and Canada say this course exceeded expectations and provided cutting edge tools to outperform the competition

Find a Course near you wwwTraining4REcom

Learn more

wwwSRSCouncilcom

PROVEN EXPERTISE MAXIMUM RESULTS

For Managers Brokers and Owners 2014 SepOct 3

Survey Says hellipWho is the Council of Real Estate Brokerage Managers Of course the Council is comprised of real estate brokers owners managers and team leaders involved in all aspects of the real estate industry But who are our members What kinds of business relationships do they have with their real estate firms How old are they How long have they been in the real estate business How many offices and agents are involved What is their net personal incomeTo better understand our membership CRB regularly surveys its members asking those questions and others about basic demographic economic and professional characteristics of CRB designees and candidates The results of this survey enable Council leadership to construct a profile of the typical CRB and provides us with information we can use to plan for the future needs of members and develop and market products and services to meet those needs As a member you can use the profile to see how you compare to the typical member and how your firm measures upAmong the highlights of the 2014 Member Survey are the followingThe typical member mdashbull Is a 59 year old male with 29 years of real estate experience and

17 years of brokerage managementownership experiencebull Is affiliated with an independently owned non-franchised firmbull Manages two offices and 50 sales associatesbull Is licensed as a BrokerBroker Associate and his main function in

the firm is a Broker-Owner with SellingThe median net income by main function in firm is not only impressive but further demonstrates the value of the CRB designation and the quality of the education delivered by the Council

Median Net Income by Main Function in Firm

I encourage you to review the full survey report which we have uploaded in the ldquoMembers Onlyrdquo area of our website Click here to access the reportCRB has had a long standing impact on my real estate career and the successes my business has enjoyed Whatrsquos your story Wersquod love for you to share a testimonial on our LinkedIn andor Facebook pageSincerely

For Managers Brokers and Owners

Presidentrsquos Message

Jean Crosby CRB CRS GRI SRSPUBLISHER

Council of Real Estate Brokerage Managers

EXECUTIVES

2014 President Jean Crosby CRB CRS GRI SRS

Chief Executive Officer Ginny Shipe CAE

Editor-in-Chief infoCRBcom

TEL 8006218738

FAX 3123298882

WEB wwwCRBcom

EDITORIAL ADVISORY COMMITTEE

Chair John Mayfield CRB e-PROreg GRI

Members Michael Bindman CRB GRI

Sandra Fernandez CIPS CRB CRS GRI PMN SFR

Jim Kinney CRB CRS GR

Jeff Nelson ABR ABRM CRB CRS

Robert Wagner CRB CRS e-PROreg GRI RSPS

Nancy Van Valkenburgh CRB CRS GRI

PUBLICATION MANAGEMENT

Council of Real Estate Brokerage Managers

430 N Michigan Avenue Chicago IL 60611

TEL 8006218738

FAX 3123298882

WEB wwwCRBcom

Managing Editor Gabriella Filisko

gabifilrcncom

Creative Director TEC Graphic Arts Management

thomtecgraphicartscom

Advertising Sales Ginny Shipe

gshipecrbcom

Real Estate Business (ISSN 0744-642X) is published bimonthly by

CRB 430 N Michigan Avenue Chicago IL 60611-4092

All Real Estate Business articles and paid advertising represent the

opinions of the authors and advertisers and are not necessarily the

opinions of the Council

Copyright 2014 by the Council of Real Estate Brokerage Managers

All rights reserved

Sales Agent CRB earns 295 more ($90416 v $22900) Associate Broker CRB earns 216 more ($90714 v $28700) Broker-Owner without Selling CRB earns 189 more ($129957 v $44900) Broker-Owner with Selling CRB earns 173 more ($104989 v $38400) Manager with Selling CRB earns 87 more ($82236 v $43900) Manager without Selling CRB earns 32 more ($85326 v $64400)

4 SepOct 2014 wwwcrbcom

SepOct 14Vo

lum

e 67

fea

ture

s 1

1

6

0

What to Ask Before Signing a Franchise Agreement

Is the Selling Yoursquore Teaching Out of Date

dep

artm

ents

1

22 Recruiting

24 Social Media Marketing

28 Sales Strategies

PLUS

3 Presidentrsquos Message

6 CRB Briefcase

160

For Managers Brokers and Owners 2014 SepOct 5

PROVEN EXPERTISE MAXIMUM RESULTS

Join us in New Orleans during the REALTORSreg Conference amp Expo

November 5-6 2014

Early-Bird Pricing of $229 through

October 10 2014

Donrsquot miss your chance before new

Elective

Requirements take effect on Jan 1 2015

Now recognized by the NATIONAL ASSOCIATION OF REALTORSreg

E A R N Y O U R S R S T O D A Y The skills and tools that turn

ldquoFor Salerdquo into SOLD

Taught by one of the industryrsquos premier

instructors

Barbara Fairfield ABR CRB GREEN

GRI SFR SRES SRS

wwwSRSCouncilcom | 800-621-8738 | CustomerServiceSRSCouncilcom

6 SepOct 2014 wwwcrbcom

CRB Briefcase

ACCESSTHE REPORT

Member Survey Report Available

As a CRB member you have access to key highlights from our 2014 Member Profile amp Needs Assessment Survey The median net income of a CRB Designee licensed as a BrokerBroker Associate is 202 MORE than other REALTORSreg

Survey highlights include

bull Business Characteristics

bull Office amp Firm Affiliations

bull Income amp Expenses

bull Communication amp Technology Products

bull Lead Generation amp Listings

bull Social Media amp Networking

bull Services amp Communications to Members

bull CRB Chapters

bull Education

bull Demographic Characteristics

For Managers Brokers and Owners 2014 SepOct 7

wwwCRBcomhere

here

A Preview of the CRB Business Meetings

A Preview of the CRB Business Meetings

New Orleans LA | November 5-7 2014

Hall of Leaders amp Inaugural Reception Friday November 7 2014

Visit wwwCRBcom for details and to purchase tickets for this special eventClick here to preview our tentative meeting schedule

Registration is now open

Be sure to register early to secure your preferred hotel choice

The CRB Council business meetings will take place at the New Orleans Downtown Marriott at the Convention Center

A reminder to check CRB under the Primary Affiliate section A portion of your registration will be credited to the CRB Council

Click here to access the registration site

Honoring2014 Hall of Leaders AwardJ Nicholas DrsquoAmbrosia

CRB CRS GRI

Installing2015 CRB PresidentBette McTamneyCRB CRS GRI SRES

8 SepOct 2014 wwwcrbcom

As of press time the following members have completed all requirements and earned the CRB Designation

Congratulations

CONNECTIONS

Thomas Berger CRB Boutique Real Estate Corporation

Toronto ON Canada

Elizabeth M Dalton CRB Long amp Foster Real Estate Inc

Blacksburg VA

Dierdre Haines CRB Coldwell Banker Bain

Lynnwood WA

Hiba Jaber CRB MENA Properties Services LLC

Dubai United Arab Emirates

Sunny L Lake CRB Coldwell Banker Bain

Bellingham WA

Chris Little CRB Chris Little Real Estate Services

Sacramento CA

Keith D Newman CRB Ebby Halliday REALTORS

Plano TX

Katelyne Nguyen CRB Advance Estate Realty

Westminster CA

Allison C Stine CRB Long and Foster mdash Bethany Beach

Bethany Beach DE

Teresa Burkhart CRB Long amp Foster

Huntingtown MD

Denise P Kinney CRB Coldwell Banker Sea Coast Realty

Southport NC

Richard Martinez CRB Golden Crescent Realty

Victoria TX

Anthony Montanaro CRB Sutton Group mdash Central Realty Inc

Brampton ON Canada

Rebecca Sparks CRB Apollo Realty Inc Cocoa Beach FL

JULY 2014

AUGUST 2014

CRB Briefcase

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

For Managers Brokers and Owners 2014 SepOct 9

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

10 SepOct 2014 wwwcrbcom

Is the SELLING YOUrsquoRE

TEACHING Out of Date

Is the SELLING YOUrsquoRE

TEACHING Out of Date

For Managers Brokers and Owners 2014 SepOct 11

By GM Filisko

To hard sell or not

to hard sell That is todayrsquos

question

Is the SELLING YOUrsquoRE

TEACHING Out of Date

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 3: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

For Managers Brokers and Owners 2014 SepOct 3

Survey Says hellipWho is the Council of Real Estate Brokerage Managers Of course the Council is comprised of real estate brokers owners managers and team leaders involved in all aspects of the real estate industry But who are our members What kinds of business relationships do they have with their real estate firms How old are they How long have they been in the real estate business How many offices and agents are involved What is their net personal incomeTo better understand our membership CRB regularly surveys its members asking those questions and others about basic demographic economic and professional characteristics of CRB designees and candidates The results of this survey enable Council leadership to construct a profile of the typical CRB and provides us with information we can use to plan for the future needs of members and develop and market products and services to meet those needs As a member you can use the profile to see how you compare to the typical member and how your firm measures upAmong the highlights of the 2014 Member Survey are the followingThe typical member mdashbull Is a 59 year old male with 29 years of real estate experience and

17 years of brokerage managementownership experiencebull Is affiliated with an independently owned non-franchised firmbull Manages two offices and 50 sales associatesbull Is licensed as a BrokerBroker Associate and his main function in

the firm is a Broker-Owner with SellingThe median net income by main function in firm is not only impressive but further demonstrates the value of the CRB designation and the quality of the education delivered by the Council

Median Net Income by Main Function in Firm

I encourage you to review the full survey report which we have uploaded in the ldquoMembers Onlyrdquo area of our website Click here to access the reportCRB has had a long standing impact on my real estate career and the successes my business has enjoyed Whatrsquos your story Wersquod love for you to share a testimonial on our LinkedIn andor Facebook pageSincerely

For Managers Brokers and Owners

Presidentrsquos Message

Jean Crosby CRB CRS GRI SRSPUBLISHER

Council of Real Estate Brokerage Managers

EXECUTIVES

2014 President Jean Crosby CRB CRS GRI SRS

Chief Executive Officer Ginny Shipe CAE

Editor-in-Chief infoCRBcom

TEL 8006218738

FAX 3123298882

WEB wwwCRBcom

EDITORIAL ADVISORY COMMITTEE

Chair John Mayfield CRB e-PROreg GRI

Members Michael Bindman CRB GRI

Sandra Fernandez CIPS CRB CRS GRI PMN SFR

Jim Kinney CRB CRS GR

Jeff Nelson ABR ABRM CRB CRS

Robert Wagner CRB CRS e-PROreg GRI RSPS

Nancy Van Valkenburgh CRB CRS GRI

PUBLICATION MANAGEMENT

Council of Real Estate Brokerage Managers

430 N Michigan Avenue Chicago IL 60611

TEL 8006218738

FAX 3123298882

WEB wwwCRBcom

Managing Editor Gabriella Filisko

gabifilrcncom

Creative Director TEC Graphic Arts Management

thomtecgraphicartscom

Advertising Sales Ginny Shipe

gshipecrbcom

Real Estate Business (ISSN 0744-642X) is published bimonthly by

CRB 430 N Michigan Avenue Chicago IL 60611-4092

All Real Estate Business articles and paid advertising represent the

opinions of the authors and advertisers and are not necessarily the

opinions of the Council

Copyright 2014 by the Council of Real Estate Brokerage Managers

All rights reserved

Sales Agent CRB earns 295 more ($90416 v $22900) Associate Broker CRB earns 216 more ($90714 v $28700) Broker-Owner without Selling CRB earns 189 more ($129957 v $44900) Broker-Owner with Selling CRB earns 173 more ($104989 v $38400) Manager with Selling CRB earns 87 more ($82236 v $43900) Manager without Selling CRB earns 32 more ($85326 v $64400)

4 SepOct 2014 wwwcrbcom

SepOct 14Vo

lum

e 67

fea

ture

s 1

1

6

0

What to Ask Before Signing a Franchise Agreement

Is the Selling Yoursquore Teaching Out of Date

dep

artm

ents

1

22 Recruiting

24 Social Media Marketing

28 Sales Strategies

PLUS

3 Presidentrsquos Message

6 CRB Briefcase

160

For Managers Brokers and Owners 2014 SepOct 5

PROVEN EXPERTISE MAXIMUM RESULTS

Join us in New Orleans during the REALTORSreg Conference amp Expo

November 5-6 2014

Early-Bird Pricing of $229 through

October 10 2014

Donrsquot miss your chance before new

Elective

Requirements take effect on Jan 1 2015

Now recognized by the NATIONAL ASSOCIATION OF REALTORSreg

E A R N Y O U R S R S T O D A Y The skills and tools that turn

ldquoFor Salerdquo into SOLD

Taught by one of the industryrsquos premier

instructors

Barbara Fairfield ABR CRB GREEN

GRI SFR SRES SRS

wwwSRSCouncilcom | 800-621-8738 | CustomerServiceSRSCouncilcom

6 SepOct 2014 wwwcrbcom

CRB Briefcase

ACCESSTHE REPORT

Member Survey Report Available

As a CRB member you have access to key highlights from our 2014 Member Profile amp Needs Assessment Survey The median net income of a CRB Designee licensed as a BrokerBroker Associate is 202 MORE than other REALTORSreg

Survey highlights include

bull Business Characteristics

bull Office amp Firm Affiliations

bull Income amp Expenses

bull Communication amp Technology Products

bull Lead Generation amp Listings

bull Social Media amp Networking

bull Services amp Communications to Members

bull CRB Chapters

bull Education

bull Demographic Characteristics

For Managers Brokers and Owners 2014 SepOct 7

wwwCRBcomhere

here

A Preview of the CRB Business Meetings

A Preview of the CRB Business Meetings

New Orleans LA | November 5-7 2014

Hall of Leaders amp Inaugural Reception Friday November 7 2014

Visit wwwCRBcom for details and to purchase tickets for this special eventClick here to preview our tentative meeting schedule

Registration is now open

Be sure to register early to secure your preferred hotel choice

The CRB Council business meetings will take place at the New Orleans Downtown Marriott at the Convention Center

A reminder to check CRB under the Primary Affiliate section A portion of your registration will be credited to the CRB Council

Click here to access the registration site

Honoring2014 Hall of Leaders AwardJ Nicholas DrsquoAmbrosia

CRB CRS GRI

Installing2015 CRB PresidentBette McTamneyCRB CRS GRI SRES

8 SepOct 2014 wwwcrbcom

As of press time the following members have completed all requirements and earned the CRB Designation

Congratulations

CONNECTIONS

Thomas Berger CRB Boutique Real Estate Corporation

Toronto ON Canada

Elizabeth M Dalton CRB Long amp Foster Real Estate Inc

Blacksburg VA

Dierdre Haines CRB Coldwell Banker Bain

Lynnwood WA

Hiba Jaber CRB MENA Properties Services LLC

Dubai United Arab Emirates

Sunny L Lake CRB Coldwell Banker Bain

Bellingham WA

Chris Little CRB Chris Little Real Estate Services

Sacramento CA

Keith D Newman CRB Ebby Halliday REALTORS

Plano TX

Katelyne Nguyen CRB Advance Estate Realty

Westminster CA

Allison C Stine CRB Long and Foster mdash Bethany Beach

Bethany Beach DE

Teresa Burkhart CRB Long amp Foster

Huntingtown MD

Denise P Kinney CRB Coldwell Banker Sea Coast Realty

Southport NC

Richard Martinez CRB Golden Crescent Realty

Victoria TX

Anthony Montanaro CRB Sutton Group mdash Central Realty Inc

Brampton ON Canada

Rebecca Sparks CRB Apollo Realty Inc Cocoa Beach FL

JULY 2014

AUGUST 2014

CRB Briefcase

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

For Managers Brokers and Owners 2014 SepOct 9

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

10 SepOct 2014 wwwcrbcom

Is the SELLING YOUrsquoRE

TEACHING Out of Date

Is the SELLING YOUrsquoRE

TEACHING Out of Date

For Managers Brokers and Owners 2014 SepOct 11

By GM Filisko

To hard sell or not

to hard sell That is todayrsquos

question

Is the SELLING YOUrsquoRE

TEACHING Out of Date

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 4: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

4 SepOct 2014 wwwcrbcom

SepOct 14Vo

lum

e 67

fea

ture

s 1

1

6

0

What to Ask Before Signing a Franchise Agreement

Is the Selling Yoursquore Teaching Out of Date

dep

artm

ents

1

22 Recruiting

24 Social Media Marketing

28 Sales Strategies

PLUS

3 Presidentrsquos Message

6 CRB Briefcase

160

For Managers Brokers and Owners 2014 SepOct 5

PROVEN EXPERTISE MAXIMUM RESULTS

Join us in New Orleans during the REALTORSreg Conference amp Expo

November 5-6 2014

Early-Bird Pricing of $229 through

October 10 2014

Donrsquot miss your chance before new

Elective

Requirements take effect on Jan 1 2015

Now recognized by the NATIONAL ASSOCIATION OF REALTORSreg

E A R N Y O U R S R S T O D A Y The skills and tools that turn

ldquoFor Salerdquo into SOLD

Taught by one of the industryrsquos premier

instructors

Barbara Fairfield ABR CRB GREEN

GRI SFR SRES SRS

wwwSRSCouncilcom | 800-621-8738 | CustomerServiceSRSCouncilcom

6 SepOct 2014 wwwcrbcom

CRB Briefcase

ACCESSTHE REPORT

Member Survey Report Available

As a CRB member you have access to key highlights from our 2014 Member Profile amp Needs Assessment Survey The median net income of a CRB Designee licensed as a BrokerBroker Associate is 202 MORE than other REALTORSreg

Survey highlights include

bull Business Characteristics

bull Office amp Firm Affiliations

bull Income amp Expenses

bull Communication amp Technology Products

bull Lead Generation amp Listings

bull Social Media amp Networking

bull Services amp Communications to Members

bull CRB Chapters

bull Education

bull Demographic Characteristics

For Managers Brokers and Owners 2014 SepOct 7

wwwCRBcomhere

here

A Preview of the CRB Business Meetings

A Preview of the CRB Business Meetings

New Orleans LA | November 5-7 2014

Hall of Leaders amp Inaugural Reception Friday November 7 2014

Visit wwwCRBcom for details and to purchase tickets for this special eventClick here to preview our tentative meeting schedule

Registration is now open

Be sure to register early to secure your preferred hotel choice

The CRB Council business meetings will take place at the New Orleans Downtown Marriott at the Convention Center

A reminder to check CRB under the Primary Affiliate section A portion of your registration will be credited to the CRB Council

Click here to access the registration site

Honoring2014 Hall of Leaders AwardJ Nicholas DrsquoAmbrosia

CRB CRS GRI

Installing2015 CRB PresidentBette McTamneyCRB CRS GRI SRES

8 SepOct 2014 wwwcrbcom

As of press time the following members have completed all requirements and earned the CRB Designation

Congratulations

CONNECTIONS

Thomas Berger CRB Boutique Real Estate Corporation

Toronto ON Canada

Elizabeth M Dalton CRB Long amp Foster Real Estate Inc

Blacksburg VA

Dierdre Haines CRB Coldwell Banker Bain

Lynnwood WA

Hiba Jaber CRB MENA Properties Services LLC

Dubai United Arab Emirates

Sunny L Lake CRB Coldwell Banker Bain

Bellingham WA

Chris Little CRB Chris Little Real Estate Services

Sacramento CA

Keith D Newman CRB Ebby Halliday REALTORS

Plano TX

Katelyne Nguyen CRB Advance Estate Realty

Westminster CA

Allison C Stine CRB Long and Foster mdash Bethany Beach

Bethany Beach DE

Teresa Burkhart CRB Long amp Foster

Huntingtown MD

Denise P Kinney CRB Coldwell Banker Sea Coast Realty

Southport NC

Richard Martinez CRB Golden Crescent Realty

Victoria TX

Anthony Montanaro CRB Sutton Group mdash Central Realty Inc

Brampton ON Canada

Rebecca Sparks CRB Apollo Realty Inc Cocoa Beach FL

JULY 2014

AUGUST 2014

CRB Briefcase

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

For Managers Brokers and Owners 2014 SepOct 9

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

10 SepOct 2014 wwwcrbcom

Is the SELLING YOUrsquoRE

TEACHING Out of Date

Is the SELLING YOUrsquoRE

TEACHING Out of Date

For Managers Brokers and Owners 2014 SepOct 11

By GM Filisko

To hard sell or not

to hard sell That is todayrsquos

question

Is the SELLING YOUrsquoRE

TEACHING Out of Date

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 5: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

For Managers Brokers and Owners 2014 SepOct 5

PROVEN EXPERTISE MAXIMUM RESULTS

Join us in New Orleans during the REALTORSreg Conference amp Expo

November 5-6 2014

Early-Bird Pricing of $229 through

October 10 2014

Donrsquot miss your chance before new

Elective

Requirements take effect on Jan 1 2015

Now recognized by the NATIONAL ASSOCIATION OF REALTORSreg

E A R N Y O U R S R S T O D A Y The skills and tools that turn

ldquoFor Salerdquo into SOLD

Taught by one of the industryrsquos premier

instructors

Barbara Fairfield ABR CRB GREEN

GRI SFR SRES SRS

wwwSRSCouncilcom | 800-621-8738 | CustomerServiceSRSCouncilcom

6 SepOct 2014 wwwcrbcom

CRB Briefcase

ACCESSTHE REPORT

Member Survey Report Available

As a CRB member you have access to key highlights from our 2014 Member Profile amp Needs Assessment Survey The median net income of a CRB Designee licensed as a BrokerBroker Associate is 202 MORE than other REALTORSreg

Survey highlights include

bull Business Characteristics

bull Office amp Firm Affiliations

bull Income amp Expenses

bull Communication amp Technology Products

bull Lead Generation amp Listings

bull Social Media amp Networking

bull Services amp Communications to Members

bull CRB Chapters

bull Education

bull Demographic Characteristics

For Managers Brokers and Owners 2014 SepOct 7

wwwCRBcomhere

here

A Preview of the CRB Business Meetings

A Preview of the CRB Business Meetings

New Orleans LA | November 5-7 2014

Hall of Leaders amp Inaugural Reception Friday November 7 2014

Visit wwwCRBcom for details and to purchase tickets for this special eventClick here to preview our tentative meeting schedule

Registration is now open

Be sure to register early to secure your preferred hotel choice

The CRB Council business meetings will take place at the New Orleans Downtown Marriott at the Convention Center

A reminder to check CRB under the Primary Affiliate section A portion of your registration will be credited to the CRB Council

Click here to access the registration site

Honoring2014 Hall of Leaders AwardJ Nicholas DrsquoAmbrosia

CRB CRS GRI

Installing2015 CRB PresidentBette McTamneyCRB CRS GRI SRES

8 SepOct 2014 wwwcrbcom

As of press time the following members have completed all requirements and earned the CRB Designation

Congratulations

CONNECTIONS

Thomas Berger CRB Boutique Real Estate Corporation

Toronto ON Canada

Elizabeth M Dalton CRB Long amp Foster Real Estate Inc

Blacksburg VA

Dierdre Haines CRB Coldwell Banker Bain

Lynnwood WA

Hiba Jaber CRB MENA Properties Services LLC

Dubai United Arab Emirates

Sunny L Lake CRB Coldwell Banker Bain

Bellingham WA

Chris Little CRB Chris Little Real Estate Services

Sacramento CA

Keith D Newman CRB Ebby Halliday REALTORS

Plano TX

Katelyne Nguyen CRB Advance Estate Realty

Westminster CA

Allison C Stine CRB Long and Foster mdash Bethany Beach

Bethany Beach DE

Teresa Burkhart CRB Long amp Foster

Huntingtown MD

Denise P Kinney CRB Coldwell Banker Sea Coast Realty

Southport NC

Richard Martinez CRB Golden Crescent Realty

Victoria TX

Anthony Montanaro CRB Sutton Group mdash Central Realty Inc

Brampton ON Canada

Rebecca Sparks CRB Apollo Realty Inc Cocoa Beach FL

JULY 2014

AUGUST 2014

CRB Briefcase

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

For Managers Brokers and Owners 2014 SepOct 9

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

10 SepOct 2014 wwwcrbcom

Is the SELLING YOUrsquoRE

TEACHING Out of Date

Is the SELLING YOUrsquoRE

TEACHING Out of Date

For Managers Brokers and Owners 2014 SepOct 11

By GM Filisko

To hard sell or not

to hard sell That is todayrsquos

question

Is the SELLING YOUrsquoRE

TEACHING Out of Date

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 6: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

6 SepOct 2014 wwwcrbcom

CRB Briefcase

ACCESSTHE REPORT

Member Survey Report Available

As a CRB member you have access to key highlights from our 2014 Member Profile amp Needs Assessment Survey The median net income of a CRB Designee licensed as a BrokerBroker Associate is 202 MORE than other REALTORSreg

Survey highlights include

bull Business Characteristics

bull Office amp Firm Affiliations

bull Income amp Expenses

bull Communication amp Technology Products

bull Lead Generation amp Listings

bull Social Media amp Networking

bull Services amp Communications to Members

bull CRB Chapters

bull Education

bull Demographic Characteristics

For Managers Brokers and Owners 2014 SepOct 7

wwwCRBcomhere

here

A Preview of the CRB Business Meetings

A Preview of the CRB Business Meetings

New Orleans LA | November 5-7 2014

Hall of Leaders amp Inaugural Reception Friday November 7 2014

Visit wwwCRBcom for details and to purchase tickets for this special eventClick here to preview our tentative meeting schedule

Registration is now open

Be sure to register early to secure your preferred hotel choice

The CRB Council business meetings will take place at the New Orleans Downtown Marriott at the Convention Center

A reminder to check CRB under the Primary Affiliate section A portion of your registration will be credited to the CRB Council

Click here to access the registration site

Honoring2014 Hall of Leaders AwardJ Nicholas DrsquoAmbrosia

CRB CRS GRI

Installing2015 CRB PresidentBette McTamneyCRB CRS GRI SRES

8 SepOct 2014 wwwcrbcom

As of press time the following members have completed all requirements and earned the CRB Designation

Congratulations

CONNECTIONS

Thomas Berger CRB Boutique Real Estate Corporation

Toronto ON Canada

Elizabeth M Dalton CRB Long amp Foster Real Estate Inc

Blacksburg VA

Dierdre Haines CRB Coldwell Banker Bain

Lynnwood WA

Hiba Jaber CRB MENA Properties Services LLC

Dubai United Arab Emirates

Sunny L Lake CRB Coldwell Banker Bain

Bellingham WA

Chris Little CRB Chris Little Real Estate Services

Sacramento CA

Keith D Newman CRB Ebby Halliday REALTORS

Plano TX

Katelyne Nguyen CRB Advance Estate Realty

Westminster CA

Allison C Stine CRB Long and Foster mdash Bethany Beach

Bethany Beach DE

Teresa Burkhart CRB Long amp Foster

Huntingtown MD

Denise P Kinney CRB Coldwell Banker Sea Coast Realty

Southport NC

Richard Martinez CRB Golden Crescent Realty

Victoria TX

Anthony Montanaro CRB Sutton Group mdash Central Realty Inc

Brampton ON Canada

Rebecca Sparks CRB Apollo Realty Inc Cocoa Beach FL

JULY 2014

AUGUST 2014

CRB Briefcase

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

For Managers Brokers and Owners 2014 SepOct 9

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

10 SepOct 2014 wwwcrbcom

Is the SELLING YOUrsquoRE

TEACHING Out of Date

Is the SELLING YOUrsquoRE

TEACHING Out of Date

For Managers Brokers and Owners 2014 SepOct 11

By GM Filisko

To hard sell or not

to hard sell That is todayrsquos

question

Is the SELLING YOUrsquoRE

TEACHING Out of Date

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 7: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

For Managers Brokers and Owners 2014 SepOct 7

wwwCRBcomhere

here

A Preview of the CRB Business Meetings

A Preview of the CRB Business Meetings

New Orleans LA | November 5-7 2014

Hall of Leaders amp Inaugural Reception Friday November 7 2014

Visit wwwCRBcom for details and to purchase tickets for this special eventClick here to preview our tentative meeting schedule

Registration is now open

Be sure to register early to secure your preferred hotel choice

The CRB Council business meetings will take place at the New Orleans Downtown Marriott at the Convention Center

A reminder to check CRB under the Primary Affiliate section A portion of your registration will be credited to the CRB Council

Click here to access the registration site

Honoring2014 Hall of Leaders AwardJ Nicholas DrsquoAmbrosia

CRB CRS GRI

Installing2015 CRB PresidentBette McTamneyCRB CRS GRI SRES

8 SepOct 2014 wwwcrbcom

As of press time the following members have completed all requirements and earned the CRB Designation

Congratulations

CONNECTIONS

Thomas Berger CRB Boutique Real Estate Corporation

Toronto ON Canada

Elizabeth M Dalton CRB Long amp Foster Real Estate Inc

Blacksburg VA

Dierdre Haines CRB Coldwell Banker Bain

Lynnwood WA

Hiba Jaber CRB MENA Properties Services LLC

Dubai United Arab Emirates

Sunny L Lake CRB Coldwell Banker Bain

Bellingham WA

Chris Little CRB Chris Little Real Estate Services

Sacramento CA

Keith D Newman CRB Ebby Halliday REALTORS

Plano TX

Katelyne Nguyen CRB Advance Estate Realty

Westminster CA

Allison C Stine CRB Long and Foster mdash Bethany Beach

Bethany Beach DE

Teresa Burkhart CRB Long amp Foster

Huntingtown MD

Denise P Kinney CRB Coldwell Banker Sea Coast Realty

Southport NC

Richard Martinez CRB Golden Crescent Realty

Victoria TX

Anthony Montanaro CRB Sutton Group mdash Central Realty Inc

Brampton ON Canada

Rebecca Sparks CRB Apollo Realty Inc Cocoa Beach FL

JULY 2014

AUGUST 2014

CRB Briefcase

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

For Managers Brokers and Owners 2014 SepOct 9

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

10 SepOct 2014 wwwcrbcom

Is the SELLING YOUrsquoRE

TEACHING Out of Date

Is the SELLING YOUrsquoRE

TEACHING Out of Date

For Managers Brokers and Owners 2014 SepOct 11

By GM Filisko

To hard sell or not

to hard sell That is todayrsquos

question

Is the SELLING YOUrsquoRE

TEACHING Out of Date

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 8: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

8 SepOct 2014 wwwcrbcom

As of press time the following members have completed all requirements and earned the CRB Designation

Congratulations

CONNECTIONS

Thomas Berger CRB Boutique Real Estate Corporation

Toronto ON Canada

Elizabeth M Dalton CRB Long amp Foster Real Estate Inc

Blacksburg VA

Dierdre Haines CRB Coldwell Banker Bain

Lynnwood WA

Hiba Jaber CRB MENA Properties Services LLC

Dubai United Arab Emirates

Sunny L Lake CRB Coldwell Banker Bain

Bellingham WA

Chris Little CRB Chris Little Real Estate Services

Sacramento CA

Keith D Newman CRB Ebby Halliday REALTORS

Plano TX

Katelyne Nguyen CRB Advance Estate Realty

Westminster CA

Allison C Stine CRB Long and Foster mdash Bethany Beach

Bethany Beach DE

Teresa Burkhart CRB Long amp Foster

Huntingtown MD

Denise P Kinney CRB Coldwell Banker Sea Coast Realty

Southport NC

Richard Martinez CRB Golden Crescent Realty

Victoria TX

Anthony Montanaro CRB Sutton Group mdash Central Realty Inc

Brampton ON Canada

Rebecca Sparks CRB Apollo Realty Inc Cocoa Beach FL

JULY 2014

AUGUST 2014

CRB Briefcase

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

For Managers Brokers and Owners 2014 SepOct 9

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

10 SepOct 2014 wwwcrbcom

Is the SELLING YOUrsquoRE

TEACHING Out of Date

Is the SELLING YOUrsquoRE

TEACHING Out of Date

For Managers Brokers and Owners 2014 SepOct 11

By GM Filisko

To hard sell or not

to hard sell That is todayrsquos

question

Is the SELLING YOUrsquoRE

TEACHING Out of Date

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 9: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

For Managers Brokers and Owners 2014 SepOct 9

REFER a Colleague hellip ADVANCE a Career hellip

ENHANCE your Profession hellip REDUCE your Dues

Herersquos How it Works

Refer a Colleague Candidate applies You receive $25 off your amp pays for membership next dues invoice

Every time you recruit a new member you strengthen CRB A vital and growing organization means greater recognition in the real estate community worldwide and improved educational and networking opportunities for all members

You will receive $25 off your renewal dues for each referral who joins as a new Candidate member The more you refer the more you can save (Not to exceed $100 per membership year)

Itrsquos Easy

Option 1Provide us with your colleagues contact information and well send them a membership information package

Option 2You print or email the Candidate Application Make sure you include your full name in the Referred By space

Click here to access the Referral Forms

Questions Call us at 800-621-8738 or email

10 SepOct 2014 wwwcrbcom

Is the SELLING YOUrsquoRE

TEACHING Out of Date

Is the SELLING YOUrsquoRE

TEACHING Out of Date

For Managers Brokers and Owners 2014 SepOct 11

By GM Filisko

To hard sell or not

to hard sell That is todayrsquos

question

Is the SELLING YOUrsquoRE

TEACHING Out of Date

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 10: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

10 SepOct 2014 wwwcrbcom

Is the SELLING YOUrsquoRE

TEACHING Out of Date

Is the SELLING YOUrsquoRE

TEACHING Out of Date

For Managers Brokers and Owners 2014 SepOct 11

By GM Filisko

To hard sell or not

to hard sell That is todayrsquos

question

Is the SELLING YOUrsquoRE

TEACHING Out of Date

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 11: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

For Managers Brokers and Owners 2014 SepOct 11

By GM Filisko

To hard sell or not

to hard sell That is todayrsquos

question

Is the SELLING YOUrsquoRE

TEACHING Out of Date

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 12: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

discussions in selling as compared with being detectives and inquiring and learning where consumers are in their buying processrdquo

Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ likens ldquopushyrdquo selling to those annoying unsolicited email sales pitches that have grown exponentially in the past decade ldquoNobody wants to be spammedrdquo he says ldquoSpamming is like putting a hard close on somebody and people get turned off so quicklyrdquo

Asking questions is badThis shift in consumersrsquo attitudes doesnrsquot mean you shouldnrsquot ask questions Questions are always necessary in identifying consumersrsquo needs But they should enable you to offer consultation and advice not sell something

ldquoItrsquos interesting that some consider the tactic of asking leading questions coerciverdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoTherersquos a very fine line between coercive and consultative selling and it depends on the agentrsquos intention If the intention is to get a paycheck and to do it quicklymdashto take care of yourselfmdashjust about anything you do could be considered coercive But if yoursquore coming from the right place and itrsquos in consumersrsquo best interest for you to urge them forward I donrsquot think clients feel coerced I think they feel taken care ofrdquo

They key to asking smart questions today is laying the proper groundwork says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company Shersquos also written a book Discover Questions Get You Connected that includes field observations with real estate salespeople in which she contends that creating the proper sequence of questions and establishing trust are critical to successful sales

12 SepOct 2014 wwwcrbcom

R ecently a sales trainer posted an article on LinkedIn discussing the value of question-based selling In it the salesperson asks

questions to guide consumers to the decision the salesperson desires like ldquoIf I could get you in that home within a month would you make an offer todayrdquo

Oh boy the response Half the readers panned the trainer as old-fashioned arguing that such ldquocoercive sellingrdquo is so 1990s Others supported the use of guiding questions to get consumers to the close

Here we discuss the pros and cons of ldquocoercive sellingrdquo and ldquoconsultative sellingrdquo and whether onersquos more effective in real estate

My how times have changedSurely yoursquove heard that todayrsquos consumers are different from their predecessors

ldquoWith the Internet and social media people have access to a lot more informationrdquo says Ken Cheo president from OurSalesCoach Braintree Mass which helps service professionals and business owners reach their sales goals more quickly ldquoThey rely less on salespeople to get information

ldquoWhen I started in sales in 1985 the Internet wasnrsquot even inventedrdquo adds Cheo ldquoCustomers would want to meet with salespeople like me and decision makers were more accessible because theyrsquod want to listen to what we had to say Thatrsquos how theyrsquod gather information Today consumers have made a lot of decisions on their own by the time they contact a salesperson So itrsquos more important than ever that wersquore not lsquopresentingrsquo and relying on our

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 13: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

ldquoMy most recent real estate client engaged me for sales training and we talked quite a bit about the use of questionsrdquo says Calvert ldquoThe question lsquoWhat if I could get yoursquo seems to have a different buyer reaction when asked early in the engagement versus after a relationship and trust has been establishedrdquo

Yoursquoll also miss opportunities if you bypass relationship-building to go directly to selling a propertyrsquos amenities ldquoSome agents mistake consultative selling for pointing out a listingrsquos features as compared to really consultative-based questioningrdquo says Cheo ldquoThey rely on the property to sell itself by talking up the propertyrsquos selling features without really asking questionsrdquo

Yoursquoll also be less successful if itrsquos clear yoursquore most concerned with sales not people ldquoAt the end of the open house if you ask lsquoHey would you like to buy this homersquo I donrsquot think itrsquos pushyrdquo explains Utter ldquoItrsquos getting to the point But itrsquos only after Irsquove developed a relationship that I can ask that question During that open house Irsquom not saying lsquoIrsquove sold 20 houses and you should work with mersquo Itrsquos not me me me me me me

ldquoInstead Irsquom asking the questions like lsquoWhat caught your attention Whatrsquos the most important thing in your next moversquordquo Utter adds ldquoYoursquore asking questions to draw out buyersrsquo wants and needs That type of selling still works You need some sort of call to actionrdquo

Utter offers another open house example that wonrsquot get you the results yoursquore looking formdashstarting by demanding personal information ldquoThe first statement you make to somebody visiting an open house shouldnrsquot be lsquoHey can you sign inrsquordquo he insists ldquoIt should be lsquoHi how are you Would you mind sharing with me what was it about the home that caught your attentionrsquo Or lsquoWhat got you to stop at this house today Was it the neighborhoodrsquo

ldquoWith those types of questions yoursquore going to find out right away that the buyers always wanted to live in this neighborhood or be in this school systemrdquo adds Utter ldquoIf you donrsquot build a bit of a relationship your chances of getting accurate information like that is lowerrdquo

Even trust-building has changedIf building trust works best today Calvert contends that even how you do that is different ldquoItrsquos a funny thing because we want trust to be built in different ways than once upon a timerdquo she says ldquoIt used to be based on credentials like the more homes you sold and the more billboards your face was on For todayrsquos consumers itrsquos how well you know them which completely changes the kinds of questions we askrdquo

Instead of pushing buyers to make an offer by asking ldquoIf I could show you how to put the financing together would you make an offerrdquo you might instead ask buyers questions about how it feels to envision themselves in the house ldquoItrsquos not about the simple buy-sell equationrdquo explains Calvert ldquoThose questions show Irsquom trying to reveal things to you The starting point is asking questions to help consumers as peoplerdquo

Cheo agrees ldquoYou should be asking the right questions and listening to understand the prospectsrsquo frame of referencerdquo he says ldquoYou donrsquot want to ask lsquoWhat would it take for you to make an offer on this propertyrsquo A better question would be lsquoHey you seem to like the backyard and kitchen Will this house work for yoursquo Or lsquoYou seem to be really interested what would you say is missingrsquo That way you can address whatever objection they discuss and it may not be something theyrsquod have ordinarily brought up if you hadnrsquot askedrdquo

Of course there are times when itrsquos in the clientrsquos best interest for you to give them a gentle shove Thatrsquoll work as long as yoursquove built trust and given them a heads up that you may need to do that at some point in the process

For Managers Brokers and Owners 2014 SepOct 13

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 14: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

Barrentine says hersquos had many clients aghast that another agent pushed them too hard too early saying ldquoIf this is the right house for you you need to write an offer with me today because otherwise yoursquore going to lose itrdquo

ldquoThat happens mostly with young agents or those who are anxious or hungry for the dealmdashor quite frankly those who want to double-end the dealrdquo says Barrentine ldquoBut you can say the same thing in a different way lsquoDoes this seem like the right house for yoursquo If the buyers say

The Softer Way to Ask for ReferralsAre your agents getting awkward silences when they ask for referrals Show clients you get them and referrals will flow says Deb Calvert who heads People First Productivity Solutions a Morgan Hill Calif sales training company

Calvert recently conducted referral-building training for a residential sales company and agents reported that long-standing tactics for getting referrals were putting consumers off

ldquoEven with people theyrsquod already done business with or friends or family these salespeople were getting pushback on questions they were trained to askrdquo explains Calvert ldquoThe questions were beginning to feel manipulative One specific question was lsquoIf I could help your friends and family get into the home of their dreams would you introduce me to themrsquo Itrsquos so canned Itrsquos so old-school Itrsquos like that idea that if you get someone to say yes six times the seventh time theyrsquoll also say yes to your sales pitch Itrsquos ludicrous Wersquore savvy now as buyers and we donrsquot have time for thatrdquo

Calvert says therersquos no single question to replace that technique Itrsquos all about relationship-building ldquoYou have to get to what the individual valuesrdquo she contends ldquoI gave the example of when I moved into my current home Wersquod previously bid on a house that had fruit trees but we ended up buying one that didnrsquot have any

ldquoMy agent remembered thatrdquo recalls Calvert ldquoHe showed up one day with an orange tree It opened up the discussion of how we liked the house and what was important to us Eventually after showing me we were valued he asked lsquoWhat do you like

about working with mersquo For me as a sales trainer that was a great question because we should always be doing that post mortem After I told him he said lsquoThank you for telling me that If you think of somebody else whorsquod benefit from that kind of service yoursquod let them know about us rightrsquo It was such a soft question in the context of showing us he knew what we valuedrdquo

14 SepOct 2014 wwwcrbcom

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 15: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

yes you can say lsquoLet me tell you where we are We have a lot of people interested If this is the right house for you yoursquore going to have to act quickly I can do that for you if thatrsquos what you want Letrsquos set up a time to draft an offer today Yoursquore going to feel pressure during this process but if you want this home letrsquos get this donersquo Itrsquos the same conversation The difference is the way the information is presented and the thought behind itrdquo

The takeaway from todayrsquos shifting sales landscape If you remember itrsquos not about you

consumers will value your advice ldquoOften therersquos no differentiation from one agent to anotherrdquo says Calvert ldquoThis is a great way for you to set your company apart because when you build great relationships consumers will share that in the viral worldmdashand then really connecting with people is like magicrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

Hard-Sell Tactics Can Still WorkTodayrsquos trainers and top brokers insist building trust is the key to success However they also say therersquos still a place for hard-sell techniques

ldquoWhat old-school trainers are doing by teaching hard-sell tactics can and does work todayrdquo says John Barrentine co-founder and CEO of RED Real Estate Group at Keller Williams Larchmont in Los Angeles ldquoI recently attended the Inman Direct conference where I heard consumers say lsquoWe wanted someone who was really aggressive and assertive with us Itrsquos not that we want to go to dinner with them but we want them as our agentrsquo Itrsquos interesting that we often say lsquoMy clients wouldnrsquot go for thatrsquo But Irsquod argue thatrsquos who the majority of consumers want in their cornerrdquo

There are consumers whose personality does fit that harder-sell approach agrees Karlton Utter director of learning technologies and solutions for Better Homes amp Gardens Real Estate in Parsippany NJ ldquoI personally donrsquot like aggressive salespeople and I donrsquot think a large part of society would react well with them They might get immediate business but are they going to build a long-lasting relationship thatrsquoll lead to clients for life And will that type of behavior recommend them to other peoplerdquo

Barrentinersquos suggestion is to train your agents to combine what theyrsquore comfortable with from the hard-sell school with what works for them in the trust-building school ldquoI respect the aggressive approachrdquo he says ldquoI can learn a lot from it but itrsquos not me and itrsquos not the way we work on my team However Irsquove become good at working with that assertiveness in a way that fits with my personality Irsquom gentle with consumers but really lay the facts out where thatrsquos necessary Maybe I can get away with that because Irsquove been in the business for a long time and have a bit of a southern accent But you have to find a way to get your clients what they needrdquo

For Managers Brokers and Owners 2014 SepOct 15

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 16: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

16 SepOct 2014 wwwcrbcom

What to

Ask Before

Signing a Franchise

Agreement

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 17: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

Ever thought about

joining a franchise Research

these eight factors first

By GM Filisko

For Managers Brokers and Owners 2014 SepOct 17

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 18: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

F ranchises are great for some brokers and not right for others But wersquoll leave that debate for another day

Here we focus on more practical issues What questions should you ask if yoursquore considering joining a franchise and what contractual provisions should you attempt to negotiate in your favor before you sign on the dotted line Here are eight tips to help you get the best information on which to make a ldquofranchise or notrdquo decision

1 Read the FDD of any franchise yoursquore considering signing up with ldquoThe financial disclosure document will give you many pieces of information required by the governmentrdquo explains Jeffrey Goldstein founding partner of the Goldstein Law Firm in Washington DC he represents only franchisees and spends about 10 percent of his practice in the real estate arena most often in litigation or counseling when franchisees are considering leaving their franchise ldquoThe FDD sets out risk factors and is supposed to give you some concept of what your everyday living life is going to look like if you become a franchisee Therersquos some litigation history of the franchisor financial statements and things like thatrdquo

2 Zero in on financial disclosures ldquoThe first consideration is financialrdquo contends Kevin B Murphy a San Francisco lawyer who for 34 years has specialized in franchise law including in real estate and has owned a franchise himself ldquoDoes it make sense to jump from your independent operation to a franchised operation You can find the answer to that question in item 19 of the FDD

ldquoItem 19 is a chapter in every agreement and it covers financial performance representationsrdquo says Murphy ldquoThat should be the very first item you look at Franchisors have an option to say nothing about how their company-owned or franchise-owned franchises are performing More than two-thirds make that election

Item 19 is a chapter in every agreement and it covers financial

performance representations That should be the very first item you

look at Franchisors have an option to say nothing about how their

company-owned or franchise-owned franchises are performing

More than two-thirds make that election which is a huge red flag

That would be the end of the consideration for me For the minority

that do provide information compare how the franchisees are doing

financially with how yoursquore doing as an independent

mdashKevin B Murphy Mr FranchiseFranchise Foundations

18 SepOct 2014 wwwcrbcom

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 19: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

For Managers Brokers and Owners 2014 SepOct 19

which is a huge red flag That would be the end of the consideration for me For the minority that do provide information compare how the franchisees are doing financially with how yoursquore doing as an independentrdquo

3 Pay particular attention to fees ldquoReal estate is different in a lot of ways than say McDonaldrsquos which charges royalties on gross revenuerdquo says Goldstein ldquoIn real estate your fee structures are very different even among the top franchisors There could simply be a flat fee of something like 5 percent or there could be only a fixed fee per agent Then many franchisors charge for smaller things like advertising in a particular franchise magazine or marketing campaign You could look at one agreement and see 4 fees for a simply constructed franchise and then go to another that has 15 separate fees

ldquoYoursquoll especially want to negotiate your initial fee structure because those can be crazyrdquo says Goldstein ldquoPay attention to the initial investment which is how much you have to

put in and how much yoursquoll need to borrow to say buy a building or train your agents I get clients who say lsquoThis isnrsquot bad Itrsquos $25000 and Irsquoll probably put in an additional $100000rsquo But when you look at the requirements itrsquos really $450000 You can go from a low of $30000 up to in excess of $500000 for all your initial feesrdquo

4 Dig into the details of your territory ldquoSome real estate franchises will give you an exclusive territory covering say 15 miles some will give you no exclusive territory and others will say if you donrsquot hit certain performance standards a territory can be taken away from you even if theyrsquove given it to yourdquo says Goldstein ldquoIf you donrsquot have an exclusive territory the franchisor can put another franchisee on the next block over from youmdashand it will Irsquove had some clients say lsquoTheyrsquore giving me an exclusive territoryrsquo but when I read the agreement it says another broker outside the territory can come in to do business if hersquos contacted by a customer in your areardquo

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 20: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

5 Hire an experienced lawyer to negotiate Yes itrsquos in their own interest but both Goldstein and Murphy say itrsquos critical to hire a lawyer to negotiate a franchise agreement particularly one whorsquos familiar with real estate franchise agreements ldquoThis requires using someone whorsquos a truly expert in the fieldrdquo Murphy contends ldquoIf broker Joe Smith tries to negotiate various provisions hersquoll likely not succeed at allrdquo

6 Get a feel for the franchise culture ldquoReal estate has very culture-laden franchisesrdquo says Goldstein ldquoSome franchisors are very loose with big regions and will give a lot of autonomy to a broker who wants to develop a region Others will be very hard on brokers in terms of making them follow every rule in their procedures manualrdquo

Thatrsquos something Stan Friedman saw firsthand when he was a franchise rep for ERA Prudential and Help-U-Sell Friedman has earned the certified franchise executive designation from International Franchise Association and is president of Atlanta-based FRM Solutions which markets franchise relationship management software

ldquoLook into more than just that franchise agreement but also the culture yoursquore going to become a part ofrdquo says Friedman ldquoIrsquod never buy a franchise without going to home office first If you donrsquot get invited to the home office for a structured discovery day where they present several talking heads to tell you all the things yoursquore going to get for your money Irsquod insist on a visit because you learn a lot from it

ldquoIrsquod just want to walk the floorrdquo explains Friedman ldquoIrsquod want to talk to people in cubicles How happy are the people employed there Are they treated right in the home office Do they love what theyrsquore doing Is there a picture of them with the person in the next cubicle that shows a culture in which people love working with each other If these people arenrsquot happy and are being mistreated every day what chance do you have to be happy if yoursquore miles awayrdquo

7 Give serious attention to how much control yoursquore giving up ldquoThe agreement will specifically detail what you can and canrsquot dordquo says Friedman ldquoTherersquos business format franchising which is fast food franchising and then therersquos product franchising which is more like car dealerships Therersquos a little more flexibility under product franchising

ldquoI think real estate leans a little toward both typesrdquo he explains ldquoTherersquos more flexibility in your office as a real estate franchise with not as much dictation as there would be if you were creating a McDonaldrsquos Egg McMuffin You could have different marketing programs and the franchise may not tell you what your commission splits should be But yoursquove got a brand to protect and the use of the brand has to be consistent to a degree For example if the national franchise offers a guarantee to consumers that itrsquoll buy their home if they donrsquot sell it you have to offer it toordquo

One of the best ways to research your true experience is to talk to other franchisees past and present ldquoFind franchisees whorsquove been terminated or left the system and ones still in itrdquo advises Goldstein ldquoThe FDD will give you names of some franchisees and prior franchisees

ldquoHowever yoursquore not always going to get current contact informationrdquo he adds ldquoAlso a franchisee not getting along with a franchisor may be concerned about retribution over comments made to someone who calls to ask for information on what itrsquos like being a franchisee And even if franchisors give you names of franchisees to call some potential franchisees worry about getting a potential franchisor angry with them before theyrsquove even signed an agreement by asking so many questions The bottom line is that even if yoursquore able to talk to existing and former franchisees you wonrsquot necessarily get a full picturerdquo

20 SepOct 2014 wwwcrbcom

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 21: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

8 Think about what happens if you default or just arenrsquot happy ldquoTry to negotiate out of the agreement excessively short notice periods for defaultrdquo advises Murphy ldquoSometimes they provide that agreements can be terminated on a couple days notice for various things

ldquoAlso consider what happens if yoursquore unhappy and want to bail outrdquo advises Murphy ldquoItrsquos very difficult to do and there are usually extreme penalties There may be a noncompete clause that says if you bail out you canrsquot compete in real estate There are also sometimes provisions saying that in addition to the noncompete clause the franchisor has the right to come in and buy out your whole business and usually the formula is one that results in you losing your entire business for peanuts Instead

Look at all the things yoursquore

paying out and all the things

yoursquore getting If you canrsquot make

a cogent case that the value of

the things yoursquore paying for far

outweigh the costs you should

never do it Also be sure to

test the culture and make sure

yoursquore in a place consistent

with your value propositions

and like minded in terms of

values and ethics attitude and

commitment

mdashStan Friedman President Atlanta-based FRM Solutions

buyout provisions should be based on fair market value as determined by an appraiser who takes into account the going-concern value of the business The agreements always say itrsquos based on fair market value without goodwill But goodwill is the primary value of your business If you factor it out yoursquore talking about a value based on the used depreciated value of some desks chairs and other equipmentrdquo

Goldstein agrees the termination provision can be devastating ldquoA post-termination covenant not to compete can ruin your liferdquo he says ldquoAgreements can say things like lsquoIf you terminate the agreement or leave our system for two years and within a 40-mile radius you canrsquot perform real estate servicesrsquo If thatrsquos what yoursquove done for 20 years therersquos little left for you to do

ldquoThose noncompete provisions are typically not negotiable but because of bad press a couple of franchisors have started to instead use a liquidated damages clauserdquo says Goldstein ldquoIf yoursquore terminated and then operating as a broker they require you to pay X percent of what yoursquod have made if yoursquod have stayed Itrsquos a set number and it depends on the area the exclusivity of the territory and the creativity of the franchisor in writing these The best you can do is to try to negotiate the noncompete provisions out and perhaps instead put in a provision for liquidated damagesrdquo

All these issues essentially boil down to two thingsmdashfinancials and fit ldquoLook at all the things yoursquore paying out and all the things yoursquore gettingrdquo advises Friedman ldquoIf you canrsquot make a cogent case that the value of the things yoursquore paying for far outweigh the costs you should never do it Also be sure to test the culture and make sure yoursquore in a place consistent with your value propositions and like minded in terms of values and ethics attitude and commitmentrdquo

GM Filisko is a lawyer and freelance writer who specializes in real estate legal business and personal finance topics

For Managers Brokers and Owners 2014 SepOct 21

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 22: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

22 SepOct 2014 wwwcrbcom

Recruiting

Need Fresh Interview Questions Try These Broker Favorites

If yoursquore feeling like your interview questions are getting a little stale and not generating responses that tell you much about recruits itrsquos time to freshen them up Here brokers tell us their favorite new and unusual inter- view questions and explain how to evaluate the answers

Get the nuts and boltsldquoHere are questions I like to rely on

bull How have you seen our industry change over the past couple of yearsmdashItrsquos important to see if recruits have been keeping up with the industry both on the local level as well as the national level

bull Do you have a written business planmdashIf theyrsquore serious about growing their real estate practice they must understand theyrsquore operating a small business and that a business canrsquot be successful without a road map to guide it

bull Are you comfortable working with the technology we use like paperless transaction management digital e-signatures and cloud storagemdashThis question is vital in an ever-changing real estate world

bull If you could change one thing about yourself what would it bemdashThis question allows me to determine their self-awareness and ability to adapt to changerdquomdashJohn Giffen CRB CRS GRI principal broker Benchmark Realty Nashville Tenn

Get to know your recruitldquoHere are some of my favorite questions

bull What do you really like to do outside of workmdashOne response I hope not to hear is lsquowork is my priorityrsquo I donrsquot want to work with someone whorsquos all work and no play because not having a life outside the office is a disadvantage Not only is it psychologically unhealthy to not have outside interests but yoursquore losing a valuable base of potential customers

bull If you could have dinner with any living or deceased person who would it bemdashTherersquos no wrong answer to this question but I like to see the response because it usually begins an interesting conversation It often gives insight to the personrsquos personality and priorities For instance if they say theyrsquod dine with their deceased great grandmother itrsquos a sweet answer and shows you heritage and family are important if they say Jack Welch it shows they have an interest in business

bull Whom do you admire in the industry and whymdashThis question often reveals the personrsquos breath of industry knowledge including whether theyrsquore true insiders or if they follow big deals and newsmakers without any context There are no deal breakers but itrsquos good to know if recruits are aware of who has built firms runs them or has sold them mdashKathy Braddock managing director William Raveis New York City

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 23: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

For Managers Brokers and Owners 2014 SepOct 23

Recruiting

Give a pop quizldquoI always like to ask lsquoWhat would be your ideal position in any industry at any ratersquo That always leads to interesting feedback and shows if recruits really love the business theyrsquore interviewing for

Although itrsquos not really a question herersquos another interview exercise I like At the end of the interview if candidates look like a good fit give them paper and a pen and ask them to answer lsquoWhat will you do in the first 90 days of working in your new position to help grow the company [or whatever the position requires]rsquo Have them complete this at the interviewmdashdefinitely not at home where they could easily have someone else write it for themmdashand turn it in before leaving By doing this you find out if they really can spell and write understand the concept of the position versus just telling you the standard responses to interview questions and work under pressure

Wersquove done this for high-level positions and itrsquos really helped weed out applicants who normally could have slipped in by mastering canned answers to interview questionsrdquo mdashMichael Tempel president Nexus Real Estate Services Brooklyn Park Minn

A no-regret approachldquoMy favorite interview question is lsquoWhat am I going to regret in six months if I donrsquot hire yoursquo It gives me the opportunity to judge how candidates respond on their feet and allows them to illustrate their potential value to the organizationrdquomdashPhilip Lang co-founder Suitey New York City

Do you really ldquogetrdquo itldquoI like these questions

bull When did you start to think about going into real estate Was there something that happened that attracted you to this businessmdashThe answers often show if recruits were enticed by something fleeting or glitzy about an imagined or lsquofantasyrsquo lifestyle or are motivated by their own good or bad experience in a real estate transaction Theyrsquoll usually tell me a story about some life experience that set them on the road to real estate and it often gives me insight into their level of passion or commitment

bull What was your favorite job and what did you enjoy the most Or What was your least favorite job and why didnrsquot you like itmdash These answers often give me insight into recruitsrsquo personality job skills ability to work independently people skills energy levels and so on I imagine being a seller sitting across the table from them at a listing presentation and I ask myself lsquoWould I hire this person to list my housersquo

bull Have you ever moved How many times What was your favorite or your least favorite memory of one of your moving experiencesmdashI look for candidatesrsquo ability to take that experience forward with them as they work with buyers and sellers Will they work toward making this a positive experience Can they anticipate some of the fears struggles and problems their clients experience If they had a bad experience what would they do so clients wouldnrsquot have the same experiencerdquomdashSyd Leibovitch president and owner Rodeo Realty Inc Beverly Hills Calif

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 24: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

24 SepOct 2014 wwwcrbcom

Avoid These Social Media Mistakes

Social media not getting results like you hoped Maybe yoursquore committing common mistakes Herersquos how to turn your unforced errors into home runs

Be not afraidldquoI teach social media marketing classes to more than 700 agents and these are my recommendations

bull Donrsquot be intimidated This is by far the biggest reason agents fail at social media marketing They go to a class or read an article on the topic get excited and create their accounts and then abandon them I often hear lsquoI just donrsquot know how to use itrsquo or lsquoI didnrsquot know what to postrsquo Social media is fun not scary

Rather than being concerned about lsquomarketingrsquo yourself have fun and interact with your fans as if you were with them in person Share helpful relevant or fun articles comment on fansrsquo photos and status ask questions tell stories and most importantly be yourself

bull Donrsquot forget photos Photos and videos get far more engagement than simple text posts Always include a photo in your post When posting your listings be sure to include multiple photos (try creating a collage) and a link back to your website

bull Donrsquot fail to find fans Some agents do a great job posting but they have only a few fans Rather than waiting for fans to find your page

invite friends from your personal Facebook page send an email to your contacts asking them to lsquolikersquo you on Facebook and ask friends and family to share your page with their contactsrdquomdashKristie Forsman director of online communications and public relations Berkshire Hathaway HomeServices Pittsburgh

Less is more peopleldquoDonrsquot try to do too much One client came to us with 24 social media accounts and channels The client had multiple Twitter accounts an Instagram account a Facebook page an Activerain page and a YouTube channel It was just too much The client was frustrated and burned out trying to keep it all going There was little chance of timely interaction with any audience and quality was suffering Less is more Higher quality interaction is betterrdquo mdashBobbie Carlton Carlton PR amp Marketing Woburn Mass

Lay off the salesldquoWe often see real estate companies using their social pages strictly to sell homes Pages that are too sales-like push people away Not every one of your followers is looking for a new home yet Some are still doing research and trying to get to know companies and agents which is why itrsquos OK to personalize your pages by adding agent bios and tips That helps put faces with namesrdquomdashBrittany Winter marketing representative Realty Connect USA Hauppauge NY

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 25: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

For Managers Brokers and Owners 2014 SepOct 25

SocialMediaMarketing

Think big pictureldquoWersquove worked with many US real estate companies and here are the biggest mistakes wersquove seen

bull The lack of a realistic campaign planmdashWithout a clear strategy you wonrsquot know which social media platform will best suit your business goal or what content to share with your potential audience Define what you want to accomplish only then can you measure your success Also donrsquot have the same campaign plan for all your social media channels Research typical target-audience behavior across various networks rather than jumping on board

bull Keeping a lsquoset and forgetrsquo presencemdashKeeping your social profiles current doesnrsquot just mean posting frequently Too often we see business and contact information is either outdated or out of view and that hurts your conversion rate Place your basic details front and center

bull Falling into the automation trapmdashItrsquos good to use tools like HootSuite and TweetDeck to schedule posts But they wonrsquot help you respond to incoming messages and a lack of response will put people off Auto-messaging just means yoursquore not interested into what your followers have to say Always keep your eyes and ears tapped in

bull Ignoring the power of visual contentmdashDonrsquot fail to effectively use visual content when posting your listings by simply relying on the auto-preview thumbnail that gets displayed when you share your website link Itrsquos images and videos that get your audience the most excited and talking about your listings Find or take a high-quality image or video when you have a hot property in your market or a recent deal to showcase

bull Not using social media for customer servicemdashMost brokers arenrsquot prepared to handle real-time issues consumers raise on social media

However your audience expects you to be available 247365 If yoursquore not it looks like you donrsquot care or are unprepared Always be attentive

bull Sharing sensitive datamdashDonrsquot knowingly or unknowingly share your companyrsquos or clientsrsquo confidential information such as clientsrsquo home or office addresses phone numbers or financial transactions Always be very wary about what to share on social media

bull Obsessing about total fans over quality and relevancemdashA common misconception is that the more fans or followers you have the higher visibility your content will have However a recent Forbes report showed only 3 percent of Facebook fans typically see your posts So focus on how to boost your engagement with quality content rather than counting how many lsquolikesrsquo your page hasrdquo mdashJitesh Keswani co-founder e-Intelligence Baroda India

Donrsquot limit your reachldquoWith social media brokers often forget to use separate accounts for business and personal use Now more than ever target marketing is very important With Facebook itrsquos very easy to create business pages and different groups for all your friends

Buying a home is a slow long process It can be very stressful So add local market news showcase top businesses and events in your area offer tips to easily prepare a home for sale and explain the home loan process The more useful the information on your social media accounts the longer consumers will stay inside your digital storefront

Also the ultimate goal of social media should be to drive traffic to your website or encourage a phone call I see a lot of agents posting pictures or simply text Itrsquos much more strategic to link to your website

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 26: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

26 SepOct 2014 wwwcrbcom

Perhaps the biggest mistake I see is agents setting their social media accounts to private Why use social media if you wouldnrsquot want the world to see what yoursquore sellingrdquo mdashJason Rivera marketing coordinator East Bay Sothebyrsquos International Realty Oakland Calif

It doesnrsquot replace advertisingldquoPeople donrsquot understand what social media is and isnrsquot Some agents still think itrsquos a replacement for advertising and use it just to post listings Thatrsquos not why people use social media Itrsquos about education entertainment and growing relationships

Unfortunately some so-called experts are getting people into a froth by talking about exploiting the one billion people on Facebook Reality says only a few hundred are actually in your area and would potential buy what you have to offer Nothing turns those hundreds off faster than just posting homes for salerdquo mdashBrian Basilico founderpresident B2b Interactive Marketing Inc Aurora Ill

Make sure yoursquore being socialldquoMany brokers and agents forget to engage with their clients and donrsquot make much of an attempt to get feedback and comments Be yourself on social media Crack the door a

SocialMediaMarketing

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 27: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

For Managers Brokers and Owners 2014 SepOct 27

little to your personal life Show a picture of you volunteering in the community Show yoursquore furthering your professional expertise at a class Or even share a picture from a networking event

Also try posting pictures of a house and asking questions like lsquoShould the sellers paint the door red or black before we put this home on the marketrsquo Many people love giving an opinion or participating in a discussion

Most followers are also looking for tips and information Share links to design trends real estate tips and even events in the community After all isnrsquot the point of social media being socialrdquomdashEllen McDowell founder Your Social Butterfly Baton Rouge La

Tell people yoursquore on a social medialdquoThe biggest mistakes to avoid are

bull Forgetting to add your social networks in email signatures and marketing materialsmdash You and your agents interact with lots of people during your work week Not having your social networks always visible could cause you to miss opportunities to grow your online following

bull Not using hashtagsmdashToo many donrsquot use them on Twitter and Facebook to help get advertorial or informative posts seen by a broader audiencerdquomdashAnn Albergotti president SocialFascination Denver

Make sure you add valueldquoReal estate is notorious for having posts that are way too promotional or commercial with almost little to no value for consumers We do a lot of work consulting clients on how to use social media as a channel to educate their audience rather than conducting a hard sell By adding things like the top five tips to find the best towns for your living situation yoursquore more apt to engage consumers Theyrsquoll

ultimately share great insights on where they are in a buying cycle while also flagging other prospective clientsrdquomdashErik Mason CEO and founder RYSE Marketing and Communications Durham NH

Act like you would in personldquoTalking only about yourself and the deals yoursquove closed is a big mistake Instead act as you would at an event where you want everyone to like you Introduce yourself as a knowledgeable professional who cares about others Your value is what you know not what yoursquove done Showcase that by offering useful advice sharing relevant content and providing thoughtful responses to comments Online relationships are like trial client-agent relationships If you take the time to offer good advice online potential customers will trust you to do the same offlinerdquomdashShaun Nilsson co-founder CityBlast Media Inc Toronto

Start small and act thoughtfullyIrsquove seen these mistakes too often

bull Having a seat-of-your-pants approachmdash That results in things like being inconsistent in your branding or voice overusing or not using the ability to tag or use hashtags repeatedly asking for followers and ignoring and not updating your pages It also ends up causing you to fail to follow up on potential leads and that reflects worse on your business than not having social media accounts at all Start small with one or two profiles yoursquoll be able to post to daily

bull Posting inappropriate contentmdashIt could be anything from a low-resolution photo to sensitive inappropriate or offensive content And if yoursquore about to share content from other pages always be sure to thoroughly read through the content to check whether it aligns with your branding and messagingrdquo mdashSeth Worby CEO Champ Internet Solutions Newton Mass

SocialMediaMarketing

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 28: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

28 SepOct 2014 wwwcrbcom

SalesStrategies

Get Up and Go

John D Mayfield CRB e-PROreg GRI

Category Professional attitude

Materials Needed Index cards for each participant

Estimated Time 15-20 minutes or longer depending on the amount of time allowed for group discussion

PowerPoint Available No

Meeting Objective To help your team members understand the importance of sprinting toward their goals even if theyrsquove fallen down during the race

OPENING If you have access to a projector and the Internet show this video from YouTube If not recap the story by typing in Heather Dorniden in Google or use this link to print a copy of the story to read (Note Showing the video will have a much deeper impact on your group and the outcome of your meeting)

STEP 1

Ask ldquoWhen you fall down what do you dordquo

Quote the following ldquoMany of you have set goals for this year Perhaps some of you have achieved most of the goals you listed for the year or maybe it looks as though yoursquore well on your way to victory If this is you congratulations However some of you may have fallen down this year in your race toward your goals

When you fall down you have two choices

1 Stay on the ground and succumb to defeat

2 Get up go and finish the racemdash like Heather Dornidenrdquo

STEP 2

Distribute small index cards to your group

Have the group do the following ldquoTake a moment and write down on one side of your index card a goal you wanted to reach this year but in reality it looks like you may not reach it (In other words what race have you fallen down in)rdquo

Allow a few moments for your team to finish the assignment

STEP 3

Next have team members do the following ldquoWrite down a slight adjustment to the goal In other words do you want to reset a new goal similar in nature still challenging but reachable After you decide whether to adjust the goal list three to five things you plan to do to get up and go What can you do to finish the race this year and accomplish the goal on your cardrdquo

After a few moments allow volunteers to share what theyrsquove listed on their card

CLOSINGTell your group ldquoThis is why you need to get up and go

bull Dr Seussrsquos first childrenrsquos book was rejected by 23 publishers The 24th sold six million copies

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 29: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

For Managers Brokers and Owners 2014 SepOct 29

All six bullet points and the closing quote are excerpts from Glen Van Ekerenrsquos book Speakerrsquos Source Book II Prentice Hall Press 1994

John Mayfield CRBSM e-PROreg GRISM received his real estate license in 1978 and has been a practicing broker since 1981 He is a senior GRISM instructor for the Missouri Association of REALTORSreg and the Arkansas Association of REALTORSreg and is a master instructor for the CRB Council John has been a featured speaker at the National Association of REALTORSreg conventions authored seven books and created the ldquo5-Minutes Series for Real Estate Agentsrdquo For more information contact wwweasysalesmeetingscom

SalesStrategies

If you find a path with no obstacles it probably doesnrsquot lead anywhere

mdashFrank A Clark

bull After being rejected by Hewlett-Packard and Atari Apple microcomputers had first-year sales of $25 million

bull Vince Lombardi didnrsquot become a head coach in the NFL until he was 47

bull Inventor Chester Carlson pounded the streets for years before he could find backers for his Xerox photocopying process

bull In his first three years in the automobile business Henry Ford went bankrupt twice

bull Michael Jordan was cut from his high school basketball team

bull And yes Heather Dorniden fell down during the 600-meter collegiate Big 10 race but she got up kept running and won the race [Optional Replay the video of Dorniden and her amazing race that you showed at the beginning of your meeting]

I encourage all of you Donrsquot worry that you may have fallen down this year in reaching some or all of your goals The race is still going Now get up and gordquo

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION

Page 30: IS THE SELLING YOU’RE TEACHING - SRS · PDF fileThe SRS designation is the premier credential in seller representation. ... • Social Media & Networking • Services & Communications

30 SepOct 2014 wwwcrbcom

JULY

JAU

G 20

14 bull

VOL

66 PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Managers Brokers and Owners

PLUS BROKERS GET OUT OF YOUR OWN WAY

LOVE IT OR HATE IT 9 QUESTIONS TO ASK ABOUT LISTING SYNDICATION