April is Team Month Here in Inman.Add nuance on a weekly basis team beat Through our email newsletter, we’ll provide top insights from the best team leaders in the country as we take a deeper look at how to build a team, scale a team, and even leave a team.
Agent teams have been particularly hard hit by the National Association of Realtors’ (NAR) settlement of a commission lawsuit and the Federal Communications Commission’s (FCC) new rules requiring agents’ “written consent” or existing relationship. Call potential sellers and ask about their home listings and the latest decision by the Federal Reserve not to lower interest rates.
Verl Workman, co-founder of Workman Success Systems, knows what steps agency teams and top agents need to take to turn chaos into success.
Workman Success Systems has more than 100 coaches whose focus is developing and building high-performing teams. Along with his co-founder and daughter Brianne Ika, he is uniquely positioned to understand what successful agency teams are doing to generate leads and ultimately close deals in today’s market.
overcome fear
Top teams and agencies that currently rely on buying leads and cold calls will take a new hit in July 2024 FCC regulations Take effect.
“The new rules close a loophole through which unscrupulous robocallers and robotexters send unwanted and illegal robocalls and robotexts to consumers. The new rules clearly state that comparison shopping sites and lead generators Consumer consent must be obtained to receive robocalls and robotext messages from one seller at a time, rather than a single consent given to multiple telemarketers at the same time.” — Federal Communications Commission
“Many teams are built on the ability to acquire and purchase leads,” Workman said. “The online leads that are provided have the lowest conversion rates. So when Zillow, Boomtown, Follow Up Boss, or whatever system they use to convert a lot of leads closes those leads, it forces the cost of the lead up.”
Workman said some teams get 80-90% of their online leads from Zillow Flex, which charges 15-40% Referral fee at closing. His clients’ conversion rate for Zillow Flex leads is 7-8%. Agents using Flex hope to build repeat and referral pipelines over the years.
“If Zillow shut them down tomorrow, they would go out of business,” Workman said. That’s why he said you shouldn’t put all your eggs in one basket.
4 pillars to protect your team and business
In today’s market, one of the most important steps any agency or team can take is to implement Workman’s “Four Pillars” approach today.
Workman urges the company’s clients to establish four pillars of lead generation. Each pillar should represent no more than 25% of your business. Zillow Flex, BoomTown, Facebook and social media are all big pillars. Every agency needs to choose their own pillars.
Top 50
This strategy works by making a list of the top 50 people you know who are most likely to recommend you once a year. The next step is to arrange a personal contact, a face-to-face meeting or conversation, with each of the first 50 members each month.
“At the end of the year, if the top 50 list doesn’t give you at least one recommendation,” Workman said, “then you have to replace them with someone new, even if it’s your mother.”
In an in-person meeting, your goal is to provide the other person with something of value that will enhance your credibility as a real estate expert in your area.
“It’s not enough to bring a jar of jam,” Workman said.
What works for agency teams today
Workman outlines some additional strategies for agency teams and top producers in today’s market.
Daily
Have daily huddles with your team. Practice the script for 30 minutes a day, search for one to three hours a day, and you’ll make money.
become an expert
Your voice and the way you speak has to be different. Today’s consumers are trained to work with experts. “Generalist real estate agent” is a foreign concept to consumers, so you have to specialize.
“Advantages of Class Actions”
Workman’s approach to class action lawsuits starts by positioning himself as an expert in handling litigation, viewing it as an advantage rather than a threat.
“Some agents are not showing their value to sellers. Consumer class action lawsuits are the result,” Workman said. “Let me tell you what we want to do, where our value is, and why it makes sense.”
Always serve and provide value
No matter what your prospects are, offer something of value. For example, if you are contacting someone in the top 50 and that person loves horseback riding, reach out to you through their interest in horses, but also ask for recommendations.
To illustrate this, if they know someone needs to move, but are unwilling to give up a low rate mortgage, you can help that person by telling them a 2-1 interest rate purchase, which will reduce their mortgage payment for the first two years Payment year.
Consumers don’t like cold calls, but traditional marketing still works
Over the years, 2023 NAR Home Buyer and Seller Profiles Research shows that 81% of sellers hire the first agent they meet in person when they decide to list. So prioritize lead generation activities, such as walk-ins or open houses, to keep you in front of potential sellers and buyers.
Stop selling and become an “option” trader
People move because of life events, not because agents convince them to.
“I’ve told agents to stop selling or trying to convince someone to buy a home,” Workman said. “Our job is to be options traders. Give them some options so they can decide which option is best for them – sell or do nothing.”
What will happen in the next year
Here’s what Workman has to say about the future of the agency team.
- As transaction buy-side commissions tighten, new models will emerge to accommodate the changes.
- The number of individual agents not affiliated with the team will decrease because the team will have to do more transactions to get the same amount.
- The only way to adapt to these changes is to leverage human tools and technology.
- Brands that are not team-friendly need to start planning how to change their business models to make their agencies more team-friendly.
Workers’ final harvest
“I think when there’s disruption, there’s going to be a lot of innovation. When there’s disruption, new business models are going to emerge, and I’m excited about that,” Workman said. “What we’re doing is we’re paying attention. We’re inventing and creating in hopes of being part of the solution, not part of the problem.”
Bernice Ross, President and CEO Brokerage UP and Real EstateC
