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Nine Principles of Designing Profitable Compensation Programs

iBroker and The Profit Centre - Compensation Programs

Before designing a compensation program it is important to first identify who your customer truly is before you start recruiting. I believe that many Brokers do not have a defined outline of the REALTOR® they want to attract. Given the challenges of recruitment, Brokers tend to be seduced by the physiological win of a new heartbeat as opposed to being focused on acquiring the right REALTOR®. The result is often the development of compensation programs designed to attract them on price.

When Recruiting, Stop Selling Price

Often when I ask a Broker to role play and try to recruit me as an agent, I find the following fundamental challenges in their approach:

  • They do not have an agenda.
  • They do not ask any (or enough) questions.
  • They try to tell me too much, which is overwhelming.
  • They focus on price primarily.
  • If they discuss value, it is not focused on what I want or how it benefits me.

Let's tackle the first observation.

Put Prospects at Ease with an Agenda

It is important when meeting someone for an appointment that you create an environment that puts your prospect at ease. An agenda does this. Here is what I recommend the agenda look like:

  1. About You
  2. About Us
  3. Your Value Proposition
  4. Unanswered Questions
  5. Mutual Decision

In articulating the agenda I would suggest it sounds like the following: