What Every Broker Should Do Series – Set Production Standards

Today's real estate business is undergoing major changes as it transforms itself from the old way of doing things into something more modern and digital in nature. How business is conducted will continue to evolve but one thing will never change – a brokerage is in business to be profitable.

Profitability begins with having sales associates and ownership understand that the associates have been hired for one main reason – their potential revenue stream. One way to ensure that the associate generates enough production to cover their costs of being there, as well as provides the company with a reasonable profit, is to establish minimum production standards.

An effective minimum production standards program must be:

1. Reasonable and achievable
2. Trackable
3. Supportive to the associate
4. Consistently enforced

All sales associates must believe that they are capable of reaching and/or exceeding the minimum level and they must buy into the concept that the standard benefits both themselves and the company.

Tracking their production on a monthly basis provides both the associate and the company the insight they need to understand if those production levels will be met or if some sort of intervention may be required. Intervention could take any number of forms from simple encouragement to mandatory sales training depending. This should always be approached as supporting the associate and in helping them to achieve the income level they want for themselves and their family.

The key here is, no matter what strategy is chosen, it must be adhered to consistently by both associate and management. Attendance and best effort must be insisted upon as well with clear consequences to the associate for not doing so. In addition, everyone within the company must be aware of the consequences and must see them strictly enforced if they are to be at all taken seriously. Penalties could range from the associate being required to cut a check for any shortfall of revenue to a one-on-one interview to discuss their future or lack of with the company.

Strong leadership is evident when people follow because they want to, not because they have to.

If you would like to learn more about Leadership visit www.LeaderofthePackSolutions.com and review our Lead, Manage or Get Out of the Way workshop under the Development tab or contact David Thompson, Director, Broker Development and WOLFwatch Services.

To view the original article, visit the Lone Wolf blog.