RE/MAX of Texas. Recruiting Guidebook

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1 RE/MAX of Texas Recruiting Guidebook

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3 RE/MAX of Texas Recruiting Guidebook RE/MAX Broker/Owner, Your entrepreneurial drive is the foundation of the RE/MAX network. This success directly correlates with your ability to sell the RE/MAX dream. Over the years, various recruiting programs have been developed to assist owners in selling the power behind the RE/MAX brand. Many owners use these programs with great success, while others become overwhelmed with the amount of information provided. The purpose of this Recruiting Guide is to provide a simple manual with limited, but effective, information. This Guide will give you ideas on how to build your office image, how to find the right prospects and how to use the Regional Mail and Call Center. Interviewing and followup tips are also included along with a short summary that details the value of being affiliated with RE/MAX. This Recruiting Guidebook is a work in progress, and we look forward to receiving feedback from you on how we can make improvements. Our goal is to make revisions and reissue the manual periodically. Later versions will include our Top Recruiting Offices and Top Recruiting Ideas. To provide feedback, please go into the Online Stats program and look under the Marketing/Recruiting tab. Click on Recruiting Manual Feedback to enter you comments. We appreciate your time and effort and we look forward to increased market share. Sincerely, RE/MAX of Texas your Life. your Business. your Way.

4 RE/MAX of Texas Recruiting Guidebook TABLE OF CONTENTS I. The Recruiting Success Formula 3 II. Build Your Culture, Define Your Values, Sell Your Office 5 III. Finding Prospects 7 IV. Using the Regional Mail Marketing & Call Center Ten Steps to Submit Your List Online 8 Call Center Procedures 9 Call Scripts 10 FAQs for All Broker, Owner, Managers 10 Drip Marketing Campaign 12 V. Interview and Follow Up Five Steps to Focus on Recruiting 13 Interview Questions 14 Overcoming Objections 15 Closing Techniques 16 Follow Up 19 Top 5 Action items to help with a smooth transition 18 Sample Follow-up pieces 20 VI. Value of RE/MAX 21

5 The Recruiting Success Formula What is Recruiting: The 4 Phases. Depending on whom you ask, the word recruiting can mean different responses from different people. Any of the following are plausible definitions of this word, yet a recruit prospect may not always see it this way: 1. To strengthen by enlistment. 2. To supply with new members or employees. 3. To enroll or seek to enrollment. 4. To replenish. 5. To renew or restore vitality or intensity of. To a prospect, the word recruiting may be associated with a feeling of obligation to commit to or join something of which they may have little or no control. It is therefore necessary to relinquish control and timing of communications in the beginning, in order to develop a successful relationship with prospects. The Four Phases of Recruiting is a process that emphasizes the importance of establishing your direct relationship with candidates (prospects) you intend to recruit to your office. Phase1: First Impression Call Initiates the relationship with a cold call or follow up to a mailer call. This call will determine their level of interest; use enclosed Call Scripts or submit your list of names to the Regional Recruiting Program: Mail Marketing & Call Center if not comfortable with making the initial call) Phase2: Broker/Owner/Manager Develop calls into a relationship of comfort. Find out when to contact, how often, how aggressive to pursue. Find out when their contract is up, ask about their Real Estate goals and plans for the future, and involve them in the courtship by giving an assignment (i.e.-when we meet again, give me 3 concerns you have about moving when contract is up). Get a commitment for a next meeting or commitment to call and schedule the next meeting; find out their birthday. Phase3: Broker/Owner/Manager Build on the relationship. Meet again, give specific details about what will happen when they move to your office, ask personal questions, address all concerns-no fluff, just facts, mention all resources. Reiterate that potential prospects joining your office will have more opportunities to increase business and should be able to make 2 more sales than last year to cover fees for the year with your office. Moving has nothing to do with spending money, has everything to do with making more money, more opportunities to do business and increase production here. Finalize the recruitment, get a commitment to move, and/ or follow up with consistent words of encouragement. Phase4: Broker/Owner/Manager Strengthen/ Secure the relationship: Recruit them, and retain them. Maintain a professional relationship, increase loyalty, strengthen trust, maintain a positive office environment, know birthdays for all sales associates, encourage team building, hold weekly or bi-monthly meetings for sharing, promote stability of your RE/MAX organization, all should feel included. When to Start Recruiting: Now. Timing is the most important variable in recruiting. Now is the time to start contacting potential candidates to join your office; this is called prospecting. Your goal is to reach prospects at the right time, and determine their level of interest in making a move. How will you know when the right time is to call them? Unless you get an inside tip from someone who knows them personally, you won t. In order to attract candidates for your office, you must begin pursuing them as soon as you decide to grow your office. Only when you begin communications with them, will you determine if and when they will be ready to discuss moving. Where are you in this Process: Getting Started. If you have implemented a recruiting process within your organization recently, you should find yourself in one of the categories of the 4 Phases ~ 3 ~

6 of Recruiting. Determine what is lacking in your communication to, or reception from prospects. First, prepare a list of names, phone numbers, and personal mailing addresses for each prospect you hope to recruit. You may begin by either mailing out a marketing piece about your office, or by making a First Impression Call (Phase 1). Determine where you are in the recruiting process. This will determine your next step. Who are the right Recruit Prospects for your office: Finding the right people. Determining your company culture and values will assist you in identifying prospects that will fit into your organization and share the same values as your management and existing Sales Associates. The sections of this guide entitled, Building Your Culture and Finding Prospects will provide the foundation and the methods of locating the right people. Why Agents Join Your Office? There are numerous reasons why recruits choose to join your office: culture, benefits, training, the structure and the strength of leadership and support that you provide. The following are guidelines that may assist you in your recruiting efforts. Based on agent feedback, the breakdown below shows what is important to an agent when they join an office. Highest allowable compensation: 10% International and regional affiliation: 20 % Your Office Environment: 20% You: 50% Highest Allowable Compensation: 10% There are many forms of compensation. The professional real estate agent deserves the freedom to choose how to receive compensation and how to value the different forms. In the RE/MAX system, highest allowable compensation includes all of the following: 1. Commissions. In recent years, RE/MAX International has changed the real estate industry with regards to commission splits. Although it did not originate the maximum commission concept, RE/MAX International has refined and developed this principle of compensation across North America. Simply stated, RE/MAX Sales Associates keep the maximum allowable share of earned commissions in return for sharing fixed office expenses and paying a reasonable management fee. 2. Work. Real estate agents work long hours, seven days a week. But increased compensation allows RE/MAX Associates to work fewer hours to earn the same income. With RE/MAX it is possible to work smarter, not harder. 3. Participative Management. By sharing the office expenses, RE/MAX professionals earn the right to have a voice in the operation of the office, although not a vote in the management. 4. Freedom. One of the strongest attractions of the RE/MAX system is the professional freedom that it affords to all affiliates. RE/MAX Sales Associates promote themselves, their business and their talents. 5. Flexible commission structure. Because RE/ MAX Sales Associates receive the maximum possible commission, and because they are truly independent business people, they can be creative in structuring and negotiating their commissions with their broker s approval. This flexibility gives RE/MAX Sales Associates an additional competitive edge in the market place. International & Regional Affiliation: 20% International and regional affiliation can enhance the professional environment as well as increase potential earnings for RE/MAX Sales Associates. Some of the benefits are listed below: 1. Synergy. Synergy is the concept that the whole is greater than the sum of its parts. Applied to RE/ MAX, it refers to the productivity that results when top producers work together. In an environment of highly motivated, knowledgeable real estate winners, RE/MAX Sales Associates are far more productive than they could be on their own. 2. Image. RE/MAX International enjoys one of the most recognized logos in North America with its fleet of hot air balloons. Through aggressive trademark protection and quality control standards, RE/MAX Affiliates prominently display their names on signs, business cards and promotional materials. 3. Referrals. One of the most important recruiting tools is the RE/MAX Referral Roster and the RE/ MAX referral system. By passing direct agentto-agent referrals, from one successful Sales Associate to another, a RE/MAX referral is more often a successful one. ~ 4 ~

7 OFFICE ENVIRONMENT: 20% 1. Location. Your location must first of all be convenient and desirable to your Sales Associates. Since recruiting and retention drive the success of a RE/MAX office, your clients, the Sales Associates, are the highest priority in determining an office location. Your office should be located where your Sales Associates would like to work. The second consideration is to locate your office convenient to the customers and clients of your Sales Associates. Be sure that the location provides for adequate parking for your Sales Associates and their clients. 2. Furnishings. The office facility should be attractive and appropriate for your marketplace. If you want to attract top Sales Associates, you need to provide better facilities than the local competition provides. There is a wide range of office configurations throughout the RE/MAX system, but the key is to provide the most professional work environment in your marketplace. 3. Office members. Everyone in your office from the receptionist to the Broker/ Owner must have a reputation that is beyond reproach. Your staff must demonstrate the ability to think and act for themselves in appropriate circumstances. As you recruit, the Sales Associates who join you will also build your reputation. You: 50% You are the single most important reason that Sales Associates will join your office. It is your leadership, your management style, your professionalism, your reputation, your team of professionals and your personality that come together to create an important part of the total work environment. In a RE/MAX office, Sales Associates work with the Broker/Owner, not for him or her. In a well-managed office the Broker/Owner provides the services and systems, which enable Sales Associates to do what they do best: list and sell real estate. Building Your Overall Office Culture The leader of your organization is instrumental in building your culture. Culture can be defined as a way of life of a group of people that includes the group s skills, knowledge, attitudes, values, and motives that they accept, generally without thinking about them, and that are passed along by communication and imitation. Understanding what type of people fit into your organization and follow your leadership style is fundamental to making your operations more successful. Establishing your Mission The development of a concise mission statement for your office helps to cultivate your unique office culture. This statement will set forth the framework and serve as the driving force behind your organization. Your statement should clearly set out the purpose of your business and should help to mobilize your Sales Associates to work towards a common goal. An Example of an office Mission Statement reads as follows: To create an environment that is positive, professional, cheerful and energetic. Furthermore, our organization is founded on the premise that you can be whatever you wish. There are no limits only your own self-imposed limits. Our sole purpose as a company is to provide you with an environment which promotes your professional growth and prosperity. To provide customers with a first class and seamless real estate transaction through providing exceptional real estate brokerage services along with other services and products that are integral to the home buying process. Defining your Company Values The definition and subsequent communication of your company values is a critical element in the recruiting process. We encourage you to clearly define those standards that are the foundation of your office culture. Inform your agents and prospects of these values and review them on a regular basis. Examples of COMPANY VALUES are as follows: We believe that in an organization, the greater ~ 5 ~

8 the correlation between the values of its members and the values of the organization, the greater its success. 1. We believe in people who: Believe in their company and its purpose Believe in real estate as a career Believe in themselves 2. We believe that people stay in environments where they are learning and leave environments where they are not learning. 3. We believe in an environment of creativity, growth and productive change that encourages our Associates to maximize their potential. 4. We believe a creative, productive environment must be natural: We don t believe in fear motivation We believe in personal motivation and personal recognition 5. We believe that our Associates should not subsidize those who do not have the capacity or desire to produce. 6. We will not sanction incompetence or mediocrity. 7. We believe in excellence and will strive to achieve its ideal of producing the best and accepting nothing less than the best. 8. We believe in an environment of mutual respect consistent with personal values based on spiritual, intellectual, physical, financial and psychological equity. 9. We believe in the division of responsibility between management and sales. 10. We are human-resource oriented and believe in the concept of synergy and the force that lies within our Associates. Tell your Prospects why your office is the best Tell your prospect why your office is the best choice to enhance and maximize their career. In addition to listing the various attributes of your office, prepare a list of your awards and accomplishments and take the time to review them with your prospect. The time spent in setting out your high standards and explaining your culture will assist your prospect in coming to the right conclusion to join your office. Create an Office Brochure The creation of a brochure that details the various attributes of your office is another key component to your recruiting campaign. Include awards and accomplishments that your office has earned. You will also want to include your Office Location and Statistics, such as Wireless Internet Access and High Tech Media Training rooms, as well as Agent Office Types (private offices, 2, 3, or 5 person offices). Don t be afraid to sell yourself and the ancillary services offered through your office that sets you apart from the rest. Tell them why you re the best! Presenting this information in a clear and concise format will help you in selling the value of your office, your services and yourself. Examples of what to include in your brochure are: Full Support Staff 3 Hands on Broker/Owners 3 IT Department 3 General Manager Complete Real Estate Services 3 Residential sales and leasing, investment property and all aspects of commercial real estate. We are a full-service real estate company. Full Service Marketing 3 Brochures, Postcards, Broadcast s, Virtual Tours and the latest Technology tools to enable you to work smarter, not harder! In-House Mortgage Company 3 Promoting specialized attention and speedy approval for your clients. Top Producing Agents 3 Average Associate experience: thirteen years: twice the national average 3 A roster full of Associates with advanced professional designations 3 Freedom for the Sales Associate to advertise their listings and services, resulting in unique and specific personal marketing for you. ~ 6 ~

9 Past accomplishments 3 #1 RE/MAX Sales office in Dallas 3 #2 RE/MAX office in Houston for Closed Transaction sides 3 #3 RE/MAX office in San Antonio for Total Gross Dollar Volume of Closed Sales 3 RE/MAX is the Number One real estate organization in the United States and Canada and has offices in 63 countries 3 My RE/MAX of Texas Statewide Office gives back to their local community through participation in the Miracle Home program. Finding Prospects and Creating a Prospect List Determining your company culture and values will assist you in identifying prospects that will fit into your organization and share the same values as your management and existing Sales Associates. Listed below are methods and ideas of how to identify prospects within your marketplace. 1. Identifying recruiting prospects Use MLS statistics and information. For some areas, either the Regional Stats Program or Market Intelligence Program can be used to identify prospects through the use of MLS data. Market Intelligence is available in almost all MLS Systems. Please see below for more information related to Stats and Market Intelligence. Track who wins awards in local offices and REALTOR Board competitions Get existing Associates to identify agents whom they have relationships. Require Associates to complete Co-op agent survey after a completed transaction and before a commission check is received. Offer congratulations to high performing Co-op agents. Attend real estate social events hosted by lenders, title companies and other brokerages Invite prospects to events at your office. Events include: RSN programming and designation courses, anniversary celebration, co-op appreciation party, Grand Opening 2. Identifying prospects using Market Intelligence and the Stats Program Market Intelligence - Using MLS data, Market Intelligence identifies and ranks agents according to their production. Agents are identified by either their office location or by property location. Locations are determined by zip codes, cities and counties. Market Intelligence also ranks offices and firms using the same criteria. Users can filter through information using their own desired location and production criteria. 3. Creating your prospect list After identifying prospects that meet your company values and production criteria, assemble a list with pertinent information such as home address and secondary phone numbers, either home or cell phone numbers. It s critical to respect the CAN-SPAM Act, federal and state no-call lists and any other applicable laws. The best strategy is to ask your prospect for their permission to either call or send them information about your office, the market and the industry. Humanize the list Using a computerized contact management system, gather information on your prospects such as birthdates, annual production, professional/company longevity, family information, awards and professional accomplishments and keep track of correspondence between prospects. 4. Enter your prospects into the RE/MAX of Call Center, instructions are located in next section. Get referrals from newly recruited agents and ask for their assistance. Attend REALTOR meetings, educational sessions and open houses ~ 7 ~

10 RE/MAX of Texas operates a Regional & Call Center to assist our offices in their recruiting efforts. This is an online program available to all of our offices. To submit your prospects, follow the 5 Step Guide below. In order to participate in the Regional E-Recruiting Program, Owners enter their Top 40 Recruits and their contact information on the Online Stats Program. Personalized recruiting pieces will be sent out during on a 30- day cycle: one piece of every 30 days. Details and dates of the ed pieces are available for viewing online. When entering a prospect for the campaign, offices have the option to have our Call Center make the calls to set up your appointments. Broker/Owner/Managers can review detailed comments from prospects, track activities, and receive updates through the Regional Marketing/ Recruiting Web Site: HYPERLINK remax-texas.org/stat which is located in the Online Stats Web Page. 5 Steps for Successfully Submitting your Top 40 Recruit List Step 1. Go to Step 2. Go to Marketing/Recruiting, and then select Top 40 Recruits Step 3. Select the Update Office Contact link and enter or update your information Step 4. Identify your prospect. Our Market Intelligence program can be accessed under the Marketing/Recruiting tab located in your online stats program. The Market Intelligence program is a key component to helping you identify top recruiting prospects. Step 5. To add prospects to the recruiting ~ 8 ~ Regional Mail & Call Center call center you can either: Check the box next to all potential prospects in our market intelligence program and then check the Export to Top 40 Recruits or; If you have specific prospects select Add New Prospect and add prospects, use the? to find their license number in TREC then use the Magnifying Glass icon to add their name and home address. Then select Add to Call List so the Call Center will know which agents you want to have called. For questions about the call center, please all Karen Shelton at The following information and terms are provided to help you better understand the system: Call List vs. List: All Prospect Recruits submitted will be entered into the Drip Marketing ing list, and will show a mailing icon when you view your list. A Blue Telephone Icon will be displayed to indicate prospects that are also checked for the Call List. Office Contact Person: This should be the Broker, Owner, or Manager who will meet with Prospects. In order to begin the call process, you must provide this info, along with your availability to meet with prospects. Current Call List: A list of up to 40 Top Prospect Recruits to be called for the current period. Only those prospects indicated by checking the Add to Call List box will be called. All previously submitted names will need to be removed from the list in order to submit new names. The Removed Prospect list is only accessible through the View Prospects Page. Prospect Recruit: A Sales Agent that a Broker/ Owner/Manager wants to meet with for recruiting purposes. By clicking on a Prospect s Name, their Call Status and Comments will be displayed at the bottom of the page. Active or Inactive Prospect Recruit: Active Prospect Recruits are those on your current call list. Inactive Prospect Recruits are those not on the current Call List, which have been removed. Removed Prospect Recruits: Three rounds of calls will be made to each prospect. The Call

11 Center will remove prospects that do not answer/ return a call after three attempts. The Call Center will remove the prospects that decline in order for the database to remain accurate & keep availability open for new prospects. The office contact person must remove all prospects from the completed list at this time, in order to add new prospects. Removed prospects can be Re-entered futurely to initiate new contact with a prospect via Drip E-Marketing and/or Calling. Call Center Procedures for setting appointments: The Call Center will call the recruit lists on a per office, first come, first served basis with the goal of setting appointments on behalf of the Owners. Each prospect will receive three phone calls. Calls Made: Recruit calls will be made on Contact Person s behalf. Be advised that your recruitment list will remain confidential and will be processed strictly for your office. If Brokers/Owners/Managers attempt to submit a duplicate name, the web site will notify the user that This person has been entered by another office, and they will not be able to save any of the data to the system. Unanswered calls will be completed as followed: Call #1 non-detailed voic . Schedule a call back. Call #2 voic again. Schedule a call back. Call #3 Leave a detailed voic at home or cell. If office number, we leave name and number only. Offices can view comments in the View Current Prospects Page, Call options and Comments for each Prospect Recruit include: Made Appt, Left Message, Call Back, Declined, or Bad Number. When you click on a name, Comments regarding each call will be viewable near the bottom of this page. Dates and Locations: We will establish an appointment date and time with your prospect. Meeting Location to be held at the Broker/Owner s office. Otherwise, a diner, coffee shop or bookstore. If Prospect requests an off-site meeting, the Broker/Owner/Manager will follow up with him/her to confirm the meeting location. Please make us aware of any dates and times that you will be available for appointments. You should provide this information in the Update Office Contact page. Confirmation Both the Office Contact Person and prospect will be ed as soon as meeting is established. It will include all pertinent info for the scheduled date: Subject Line of is: Appointment. Broker/ Owner/Manager will need to Karen Shelton if the location will be outside the office. You are required to contact the prospect immediately and also 1-2 days prior to confirm the appointment, and arrange for a meeting location. It is up to you to keep the appointment once it has been scheduled. Follow Up After the appointment takes place, we will with a follow up. It s important to let us know if the appointment did or did not take place. You are responsible for all follow up calls and correspondence with your prospect. Reschedules and Cancellations Once the appointment is scheduled, it is the responsibility of the Broker, Owner, or Manager to maintain contact with the prospect. If a Broker/Owner/Manager cancels, it is not our responsibility to contact and notify the Prospect. The Broker must contact the prospect. In addition, you are required to contact Karen Shelton at , or HYPERLINK mailto:karen@remax-texas.com Karen@remaxtexas.com with the new date. Recruit ing Campaign Personalized recruiting s will be sent to prospects on a 30-day schedule. These s will direct prospects to a personalized site that containing useful tips and information for conducting their business. The content of this web site is largely populated through remax.net Agent Training on Demand. To submit your prospects, follow the 5 Step Guide below. In order to participate in the Regional E-Recruiting Program, Owners must add recruits to the recruiting database. When entering a prospect for the campaign, offices have ~ 9 ~

12 the option to have our Call Center make the calls to set up your appointments. Recruits will be mailed an introductory postcard with information for visiting their personalized web site hosted on This web site contains relevant, production-boosting tips and how-to s, each mixed with the RE/MAX value proposition and chances to learn more about joining. Once a recruit opts-in (by providing their name and address), they will receive monthly s informing them of updated content and giving them a taste of the superior resources and value that RE/MAX provides. Broker/Owner/Managers can review detailed comments from prospects, track activities, and receive updates through the Regional Marketing/ Recruiting web site: which is located in the Online Stats Web Page. ~ 10 ~

13 Interview & Follow-Up Procedures The initial interview and the first impression you make with your prospect is the most important step in the recruiting process. According to the recruiting success formula, you account for half of the reason an agent will join your office. Making your prospect feel comfortable with your leadership ability is necessary to build the trust agents will require from you when they choose to join your organization. Five Steps to Focusing on Recruiting 1. Consistency is paramount. Remember that it is not what you do that makes the agent move; it is what their Broker or company does or does not do that causes them move, or motivates them to look at their options. An agent calls you because of what you do between now and then, when they decide to re-examine their options. It is so important to keep your mailings going out on a regular basis. You never know when something will happen to make an agent unhappy and turn to another company for professional satisfaction. 2. Review your marketing message. Your marketing pieces should be designed to educate prospects about the benefits of your company. The marketing pieces and letters should create curiosity and a desire to know more about your company, your results, and your systems. Testimonial letters from your Sales Associates are excellent to include in your recruiting material. Do not try to sell them the entire company in just one letter. Each letter should focus on a few, one to three, unique features of your company, and should show the benefit to the Sales Associates on staff. Experts recommend a marketing piece be sent out once every two weeks. The marketing piece can be a letter, postcard, , company newsletter or anything that educates the agents in the marketplace on what you have to offer. 3. Keep your Recruiting List current. With new agents coming into the real estate business everyday, your Recruiting List should be constantly updated. At least thirty to forty percent of your names should be agents who have been in the business for less than one year. Statistics show that most successful agents make their first move their first year in the business. Most newly licensed agents do not know what to look for in a company, but the good ones learn quickly about quality companies that may suit their professional preferences. The same studies found that most agents are with three companies in their real estate career, and they stay with the second company an average of seven to nine years, the period when they are building their career. The other sixty to seventy percent of the agents on your recruitment list should sell an average amount of real estate for your area. An average agent is someone who sells one to three million per year (These numbers may vary for the Texas Market), and is usually more willing to look at their options with another company. 4. Follow up your letters with phone calls. If you make the calls, the agents will come in. A class was held on developing phone skills with a group of Brokers/Owners/Managers who did not regularly call the agents in their area. In just two hours of calling for appointments, the group booked over 50 appointments. The challenge today is finding the agents, not getting the appointment. The recommended time to call agents is between 8:15 AM and 9:15 AM at their home or 2:00 PM to 3:30 PM at their office. Speak with at least three agents per day to keep your pipeline full. 5. Make personal contact. In addition to sending out letters and making phone calls, do whatever possible to make personal contact with the agents in your market place. Open Houses, Broker Tours and Luncheons, invites to special events that your company is holding, or just stepping out of your office and saying Hello when an agent stops in for a key are excellent ways to make personal contact. Remember that recruiting is a contact sport. The more contacts you make, the more recruits you will have. Let s Recruit! ~ 13 ~

14 Interview Questions for Experienced Agents: 1. How many years have you been in Real Estate? 2. How was your production this year compared to other years? 3. What (or who) do you know about RE/MAX? 4. Have you interviewed with any other RE/MAX offices or companies? If so, what did you like or dislike? 5. What has kept you from joining us in the past? 6. What do you like about your current company? 7. If you were named the Manager/Broker of your company, what would you change or do differently? 8. How do you generate most of your business? Who does your marketing? 9. What type of advanced training does your company offer? Tech support, computer training? 10. What is your current commission split? 11. Who do you call when you have a situation with one of your contracts that could result in a legal issue? Are they available nights and weekends? 12. How are referral leads handled? Walk-ins, Callins, Internet leads? 13. What system does your company have to ensure that you get all the calls from your yard signs and ads? 14. What is it about your work and your life that really inspires you? 15. What are you hoping to accomplish here today? Interview Questions for New Agents: 1. Tell me about your last job. What you did there, and your likes and dislikes. Why you left or why you are planning to leave, and why you made the decision to meet today? 2. What have you done in your past that involved sales or contact with people? 3. What do you like best or least about sales in general? 4. As a consumer, when you hear the term RE/MAX agent, what do you think? 5. What are your hours of operation now? What additional hobbies or activities do you have that take place after hours or on weekends? 6. Do you know anyone in the Real Estate business? Who? Are they successful? 7. Do you have any concerns about a career in Real Estate? 8. What qualities are you looking for in a company? 9. Have you ever met a sales person that you liked? What made them different from others? 10. What was the most money that you ve made in a single year? When was that? 11. How will your lifestyle change when you re earning an extra $50,000 per year? 12. How much do you expect to make in Real Estate your first year? 13. What kind of commitment are you willing to make to achieve those income goals? (Are you prepared to make those commitments at this time?) 14. So tell me, Why Should I hire you (ask with a smile) 15. When can you start your real estate career? (Assuming they have a license) ~ 14 ~

15 Overcoming Objections: Six Common Objections of Experienced Agents Objection 1. I m friends with my Broker. 2. I d like to make a move, but I have too many listings and/or sales. I ll have to wait until they close. Possible Response(s) That must really put you at a disadvantage when you need to voice your opinion about the way the office is being managed. How could you be objective and have it not look personal when you critique or voice a concern? I ve learned over the years that friends, family, and business just don t mix. I m sure you ve had similar experiences. I d like to have an opportunity to show you how an objective business relationship could create more time off, more income and a better lifestyle for your family. With you being a top producer, it is understandable that you would carry a large listing inventory. If your Broker will not release the listings to you, then we could work out a referral agreement on those listings to make sure that your current office is compensated for the loss of listing inventory. 3. I m happy with my current company. Happy is hard to argue with. Just about every agent I speak with says the same, but what I find amazing is that people have varying definitions of happy. I m sure there are benefits at your current company that make you happy, just as much as there are benefits here at our office as well. What I would like to do is to find out more about you, what makes you happy and what we can do to exceed your expectations of happiness. 4. I m just too busy to meet with you right now. It s not a good time right now. I wouldn t expect any other response. Frankly, if you weren t a busy agent, I probably wouldn t be calling you. Let me ask you this: could you use more free time in your schedule? Would you enjoy having more time for yourself or your family? It sounds like we really do have something to talk about, when could we get together? 5. Let me think about it and I ll call you back. I know that time is short, and you probably have some important business to attend to now, however, I would like to be able to give you some tangible things to think about. Unfortunately the only way to accomplish that is by you and I spending a short amount of time together learning about each other s goals and what we would like to accomplish. I promise not to waste your time. Now, when could we get together for a cup of coffee? 6. I can t see the value in what you have to offer. I m sorry; I must have made a mistake or failed to effectively do my job. So that I can better facilitate this meeting, I d like to ask you some questions about your current situation. If you were magically the Broker of your company tomorrow, what would be the first things you would change? (Look for hot buttons, pain, and displeasure in current situation and build your value off of these issues). ~ 15 ~

16 Closing Techniques Top recruiters share common qualities of enthusiasm, confidence, and a strong commitment to their product. But they also do one thing extremely well: they repeatedly close their prospects. Closing is the skill of probing, questioning, listening, and overcoming objections, leading a prospect away from inertia and fear. In Dave Liniger s words, Every rejection puts you one step closer to acceptance. Here are three key points to be aware of when closing: 1. Create a sense of urgency. 2. Your enthusiasm dictates the prospect s level of enthusiasm. 3. You need to know and use a variety of closes Following are detailed strategies and tips on mastering each of these three points: 1. Create a Sense of Urgency. The most compelling reasons for joining RE/MAX rest primarily on the long-term impact on the real estate professional s career and personal life. But often, a deadline can help jolt a prospect into action. Create a sense of urgency with: The Value of RE/MAX. The sooner a real estate professional joins RE/MAX, the sooner they can begin to take advantage of the unlimited advertising tools and marketing resources that will enable them to become more productive. No other real estate company comes close to the brand name recognition enjoyed by RE/MAX around the corner and across the globe. RE/MAX convention dates. Use the RE/MAX International and regional conventions to encourage a prospect to join and immediately begin taking advantage of strong networking events. Describe how new agents are enthusiastically received at such events. Upcoming seasonal active real estate market. If the traditional busy time in your market is approaching, use that to encourage prospects to take action before their listing inventory expands. 2. Your Enthusiasm Dictates a Prospect s Enthusiasm. A prospect won t get excited about joining RE/MAX and your office unless you effectively project your own excitement about the benefits. You can do this through: Your level of confidence in how well a prospect can do at RE/MAX. Many prospects are paralyzed into inaction by the myths circulated about how tough it is to make it in RE/MAX. Voicing your confidence in the prospect s ability to run his or her business will do much to alleviate these fears and boost their confidence. Sharing your office goals and business plan. The excitement and enthusiasm you project while sharing your two-year plan and goals along with the professionalism demonstrated by the plan itself is a powerful impetus for getting prospects excited about sharing your dream. Showing prospects how joining will help solve their problems and help them achieve their goals. Enthusiasm mounts as it becomes clearer and clearer to prospects just how much RE/MAX affiliation can provide them. Believing in the RE/MAX Concept. Your level of enthusiasm depends on how much you believe in the RE/MAX system. The strength of this belief often depends on how involved you are in the network. To keep personal enthusiasm high, attend conventions, participate in local and regional meetings, forge RE/MAX friendships and networking contacts, and constantly build your knowledge of the RE/MAX system by taking advantage of services and publications such as RSN and the RE/MAX Times. 3. You Need to Know a Variety of Closes. Tom Hopkins says, The average champion accomplishes the close after the fifth closing attempt. If you know only one closing strategy, you are unlikely to close a sale. The most dramatic difference between top sellers and also-rans is mastery of multiple closes. Here are seven of the most successful closes in sales: a) Asking for the Order Close It is surprising how many sales professionals fail to simply ask for the order. You might say, for example, Now that you understand the benefits of RE/MAX, is there any reason why you shouldn t join my office? If the prospect says no, you ~ 16 ~

17 have a new Associate. If the prospect presents an objection, then you attempt to overcome it and use the same or another close. b) Assumptive Close In an assumptive close, you assume what you re saying will be accepted and proceed accordingly. You might say, I ve filled out most of these application papers. Would you please authorize them for me? The assumptive close bridges the gap between your prospect and his or her decision. Effectiveness of this close is in the rapport you ve established, the presentations you ve made, and the objections you ve isolated and overcome. c) Reflexive Close The reflexive close involves asking a question that can be answered without thinking. You assume you have the sale and ask for information. You might say, What is your social security number? (or address, or phone number). If the prospect asks why you want it, say you need some basic information for preliminary paperwork. If the prospect supplies the information, you have successfully closed. If the prospect responds with an objection, answer it and continue with another close. d) Comparison Close This is one of the most compelling closing techniques as it is a logical presentation of comparative benefits and features that will lead your prospect to an inescapable conclusion. Customize a list for your office. Let your prospect fill in the column on the right and participate in the comparison of RE/MAX with his or her own office. RE/MAX statistics for 2005: Comparison Close Breakdown RE/MAX Conventional Percent commission to Sales Associate: 100%/95% Average associate annual commission $124,093 Number of offices in the organization 6,000+ Average transactions per associate 24 Ability to survive down markets Yes International awards and recognition Yes Corporate Services National television advertising Yes Satellite television training Yes Relocation company Yes Web Roster Yes Productivity software and support Yes International referral network Yes Corporate communications Yes International advertising Yes Realtor owned and managed Yes 30+ years of continuous growth Yes Dramatic projected future growth Yes International conventions Yes Advanced designation training Yes ~ 17 ~

18 e) Ben Franklin Close The Ben Franklin close is one of the most widely used and effective closes. It maximizes the client s participation and exposes objections. It is simply an enumeration of advantages and disadvantages (for example, of becoming a RE/MAX Sales Associate). You provide a restatement of the advantages and benefits. Then you ask your prospect to list all the disadvantages. In actual practice, what your prospect will list as disadvantages will in reality often be his or her most important concerns and objections. If you can overcome those objections, you have a new agent. Here again we see the importance of knowing how to overcome objections before attempting a close. A few typical disadvantages might be: What do I do with my existing listings? I m not sure that this is a good move for me. I m concerned about a down market. I have to learn an entirely new system. I feel a loyalty to my present office. Actually, none of these comments is really a disadvantage of the RE/MAX system. They are concerns that can be addressed as strengths of RE/MAX. After you eliminate some objections, a few valid disadvantages might remain, against a long list of advantages. Don t be discouraged or defensive about these. The premise of the Ben Franklin close is that your prospect participates by listing his or her disadvantages against your list of advantages. Therefore, it is essential that you have a thorough working knowledge of the benefits and features of RE/MAX. g) Secondary Question Close This close is a direct response to an objection, rephrasing the objection and then presenting a less important question. Let s say that a prospect says he or she wants to think it over (the most common delay you are likely to encounter). First acknowledge the objection by rephrasing it, As I see it, Mr. Prospect, your primary concern is one of timing: whether to join my office now or at some time in the future. Would you be more interested in a private office or a shared space? Notice what has happened. You acknowledged the concern about timing, but you made an assumptive close that the prospect is going to join you now or in the future. Next, you asked a secondary question that offers choices. If the prospect says he or she wants to share an office to save money, you start with some preliminary plans. An objection has been overcome and you have closed the sale. Studies show 97 percent of salespeople respond to the objection I want to think it over by accepting the objection and losing the sale. After your initial interview with your prospect, it is important to take the necessary steps in either making the agent s transistion to your company as easy as possible or to take the next steps in building the relationship by maintaining contact with your prospect. Some of these techniques are listed below. f) Wrong Information Close Objections frequently stem from misinformation. These objections need to be handled with special tact because your information directly challenges your prospect s credibility and self-image. In response to the objection, It costs too much, for example, you might say: I can understand how you feel, Mr. Prospect. I felt the same way before I studied the costs of joining a RE/MAX franchise. But look at what I found... Now is your opportunity to explain the financial benefits of RE/MAX affiliation. The close easily follows: As you can see, Mr. Prospect, the financial benefits are exactly why you should join RE/MAX. Are you ready to give RE/MAX a try? ~ 18 ~

19 Follow Up Techniques 1. Very Important after interview send them a personal thank you note. Be sure to mention something personal that they told you during the interview. 2. Find reasons to contact them regularly. Make sure that they are on your mailing list for materials either from your office or the Regional office. 3. If you see that they are holding an open house, attend it. Top 5 Action items to helping with a smooth transition for your newly recruited agent: 1. Offer assistance in moving their personal items. 2. Prepare and submit press release to local community paper, offer assistance moving their listings and other administrative items 3. Furnish their first set of business cards and have temporary RE/MAX office yard signs 4. Have welcome packets that show resources of office, support staff and phone numbers 5. First day orientation and personal welcome note signed by owner and staff; have welcoming committee of two or three agents. 4. If you are having a company/office function (trainings, parties), invite them ahead of time (via mail) and follow up with a personal call to invite them as the event nears. 5. If one of your current agents lists a property in a price range they sell, send them a flyer on it with a handwritten note that you thought they might want to know about the new listing. 6. If you get their birthday, remember to send them a birthday card. 7. If they have an article of press release in the paper, clip it out for them and send a personal note congratulating them. 8. If the recruit gets a new listing, be sure to send them a personal note of congratulations on getting it. 9. Follow up every personal contact with a handwritten thank you note. Follow up every direct mailer with a call. 10. When you hire a new agent, make sure you have systems in place to make their move seamless. For example, order their business cards, name badge, yard signs, riders, and open house directional signs ahead of time. Offer to help them move. Have a small flower arrangement with a welcome note on their desk the first day they show up for work. ~ 19 ~

20 Sample Letters for Follow-Up >Name of Prospect/Recruit<, Thank you for accepting my offer to contact you within a >time given< period. I appreciate your consideration of an informational meeting with me in the future. I understand that timing is very important, and perhaps at a later date, you will be ready to schedule a one-on-one meeting with me. There are amazing benefits and options available for you at my RE/MAX of Texas office. I would like to meet you to discuss your current position and provide you with the numerous advantages of affiliating with RE/MAX. The best way to do this is by spending some time together to learn more about our mutual goals, and what we d like to accomplish. I am looking forward to learning more about you, including what your career preferences are, and what I can do to exceed your professional expectations. By meeting with you personally, I can address any concerns you may have, and tell you why RE/MAX is the best place for you to achieve maximum success. If you have any questions, please contact me. I will stay in touch with you over the next few months. Sincerely, >Broker Name< Office Name: Direct Number: Cellular Number: Website: >Name of Prospect/Recruit<, I wanted to express my sincere appreciation to you for your time in meeting with me earlier this week. It is my hope that you found our discussion informative and that you have had the opportunity to review the materials I provided to you that outline the numerous benefits of joining my office. Please feel free to contact me with any questions you may have. Also, I would like to invite you to attend our bi-monthly potluck luncheon to be held in our training room next Wednesday. We re going to get together to watch Brian Buffini s 100 Days to Greatness coaching session. I look forward to seeing you there! Sincerely, >Broker Name< Office Name: Direct Number: Cellular Number: Website: ~ 20 ~