Posted by: realestatewebtrainer | December 22, 2010

Income incentives don’t work the same way for all people

Successful Real Estate Professionals build their business on their ability to generate deals – in other words the Art of Deal making but many of them fail to build teams and hire Administrators because of that gift…

Think about it – why are many Sales people attracted to Real Estate…??? Let’s be honest; it is the potential of unlimited income. There are many Real Estate professionals, but a fraction is capable of making 7 figures. So what is their Achilles’ Hill?

1. Many of these successful Brokers and Agents think that because they earn their income based on commission everyone else’s income should be based on commission as well. This flaw makes them think that the way they can get the best out of their workers is by scaring them into more income… contingent income is flawed – it is not the same as contingent commissions.

2. These Realtors confuse performance based on Closings for the hourly work of implementation based on activity – a very flawed thinking. The best thing a Real Estate Agency or a Team Leader can realize is that the motivation for making money is different for diverse people. The majority of us want to make a Living Wage and go home and be with our families; others, a very small percentage, don’t mind suffering waiting for the whale of a deal.

3. Never hire employees on commission; as the leader of your agency you must have a clear understanding of the tasks you expects from your employees, a predictable number of daily hours, and an hourly wage with a fixed number of hours per week… you are not going to pay a McDonald’s employee based on the number of Happy Meals you sell… what a silly idea.

4. When you fail to do the above task (#3) you must accept that you are hiring a partner who makes money when you make money – they are therefore entitled to know what you have been doing all day… but because you hired them as employees you resent that… You must wake up… You did not hire them… you hired them on a contingency… they make a percentage of income when you make money… the true definition of a partner NOT an employee.

5. You MUST ask your self these 2 simple questions: “Have I given my employee a living wage? And are they living up to my expectations?” if so then you are on track but this is not enough… you must implement employee performance reviews every quarter and the potential for bonuses based on true measurable performance at the end of the year.

6. When you get a chance watch Daniel Pink talk about “The Surprising Science of Motivation” on YouTube (http://www.youtube.com/watch?v=rrkrvAUbU9Y) – it may enlighten your 2011 Plan of Action.

The Blog today in not about Real Estate SEO but rather about viewing the world from the prism of those who work to make an hourly wage from us – Not everyone is driven to make a commission from the potential that Real Estate offers.

Happy Blogging 🙂 – Key Yessaad

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: