ELITE AGENT Issue 07 Sep Oct 2015 [FULL]

SOCIAL MEDIA REPORT CARD PAGE 14

HOW TO STAND OUT ON THE GLOBAL STAGE PAGE 20

SERVING A NICHE MARKET PAGE 50

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AUSTRALIA’S TOP GUN Red Bull racing champ Matt Hall talks mindset

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2020 CONNECTING EMPLOYEES IN THE CLOUD Virtual reality agents

EQUITY: TO SHARE OR NOT TO SHARE

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The agency that puts client satisfaction first

STRONGER THAN STEEL

Clinton Knop

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Issue 07 Oct/Nov 2015

eliteagent.com.au eliteagent.tv SAMANTHA MCLEAN – Managing Editor samantha@eliteagent.com.au MARK EDWARDS – Commercial Director mark@eliteagent.com.au JILL BONIFACE – Sub-Editor editor@eliteagent.com.au TARA TYRRELL – Feature Writer HERMANSYAH ASRORI – Web Master newsroom@eliteagent.com.au CHORUS DESIGN – Art Direction/Design thegoodpeople@chorusdesign.com INDUSTRIE MEDIA - Feature Photography and Video industriemedia.tv

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2 ELITE AGENT • OCT-NOV 2015

Fine & Country 316 New South Head Road, Double Bay, NSW, 2028 T: 1300 960 037 E: contact.au@fineandcountry.com

CHANGE YOUR BRAND, CHANGE YOUR IMAGE, KEEP YOUR PROFITS Existing agencies or successful agents who aspire to own their own business can now be a part of a modern, prestigious and innovative global brand that offers independence with support in a simple and affordable licensing model.

THE BENEFITS OF A FINE & COUNTRY LICENSE: Association with a multi-award winning international brand: 

A prestige brand to change your image and your bottom line by providing you with the tools to list and sell more properties.

Retain your hard earned profits:  Simple, affordable, flat fee license.  No royalties on turnover; not a franchise.  No interference or restrictions in the way that you run your business.

Our tech team are hard at work automating your online presence and process:  An award winning website and mobile site that now delivers record levels of traffic.  Unlimited property listings for your agency and vendors.  Integrated social networking; fineandcountry.tv

Branding and design:  Comprehensive bespoke branding package that allows you to set up and maintain your business profile - simpler, better, faster.  Access to a world-class marketing department that is continually designing materials for prospecting, local area marketing and promotions.  Marketing campaigns developed and updated continually, with design, content, and ideas from our global network of offices.

Reach markets that other agents cant:  F&C currently have a worldwide network of 350 agencies across 12 countries.  A showroom in Park Lane London & other offices across major international cities - attract buyers from all over the world.  Annual property exhibitions; F&C magazine (Exclusive Homes Worldwide).  Regular exposure in international media, including Bloomberg, The Wall Street Journal, London and New York Times, gives F&C agents incomparable credibility with vendors and buyers.

For a confidential chat or to arrange a meeting to discuss an exclusive license for your area Contact Kevin Fine on 0416 161 440 or kevin.fine@fineandcountry.com

Contents Regulars 006 EDITOR’S LETTER 008 READER PROFILE Shonleigh Ryan 010 UPFRONT News from the Community 024 HEALTH SCIENCE Emily Schofield 026 BUSINESS DEPOT John Knight 028 MINDSET CORNER Jet Xavier 041 CHAMPIONS Franchise Award Winners 060 THE HOME STRAIGHT Mark McLeod

30

First Person 016 MANY HANDS MAKE LIGHT WORK Josh Phegan

2020 34

018 CATTLE, COMMUNITY AND COUNTRY ROADS Denise Haynes 020 HOW TO STAND OUT ON THE GLOBAL STAGE Jason Hellyer 022 PLANNING AHEAD: REVENUE VS PROFIT Paul Davies

Cover Story 030 STRONGER THAN STEEL Clinton Knop

Elite Agent 014 SOCIAL MEDIA REPORT CARD How does your brand rank?

034 GET READY FOR 2020 Special Report 040 UTILITY CONNECTIONS More than meets the eye 042 AGENT PROFILE: Tristan Tomasino, Biggin & Scott Yarraville 044 AUSTRALIA’S TOP GUN Red Bull racing champ Matt Hall talks mindset 046 NO SALES AWARDS! The agency that puts client satisfaction first 048 CONNECTING AGENTS IN THE CLOUD eXp embraces virtual reality 050 SERVING A NICHE MARKET Exploring end-to-end solutions for seniors 052 W HEN TECHNOLOGY DELIVERS A STRONGER HUMAN CONNECTION Kylie Davis 054 G AINING ACCEPTANCE OF AUCTIONS IN ANY MARKETPLACE Mark Kentwell 058 8 WAYS TO KEEP THE PEACE IN YOUR WORKPLACE Tanja M Jones

44

WEDNESDAY 11 NOV 2015 LIST.SELL.NEGOTIATE RESHAPE, RENEW, REFOCUS & REBOOT YOUR SKILLS WITH AUSTRALIA’S LEADING AGENTS & INSPIRING ENTREPRENEURS. THIS IS A CONFERENCE WHERE YOU’LL LEARN EVERYTHING YOU’LL EVER NEED TO WIN IN BUSINESS AND IN LIFE.

FEATURING MICHELLE BRIDGES, TOM O’TOOLE, CRAIG ALEXANDER, JOHN MCMANUS, ANDREW MCCANN, VIVIEN YAP, MICHAEL CLARKE, KRIS CASEY, JOSH PHEGAN & DAMIEN COOLEY

BOOK ONLINE NOW FOR TICKET PRICES & DETAILS GO TO LISTSELLNEGOTIATE.COM.AU

G EDITOR’S LETTER GRATEFUL. ONE YEAR on since

the first issue of Elite Agent, how quickly time flies when you are having fun!

It feels like it’s been a long time since we last spoke. I’ve packed a lot in, including a trip to San Francisco to the Inman Connect Conference, the ARPM Conference back here, stacks of interviews, and oh yes, I got married too. So August was a pretty big month (and a very good month, I have to say!).

Although we went offshore for some super interesting ideas from the States which are must-reads, we’ve also gone around Australia; I was determined to get to WA for at least one cover this time around, and ended up getting both! Chatting to Laura and Clint was great as they are both incredibly special people, and as always we learned something new from each of them. One story was pretty easy and fun to write and the other confronting, emotional and frankly hard. How can that be for a magazine that focuses on real estate?

I confess: Clint’s story took me longer than any other story I have written. When you listen to someone like Clint talk about

6 ELITE AGENT • OCT-NOV 2015

life and recovering from cancer; from being so sick with an almost unwinnable battle and somehow finding the strength to come out of it with grace, humour and compassion for others, you feel a little humbled that the things you may have been grizzling about really don’t have that much importance.

Clint didn’t hold back; he was very honest with me about what he was thinking and feeling during his illness. Life, death, depression.

All big tough subjects. But there

As I write this there at least three different organisations in the media that seem to be vying for the title of “the Uber of real estate”. So here is my 10c worth. The apps are interesting, for example SQFT and Opendoor (transaction efficiency I think will be a part of eventual disruption assuming they can get legal and regulatory issues sorted out) and there is also the consulting model (for example, Hello). In all of these cases you still have agents doing the same job with

I would argue that true ‘disruption’ is not a similar or unbundled service at a cheaper rate; that’s just discounting. was one message he wanted me to give everyone loud and clear – if you are feeling some form of lousy, get it checked out. Look after yourself. Be kind to yourself.

And be kind to others; you never know what they are battling, and it may not be obvious.

Now to an alternative ‘big tough subject’ and the most over-used phrase of the month ‘Uber-like disruptor’. If I hear it one more time...!! But who doesn’t admire Uber? They have done some amazing things and personally I am a fan... even after a very scary Uber ride in San Francisco where we ended up on the wrong side of the road driving toward four lanes of oncoming traffic and then nearly T-boned at the next intersection.

I guess your experience depends on the driver you get; yes, there is a metaphor.

a slightly different wrap around or pricing model. So, in my mind, no one yet has really earned title the ‘Uber of Real Estate’. I would argue that true disruption is not a similar or unbundled service at a cheaper rate; that’s just discounting. And while a cheaper price will appeal to some people, it won’t appeal to everyone, just as some people won’t risk getting into a car with a driver they don’t know. With the current market we’re in (particularly Sydney and Melbourne) one could argue anyone with a decent sales pitch should be reasonably successful; but that’s the market, not the model! If I was to pick, I would perhaps argue that the ultimate distruptor will be transparency; another topic we could spend significant time debating.

A very real problem that concerns me right now is the

GET YOUR VENDOR ADVERTISING PAID NOW skills issue that Australia is facing; PwC have found that 44.1 per cent of Australian jobs are at risk of digital disruption over the next 20 years. The risk for real estate agents was found to be very high at 82 per cent. That doesn’t mean we’re not going to have any real estate agents in 2035, but the fundamental skills that will be needed will be different; more personalised niche services that are more technology-driven, with data being the most valuable currency.

And if you want to know more about that, or have a go at being a bit disruptive yourself, turn to page 34 to spend some time with some amazing business thought leaders who had some really good advice on how to look around you now for other opportunities that will futureproof your business.

Last issue in my Editor’s note I talked a bit about feedback. To me real estate is about people, and so is this magazine. It’s about you and the guy (or girl)

down the road, their families who are supported by the industry and the teams that may work for them. I often say, ‘If one person gets one thing out of one magazine and draws some benefit from it, then I’m happy.’ It might be something to do with real estate directly, or maybe something about life which makes them see their careers differently. But, in the spirit of that I would love some feedback from you all about the magazine; what you think we are doing well and what you think we could be doing better.

One reader will earn the right to be on the cover of Elite Agent or Elite Property Manager, plus we are giving away lots of cool Elite Agent swag. Complete the survey at eliteagent.com.au/ readersurvey, and as always, enjoy the issue.

Express advertising advances turn unpaid advertising into cash in 4 hours

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READER PROFILE

FAMILY TIES Shonleigh Ryan from McGrath Bulimba is in her first six months of a new career in real estate working with McGrath Bulimba. Focusing on East Brisbane, Coorparoo, Camp Hill and surrounding areas and describing herself “as a total rookie in the industry” she says she is enjoying the learning and exposure that comes from being surrounded by so many well-established agents who are always happy to lend a helping hand.

What motivated you to get into real estate?

First and foremost, my dad!

He previously sold property on the south side of Brisbane and was extremely successful in doing so. A couple of years ago he told me he thought it would be something I would be good at, and I should seriously consider entering the world of real estate. With a strong

need to do, how often I need to be doing it and what style suits me best! There are so many different ways to connect with people that it can be a little overwhelming with not knowing where to start.

Thankfully, Matt Lahood sat me down when I first started and suggested that I focus on four key prospecting methods. I find myself constantly referring

back to this list and realigning myself with it.

In your briefcase right now is…

I always carry my little emergency kit; I’m constantly mocked about it, but it always seems to save the day! It includes things like band aids, lipstick, pens, spare USBs, business cards, lenses cleaner for my glasses, a blank Form 6 (because you just never know), perfume, gum, bulldog clips, a comb, tissues, dental floss, hand sanitiser and face wipes.

Thinking about it now I can see that it may seem a little extensive, but it definitely serves its purpose!

Who inspires you ?

So many people come to mind! I am so grateful to be surrounded by such a driven and supportive tribe of people who just ‘get it’. However, a stand-out for me would have to be Kurtis Pirotta from McGrath in Paddington. He

Tell us about something you love or couldn’t live without.

I love quiet nights in on the couch with my partner Brent, eating pizza, drinking cider and watching Suits. Our downtime together really grounds me and forces me to switch off and relax at the end of a big week.

To be honest, I just want to create a group of raving fans who are thrilled to have done business with me because I helped them reach their life goals through buying and selling property. background in sales and working specifically with women in real estate, I decided that if they could do it then maybe I could too; so when McGrath offered me the opportunity to spread my wings and fly, I took it.

What have you found to be your biggest challenges so far?

I’m still getting my head around what type of prospecting I

8 ELITE AGENT • OCT-NOV 2015

has been chipping away at his core business development area for the past 12 months.

This has been a very slow and tough challenge for him as this particular area is highly competitive, with some fantastic, well-known agents who have been in the game since before we were born. But over the past year his commitment to being the area specialist has not once wavered, even on his toughest days. This type of commitment and drive really inspires me.

What about technology you can’t live without?

I couldn’t be without my iPhone 6 Plus or, as my friends like to call it, my ‘mini-computer’.

What do you enjoy most about Elite Agent Magazine?

Last year through my previous role I had the pleasure of getting to know the beautiful editor of Elite Agent Magazine, Samantha McLean. We have kept in touch ever since and I have closely followed Elite Agent Magazine from its very first issue, which was a very exciting (and busy) time for Sam! I love that the magazine gives me the opportunity to hear about insanely successful agents and their journey to success, but it’s also nice and reaffirming to hear from people who are just starting out, because they are the people that I relate to the most right now.

What are your goals for the next 12 months?

I’m focused on growing as a real estate agent. To be honest, I just want to create a group of raving fans who are thrilled to have done business with me because I helped them reach their life goals through buying and selling property. I would also love for these people to put their experience with me as their estate agent in writing, so that I can use it to build my business in a really authentic and transparent way.

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Michelle Bridges to lead high impact event Australian fitness guru Michelle Bridges will head a stellar line-up of inspirational speakers at the sixth annual List, Sell, Negotiate event.

Hosted by high-performance real estate speaker, trainer and coach Josh Phegan and top auctioneer Damien Cooley from industryleading Cooley Auctions, the event gives real estate agents the chance to reinvigorate and fuel themselves for success in 2016.

“List, Sell, Negotiate 2015 is a phenomenal opportunity to see some of the best of the best,” Mr Phegan said.

“It’s a chance to reshape, renew, refocus and rebuild your skills with Australia’s leading agents and inspiring entrepreneurs, including Michelle Bridges, the worldwide fitness guru and entrepreneur behind the 12 Week Body Transformation and Channel 10’s The Biggest Loser.”

Other key guest speakers include three-time world champion Ironman, known as ‘The King of Kona,’ Craig Alexander, who will share his secrets on having the determination to exceed.

Attendees will also hear from Tom O’Toole, a baker from a small regional Victorian town who now sells more than $17 million worth of bread, pies and cakes to more than 1 million customers a year at The Beechworth Bakery.

Real estate industry speakers include John McManus, a director at LJ Hooker Willoughby/ Artarmon, speaking on how to win listings and outpace and out-manoeuvre the competition and Jellis Craig director Andrew McCann, who will provide an insight into how to prospect to prosper and never grow tired of serving the customer.

“We are excited to present such a dynamic program of elite performers, including the best from within our industry and from the country’s top entrepreneurs and the world’s best athletes,” Mr Cooley said.

“These people dedicate their lives to achieving their goals and incredible success and List, Sell, Negotiate gives attendees a rare opportunity to learn from their inspirational stories.”

List, Sell, Negotiate will be held on Wednesday, November 11, at the InterContinental Hotel Double Bay, with earlybird tickets available before September 15 costing $395, then $425 after that date.

For more information and to book tickets visit listsellnegotiate.com.au.

10 ELITE AGENT • OCT-NOV 2015

Stay open 24/7 for just $7 a day Absolutely Brilliant is a new service that allows agencies to have a team of real estate professionals answering their callers 24 hours a day; even looking after the agencies’ staff mobiles and dealing with their calls when they can’t. It’s like the agency and their staff having personal assistants. And for an agency and their staff to operate 24 hours a day, 365 days a year, the cost is less than a McDonald’s Happy Meal.

At less than $7 a day to use the marketing advantage of advertising they are available 24 hours a day, just one new listing a year pays for the cost of the service five times over.

With more than 40 per cent of people doing their property research after hours, the consumer is now demanding and expecting immediate service no matter what time of the day or night. Seventy-five

Fine & Country launches in Australia Fine & Country began as a family owned and run business and, although it is now a global brand, the company has retained its family values at the core of its business ethos. Malcolm Lindley began his career in property when he founded the Guild of Professional Estate Agents in London 30 years ago.

The Guild was set up to represent and assist independent agents across the UK, with its main responsibility being to provide them with high-quality graphic design, desktop publishing services and marketing collateral, purchased on a collective basis to ensure cost savings and quality consistency.

The Fine & Country brand was born out of a request from the members for the Guild to create, design and implement for them a premium brand, which would assist them to list more

per cent of callers don’t leave messages – they simply ring a competitor. It is this 40 per cent of property hunters that represent a big opportunity for an agency to grow their market share, win more listings and make more commissions.

The Absolutely Brilliant service comes with a major marketing bonus; all clients of Absolutely Brilliant can enrol their tenants in Renters Assist. It’s just like Roadside Assist, but for tenants. Renters Assist provides real help directly to tenants – and it’s totally free for the tenants and the agency.

Real estate never sleeps and some agencies are already capitalising on this opportunity to win more listings and make more money.

To test this service with a 30-day free trial visit absolutelybrilliant.com.au.

prestige properties in competition with the established ‘big name’ brands.

Fifteen years later, they are a multiaward winning estate agency with offices worldwide, regularly featured in Bloomberg, The Wall Street Journal, New York Times and The Times of London. Fine & Country have now launched in Australia, with the first office located in Double Bay, NSW. Headed up in Australia by Kevin Fine and Laurence Trakman, the brand will offer its uniquely affordable licensing model to existing agencies (independent or franchised) and successful agents who would like to retain their profits instead of paying them away to a franchisor, be in their own business, and who can see the opportunity to secure an exclusive licence for a global brand in their neighbourhood.

The licences will offer a low, flat fee structure, totally autonomous operation, best in class marketing collateral, access to the latest agency marketing campaigns emanating from our worldwide offices and international exposure for vendors.

Their goal in Australia is to select only quality agents to represent them. They are looking for individuals who value personal service, honesty and integrity, are highly motivated, and who have a strong desire to be associated with a prestige global brand. These are people who understand that their clients also value dealing with an elite group of agents who can offer genuine benefits.

Visit fineandcountry.com.au for more information.

eliteagent.com.au 11

UPFRONT

LEARN FROM THE BEST – VISIT ELITEAGENT.COM.AU

Take ‘remarkable’ on the road First impressions are lasting.

There is no second chance to make that good first impression. You have seven seconds to make that impression; seven seconds to win interest and keep it. Vitrine Media’s window solutions have proved this time and again.

How can you transfer that impression to your open homes and auctions? That is the question every agent is asking - how do we engage and inspire clients at these events the same way you do in your agency windows? You want the audience to be excited and inspired. All that work leading up to the auction day, all

the expectation needs to be carried forward to the event!

After extensive research and development VitrineMedia has the solution. You can now take a mobile version of your window display with you.

We are proud to introduce the New I Max mobile stand: attractive brushed aluminium rods for mounting your LED displays to a black hi-gloss base incorporating your power supply.

Available with a variety of screen size combinations: A3, A4 or a combination of both.

For information email infoaustralia@vitrinemedia.com.

Innovative new software offers a competitive edge for agents Tech start-up Exchange Hub is soon to release a cloud-based software solution which will revolutionise the way real estate agents communicate with other parties involved in the property sale. Designed by agents for agents, the software enables transparency of the sales process from listing through to settlement. It integrates sellers, buyers, conveyancers and finance brokers such that everyone is aware of the progress and is alerted to upcoming tasks and deadlines.

The software was inspired by past experiences of CEO David Arkless when buying and selling property.

“When I purchased my first property I became frustrated by the lack of information I was receiving about the settlement process. I found myself regularly contacting the conveyancer and agent chasing updates and it became apparent to me that this was hindering them in doing their jobs. Exchange Hub was developed to address this issue, by providing a communication and progress tracking 12 ELITE AGENT • OCT-NOV 2015

tool which is accessible 24/7.”

Hosted on a secure online platform, the system enables all parties to log on from a variety of internet connected devices. Viewing the status of tasks, receiving automated alerts, communicating using the secure messaging system, exchanging documents and accessing homeopen feedback, are just a few of the features offered by Exchange Hub. Due for release in October, the software offers an opportunity for forward-thinking agents to gain a competitive advantage. By increasing client satisfaction agents will enjoy more repeat business and referrals.

Efficiencies created by the system enable agents to focus their time on more dollar-productive activities.

To find out more about Exchange Hub, David and his team invite you to view the video and register for a free one month trial by visiting their website at exchangehub.com.au.

Property management made mobile Life is about to change for real estate agency principals, property managers, landlords and tenants with the launch of app MyMobilePM later this month at the First National Real Estate Network Property Management Conference at the Adelaide Hilton.

The first of its kind, MyMobilePM is a downloadable app that provides you with a hand-held mobile information system. It gives you direct access to all your tenancy details, rent due dates, routine inspection dates, when rent has been receipted and financial statements, eliminating the need for mundane phone calls and reducing your agency workload. Everything you need at your fingertips in the event of an emergency and, most importantly, no more unnecessary, time-consuming phone tag!

The app takes care of all the mundane Q & As and eliminates the need for time-consuming information exchanges. You can now have 24/7 access to your portfolio and all on your phone.

The main intent of the app is to help reduce stress, increase productivity through less disruption, and allow PMs to cultivate their relationships with clients by creating extra client services.

For tenants, they can access information about their lease details, report on maintenance and take photographs; and for tradies they can quote more accurately and faster – all at their convenience, 24/7.

The app is the brainchild of estate agents and property managers of 25 years, Sharon Whorlow and Breearne Lacey. Sharon says, “We felt that in this day and age basic information should be readily available on a hand-held mobile device, immediately, accurately and cost effectively, so MyMobilePM was born to better serve our industry.’’

The app works on Apple and Android devices and is available on iTunes. Any agency that subscribes to the app will also be able to allow their tenants and clients to use it. It will initially work with REST, Console and RP Data software systems.

Visit MyMobilePM.com.au for more information.

TECHNOLOGY SPECIAL

REAL ESTATE INDUSTRY SOCIAL MEDIA REPORT CARD SOCIAL MEDIA PRESENTS AGENTS WITH great opportunities to build relationships

and generate leads. Ultimately, being successful with social media in terms of engagement is about providing consistent, high-quality content that your audience responds to. How do you rate, and what can you do to improve?

HOW WELL DOES YOUR BRAND RANK FOR SOCIAL MEDIA ENGAGEMENT? BrandData is a digital media ranking system for over 5,000 brands in Australia, studying followers and engagement measures such as likes, retweets, comments and shares across most social channels.

What insights do these rankings for the property industry show? Overall, the average engagement percentage for the real estate agents category sits at 3.7 per cent. This, they say, is a relatively good achievement for a service business and on a par with computers and computer related products, wealth management, theatres and eyewear.

For property professionals the channel that gets the highest average engagement percentage is Instagram, and the channel that has the largest engaged audience within this category is Facebook. One could deduce that if you are an agent, it makes sense to be on both of those platforms, and that it pays to focus your efforts on where your following is strongest.

Alternately, using this type of data you could look at where you have the least competition, and exploit that channel.

In terms of how well individual brands are faring on social media, it appears that bigger may not always be better; this BrandData weekly snapshot shows Marshall White at number one, with a number of other smaller brands/groups appearing in the top 20.

Digging a bit deeper into these insights, we find some interesting stats about engagement. While LJ Hooker at number two have a larger calculated audience of 21,059 across all channels than Marshall White at number one with a total audience of 13,380, BrandData’s engagement algorithm has ranked Marshall White higher for social engagement, with more

14 ELITE AGENT •OCT-NOV 2015

people commenting, sharing or liking. The takeaway here is fairly consistent with what the experts have been telling us for a while: It’s not the biggest audience that will provide you with the most benefit, it’s the most engaged audience.

HOW CAN YOU IMPROVE? Digital marketing specialists Stepps have also recently completed their own survey, the Industry Social Media Marketing Report 2015. Founder and Director Josh Cobb explained the aim for the survey was OVERALL RANKING WITHIN CATEGORY 1

“to shine a light on where the industry is sitting with respect to social media and its use.” Out of 127 real estate professionals who were surveyed came some interesting insights, including: • For agents, the conversation around social media is no longer ‘should we do social media?’. The question is now ‘how do we do it well?’

• Only 37 per cent of agents are paying to advertise on social media. On average, only four to six per cent of your fans will see your posts (it can be as low as 0.5

WEB

FACEBOOK

INSTAGRAM

TWITTER

YOUTUBE

1

Marshall White

17

3

−

4

1

2

LJ Hooker

1

1

7

15

10

3

Ray White

3

6

−

1

−

4

Century 21

4

8

−

9

7

5

McGrath Agents

2

2

7

15

14

6

First National

10

10

7

6

9

7

Belle Property

6

7

3

15

−

8

Barry Plant

7

15

−

5

16

9

Jellis Craig

12

20

2

15

3

10

hockingstuart

14

16

7

15

4

11

Professionals Real Estate

24

4

−

7

−

12

Noel Jones Real Estate

9

13

−

−

15

13

CPM Realty

30

5

−

−

−

14

Richardson & Wrench

11

18

−

12

14

15

Raine & Horne

5

21

4

15

−

16

Nelson Alexander

32

27

−

2

2

17

BresicWhitney

13

−

1

3

−

18

Jas Stephens

31

15

7

15

5

19

Realmark

21

11

−

8

12

20

Buxton

16

25

−

−

6

per cent for pages with 10,000 fans or more) without paid advertising so there is a huge opportunity for agents willing to use the power of custom audience ads inside Facebook, Instagram and Twitter, • Although 78 per cent of agents believe social media is important to their business, 76 per cent don’t know how (or are unable) to measure ROI from social media marketing. Agents need to consider the fundamental differences between social media and every other channel they use to market their business.

Explaining these insights, Josh says, “Using social media like a ‘billboard for your brand’ is probably not the right approach, as total followers does not necessarily equal engagement. The goal is not to be good at social media; the goal is to be social – and that’s a very different mindset from what most agents do by way of shouting how good they are or pushing their listings.

5 TIPS FROM JOSH FOR BETTER ONLINE ENGAGEMENT TIP 1: What is your community

talking about? What are the things they care about? What questions are your clients and prospects asking you when it comes to real estate? By creating inherently helpful, entertaining, visual and educational content on social media, you will build trust capital with your fans and followers that will be redeemed down the road. If you try to sell something or continue to push your listings, you might get lucky and get one client today.

But if you entertain, delight and educate your audience, you will build an army of fans who become clients for life.

EXTRA TIP: Go to your email

inbox and look for every question you’ve been asked by a seller, landlord, tenant or buyer. Things like “What happens in a multiple offer situation? What happens at an auction? When do I get my bond back?” Film yourself

“Devoting social media entirely to building client advocacy is in direct opposition to how marketing is ingrained in real estate agencies at every level. The common misconception is the louder you shout, the better you’ll be heard. This couldn’t be further from the truth when it comes to social media for business.

“What is successful is a long-term focus on advocacy versus trying to close leads that are just not ready to be closed. It’s a marathon, not a sprint.

“If you focus your social media strategy on adding value to the lives of your current clients, I promise that you will generate ROI from social media. Keep trying to generate leads as a primary focus and I can’t promise that you will get the same results.”

To download your free copy of the Industry Social Media Marketing Report 2015 at stepps.com.au/socialreport2015.

1. Statistics calculated by branddata.com and current as of 14 September 2015. More information on ranking methodology can be found at branddata.com.

answering each question in a 90-second video, host it on your website and post it to social media. In no time you’ll have a library of helpful videos on your website that clients will love and competitors will hate. For bonus points, go around to every staff member and have them do the same; film them too and have them share your content on their social platforms. You’ll be amazed at what impact (and reach) this simple idea will have on your business.

TIP 2: Consider what you want

to achieve on social media. Is it to build brand awareness?

Increase leads? Improve client loyalty? Pick one and focus on that one objective. We’ve all heard the saying ‘It’s much cheaper to keep a customer than it is to get one’ and, in our experience, a social media strategy dedicated entirely towards client loyalty always wins. Don’t be afraid to pull back on the sales pitch and show people how much you care about your staff and the community. As a result, prospects (and potential future

TIP 4: Build an email newsletter

of helpful content that people will want to subscribe to. Local news, commentary, ebook offers or even your videos we spoke about earlier. Strive to turn your social media followers into email subscribers, because at the end of the day you don’t own your social media audience - you are simply renting access to it. By building email subscribers, you have complete control over what, when, how and where you communicate with your fans and followers. staff) can’t help but want to be a part of it. Social media gives you the ability to showcase the culture inside your office to the outside world. But this comes with a warning - if your culture isn’t right inside your office, it will never be right outside.

TIP 3: Consider which channels

your clients and potential clients are using and be there.

If they’re not on Facebook, don’t be on Facebook. If they don’t use social media at all, don’t be on social media. Just because everyone else is doing it, it doesn’t mean you need to.

TIP 5: Leverage the power

of Facebook and Twitter’s ad platforms to promote ebook offers and the like to generate warm leads from people you know for a fact are interested in selling or finding a property manager. You have the ability to target people on your email database, people who have visited certain pages of your website and specific local demographic groups who are following real estate-related lifestyle pages.

This is far different (and far more powerful) than simply ‘boosting’ posts.

eliteagent.com.au 15

FIRST PERSON

Josh Phegan

Many hands make light work

JOSH PHEGAN LOOKS at the question of when you should hire an assistant.

AS THE NUMBER of

properties you list and sell increases, it’s vital that you build a team around you to cope with the increasing workload.

There’s only so much one agent can take on; that’s why hiring an assistant is a key component in progressing your business.

Now and always, you need to cast a look in your crystal ball and focus on the success you want to achieve.

If you don’t have goals for the future you will never get there. But knowing when to employ an assistant can be a tricky task, as you have to balance having enough income to afford the extra help with needing the firepower to boost your finances in the future.

Once you have recorded three consecutive months of earning $30,000 then the time has come to hire an assistant. Ideally, you want to have a reasonable amount of savings so you don’t have to worry about whether the position will succeed.

Once you earn $60,000 for three consecutive months you are ready to hire your second assistant; and when you hit $100,000 per month you can employ your next team member.

Usually the first assistant an agent hires will focus on administrative tasks, such as taking care of phone and internet enquiries, managing the database, undertaking office jobs and agent marketing.

16 ELITE AGENT • OCT-NOV 2015

Often the second and third assistants an agent hires will have more of a sales focus, helping the lead agent with campaign management, buyer work and overflow prospecting.

The biggest plus of having an assistant is having more time to focus on what really matters – prospecting, listing and selling.

An assistant frees the agent of administration tasks and allows them to narrow their focus, as well as equipping them with the capacity to conduct more open homes, grow the number of listings, branch out into new markets and take a break to avoid burnout.

It’s also important to make sure your team is made up of dedicated, productive members.

One way to assess the strength of your team members is to grade them according to how much time you spend directing them.

A Graders: require as little as five minutes’ direction each week.

You have to balance having enough income to afford the extra help with needing the firepower to boost your finances in the future.

B Graders: require a couple of hours of guidance a week.

C Graders: need significant attention every day.

Another option is to rate each agent with a plus or minus according to their performance.

These strategies will help you target how you train your staff and assess their capabilities for

achieving business goals.

Recruitment is an ongoing task that helps you not only to replace low performers but expand your business.

When employing new team members, don’t limit yourself to interviewing or hiring people only from within the real estate field. If someone is a high flyer in another industry, they will likely also shine in your organisation with the right training and coaching.

When you hire someone, it’s best to place them in a position that matches their current level of expertise. The new assistant will then learn the tasks that are essential to the business, as well as how your brand works and what drives its success.

Employing a new staff member can be an expensive operation if they can’t meet their position requirements or your business goals. Therefore it’s best to offer new team members training and hands-on experience before moving them into a higher position. If they can’t cope with their current workload they won’t be able to complete more complex tasks.

New hires can also be expensive if they leave and take their income-producing power with them. As such, my advice is that any one agent should not be responsible for more than 15 per cent of your total revenue.

This does not mean you should hire mediocre staff, but that you need to balance the number of agents you employ with how much income they can produce.

Successful growth is a decision. Decide what your vision is, decide to create it, decide when to put on that first assistant and then decide to let go and let it grow.

Josh Phegan is a high performance real estate speaker, trainer and coach to some of the best agents and agencies around the world.

For more information visit joshphegan.com.au.

GROWTH BRAND SUPPORT TECHNOLOGY CULTURE

WE’RE HERE FOR YOU.

FIRST PERSON

Denise Haynes

Cattle, community and country roads

AUSTRALIA IS A DIVERSE LAND and selling property in country

areas poses different challenges to life in the city. Stroud is a small country town one hour north of Newcastle where the population is around 669 and the traffic jams usually involve cattle. Denise Haynes from R & R property tells it like it is.

I GREW UP IN the country;

it’s in my blood and, combined with my passion for real estate, I have the perfect job as a rural real estate agent.

The life of a rural real estate agent is varied and unpredictable. At R & R Property a ‘normal’ day can start with standard residential inspections then escalate to an all-out 4WD adventure! On the day you wear a skirt and heels to the office nothing is surer than a client turning up, without an appointment, wanting to be shown a rural property. We always keep boots and a hat in the car, obviously a four-wheel drive, for this reason.

I cover many kilometres a day at work, as it sometimes takes up to an hour just to get to the property. However, the scenery more than makes up for it and

I often stop to photograph the amazing landscapes and wildlife I see on my travels.

We list properties that vary from flat to mountaintop steep, with rivers and creeks, timbered and clear plots, in sizes from 600 square metres to 600 acres. Our varied portfolio includes poultry farms, bed and breakfasts, old schoolhouses and a boutique vineyard. A recently sold listing required the crossing of nine causeways or fords to access the property, and we have even sold a 60acre island in the middle of the Karuah River!

Getting bogged is always on the agenda after rain. On occasions I’ve had zealous clients over-estimating both their driving skills and the capabilities of their vehicle, insisting ‘You can’t bog a Land

When I book appointments to show a rural property in the height of summer (snake season) the last words I say are ‘wear good protective boots’. Of course, I have had numerous clients still turn up in their double-pluggers.

18 ELITE AGENT • OCT-NOV 2015

Cruiser!’ The result is that I have to organise the nearest farmer to pull them out with a tractor as the shamefaced client is bogged to the axles. However, this speaks volumes about the ‘community’ that exists in rural areas, and the generosity of these strangers is not lost on our city-dwelling clients.

I’ve had many snake encounters during my time as a rural real estate agent, the latest one being a client thinking it a good idea to poke a snake with a stick when I wasn’t looking. This caused the snake to turn around and chase the unsuspecting me. Once I realised what was happening

I had to make a run for it, all while carrying my four-year-old daughter on my hip.

As a result, when I book appointments to show a rural property in the height of summer (snake season) the last words I say are ‘wear good protective boots’. Of course, I have had numerous clients still turn up in their double-pluggers.

I especially love the sequinned ones – usually, but not always, worn by the female buyer.

While the countryside sounds like a notoriously dangerous workplace, it has the advantage of providing the opportunity to gain a multitude of new skills. I have

a stock and station agent’s licence in addition to my real estate agent’s licence; I am also expected to know every breed of cattle there is, how many head each property will carry, what each property has been seeded with, how many dams and paddocks it has, and even what it was fertilised with and when.

We also cater to the lifestyle purchaser: motorbike riders, horse riders and nature lovers, so my knowledge has to extend beyond that of operating a working farm. We usually have over 40 rural listings in addition to our residential and commercial listings. Due to the sheer size of some of our larger properties, an inspection can take up to four hours.

The most rewarding part of my job as a rural real estate agent is the satisfaction of seeing our clients’ transition from city life to country living and embracing all that it has to offer. We have a family who sold their 400m2 property in Newcastle to purchase a one-acre property in the Stroud district from R & R Property. They now grow all their own produce through the permaculture method, operate ‘Bernie the Caravan’ Farm Gate Stall, have a child at the local primary school and are so happy with their new lifestyle.

So while our vehicles may be constantly caked in mud and dust, and our mobile phone reception not perfect, what we offer people seeking a ‘tree change’ is a more relaxed lifestyle and a greater sense of community. Our idea of a traffic jam is when there are cattle or a slow-moving tractor on the road, and even at peak hour you can still find a parking space in the main street.

Denise Haynes is the owner and sales agent for R & R Property, and loves nothing better than welcoming new people into the area.

Over 1000 sales consultants

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eliteagent.com.au 19

FIRST PERSON

Jason Hellyer

How to stand out on the global stage

AS THE PRICE TAG OF AN AUSTRALIAN property asset increases,

generally the available pool of qualified Australian buyers decreases, particularly in the agricultural and commercial sectors.

This special dilemma requires the agent and vendor to consider alternative markets and methods to find qualified buyers. In this Part One of a two part series, Jason Hellyer uses China as an example of what you can do to have your marketing stand out on the global stage.

AS YOU READ this article,

the historic and privately owned Kidman & Co. group of properties, covering more than 11 million hectares in central Australia (that’s nearly twice the land mass of Tasmania), goes to market with a sale price north of $300 million.

In a country of just over 23.6 million people, Australia’s capacity to deliver a bevy of qualified suitors for an asset of this value is limited; therefore an agency with the capability and marketing strategy that broadens the investor field to encompass international markets is required.

With this in mind, it’s of no surprise that the board of directors at Kidman & Co. have opted to entrust the marketing of their iconic Kidman landholding to the goliath - Ernst & Young.

One of the ‘Big Four’ global audit firms, Ernst & Young’s 700-strong brick and mortar office network extends to all parts of the world. One of the factors that may have influenced the board’s decision to appoint Ernst & Young could have been the perceived

20 ELITE AGENT • OCT-NOV 2015

potential of their global office footprint to drive substantial buyer enquiry and therefore a better sales result.

In a recent interview with the ABC, Greg Campbell, Managing Director of Kidman & Co., indicated that around 20 parties had already registered interest in the sale.

“At least half of those people are Australian-based,” said Mr Campbell. “There’s around half that’s offshore, there’s a significant proportion from China, but surprisingly there’s also strong interest out of America and Switzerland.”

From this statement it would be fair to say the board’s decision to engage Ernst & Young has been vindicated.

According to the US Census Bureau’s annual projections, in 2015 the population of the United States will sit at approximately 320 million (13.55 times that of Australia) and China, the most populous country in the world, will be home to 1.354 billion (57.3 times Australia). Add to this a recent ‘rich list’ article in Forbes magazine quoting 1,764 billionaires in the United States

Using China as an example, in this two-part presentation I’ll provide you with several strategies, tips and scripts that will level the playing field, enabling you to compete and stand out on the global stage.

1

PROPERTY PORTALS It’s clicks, not bricks, that drive enquiry Advances in information technology, the internet and mobile communications, in particular, have dramatically transformed consumer research and buying habits.

The benefits of digital globalisation have also empowered the international property investor with faster and more efficient means to identify, analyse and pursue assets beyond their own shores.

China’s strictly regulated internet policy prevents many western commerce and social media sites from functioning correctly (if at all) on the mainland. The challenge for western agents, therefore, is to identify portals behind ‘China’s great firewall’ that provide reasonably unfettered

China’s strictly regulated internet policy prevents many western commerce and social media sites from functioning correctly (if at all) on the mainland. and 213 in China (compared with 27 in Australia) and we can start to appreciate the compelling benefits of listing with an agency that has the capability and competency to play in these powerhouse markets.

So if you can’t lay claim to having a physical office presence in major markets around the globe, what resources and strategic partnerships can you leverage to help maintain our competitive advantage?

access to it’s 700 million online consumers.

With a host of native Chinese eCommerce, social media and industry-specific websites to choose from, you should consider the following points before you commit to a specific portal: • What online audience is the portal pitching to?

• How many listings will the property compete with?

• Does the portal provide online and offline customer support?

• Does the portal support all screen sizes, including tablets and mobiles?

TIP – Take time to identify industry-specific property portals that will maximise your vendors’ visual presence.

2

THE PITCH What drives enquiry here won’t necessarily drive enquiry abroad Presenting the written text of an Australian asset in a foreign market may not be as simple as ‘cut and paste’. There are several factors to consider before you press the button on distribution of any written marketing material in a foreign country, including; 1. Does the text require professional translation?

2. Does the literary context make sense to the target audience?

3. Am I providing information that will trigger enquiry?

Less than one per cent of Chinese consumers can read English; therefore it’s imperative to have all marketing material professionally translated before you contemplate distribution in China. One of the additional benefits of engaging professional help with translation is the translator’s ability to identify and remedy issues within the literary context to suit the nuances of the local consumer market.

An equally important consideration is the depth and quality of information you’ll need to provide to whet the appetite of investors in foreign markets. For example, in addition to general property blurb Chinese investors will seek a brief understanding of: • Approximate ROI • Historical capital growth figures • Historical production numbers • Title declaration • Applicable taxes • Farm management • Partnership opportunities.

Without this additional

level of information you risk your vendor’s property being overlooked in favour of those who have taken the time to include these proven enquiry drivers.

TIP – Don’t be fooled into thinking free translation apps will do an adequate job of translation.

across more than 300 agencies

3

PHOTOGRAPHY A picture (and video) is worth a thousand words With one of China’s property portals boasting more than two million international property listings on its website (at 20 listings per page that’s 100,000 pages), serious thought needs to be given to imagery that’ll engage the investor and motivate them to click for more.

Needless to say, out of focus, dull, DIY photography won’t cut the tofu in China!

There are numerous reasons why Australia appeals to Chinese property investors, but one that can be expressed well through creative photography is ‘space’.

Wherever possible, incorporate imagery featuring: • Open space • Entertainment areas • Gardens • Local parks • People enjoying our Australian lifestyle • People enjoying our Australian produce.

TIP – Where possible, include images that encapsulate Australia’s reputation for open space and healthy lifestyle.

In Part 2 of ‘How to stand out on the global stage’, I’ll share with you the power of international partnerships and how these alliances can connect you with investors and help facilitate transactions.

Jason Hellyer is Sales and Marketing Director of Let’s Go (Australia), a Chinese agribusiness portal that connects Australian agents with Chinese investors.

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eliteagent.com.au 21

FIRST PERSON

Paul Davies

Planning ahead: revenue vs. profit

WHAT SHOULD REAL ESTATE businesses be doing today to

make themselves sustainable for the future? Paul Davies gives his opinion.

22 ELITE AGENT • OCT-NOV 2015

THE MARKET HAS been

very strong in most major centres across the country and, as ever with an extended robust period, there will come a time when the market slows down. There is a real possibility ahead for reduced activity, reduced prices, reduced stock and perhaps also pressure on fees, or, in the worst possible scenario, pressure on all four.

There’s a tremendous unpredictability with business and business owners need to be prepared for that unpredictability. A sustainable business, to me, is one that has a healthy profit margin so that it can weather variations in income.

Some agencies have got into bad habits during the boom years by paying attention to the wrong part of the balance sheet. When things are going well and the market is at its peak, it’s easy to get overexcited by strong sales figures and then lose sight of the simple fact business success is measured by profits, not revenues.

You need to plan ahead to remain sustainable throughout the tougher years; whether it’s a global upset or a market turnaround, we know that the market will change.

Agencies need to put their operating costs under a microscope because, for the bulk of agencies across Australia, their businesses aren’t set up to be run economically. They’re set up to maximise income. Of course, that’s relevant and very important, but what’s left after you’ve paid your operating costs is the only measure of success.

I think one reason this problem occurs is that many people who become principals are well versed in listing and selling but lack business management experience. The lesson for principals is to do more than just focus on where the next deal is coming from;

you also need to calculate what it costs to create those deals. If you discover your margins are too small, you should consider cutting costs. That could include reducing your staffing levels, sub-leasing part of your premises or even doing away with your expensive shop front.

Did you know an average shop front business across Australia retains between 15 and 19 cents in the dollar after all expenses are paid? Did you also know this is considered within our

this without an office, from the comfort of your home, or anywhere; a shop front isn’t essential any more. So you can run a very efficient and effective real estate business without all the substantial overheads that we’ve been brought up to think that we need.

My advice to business owners today is don’t rest on your laurels, thinking that business will always be this way. You need to stay one step ahead of the market.

build their brand with

My advice to business owners today is don’t rest on your laurels, thinking that business will always be this way. You need to stay one step ahead of the market. industry to be normal?

I think it’s abnormal,and outrageous to spend between 81 and 85 cents to keep only 15 to 19 cents in every dollar. It is also very risky. If you were to have either a drop in income or an increase in costs, or both, unfortunately, the 15 to 19 cent profit margin would very quickly disappear. That’s why you see so many businesses close down.

My mission is to create businesses that have the opposite position; that is, 15 to 19 cents in the dollar to cover the entire business’ operating costs, leaving you with 81 to 85 cents in the dollar clear profit. I’m not making this up!

It’s completely true. Business can be conducted so much more economically than before.

There’s no need for a huge office any more.

Let’s not forget the real estate agency business is a fabulous one. Our shelves are stocked with millions of dollars’ worth of stock that other people own.

Then you can have those people who own the stock, the vendors, pay you to promote their property so you can earn a fee.

But there’s more. You can do

A business owner who’s come into the business during a boom market is really only concerned with revenue. When they start to run out of money, they may fall into the trap of only looking to create more revenue. Those sorts of businesses need to review their attitudes quickly, or they will go under.

I urge all those who own real estate businesses to watch their operating costs very closely. This will help you to weather any drop in revenues and bolster your survivability in the future.

At the end of the day, those businesses with the biggest reliable profit margin will be best positioned for the future.

So get ready now; expect the best, but prepare for the worst.

Paul Davies is the Founder and CEO of One Agency and author of How to Profit in Real Estate Business Ownership. He’s helped hundreds of real estate agents to overcome the fear of business ownership, and has set up multiple successful and profitable businesses. For more information, visit oneagency. com.au.

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eliteagent.com.au 23

Health Science Emily Schofield

Breakfast of Champions Long days in real estate mean you need lots of energy to go the distance. If you start your day with the right breakfast, says exercise scientist Emily Schofield, you may even add to your brain power as well as your stamina.

W

ORKING with

mostly busy corporate clients and knowing the type of energy and mental focus that goes into each day, I always stress the importance of a balanced breakfast. For most people, starting the day with a highcarbohydrate meal is standard – muesli, toast, breakfast cereal, and so on. Such breakfasts are promoted due to the belief that starting your day with high carbohydrates results in high energy.

Assuming that you are opting for sustained energy throughout the day, most of these choices are not ideal. It is hardly surprising that after consuming a breakfast of high GI carbohydrates most people turn straight to caffeine; your blood sugar is crashing because of the insulin rush. Spiking blood sugar and insulin with high GI carbohydrates first thing in the morning is exactly what not to do when working towards a better body composition and sustained energy.

I have several new clients who tell me they do not eat breakfast – they are never hungry in the morning! Not being hungry is a sign of a slow metabolism, particularly at breakfast. If you have just fasted for eight hours overnight and are still not hungry, you can be sure that your metabolism has been downregulated. Skipping breakfast

24 ELITE AGENT • OCT-NOV 2015

or any meal mostly leads to overeating during the day.

Breakfast is the meal that will determine your entire neurotransmitter production for the day. Eating a breakfast that is high in protein and has a low glycaemic load will raise both dopamine and acetylcholine, the two most important neurotransmitters for focus and drive.

for brain development and function of normal cells. Choline is also a precursor for the neurotransmitter acetylcholine, which relates to memory, arousal and learning. An estimated 90 per cent of the population does not get the recommended amount of choline per day.

Keeping the GIycaemic Index of your first meal low is also imperative to having a good body composition. GI relates to the quality of carbohydrate you are consuming and the impact it has on blood sugar.

If you want to tone up or lose fat, you need to be aware of the GI of the carbohydrates you consume; anything above 50 is considered high and will warrant

I recommend eggs as a good way to start your day; they are a great source of several vitamins and nutrients, and they are high in protein.

I recommend eggs as a good way to start your day; they are a great source of several vitamins and nutrients, and they are high in protein. Having eggs as your first meal of the day will guarantee a slow and steady rise in blood sugar, resulting in long-lasting energy. Always eat both yolks and whites: egg yolks are high in choline, which is an essential dietary component

a substantial spike in blood sugar.

Oatmeal, a common breakfast choice, is around 60, Cornflakes 76, Weet-bix 69: all significantly higher than 50.

When you start your day with the right breakfast you will have: 1. Fewer cravings throughout the day. People who eat a high-protein breakfast generally eat less throughout the day. Eating

a quality protein source for breakfast not only sets up your neurotransmitters but provides satiety and reduces your cravings for high carbohydrate or fatty foods throughout the day. When you start your day right, the rest tends to follow suit.

2. Blood sugar regulation.

Depending on the quality, carbohydrates are accompanied by a rise in blood sugar, significantly more than that of protein.

Take protein at breakfast and eat regular meals throughout the day for steady blood sugar levels and sustained energy.

3. Overall leaner diet. Eating a high-protein breakfast promotes insulin sensitivity, meaning your carbs are more likely to be used as energy rather than being stored as fat. If you are a bit overweight or have a diet that is chronically high in carbohydrates and sugar, chances are your insulin sensitivity is poor. Having a high-protein breakfast is a great place to start improving your insulin sensitivity and general health.

Emily Schofield is an Exercise Scientist, having completed a Bachelor’s degree in Sport and Exercise Science. She is a Personal Trainer at Vision Personal Training, North Sydney. For more information visit visionpt.com.au/studios/ north-sydney.

Business Depot John Knight

Equity: to share or not to share?

Exploring the idea of equity for key individuals in the business is today a common topic of discussion. While there are stories of success beyond expectations, there are also stories of epic failure. Equity is not the only option; before you do go down this path you need to be aware of the pitfalls and possibilities. John Knight explains.

W

HEN people

start talking ‘equity’ they are typically considering the issue of legal equity in a business – usually shares in a company or units in a unit trust.

Once an employee has a legal interest in the business they have a definitive entitlement to the profits and capital value. They share in the lot whether paid in cash or not.

In the case of a company, shareholders have a number of legislated rights, including the ability to request financial statements and an audit if they own more than five per cent of the shares.

A minor shareholder can be a massive nuisance if the relationship does not end positively. It can end up costing a fortune to get rid of the shareholder – not only in dollars to pay them out on exit but also in time and distraction. A solid Shareholders’ Agreement should always be put in place to dictate not only how the business should be operated but what would happen if one of the parties needs or wants to leave the relationship.

However, introducing the right people as shareholders at the right time can have an extremely positive impact on the business. Benefits include:

26 ELITE AGENT • OCT-NOV 2015

• Retention – although you should not just issue equity for retention purposes • Engagement – the individual may feel more ownership in the business decisions • Reduced reliability on principal – acceptance of new responsibilities from existing principal can free them up for other opportunities • Succession – could be a big step in a potential succession strategy

A minor shareholder can be a massive nuisance if the relationship does not end positively.

• Corporatising the business – encourages a more corporate approach to how the business is run, e.g. board meetings, dividend policies, approval processes • Unlocking some of the equity – allows the existing principal to be more aggressive with the balance of the value in the business.

Overall, it is a great thing to consider if it would enable you to make the growth opportunities a reality, like opening a new office or division.

Issuing equity straight up is not always the best option, though. Often we advocate a stepped model that involves getting to know each other better before ‘jumping into bed’ together. As an alternative, while you are getting to know each other better consider stepping through some of the following as a way to achieve some of the above benefits before issuing legal equity.

1. Skills development: Simply investing some time to develop the individual’s management and leadership skills could identify whether they have the ability and aptitude to be a business owner.

2. Title and recognition: Promoting someone to a more senior position (e.g. sales manager) can provide the title and recognition for the individual, but it can also let you see how the individual now deals with the new responsibilities.

3. Broader bonus structure: Implementing a bonus structure that rewards the individual’s contribution to the overall team, rather than just their own sales, can give that individual

more leverage and also promote a broader view of the team.

4. Profit share: Essentially a bonus structure, but a much deeper relationship that will promote discussion of the holistic business considerations and at the same time reward the individual for their contribution.

5. Shadow equity: Essentially this is a legal commitment for the individual to be treated as if they have equity, but all amounts paid are still taxed like wages or bonuses. Shadow equity can work very well when the key person is responsible for growing a rent roll or when it is difficult to transfer equity tax effectively.

A new shareholder, and the new energy they can bring, could be just what your business needs to catapult it to the next level.

The key message, though, is don’t jump in too quickly without first laying down the foundations for the relationship and testing the individual’s skills and abilities to step up.

John Knight is the Managing Director of businessDEPOT, helping businesses of all shapes and sizes achieve their goals. For more information visit businessdepot.com.au.

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Mindset Corner Jet Xavier

Chasing the dream Richard Branson has a dream to take people on flights into space. Martin Luther King had a dream that all would be treated equally. Man had a dream of landing on the moon.

Walt Disney, Nelson Mandela, the Dalai Lama: the list goes on. What’s your dream?

F

OR CENTURIES people

have dreamt many things. The fact is that only a few people ever really make their dreams happen.

Doctors dream of finding a cure for cancer. Fathers and mothers dream of their sons and daughters growing up and enjoying life. Sports people and actors dream of becoming famous; real estate agents dream of becoming the best and most successful they can be so they can build the life they want and have financial freedom.

later, after growing the business successfully around Australia and Indonesia, I decided to head to LA to chase my dream further.

Six weeks ago all I had was a return ticket to LA and a heart full of hope, with no guarantees, very few contacts and the task of competing against a market saturated with some of the best real estate trainers and coaches in the world.

Everybody I talked to said it would be tough. ‘There are too many coaches and trainers there, it’s too hard a market and you will find it very difficult. Basically

THREE KEYS TO REACHING YOUR DREAMS

1

Dreams are not goals Agents mistake dreams for goals. Goals are different.

Goals are about attaining things.

If you can see it realistically happening then it’s a goal. Most goals we make are attainable and easy to reach. Goals come from the head, with logic and rationale driving them. Dreams are different.

Dreams are about realising that anything is possible and that your potential is in the

I could have doubted myself and not tried; but I believed in my dream.

Four years ago, at the age of 45, I decided to change industries.

I ventured into the real estate industry to use my expertise as a mental skills and mindset performance trainer, coach and speaker. I knew nobody, was not from the industry, had never sold a property in my life or trained agents and was not going to have a training sales skill-set. The first six months I lost money, ran my business out of my lounge room and was ready to throw it all away and go back to the corporate coaching field that I came from.

However, I had a dream to build a global business, travelling the world doing what I loved to do in one way or another. Four years

28 ELITE AGENT • OCT-NOV 2015

you are invisible and it will fail.’

I could have stopped there, as so many people do. I could have doubted myself and not tried; but I believed in my dream. Many of my clients have believed in theirs, like Nick Papas from C21 who, after writing over $1,000,000 in GCI, left to go to the other side of Sydney to a completely new area, set up an office and start all over again. Or Kylie Charlton, who decided not to join with the major players courting her business in her area, but go it alone and stay independent. Or David Highland, who started his office in the GFC with six staff and now has 60plus with two offices. They are all following their dreams, just like many of you out there.

unknown. Dreams are an experience you create; they have a level of ‘unattainability’ to them. They scare you and seem impossible, making you a little uncomfortable and nervous. They challenge the very fabric of who you are and come with a level of risk.

Dreams come from the heart with passion, purpose and internal meaning driving them.

When was the last time you did something for the first time?

2

A dream does not start perfect and is not attached to guarantees Too many agents want to be perfect and want everything to be perfect before they act. The

fact is there is no certainty with anything, especially dreams.

Dreams take you out of your comfort zone as there are no guarantees. The picture is not totally complete and you don’t understand every single working part. The dream starts with a vision that often does not come with a clear road map. It is not about the outcome; it is about the journey. It is about making the impossible possible.

Progress is better than perfection.

3

Reaching your dream requires a radical action When I decided to go to LA I bought a return ticket straight away, borrowed money to promote and plan an event and took radical action steps to ensure I had to be committed.

You need to make a radical pain decision that gets you moving forward and makes you have to follow through. The only dreams that come to you are the ones in your sleep. The dreams you make a reality are the ones you chase.

What are your dreams and what are you doing to reach them? Are you coasting along in your career or challenging your potential? Are you playing a small game or a bigger game?

Are you achieving easy goals or creating big dreams?

Jet Xavier is one of Australia’s leading Mindset Coaches for real estate sales professionals.

For more information visit jetxavier.com.

cover story

30 ELITE AGENT • OCT-NOV 2015

STRONGER THAN

STEEL MOST WOULD PEOPLE WOULD SAY that real estate

is challenging enough when you’ve had a few years in the game and you’re in peak condition. After beating a cancer so aggressive he thought he only had three months to live, Clinton Knop bought the business of Century 21 in Bunbury, WA. Now with a team of 18 and a strong partnership with Paul Duffy, this year the office was awarded the 2100 Cup – an accolade the Century 21 Group only gives to the very best of the best. Charles Tarbey, CEO of Century 21, has described Clint as “Gold through and through”. Now Clint wants to use his story to inspire and help others.

W

ITH A NICKNAME OF ‘the Strongman’, looking at Clinton Knop

today you wouldn’t be able to tell how much he’s been through in the last six years. He has a love of a healthy lifestyle and his friends and colleagues will tell you a heart probably bigger than Phar Lap, open to anyone who needs support, or a kind word.

There are many people in the industry who already know his story. For those of you who aren’t familiar, here’s a quick rundown. Leaving school in the 80s, he spent time in the Air Force, in the mines, in photography and in IT, and in the car industry. The car industry, he says was an ‘easy place to earn a living’, but it was always about making a dollar and the ‘close’, rather than getting to know people. Clint was ultra fit and felt pretty much bulletproof.

In 2009 he felt something wasn’t right and just ‘didn’t feel good.’ Seeing his GP and a specialist, Clint was diagnosed with testicular cancer, after which he had surgery and was sent home. Over Christmas that year he still didn’t feel great and began to research his symptoms. He took himself for a full body scan, just to be sure.

Visiting his oncologist in January, Clint was expecting to be told to have a bit of ‘tidy up’ chemotherapy post the surgery he’d already had. Showing his doctor the body scan that he had commissioned himself, he felt the news was not going to be good but didn’t expect it to be quite as bad as the prognosis he was given. Clint recalls his doctor’s words well. “He said, ‘There is no easy way to tell you this: you have three, maybe six months to live’.” The scan had revealed tumours everywhere, close to his brain, lungs and heart; not small tumours, but tumours the size of golf balls. He was just 37 at the time.

Swallowing a figurative lump in my own throat, I ask him how it felt to be faced with his own mortality. “I grew up in a Christian home, so I have faith. And because of the way it happened and my sense of humour, I kind of laughed it off. I was like ‘Cancer, come at me, do your best. I am going to whoop your ass. How much worse can this be than the flu?’

“I remember going home to my wife and saying, ‘Honey, I’ve got cancer’ and she said, ‘Really? Okay. Well, what are you going to do next?’ So it wasn’t, ‘Oh, woe is me. Oh my God, that’s the big word.’ It was okay, what’s the next step? Where do we go from here?

The journey was just day to day.”

Within a couple of days Clint started a gruelling schedule of chemotherapy that would become his life for just about every day for four and a half months. Clint describes that period as ‘heavy and intense’, where he spent a great deal of time soulsearching, at times so sick he confesses to wanting to end it.

“When I tell people that I was in therapy for that long, often they can’t believe it, I guess to look at me now. But I won’t dress it up; chemo is hard. There were some days

“I remember going home to my wife and saying, ‘Honey, I’ve got cancer’ and she said, ‘Really?

Okay. Well, what are you going to do next?’” where I would be on the kitchen floor, couldn’t wear clothes, had heartburn so bad I couldn’t breathe, had ulcers in my mouth so I couldn’t eat, almost at a point where I wanted somebody to put a bullet in me; and I would be thinking, ‘This can’t be – where’s the light at the end of this tunnel?’ The hole is so dark and deep and black in there you just become it….” he trails off for a moment. “It’s funny, because when I talk to you I can taste

eliteagent.com.au 31

cover story chemotherapy in my mouth. The memory makes you taste it.”

Being so sick, it would have been very easy to go down the path of self-pity.

Clint’s attitude, however, was the exact opposite. “I went from somebody who probably had it so together, to feeling so helpless. But you realise that there are so many people out there on this journey.

Everyone’s journey is different; some people have it a lot harder than others, I guess it makes me extremely empathetic to understanding people’s perception of what cancer does and how it affects them and their families. When I was really sick, if I could get down to the children’s ward after finishing therapy for the day, I’d have a look at all the kids and say to myself, ‘I have nothing to complain about.’”

Quitting the car industry, Clint decided to move to Bunbury to jump on the real estate boom and got into the business of renovating houses. It was during this time that Clint’s father suggested he get involved in a real estate business. “My Dad and the previous owner (of this office) were friends.

He came to visit me when I was working on the houses that I was renovating; I thought he was looking to get a listing out of me, or to sell or manage the properties! But he had alluded to Dad that he was thinking about retiring and said, ‘why doesn’t your son come in and do something like this?’”

Clint continues, “So I did. But it was

all very new to me. I had no idea about anything to do with real estate. And to be quite frank I don’t think I had any real business experience – the car industry was different. With real estate the connection you make with people can be far greater.

You can really help people because they are all going through their own ups and downs.”

I am amazed that he managed to achieve buying a business, recovering and getting a real estate licence all at the same time. Clint laughs. “Yes, it was pretty frightening at the beginning. I had staff who had been there for some time and didn’t like me. The way I had been introduced into the business was tough, I suppose, and a lot of these older guys had been around for a while; so when I brought my ideas to the business they either quit, or told me I was silly and then quit.”

Clint also acknowledges that he was very lucky to have his predecessor sitting in the chair for the first six months while he went and did his licence, and he kept running the licensee’s role in the business. He used that time not only to get more involved but also to learn about property management. “I was racing up to Perth and back and still getting a bit of therapy, doing my course and then coming back on weekends to sell and show houses. Nothing out of the ordinary…”

I’m thinking more like extraordinary, actually. “I honestly have to tell you, Sam, I just…. I don’t use the word ‘blessed’ a lot, but I have just had the best people

“When I was really sick, if I could get down to the children’s’ ward after finishing therapy for the day I’d have a look at all the kids and say to myself, ‘I have nothing to complain about.’”

32 ELITE AGENT • OCT-NOV 2015

walk into my life at the right times and help me. Yes, I went through some really tough times. But I kept thinking I have a responsibility now to a group of people who work for me. I’ve got to pay their wages. And I had to do it myself, as my name and reputation depended on it.”

Today, the business of Century 21 Advance Realty has grown, having adding partners Paul and Darralyn Duffy two years ago. Paul is Director/Principal with Darralyn being the ‘backbone of the business’, handling all of the office administration. Clint’s father is still involved too and does the books for the business. “I’m very, very lucky that I’ve had the experience of my dad around, and I’ve had some beautiful salespeople and staff members and property managers who have cared for me and said, ‘I just wanted to work with you because I can see the journey you’re on; I can see what you’re about.’ I feel incredibly lucky to have had the right people around me at the right time. Considering what I make them put up with, they need a medal just for that!”

The 2100 Cup is a special award given

by Century 21 for only one office every year. The strict criteria include embodying the Century 21 system, embracing and implementing the correct tools and systems, playing a significant role in community leadership and demonstrating an ability to evolve and change; someone who is not afraid of new ideas and ways of doing business.

Clint (and the entire office) now work with a very long list of charities, and he is a regular participant in various charity

“It seems only when the red flag comes up that people realise they need to make changes.” auctions. In presenting this award to the Bunbury Office, Century 21 CEO Charles Tarbey said, “Business and community involvement need to be aligned and Clint has managed to combine the two successfully to the benefit of many. His commitment to consistency has allowed him to build a following that is the envy of the industry in his area.”

Clint’s cancer is not completely gone; he still has a tumour on his adrenal gland which to date has not been growing.

He attributes this to a healthy lifestyle involving the right type of diet, working out, not eating processed foods, using natural remedies and drinking plenty of water. “Putting the wrong things in your body is like putting diesel in a petrol car.

Your body is just like a mechanical engine and if you are not servicing it correctly it’s going to break down. That philosophy

applies in real estate or any other career.”

Given Clint’s focus on his health I ask what his ideal day looks like now. “I love to train a few days a week in the gym then hit breakfast at a local cafe. Then it’s always exciting to get to the office and see my work family. The days are best when I get to help someone somehow, whether for a chat, financial help or giving my time. It’s the one thing that completes me. And of course when I get home to my beautiful family and get to eat!”

While in current good health, and a physique most people would be very proud of, Clint still keeps it real and admits to having bad days, moments of poor selfesteem; a result of how the illness and subsequent treatment has affected him both physically and emotionally. The takeaway is to understand we all need to love ourselves enough to look after ourselves. “I want people to start believing in themselves, no matter what shape or what they look like. It seems only when the red flag comes up that people realise they need to make changes. If you think you’re going to die, that’s when the human spirit really kicks in. People think I’m this wonderfully strong guy and yes, I think I

am too. But I have bad days like everyone else, and that’s probably why I can easily empathise with others who may not be doing it so easy.”

What is next for you and the business?

“I’d love for us to continue to strive, not necessarily to be the biggest, but be the best at what we do. To completely release the tag of real estate agent and be the ‘only agent’ that people call.” Recently Clint has also created the brand CK Inspires which he uses for speaking/events, for which people are calling upon him more and more.

“Ultimately I’d like to be sharing my story with others and if it helps just one person then I’ll feel it was all worth it.”

One last piece of gold from the Strongman: “You have to be the best person you possibly can be every day. You already are but, like a good marketing plan, it’s nothing without implementation. You need to make your dreams your reality.”

And if you need help with that, Clint says, you can give him a call.

We have touched on some serious issues in this story. If you or a loved one need help in any way, please consider calling Lifeline on 13 11 14, or Beyond Blue on 1300 22 4636.

MUSCLE UP AND RAISE THE BAR IN REAL ESTATE SPECIALIST REAL ESTATE ADVISORS AND ACCOUNTANTS At businessDEPOT, we’ve got a unique insight into what fuels the fire - this allows us to package specialist tax, accounting and business advice to raise the bar of your real estate business. Get in touch with John Knight and his team to #MAKEITHAPPEN. businessdepot.com.au

info@businessdepot.com.au

We also help with: commission structure reviews, advisory board participation, cashflow & profit projection, tax minimisation strategies.

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eliteagent.com.au 33

technology

GET READY DISRUPTION AND disintermediation of the real estate industry have been big topics of late. Given the forces at play right now which make technological change inevitable, some people believe the industry may be in for a complete overhaul (think Uber and the taxi industry); some believe that jobs and the role played by real estate agents will change completely.

Realising the impact technology has had on many industries both here and overseas, Elite Agent Magazine commissioned an expert panel on the subjects of business and all things digital to answer the tough questions on productivity, technology and where the issues may be for small businesses and the real estate industry in the next five to 10 years.

From the topics discussed, it was generally agreed that there are a number of aspects, including strategy, recruitment, supplier sourcing and types of customer service, that you need to be thinking about right now to remain relevant – and successful – in the future.

This is an extract from our special report on where innovation and technology may lead the real estate industry in the future, which can be downloaded from our website eliteagent.com.au/2020report.

34 ELITE AGENT • OCT-NOV 2015

HOW WE CHOSE OUR PANEL We chose a cross-section of participants with specific knowledge of digital, social, infrastructure, venture capital, technology and economics, with the industry represented

by Domain Group Chief Technical Officer Mark Cohen, and Elite Agent Magazine Editor Samantha McLean as facilitator.

FOR OUR PANEL OF EXPERTS

JEREMY THORPE Jeremy is a Partner in PwC’s national Economics & Policy Consulting team.

With a career spanning over two decades, Jeremy’s core area of expertise lies in the design and evaluation of regulatory schemes and government programs.

His specialist knowledge includes complex impact assessments and he regularly contributes to various socio-economic impact analysis studies.

He was recently part of a study where PwC and Google partnered to present findings on smallto-medium businesses’ digital trends.

2020

JO BURSTON Jo is a member of the global Entrepreneurs’ Organisation, which represents 10,000 entrepreneurs in 50 countries, and is a serial entrepreneur herself.

Already a founder of several businesses including the technologyled highly successful services firm Job Capital, she jumped at the chance to spend time being mentored by Sir Richard Branson. This led her into her current project, ‘Inspiring Rare Birds’; a movement that aims to be the largest global database and connector of women entrepreneurs in the world.

Jo quotes, “When I hit a wall, there are only four options – Go over it, go round it, bury under it or smash straight through it.”

ROB MARSTON Rob is one of Australia’s most eminent thoughtleaders in the mobile advertising space. A true digital native, Marston taught MBA students about the ‘Information Superhighway’ back in 1996 at Durham University Business School. He now owns and runs his own boutique mobile marketing agency, Zeus Unwired, focusing on connecting clients with their audience on unwired devices (tablets and smartphones). He has worked with some of the biggest household brands and is a lecturer at UTS, RMIT and the University of Sydney, as well as speaking at events around Australia and Asia on digital and mobile marketing.

MICHAEL OSSIPOFF Michael is Telstra’s Director of Capability and Innovation, or in short ‘Chief Futurist’.

His operating unit is tasked with taking the entire Telstra product and service portfolio, explaining and interpreting the implications of new technology trends and developments so that customers can best prepare themselves to take advantage of emerging opportunities.

Michael’s perspectives and experience come from both a major corporate and start-up company basis, mixed with his sales and marketing background.

MARK COHEN Mark is a digital media industry professional, having gained most of his experience within well-known digital media and e-commerce businesses. Currently, as Chief Technical Officer for Domain Group, he works with the technical leadership in a group role with involvement in various businesses. Mark is also focused on mobile adoption and driving innovation across the broader business.

eliteagent.com.au 35

technology TOPIC 1: PRODUCTIVITY AND TECHNOLOGY CHALLENGES FOR SMALL BUSINESS IN AUSTRALIA

0!

36 ELITE AGENT • OCT-NOV 2015

PwC and Google recently partnered to study digital trends in all small-to-medium businesses. In this study, they discovered a whole range of future challenges for Australia’s workforce, identifying a productivity/efficiency gap right now which is not going to fix itself.

Powered by PwC’s Geospatial Economic Model (GEM), the analysis shows that small businesses could unlock an additional $49.2 billion of private sector output over the next ten years by making better use of technology.

It is the skill shortfall that is the issue. “Small business often lacks the numbers to have good technical skills. Even understanding what the technological challenges are for some small businesses is a problem, because sometimes it’s hard to know what are the questions to ask. Then putting ‘Frank’ in the corner in charge of IT doesn’t necessarily deliver leading-edge practice in a disruptive industry. We need to see a general upskilling in every small business-oriented industry,” says Thorpe.

Ossipoff agrees. “The big thing I’ve picked up is that there’s been a change between getting the strategy right and execution.

Once upon a time you could actually get your execution perfect and it would make up for the fact your strategy wasn’t absolutely spot on, whereas today if you don’t get your strategy absolutely perfect you’ve had it! You can be the greatest DVD shop in the country, but unfortunately that market has disappeared. The strategy is wrong although the execution could be perfect. Today that aligns differently.

“The other thing is that business strategy and technology strategy used to be separate.

Without any question, today they’re one and the same. Today you can’t run a business, any business, without technology. This is not a sidebar activity. It’s not a necessary evil. It has to become absolutely part and parcel of everything you do.”

But the good news for small business is that the trend towards consuming things ‘as a service’ has made it easier for small businesses to compete with big business, being able to source the equivalent equipment without requiring massive capital outlay. “In the past, the biggest technical challenge [for small business] was which photocopier I was going to buy”, says Thorpe.

Ossipoff agrees. “But the whole point is you don’t have to buy a photocopier any more. You just take it as a service. For many people, it’s still a very different concept.”

If it is a skills shortage that small business in general is facing, the challenge will be

how they will find the answers to questions that most don’t know to ask.

Says Thorpe, “We (PwC) think that puts a lot more weight back on industry associations and trusted advisors to help agents or small businesses ask the right questions to get to the right answers. So it might be your accountant. It might be your lawyer. It might be your trade magazines, like Elite Agent. It might be people who are thinking about their organisation from the outside with a deep understanding of where the sector is going.”

Burston disagrees, with a view that you need to be more self-reliant, have the courage to try things yourself, fail fast and fail often. “I think it’s the sense of curiosity that needs to be embraced, particularly with technology. What is available globally is astounding. It’s never been cheaper, it’s never been faster, it’s never been more accessible and it’s never been easier to learn.

“I think relying only on outside stakeholders or influencers to put that into your business or show you how it works is not enough – you have to have an insatiable appetite for curiosity. You have to have the courage to ask the right questions, try something and see what happens and if it works then you do it. If you do it and it works, then you measure it and reflect on it. If you reflect on it, and the numbers are moving or the dial is moving in your business from that – ask, try, do, reflect and repeat. It

“I think relying only on outside stakeholders or influencers to put that into your business or show you how it works is not enough – you have to have an insatiable appetite for curiosity.” seems so simple because it is really simple.

For small business owners, you don’t need to have these people inside your business and everyone telling you what you should do. You must have this sense of curiosity because it’s unlikely anything will break or burn, particularly from a cash perspective in your business. If you go through that simple cycle of ask, try, do, reflect, repeat, and do that every day, it becomes a habit.”

The other technology issue in the real estate industry that is noted by the panel is that, like any small business, problems can occur where implementations of various

systems have not had the buy-in from the whole team.

Cohen agrees with Burston that mentality has to change, “I think Jo’s point about having an open mind really falls into that.

You do need that curiosity and an open mind to take on technical things. The challenge is when you embrace a new technology as a hygiene factor; it often doesn’t succeed. If you want to keep your business growing and moving, you and your team have to have an open mind. You have to implement and have the tenacity to follow up and to push ahead with it.

“If you think about the concept of what Uber did to the taxi industry,” says Cohen, “If the taxi industry had had a five-year plan or a three-year plan or a bullet-proof strategy and they’d locked it in, they wouldn’t have seen it [Uber] as a threat today. It’s the same kind of thing that Dwight Eisenhower said, ‘Planning is indispensable, but plans are worthless.’ I think as a small business, you need to have an advisor or mentor to provide you with that strategic guidance, and not just as a one-off but on a continual basis.”

listing to various portals in the US and then accept or reject electronic offers online.

Regulatory and legal issues would probably prevent SQFT from operating in Australia the same way it does in the US, and there is still a real estate agent that manages the transaction through the process. Opendoor (who recently raised $USD30 million in funding) makes instant offers on houses and then flips them, often renovating them in the process to make a profit, and completes the transaction with a five to six per cent ‘convenience fee’. Added to this, there appears to be no shortage of VC funding available for tech/app development

TOPIC 2: DISRUPTORS AND THE NEED FOR A CHANGING SKILLSET

right now, so it would be hard to rule out a tech challenger that gets the model right, or perhaps solves a different problem.

To this notion, Ossipoff is first to respond.

“I think there are a few possibilities. Let’s just touch on Uber again for a second.

There’s a lot of grief about Uber in that it’s affecting the taxi marketplace. But if you travel to South Africa, getting in an Uber vehicle is safer than getting in a taxi. It actually has a very different reason to exist there than it does in Australia. Here it looks like just a disruption type of model.

“We ask our customers the question, ‘If you were setting up in business again, would you set it up the same way?’ Almost every company says, ‘No, I probably wouldn’t.’

‘Would you do things differently?’ ‘Yes I would.’ Then if yes, we ask them, ‘Are you running at 100 per cent efficiency?’ They always say ‘No’ to that. So we ask them what it is that’s preventing them from moving to where they need to be.

“Often, we need to innovate from within; at other times something is going to happen in the marketplace which is forced upon us. What I suspect you’re going to see are more services being integrated. The process of buying a home will not be just buying a home; it’s going to be a whole range of other things connected to it. We know that if you go and buy a property, that’s when you’re very likely to change your utilities or bank. We also know that within the first year you spend about $15,000 on

Another study completed by Thorpe’s team in PwC reflects the situation that affects many Australian industries where jobs are at risk of digital disruption, not just real estate. Says Thorpe, “We used an Oxford methodology to analyse the next 20 years and what’s going to happen to our workforce [in Australia]. We found that 44.1 per cent of Australian jobs are at risk of digital disruption by 2035. And for the real estate industry it’s really high – 82 per cent. That doesn’t mean we’re not going to have a lot of real estate agents, but the fundamental skill-set we feel will move to either more personalised service or be more technology-enabled.

“In terms of emerging technology,” says Cohen, “I think the big threat is the erosion of the value the business can add to consumers. Over time it slowly gets chipped away. Eventually you wonder what took your market away – was it free data, consumer data, automation or the eco-advancing systems that are emerging?

The question to ask is how are you going to embrace those and continue to add value to a customer? Don’t define yourself as a product in itself. Keep an open, agile mind and keep an eye on what’s emerging within your ecosystem.”

SQFT and Opendoor are examples of would-be ‘disintermediators’ that have sprung up in the United States. SQFT are apps that allow you to upload your property

furniture. So who else is interested when someone buys a house? Maybe someone like Westfield. There’s a linkage there. Then there’s someone who’d maybe help you do the move. Someone who’ll help you get your kids into school.

“The role of the real estate agent could become much more of a full-service delivery mechanism as opposed to what it is today, a franchised model. It’s doing things differently that makes a difference and improves the process.

“Then the question I think everyone has to ask themselves is: If you’re in that business, if you’re a real estate agent, what’s

“We found that 44.1 per cent of Australian jobs are at risk of digital disruption by 2035.

And for the real estate industry it’s really high – 82 per cent.” preventing you from doing that yourself?

Why don’t you leave your company, come back in again and say, ‘Let’s look at it in a very different set of ways.’ If you’re not always curious about changing and improving you will be, in theory, exposed to someone who’s sitting in a garage and saying, ‘That process doesn’t work as well as I’d like.’ You don’t want to wake up one day saying, ‘What’s happened?’ You want to be making the change happen.”

Marston’s idea is an interesting one: for someone to find or develop a tool that can sit ‘above the process’. “Think about what the internet has done to empower individuals and how it’s taken power away from big companies. From a real estate perspective you can find all sorts of data sources – the best mortgage provider, or what property’s available on the market.

Build something that sits above all of this process – a dashboard, for example, where you can pull and turn levers and get different outcomes. That really empowers the individual to be smarter around what they’re doing. There’s more personal empowerment right there.”

TOPIC 3: ‘BIG DATA’ IS THE NEW CURRENCY

This topic is one of Marston’s specialties and he is quick to point out that there is a lot of value in data, particularly if you can elevate this ‘beyond the transaction’.

eliteagent.com.au 37

technology In the US there is a data mining company called Smartzip which takes geotargetting to new levels. Once you have staked your claim on a particular territory you can log into their system and get a ranking report of which homes are likely to sell – in order.

Then an automated marketing platform is layered on top so that as an agent you can put your brand in front of those prospects, focusing your time on the most relevant, timely, potential leads, with tailored multichannel messages.

The ranking itself happens via a combination of predictive analytics and access to significant amounts of household data. Examined are factors such as how long since the home has changed hands, what sort of condition is it likely to be in, likely household incomes, average mortgage data, average age of children and when they might be likely to leave home.

And the list goes on. While Australia has different privacy laws that may prevent some of that information being public domain, Marston says we may be getting closer to that sort of intelligence; and the value of the data that we already have has not been properly addressed.

“There are data triggers that can be tracked of when you’re going to buy, and triggers around when you’re looking to move. I’m working on a project right now which overlays pre-approved mortgage

tablets, through the internet, through networks. Think Amazon: ‘People who looked at this house also looked at these houses’. Then that data profile is something plenty of other groups might be interested in, for example, ‘Who wants to talk to these middle-aged guys in the lower north shore [who are looking at this type of property?].

We do. We’ve got golf subscriptions. We’ve got investment properties. We’ve got holidays in Fiji.’ Looking at how different data profiles can be used is fascinating.

“Data can be interpreted to meet the

“Data can be interpreted to meet the needs of real estate agents and also to address the needs of the consumer; rather than just looking inwardly at the industry, look at the moving process end-to-end.” data with locations to target people in their houses. So I can tell if a person in a particular address has a pre-approved $2 million mortgage.

“A mortgage provider would climb over themselves to get an advert placed; for example, in various media in that person’s house, to say ‘We’ve got the best mortgage, come work with us’. A confluence of those things around different services that also fit together, as Michael was saying, around complimentary services. And of course, the opportunity for horizontal integration around that.

“I think being a really good real estate agent is one very small part of the equation of moving, renting or selling your house. But it is only one part of the equation. Look at the potential when you see how connected people are, not only in a social network sense but also through mobiles, through

38 ELITE AGENT • OCT-NOV 2015

needs of real estate agents and also to address the needs of the consumer; rather than just looking inwardly at the industry, look at the moving process end-to-end.

What value can you add? How can you augment the process through connectivity?

“If you surveyed a number of people who’ve been through that process and asked them what the pain-points were, I’m pretty sure anyone who’s ever bought a property in Australia can tell you: preapproval, the length of time it takes to exchange contracts, the actual moving process. The smart money would be saying, ‘How do we reduce the timescale, reduce the friction, reduce the pain [of these]?’”

Burston adds, “I think, from a data perspective, first collect information. Then turn it into a useful activity. Measure and reflect. As Rob said, it’s not okay to speak to everybody in the same language. If I look

at my market [as a whole] I know I’ve got a number of ‘personas’ who may become my customers. They’re very clear, to the point where I know exactly what they eat for breakfast. I speak to that persona, that customer, in a language they understand.

“For me the first thing is: who is your actual customer? What is their persona?

Do you want to be known to be great at servicing one persona, because that could make you very successful in your own right? It’s connectedness – talking to your customers in a language that shows you understand their individual daily lives.”

TOPIC 4: CONSULTING, UNBUNDLING, RIGHTSIZING...

Richard Branson and Virgin famously revolutionised air travel here in Australia by allowing consumers to choose what services they wanted from an airline. In real estate we are seeing consulting-style models pop up, for example Hello Real Estate, whose marketing says, “Welcome to the future of real estate. Where your property is sold by the one person looking out for your family’s best interests; you.” This is closely followed by encouraging the seller to “find a mentor” in their area. Solo Pro, a new entrant based in the US, attempts to do a similar thing: pay for the services you need or use. Redfin (also US-based but has been around for a big longer, specialising in representing buyers) don’t charge traditional commission; customers pay what they feel their agent was worth, “based on customer satisfaction”, and offering “smarter technology from listing to close” to support the transaction.

Notes Burston, “If you are going to go down the path of unbundling you have to not only disrupt what you’ve always said to people and change your language and tone, but [you] also must start to weave in

additional services to solve any additional problems. For example, the house being bought – it’s exchanged, then it might need cleaning. It could be removals. There’s a unique opportunity for small businesses to collaborate in that perspective.

“Secondly to that, looking at the agents and how they’re operating, I believe the disrupter will not be an agent. I think the true disrupters come from outside the industry and see something the agent can’t see. That means perspective is the name of the game. It’s time to get out, to travel the world, talk to agents and talk to technology and data experts. Find out what the sweet spots are coming up in the future of disruption and focus on those with ask, try, do, reflect, repeat.”

On the question of whether a consulting model would work Burston is also adamant.

“I think [traditional] consulting itself is also being disrupted at the moment. What do I really need and when do I need it?

Then the consumer can pick and pack what they need into a bundle of services, versus going through a process which can be very expensive and still end up with no result.

“I look at the industry and say, ‘Who are the future owners of property? Who is

the future owner of that customer?’ I see really clear personas there as well. I see [for example] Generation Y, and millenials that maybe don’t ever want to buy something because they’re global roamers. I see elderly people who are going to be sitting on big fat real estate portfolios. Getting those two

“I think the true disrupters come from outside the industry and see something the agent can’t see.”

best-practice advice on what they learned, it would be the opposite of what you needed to do to cover an emerging disrupter.”

To be relevant in the next 10 years, Burston’s view is that losing the ‘cookiecutter’ approach is a must, and that agents need to focus on a particular skill they are known for being ‘absolutely brilliant at’ to take them forward into the future. “If you stick to that…what is the ‘thing’ that I’m going to be known for in my industry? When [someone] asks, ‘Who comes to top of mind in [any] industry?’, a person will come to mind for a reason; a skill that they have and are known for. That’s the skill that the agent, in the future, needs to have.”

to talk to each other is potentially going to be the agent’s role. And if you can get that right there’s a great business to be made.”

Adds Cohen, “Often when you see the emerging disruptive products you can be aware of exactly what’s going on, but standard smart business practice will prohibit you from doing it. In the days of newspapers it was giving the news away for free on the internet. The ones who survived are the ones who actually did that. If you pulled in a consultant and they gave you

To read more, including how the ‘Internet of Things’ (IoT) will be a game-changer in the industry, what’s next in technology, what may change in property management, the importance of connectedness, how to attract the next generation into your business (design-your-own-job/DYOJ choose-your-own-boss/CYOB) and lastly, how might you sell a property in the future without commission under a different and disruptive revenue model.

Visit eliteagent.com.au/2020report.

www.exchangehub.com.au

eliteagent.com.au 39

sponsored

IS THERE MORE TO UTILITY CONNECTION SERVICES THAN MEETS THE EYE? IN 2013, UTILITY CONNECTIONS COMPANY YOURPORTER

launched as the only real estate industry-based connections company. We spoke with Tony Zarka, the General Manager of YourPorter, to find out more about how real estate offices can use the service to enhance their service offering and grow their business.

T

WO YEARS AFTER its

launch, YourPorter is still the only connections company in Victoria owned by real estate agents, boasting an equity model delivering market leading commissions and annual distributions to all participating offices.

Can you provide an overview on what YourPorter is?

YourPorter is a connection service business assisting people who are moving home. YourPorter is the buffer between the client and all service retailers, providing a single point of reference when arranging single or multiple utility connections – all with one phone call. We offer a full suite of connection services such as electricity, gas, water, telecommunications and pay television, from several top tier suppliers including AGL, Origin, Click, Telstra, iPrimus, Belong and Foxtel. Originally launched for tenants, the company is now assisting both buyers and vendors with discounted offers across the product suite.

What is the YourPorter business model?

The YourPorter business model is built around four primary pillars.

Firstly, we focus on returning high

40 ELITE AGENT • OCT-NOV 2015

commissions to agents. In the past, utility connection companies paid agents minimal referral commissions. However, YourPorter’s structure offers equal commissions to all offices and as a result the utility connections market, in some cases, has tripled their commission rates.

Secondly, YourPorter’s unique equity model enables agents to build equity in the business by simply using the service.

In essence, every application an agency submits adds to their share in the business.

Additionally, because agents can earn equity,

What was your objective when launching YourPorter?

YourPorter’s primary objective was to provide real estate agents with an opportunity to maximise the value of the utility connections service that they offered their clients. What we realised was that utility connection companies benefitted only themselves and had no real interest in creating any long-term value back to real estate agents. Specifically, recent sales of similar businesses had been reported in the tens of millions – YourPorter felt it was time real estate agencies were given the opportunity to share in the rewards.

How is the YourPorter business going after launch?

YourPorter is arguably the third largest utility connection company in Victoria and continues to generate benefits back into the real estate industry. We have just celebrated our first full financial year; we have already paid offices over $730,000 in commissions and are poised to pay $250,000 in annual distributions.

In fact, we have exceeded our annual distributions forecast by approximately 30 per cent.

The feedback from property managers and the clients we service has been exceptional. A recent survey with participating property managers highlighted over 85 per cent of respondents felt YourPorter was very easy to use.

What’s next for the company?

While YourPorter has come a long way since its launch almost two years ago, the company will continue to grow market share. We have started to move into NSW and SA with a view to having a footprint in all Australian states. We

YourPorter’s unique equity model enables agents to build equity in the business by simply using the service. In essence, every application an agency submits adds to their share. we share our profits via annual distributions.

All agents submitting applications will receive an annual distribution based on profit and individual office application volumes.

Finally, YourPorter provides a no-fuss, simple service delivery. Our easy-to-use agent portal, two-hour client contact window, choice of providers, regular communication with property managers and ongoing property manager and tenant competitions keep our clients and property managers engaged and connected.

have implemented many market firsts with our equity model and branching out to vendors and home purchasers, and we plan to continue to innovate.

Can any agent participate in YourPorter?

The opportunity to join YourPorter is available to all real estate agencies and franchise groups across Australia.

For more information, visit yourporter.com.au.

Champions

Franchise and Group awards

AUSTRALIA’S REAL ESTATE

industry is continually being shaped by hard-working, high-achieving professionals who are passionate about their careers and their businesses. Elite Agent Magazine would like to congratulate this year’s hockingstuart, Laing+Simmons and O’Brien award winners.

Jill Fellowes, Stan Platis, Ray Fayad and Chris Khoudair (Laing+Simmons Granville)

hockingstuart St Kilda

Laing+Simmons Granville, winner of Office of the Year award

hockingstuart Bentleigh, winner of Franchise of the Year award

Helen Yan, hockingstuart Balwyn, winner of Sales Agent of the Year based on sales dollar generated, with Director Toby Parker

Damien Spiteri, hockingstuart Melton, winner of Purchaser and Customer Service Agent

Tanja Neven-Jones, No 1 Agent O’Brien network

Daniel Arnott, winner of O’BrienChanged Agent

MOMENTS OF TRUTH PAGE 26

WHEN SHOULD YOU BECOME A DOT COM? PAGE 24

Branko Radov, winner of O’Brien Top Property Manager

MARKETING BATTLE PLAN PAGE 18

IERE PREMISSUE

hockingstuart Balwyn Directors Maurice DiMarzio and Toby Parker

Michael Studd, winner of O’Brien Rising Star

Cranbourne Office, O’Brien Top Office across the network

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eliteagent.com.au 41

agent profile

Tristan Tomasino Director and Senior Auctioneer, Biggin & Scott Yarraville

Celebrating industry leaders who have dramatically boosted their sales performance in a year, Tristan Tomasino recently beat 39 other entrants to win Josh Phegan’s ‘Changed Agent’ award. Having overcome some serious personal and workload challenges, it appears that the sky is the limit for his young and dynamic business in Yarraville, Melbourne, where the next goal is to help others do the same.

What was your first job, and what did it teach you?

The first job I had was sorting all the mail into post office boxes in our family business.

My sister and I would start at 6.00am and then we would hop on the 7.30am train and go to school. Then when we came home we would serve customers in the Post Office & Tattslotto shop. It taught me the value of money and hard work. Nothing ever comes easy and real estate is much the same. You reap what you sow.

What do you like most about your work now?

No two days are ever the same.

I’ve always had high energy levels; when I was young my mum took me to the doctor as I was always on the go and running around. I drove her insane, but the doctor informed her that later in life it would be an asset and I would use those energy levels to my advantage.

Sitting in the office is not in my blood. I love being on the road, getting face to face and making things happen.

What do you still find challenging about what you do, and how do you deal with it?

Learning to say no is a skillset in itself. It is so easy to say yes, yes, yes to everyone and before you know it your day is a mix of early appointments, paperwork

42 ELITE AGENT • OCT-NOV 2015

at 11.30am, lunch, then some more appointments, then back in the office and out we go again. The challenge is about compressing time and making the most out of every day, hour, minute that we work.

Define ‘success’ for you personally - what will you have achieved?

Being happy and emotionally level 24/7 is what success looks like for me. Real estate is such a ride; we can have some amazing highs, then before you know it you can lose two or three deals. Success for me is moving on and looking at the bigger picture. I want everyone in our business to have this same grounding about work and life. If we all buy into this, I’ll have a great work environment and as a team we can achieve anything.

Describe what a typical day looks like for you.

At 5.30am I jump out of bed; my energy levels in the morning are extremely high, so I make the most of that energy and listen to podcasts, exercise, meditate, visualise the day ahead, look at my goals and try to clean out my inbox. By 7.30am I’m in the car; I get a quick coffee from my sister’s café then into work.

Any administration that needs doing is completed first thing to maximise my

productivity. From here my day is very straightforward.

No appointments until 1pm, with lunch at 12pm sharp. Calls in the morning then out in the afternoon getting face to face.

If I don’t have any appointments in the afternoon, I still attempt to get out and meet people. The more people we meet, the more success will follow. This business isn’t complicated. I’ve learnt over the last 12 months that breaking your day down hour by hour is

before things started working.

What’s your secret skill or superpower?

Hunger. Easy to say, but harder to actually have. I am so hungry to succeed at everything I do. I never give up and always go down trying. The great real estate agents all have this attribute; hunger to grow, to chase that buyer or potential listing. The hungrier I am, the more amazing things follow.

THESE DAYS I TREAT AUCTIONS LIKE I USED TO PREPARE PRIOR TO PLAYING A GAME. I LISTEN TO MUSIC AND VISUALISE THE POSITIVE OUTCOME AND ANY SITUATIONS THAT COULD OCCUR. ridiculous – things do pop up and we need to be flexible, but this structure is simple and it works.

I’m home by 7pm.

Is there one thing that’s not obvious about you that you wish more people would ‘get’?

People see the family business and assume everything came to me naturally, which to a certain extent it did; but no one has seen the blood, sweat and tears of what it actually takes to make it work. The countless hours of training, the sacrifices made and the numerous times I failed

What makes you laugh?

When buyers tell me they won’t be attending the auction, then they turn up and buy the home.

My dad was a comedian in a past life. Before he became ill, he was known for his hilarious jokes and pranks. People to this day still come up and tell me stories from when they worked together in real estate 15, 20 or 30 years ago. He doesn’t make too many jokes these days, but he has become very cheeky and we have a lot of in-house jokes that give me stitches from laughing so hard.

What’s the best compliment you’ve ever received, and why?

‘That was the best auction we have ever seen’. It never gets old and pushes me to become even better at my craft. As an auctioneer it’s all about confidence, whether you have bids or not. I always make a promise to myself to stay enthusiastic no matter the circumstances. Getting recognition from the public shows I am doing all the right things, builds my confidence – not ego – and gives me extra bursts of energy to work harder.

What are some of your career highlights?

Being featured on the front page of the Sunday Domain, not once but twice in two years, was very satisfying. As a long-time agent said to me “I’ve been doing this for 20 years

and never been featured on the front page; you’ve done it twice in two years!”

I’ve played lacrosse for Australia, Victoria and went and played in the College system in America also. These days I treat auctions like I used to prepare prior to playing a game. I listen to music and visualise the positive outcome and any situations that could occur. I get so pumped for an auction and I think it shows how serious and passionate I am about what I do.

Nothing is more satisfying than achieving a sensational result for a client. As a good family friend and vendor said to me earlier this year when I sold their home well above reserve, “You have literally changed our life.” I’ve never felt more privileged to do what I love than at that moment in time.

Is there anything you would do if you weren’t afraid to do it?

Surfing is my second love to real estate…every time I get in the water I’m afraid, afraid of what’s below, but the thrill of catching waves far outweighs the fear. I think that’s what life is all about; once you face that fear, you push yourself to new heights. I make sure I take this approach in all aspects of my life.

If you could give one piece of advice to your younger self, what would it be?

If you’re serious about real estate, work in the same area and office for your whole career. So many people are always looking for the next best thing. Take a look in the mirror; you’re looking at it. If I was 18 again, I would travel for a year, then work my butt

off and save, save, save. I embraced minimalism over the last two years and it has changed my life. How many pointless things do we buy that we never use or need?

Just throwing money away. My office is spotless, I get in and everything is organised and I just work off my task list and phone list.

What’s next?

I have an amazing group of people in my life, both personally and professionally.

I want to push all of them to achieve what they are capable of and more. Short term is about improving on my skill set and building my database. Long term I would love to be consistently making a hundred sales a year and mentoring my peers, which I see as so rewarding.

eliteagent.com.au 43

personal development

AUSTRALIA’S

TOP GUN

MATT HALL IS A GENUINE HIGH FLYER. A third-generation

pilot, former Royal Australian Air Force Fighter Combat Instructor, international unlimited aerobatic competitor and now winner of his first International Red Bull Air Race in Austria. For Matt, the sky has never been the limit, and he tells Samantha McLean why you should aim high too.

W

HAT COULD

be more motivational than listening to a man who has achieved truly dizzying heights in his career? An inspiring man who tells tales from a life in aviation that includes going into combat as Australia’s Top Gun fighter pilot, evading missiles over Iraq, life in the Red Bull Air Race and countless near-death experiences, all the while using his own extraordinary life experience to convey key inspirational, motivational and educational messages about risk management, goal setting for success and teamwork? This man is Matt Hall.

4 4 ELITE AGENT • OCT-NOV 2015

In recent years, Hall has presented at conferences both in Australia and overseas for major international banks, global engineering firms, Fortune 500 companies, the Australian Institute of Sport, the Australian International Aerospace Congress and on Australia Day as an Official Australia Day Ambassador.

Hall first went aloft in a plane with his father as pilot at the age of two and started flying as a teenager.

“It never entered my head that I wouldn’t fly a plane,” says Hall, “because that’s just what we did in my family. While my friends were off playing cricket and soccer on the weekends, I was training for a pilot’s licence, starting with gliders because you were allowed to fly solo in a glider at 15. My

grandfather was a pilot in World War II, and my own goal was to become a fighter pilot.

“Not only did I want to be a fighter pilot, but a fighter combat instructor, which is the top level of Australian fighter pilots. I had a lot of people telling me they doubted I could do that, so I need to convince myself that I could do it. I’m not sure how I stumbled on the power of goals, but as a teenager I thought, ‘Well, you know what? To do it here’s what I’ve got to do.’ I didn’t put a lot of goals in place, I always focused on what the next goal was.”

Hall’s first goal was to get into the RAAF, so he put every effort into firstly getting an interview.

“Passing those interviews and then getting my letter of acceptance into the Air Force was the next step, then the next goal was to be the best I could be at my initial training. I believe goals need to be measurable, so rather than just saying ‘The best I can be’, I actually put a measurable item up saying, ‘I want to dux my course in the initial training’.

“Which I did. Then I put ‘Okay, I want to dux the next round of training’. This is the selection process to go fight, and I was able to achieve that as well. It’s one of those cases in life that if a dream seems a long way off it can seem impossible to get there.

The key to achieving goals is to consider

them as stepping stones to your dreams.

They’re achievable items that are clear and measurable. They all, in the end, line up to take you to your dream.”

According to Hall, setting step by step measurable goals also prevents slowing down and getting complacent.

“When I joined the RAAF, I noticed other people slowed down their work ethic over time, whereas I maintained my work ethic right up to the end. I wasn’t comparing myself to anyone else, I was just trying to be the best I could be.”

As both a fighter pilot and Red Bull racer, Hall has faced extreme pressure situations and danger that would leave most people petrified with fear. The keys to overcoming any level of performance anxiety, says Hall, are preparation and mental rehearsal.

“Performance anxiety clouds the brain and stops you thinking clearly and operating naturally,” says Hall. “The key is extreme preparation and rehearsal so when you step up to the plate you’ve got no self doubt. You’ve done everything you can to be successful. In your mind, you know exactly how it’s going to play out if it goes perfectly and you are also confident that if it doesn’t go perfectly you know what you’re going to do, how you’re going to see it, how you’re going to react.

“Then you can calm down and go, ‘Well, I’m going in there with no remorse.’ That’s the key.

“You also need to visualise and create emotions inside you that you will succeed, because people often hold themselves back self-consciously because they don’t think they can do it, or don’t know what the experience will be like if they win. You see it all the time in every aspect of life; people choke at the final moment and that’s because they don’t believe they can actually do it.”

Ultimately, says Hall, to succeed in anything, from real estate to fighter combat, you have to believe in yourself.

“It’s something every athlete has to deal with, every professional has to deal with,” says Hall. “You have to believe in yourself.

Once again, it comes back to preparation and planning so you have confidence in yourself, but the other thing people need to do is remove from their mind things they cannot control.

“If you dwell on the things you can’t control, you will get extremely stressed.

You will start to doubt yourself and start thinking ‘That’s going to come and get me. There’s no chance I’m going to ever be successful because that thing I can’t control will take me out’. You’ve got to acknowledge that there are things out there that you can’t control then look at yourself and go ‘I can do a great job no matter what’s thrown at me’.”

“Once again, it comes back to preparation and planning so you have confidence in yourself, but the other thing people need to do is remove from their mind things they cannot control.”

Ready to achieve your own goals and dreams? Finally, Hall stresses the importance of putting them in writing.

“I’ve got a big whiteboard in my office,” says Hall. “It’s not for taking notes and writing project timelines. On it, I’ve handwritten the dream and goals with timelines. I sit down and go, ‘What’s going on? It’s all getting too hard.’ Then I look at the dream and go ‘Is this really where I want to be going?’. I’ll visualise myself in 10 years’ time and go ‘That is still what I want’ or it might have changed slightly.

“When you’re freaking out and thinking ‘We’re not big enough. We’re not growing

fast enough’ you look at your plan and your dream and then the goals in chronological order and you can generally go ‘We’re doing pretty damn well when you look at what we’ve done’. That will then regather the passion and motivation and hopefully get you out of the slight rut of self doubt and put you back on the horse again.”

Never one short of a big dream and the ability to achieve it, Hall’s next aim is to create an airfield.

“I want to create an airfield in Newcastle that is a hub for all forms of aviation, that people from all over Australia talk about and wish to attend because it embraces the passion I have for aviation. I also dream that when my time is up I can rest peacefully with a smile on my face, knowing my family will enjoy the next hundred years.”

And the Hall flying tradition looks to be in good hands for a fourth generation.

“My son always said he wants to be a scientist,” says Hall. “The other day he asked for a signed copy of my autobiography, The Sky is Not the Limit. He got halfway through reading it and came to me the other night and said ‘Dad, if I was a pilot I’d be the fourth generation, is that correct?’ ‘That’s correct, mate,’ I replied. ‘I’m doing it,’ he said. Cool.”

In addition to Matt’s accomplishments in the air, he is also an engaging keynote speaker with inspirational messages about teamwork and achieving the extraordinary.

He also presents on Risk Management to a multitude of industries across the world. For information on Matt Hall’s flying events, to book him for a speaking engagement, or to purchase a copy of his book, The Sky is Not the Limit, visit www. matthallracing.com.

eliteagent.com.au 45

inman wrap-up

No sales awards please!

WHAT COULD BE MORE IMPORTANT in real estate than

widespread recognition and industry awards? Meet the Canadian agency who say a very firm ‘no’ to sales leader boards and recognition and put their clients’ satisfaction first every time, with amazing results.

M

ARKETING YOUR real

estate business isn’t about the awards you get, but the satisfaction you and your clients receive from knowing the job has been done well. That’s what husband and wife team Sheldon Johnston and Sara MacLennan from Liv Real Estate swear by.

Based in Alberta, Canada, Liv Real Estate is leaving behind the old-fashioned approach to buying and selling homes.

They are staying away from sales and industry awards and focusing instead on excellent customer service and referrals to increase their success in the marketplace – something they are finding extremely effective.

According to Sara, originally part of Coldwell Banker, Liv Real Estate became an agency on its own after a decision was made to change the personality of the business in general. With Sara and Sheldon working together – Sara in marketing and Sheldon with years of experience in the real estate industry – there was no doubt they could come up with a solution.

“We have a young, energetic group of people in our office. We sat down with our agents and asked them what they thought about staying with Coldwell Banker, creating our own brand, joining another franchise. They were excited about creating our own brand. So we hired a marketing consulting company in Edmonton, and they took us through the whole process; making us write our mission statement and creating our values. It ended up being one of the best things we did. Going through that process, we surveyed all of our agents; we really got to know exactly who we are as a group and what we want to project,” Sara said.

And the goal of the new business framework, Sheldon says, was to “treat

46 ELITE AGENT • OCT-NOV 2015

my people like I would want to be treated, knowing what I know. I expect my agents to treat their clients like they would want to be treated. And if they don’t, then they’re probably not the right fit.”

So what was the turning point for Sheldon and how did he and Sara go about the change?

“After years in the business I was wondering why my clients were going and listing in other places and then it just dawned on me: it was because I sucked! I sucked at taking care of them and thinking about them. I got the transaction done, sure,

“If you measure sales, you’re a sales company.

We figured we’re a service company, so we’re going to measure that satisfaction level of our customers.” but beyond that, they were waking up and going ‘Yeah, he wasn’t really on our side.’”

Sheldon started focusing more on his customers, concentrating on building those relationships, and found that was actually even more profitable. Then along came Sara with her drive and ability to think like the consumer and the referral rate increased.

Today, 95 per cent of business with Liv Real Estate is based on the referral system and the quality of the company is measured on service, not on sales.

“If you measure sales, you’re a sales company. We figured we’re a service company, so we’re going to measure that satisfaction level of our customers,” Sheldon said.

According to Sara, that became the most important factor for the business.

“Whatever we’re measuring, whatever

we’re promoting at our office is the most important thing. Our agents don’t know how much the other agents sell. It’s not published anywhere, it’s not celebrated.

There’s nothing about ‘Oh, look how many listings I’ve got’. Instead of focusing on who is at the top or second or third from the top, our agents are the most productive in the marketplace.”

To measure the company’s success, Liv Real Estate uses the online platform Real Satisfied (realsatisfied.com). Real Satisfied is a data collection company that performs simple web-based customer satisfaction surveys to give clients the chance to be honest about what they did and didn’t like about the service they received. The surveys also cover any complaints, followups and suggested areas for improvement.

Prior to discovering this website, Liv Real Estate sent paper surveys to clients asking for feedback, receiving just a few replies.

Today, with the help of Real Satisfied, they receive feedback from around 75 per cent of clients.

“From the broker’s (principal’s) point of view we get a report for every single testimonial that comes back, and we can check in on every deal. If there was a problem or some sort of concern, we address it. We’ll coach with the agent, or maybe the client even needs to be contacted,” Sara said.

At Liv, they also have an agent’s rating which goes onto their bio pages on the website. This helps clients to know they

have the best agent for the job, providing a star rating based on customer satisfaction in the past. This gives potential clients confidence, knowing they are dealing with an agent who is focused on providing excellent customer service.

“The other thing that’s great is there’s a customer service/satisfaction leader board that we, as a brokerage, can log onto to see how all of our agents are performing compared to each other and compared to other agents in the country on average. But that’s private for us.”

In order to keep the business performing at its best, Sheldon and Sara have adopted a number of strategies for their agents and the business as a whole.

The first thing they did was create a blog, which was started in 2005 and today has thousands of articles. Sheldon wrote about his personal experiences and was astounded to find people were reading the posts.

“I just wrote an article and posted it on the blog, and one day Sara said, ‘Look, fifty people read this’. So I sat down at the computer and typed out dozens more articles. We get over 15,000 readers a month now.”

They also spend a lot of time educating

their agents about the importance of customer satisfaction.

“Finding the right people for our business is important. Someone is coachable, who, number one, has a strong work ethic for us, and number two, has a huge drive to make sure that they are going to do the right thing to give the

“Our agents don’t know how much the other agents sell. It’s not published anywhere, it’s not celebrated.

There’s nothing about ‘Oh, look how many listings I’ve got.’” consumer what they want.

“I have a four-day orientation program before they even touch a client, so most of our agents are doing deals within the first week to two weeks,” Sheldon says.

“We try to provide them with a lot of

really good material that they can then use to teach their clients as opposed to selling. Our listing presentation and our buyer presentation is actually an educational session. The very first slide is, ‘Common mistakes that buyers make’. It builds immediate trust with the client.

With all the data that they have collected over the years, what have the found to be the most important things for their customers?

“Communication is top. In all of the best reviews, the comments are, ‘My agent communicated with me quickly, she (or he) was always there. Whenever I had a question I got what I needed quickly.’ That’s number one.

“No pressure. They want someone to help them. They want to make a decision and they don’t want to be pushed over the cliff.

They want someone who’s going to be there for them, to help make the right decision.

Even if that means don’t make an offer on a property.

“Finally, they want to be kept informed through the process. No surprises, and knowing they’re in good hands all the way.”

Interview: Samantha McLean Story: Tara Tyrrell

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inman wrap-up

CONNECTING AGENTS IN THE CLOUD KEEPING UP TO DATE WITH technology is a priority on

most business owner’s lists, but for Glenn Sanford, CEO of eXp Realty, technology has become the backbone for success. eXp Realty is a unique agent-owned cloud brokerage that is leading in innovation by bringing the team together in a virtual office.

S

TARTING IN 2009 with just

25 agents, eXp Realty has grown to over 700 agents and is one of the fastestgrowing real estate firms in the United States. It is also by far the most innovative, using cutting-edge web-based and social media marketing techniques along with virtual technology, with agents based across the United States and Canada working in a cloud office environment.

Put simply, eXp agents collaborate in an online 3D environment, working from their homes, own offices and coffee shops; they attend meetings, weekly classes and training sessions, while having real-time access to transaction and marketing teams.

Agents are maximising their efficiency by using the best technology available today and providing quality services to both

48 ELITE AGENT • OCT-NOV 2015

homeowners and home-buyers.

Sellers receive full service and innovative marketing to list their home both locally and nationally, with teams collaborating across the country to maximise the exposure the home receives. Transactions are managed three ways, between broker, agent and administration staff.

Because of its unique approach to real estate, eXp was a finalist for the Innovator Award for Most Innovative Brokerage or Franchise Category in 2011 (Inman News).

Elite Agent Magazine caught up with Glenn Sanford to ask some questions about how the model works and why it has been so successful for eXp. How does the cloud agency model work?

We have moved away from the traditional bricks and mortar to a ‘cloud-based’ office,

which allows people to start work when they want to. If you are going to work in a traditional office, you have to physically get dressed, get in your car, fill up with some gas and drive to work. There’s an hour to two hours of prep time to go to and from the office that totally is not as productive as it could be.

“The agents, brokers and staff have a community they are part of. They just log on; at any time they can just jump in from anywhere in the world and be part of it.”

Our model is different to a ‘virtual’ agent model, it’s more collaborative. Virtualists tend to be very transactional. You send an email and get a reply back; but you don’t have what takes place in a physical office because you don’t have people walking down the hallways, having conversations just randomly. You don’t have that sense of community. That was the piece we wanted to solve, so we designed our own system.

You can see in our cloud office avatars are

literally walking through hallways: we are seeing people, we’re having conversations, we get to meet and know everybody. As a result of this, agents don’t feel like they’re alone.

With the way that we operate, literally you get up in the morning, you’re drinking a cup of coffee in the front office in avatar and because it’s an avatar you can have a bad hair day and nobody cares. It’s not like you are turning on a video camera and doing a Google hangout or Skype.

What sort of technology allows you to do this?

We’re using a technology similar to Second Life [a free 3D virtual world where users socialise and connect using free voice and text chat]. You can visit our YouTube channel to watch a whole bunch of videos. There can be 50, 60, 100 people in the office at any given time and they can literally move from room to room, just like a traditional office. We’ll share screens, do different things based on what’s going on. It’s literally the social piece that’s missing from virtual world apps.

Could you take a client to a meeting in the virtual world?

You very well could. But when you’re involved in client work there is always

presence, Facebook, private groups, conversations. We’re always at the best ways to capture leads for our agents on the web; we help them cultivate those leads and to close the transactions.

value in being face-to-face and having those conversations. Our cloud office solves the problem of allowing brokers and staff to work where they want to and also have a community they are part of. They just log on; at any time they can just jump in from anywhere in the world and be part of it. At the moment, I’m travelling around the country to meet our brokers face-toface, so that side of it is still important.

How do you ensure your agents have the best resources?

We look for the best technology and software so agents can run their business.

We provide CRM, websites, group versions of Google Apps, social media

at last.

your property.

What is it about your program agents are most attracted to?

They get a little better financial model and can, in essence, earn more than they would in a more traditional brokerage. We’re big technologists as well and you have a leadership that understands internet, regeneration, websites, all the modern ways; and we’re very good at the coaching and consulting side.

Our agents are also shareholders in the company. When we grow, their equity increases in value. That’s a big win for them as well and it makes us pretty unique.

What’s the goal for the next 12 months?

Maintaining our growth trajectory and making sure we also provide a high level of service to our agents, since our agent is our customer.

Interview: Samantha McLean Story: Tara Tyrrell

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eliteagent.com.au 49

inman wrap-up

SERVING A NICHE MARKET WITH THE REAL ESTATE INDUSTRY becoming ever more

challenging and sophisticated, Keller Williams broker Dan Ihara and The Ihara Team in Hawaii understand what it takes to create success. While selling real estate in paradise is most certainly everyone’s idea of bliss, the Ihara team have also created a very special niche in their market that gives them a unique competitive advantage.

V

OTED IN THE Top 100

Realtors in Hawaii for the past eight consecutive years (2007 to 2014), The Ihara Team are dedicated to their clients, knowledgeable about the region and passionate about the real estate industry.

Based in Honolulu, The Ihara Team is an independently owned and operated Keller Williams Realty, Inc. franchise company. The business operates in association with two others owned by Dan, Senior Move Managers and Declutter Hawaii. Together the three businesses have been branded around the country as ‘The Complete Solution’.

50 ELITE AGENT • OCT-NOV 2015

Moving away from mainstream real estate, The Ihara Team has become an agency that is best known for dealing with one unique, niche market – senior citizens.

Their focus is not only on helping them to find the right property to suit their current and future requirements, but also on providing the services to ensure the transition into the next phase of their life is comfortable and as simple as possible.

Dan said that after the company was started by himself and his wife, Julie, they noticed a market requirement and became specialists for senior living options housing.

“We know all the retirement communities; we know where people go

if they want to be independent, or they need assisted living, or they need skilled nursing. We help them identify where their next home could be and help them declutter their home.”

He said the biggest part of the job was helping seniors with the transition, because they get stuck in the routine of ‘I’m comfortable, I’m just going to die here’.

“We help them with that process, because most of the time it’s their kids saying, ‘Mum left the stove on the other day and now it’s a problem. I’ve got to turn off the power to the stove. Now she can’t drive, so I’ve got to take the keys away.’ Then they get isolated.

All these challenges come about. Most

realtors don’t want to deal with that. It’s just too much work.

“Our model on the real estate side is that we have 15 agents on our team, one of the largest in Hawaii. We have listing specialists; their job is to get the business.

Then we have listing managers who help them manage that process – with getting rid of their stuff, helping them with the renovations, helping them with the decluttering, staging and marketing. Then the real estate specialist comes back in to negotiate their contract all the way to close. They work with our Senior Move Managers company to help take care of that middle part.”

You might wonder why an agent would want to do a job that doesn’t involve a direct sale. Dan says taking extra time with your clients in the way The Ihara Team does can create two specific reasons – one, eventually they will sell; and two, they will likely need a new place as well, so agents will not only be able to sell a property, they will also be able to help their client buy one.

“There’s a whole industry of companies like this now around the United States.

There are about 800 of them. We’re the first one that is part of the National Association

of Senior Move Managers here in Hawaii, where we help them downsize and declutter. Then we help people who just want to stay at home and age in peace,” he said.

Having only been in the real estate industry for 10 years, we wondered what Dan equates his success to – not only in terms of awards but also relating to the company’s outstanding growth.

“We’ve grown from the first month that I started to now, and we’re not stopping. The

drive the business. Last year when we had $58 million we did about 88 transactions.

This year right now we have, with what’s in escrow, about $55 million, and we’ve closed 60 transactions. Our ticket’s rising.”

Dan is part of Gary Keller’s Private Mastermind group (top 100 agents) and presents seminars across the country, which he finds is a major factor in attracting new business.

“I do anywhere from five to 10 seminars

“The biggest part of the job is helping seniors with the transition, because they get stuck in the routine of ‘I’m comfortable, I’m just going to die here’.” biggest growth came in the last two years, when we’ve changed our model to what Gary [Keller]’s put out in front of us as far as a team; specialists. We’ve gone from four people to 15, but we’ve doubled our volume.

“In two years we went from $28 million to $58 million in turnover. This year we’re getting closer to $80 million. Really, it’s about creating specialists - getting enough leads, number one, and then having the people to provide capacity to be able to

a month, somewhere on the island; at retirement communities, at senior clubs, at Lions and Rotary clubs. I’m actually asked by churches to come speak to their group, because I’m supposedly the guy that has all the information.

“At the seminars, it’s like a listing presentation for two and a half hours. They get to know me really well. They get to know our team really well and they get to trust us. It’s a safe environment. I’m not

asking them to sign anything and at the end we just ask them if they want information and we’ll come out to them and visit them.”

So what is Dan’s favourite thing about being in the real estate industry?

“Helping our clients reach their goals. It’s really rewarding, especially working with seniors. You’re helping them get from where they are to where they want to go. When you first meet them they think it’s overwhelming and it’s impossible. Literally impossible.

‘There’s no way I’m going to be able to do this.’ After we move them there they say, ‘I would never have been able to do it without you.’ That’s enormously rewarding.”

And finally, we asked Dan if he could have done something sooner; or if he could give advice to his younger self in real estate, what would that advice be?

“Get to know Gary Keller quicker.

Seriously... !”

“I wouldn’t be at this point in our business without having that foresight of being surrounded by people who are just so highminded. There are no limitations on what you can do,” he said.

Interview: Samantha McLean Story: Tara Tyrrell

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eliteagent.com.au 51

inman wrap-up

WHEN TECHNOLOGY DELIVERS A STRONGER HUMAN CONNECTION KYLIE DAVIS REVIEWS THE LATEST in technology

from the recent Inman Conference that can help you enhance your personal relationships.

D

ESPITE BEING a forward-

thinking technology convention, one of the key takeaways from the recent Inman Connect 15 conference was the return of genuine human relationships in real estate.

Machines and high-end tech can help you suck up leads, build databases, deliver information and give you a report on the process. All that is great; but they can’t empathise with clients, engender trust and deliver real value by understanding where the client’s head – and heart – are at.

a genuine relationship– if you do it right.

So on that basis, these are my picks of the technology I saw at Inman Connect 15 that can help your agency enhance its human connections.

1

ADWERX (ADWERX.COM)

Adwerx is like Google Adwords for real estate agents on steroids. We’ve all done an online search for, say, flights overseas, only to find Qantas ads following us online for days. Adwerx does a similar thing but allows agents to build display ads that will target anyone who has been on their website. So if someone has been taking a look at your site, you can brand yourself to them for the next few days with ads that can appear on any website. That can serve as a powerful reminder of who you are and what they saw, increasing the conversion rate of your site.

2

POINTDRIVE (POINTDRIVE.COM)

Having now received an inquiry from a potential vendor, or buyer, you’ve agreed to send them some information about your agency by email. What does that look like? For most agents, it’s a pile of

Technology can’t empathise with clients, engender trust and deliver real value by understanding where the client’s head – and heart – are at.

And that’s where you have to pick up the phone or jump in the car and get face to face.

“Technology enhances the relationship in real estate; it doesn’t replace the relationship.”

Where technology is great, though, is that it can give you scale and increase the number of people with whom you can have

52 ELITE AGENT • OCT-NOV 2015

attachments in any kind of order that the client has to print out, or keep downloading and clicking on. How tedious.

Pointdrive changes all of that by allowing you to create personalised webpagestyled emails that look like a newsletter.

They have your branding but contain all the links to the individual information

they need. There’s no need to keep downloading. It’s mobile- and tabletenabled so clients can receive and read it on any device. The information looks great, presents well and is tailored for the recipient’s specific needs. Fabulous!

3

BOMBBOMB (BOMBBOMB.COM)

Bombbomb is a video email technology that allows you to quickly shoot and send a video email. It’s ideal for those times when you want to express something personally but can’t do it face to face and typing is too impersonal. Back-end analytics let you track your video emails and see their success rate. With video engagement on a rampant rise – especially with the millennial market – expect to see more of this kind of technology designed to get your face out there.

4

OPENHOUSE APP (AMOPENHOUSE.COM)

How many times has Mickey Mouse attended one of your open houses?

The AMOpenHouse app is designed to overcome that by making it easy for attendees to sign in digitally with a click and express their interest in the home.

It’s great for agents because it means you only follow up useful leads; it’s also great for those who are just checking out their neighbours’ houses, because they can signal that they’re not serious about a property.

Data collected via the app can also be uploaded to your CRM.

Kylie Davis is the Head of Real Estate Solutions at CoreLogic, Australia’s largest provider of real estate data, insights and analytics. Follow her on Twitter @CoreLogic_KDavis.

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sales

Gaining acceptance of auctions in any marketplace

EVER TRIED AN AUCTION AND it didn’t come off as

planned? Has a trainer or boss told you auctions don’t work or that they aren’t worth the effort? Are you in an area where they just aren’t the done thing? Have you ever lost a listing because you pitched for auction and the vendor wanted private treaty? One of Australia’s most qualified auctioneers, Mark Kentwell, has some solutions for you.

I

TEND TO STUDY the way real estate

sales are conducted pretty much everywhere I go, in Australia and overseas. In Australia, in particular, it is blatantly obvious that a large percentage of elite-level agents (let’s say 100-plus sales a year, or $1m-plus GCI) are using auctions as their

54 ELITE AGENT • OCT-NOV 2015

preferred method of sale, and in some cases their only method of sale.

However, in each of these marketplaces, it is apparent from discussions with agents that many of the more regular performing agents haven’t been too successful with auctions and therefore revert back to private treaty.

On further investigation, there are a few main reasons for this lack of success. In many cases these are barriers that can be overcome.

BELIEFS AND THE BARRIERS Interestingly, most agents saw the benefits for all parties in auction, though one of the main fears they had was that if they went for an auction listing and the vendors didn’t like it, they would lose the chance of listing the property.

Some other reasons agents choose not to use auctions are because of the extra workload involved, limited training, the area or the market being unsuitable, or because they feel it’s only a process to be used for mortgagee sales, extremely rare or high-demand properties, knock-downs, deceased estates, and so on.

Do any of these comments sound familiar? That may be because you have

of suburbs over with a similar median price. It’s obvious that a couple of agents have started discounting in what was a strong fee area and, rather than develop good dialogue and rationale around tackling the issue, all the agents have just jumped on board out of fear of losing business. This is in suburbs where just ten minutes’ away the majority of agents are getting the same fee as they have for the last decade.

The same thing happens with auctions.

I’ve seen areas that were known as ‘auction areas’ slowly drift into a mix of private treaty, expressions of interest, price on application and other re-branded sale methods that in many cases are essentially just watered-down versions of

• Have you ever had a private treaty not sell? (Yes) If you look at all these questions, you can see that we are more than happy to accept that not everyone will agree with the things that happen every day in real estate, but as soon as a vendor or buyer says they don’t like auctions, we run for the hills.

Let’s change that.

If you believe that an unconditional sale, in a lower average time than any other sale method, with no ceiling on the price that can be achieved, a high-exposure marketing campaign, a chance of true competition and a structure to work to is an advantage in a sale, then you do actually believe auctions can work. If they haven’t worked for you in the past, you may just need to get better at

For this article, I’ll focus on getting the buyers on board with auctions, increasing bidder numbers and getting better marketplace acceptance from buyers (who may be sellers or talking to sellers too).

been harbouring the same beliefs yourself.

You see, the key learning here is that many of these beliefs originated from agents and over time have become opinions and public perceptions in the marketplace.

That’s right, a key message here: the public are influenced by the predominant beliefs and messages of agents.

Whether its sale method, vendor paid marketing, commission rates, overpricing or any of the variables an agent is faced with, every marketplace is influenced by what the agents in the area are doing as a collective.

I’ll give you an example. I have driven less than an hour in some areas and found patches where the average commission rate being charged by the majority of agents has varied by as much as 50 to 65 per cent from the surveyed average; that is, 2.0 or 2.2 per cent to 3 or 3.3 per cent from the next couple

auction. When talking to agents in these areas, the reasons stated are often a mix of the following: the market cooled down and auctions stopped selling (I assume they mean under the hammer); vendors didn’t want to pay for advertising; a dominant agency stopped doing them so we stopped doing them; we didn’t want to be seen as failing so many auctions in public; it’s much easier just to put a price on and sell; properties in our area are selling in just a few days so no need to auction; the buyers don’t like them; the vendors don’t like them… the list goes on.

Now in one way or another, many of these statements may be true; but let me ask you a couple of extra questions: • Do all vendors like and trust agents? (No) • Do all buyers like and trust agents? (No) • Do buyers like seeing private treaty homes sell before they get to inspect? (No) • Do buyers like getting gazumped on private treaty homes when they would have paid more? (No) • Do vendors like finding out they could have got more but sold too quickly on day one? (No) • Do neighbours think you’ve sold too cheaply if it sold quickly? (Yes) • Have you ever lost a listing because you pitched private treaty and didn’t pitch auction? (Yes) • Have you ever lost a listing and the other agent listed it as auction, even though the vendor told you they didn’t like auction?

(Yes)

them. What will make that even easier is to make sure that you get more buyers and sellers on board with the way you’re doing auctions in the marketplace.

For this article, I’ll focus on getting the buyers on board with auctions, increasing bidder numbers and getting better marketplace acceptance from buyers (who may be sellers or talking to sellers too).

WHAT BUYERS DON’T LIKE ABOUT AUCTIONS I have surveyed and studied buyers right across Australia on what they don’t like about auctions. Here are the top five complaints.

1. There is no price guide and the agent won’t help me out by giving me an understanding. (This can vary from area to area; in some areas where guides were used, underquoting was a complaint.)

2. We have to pay for pest and building reports and/or strata properties to buy at auction and we don’t even know if we’re going to get the home. We’re forking out for what could be nothing.

3. The contract and deposit conditions for auction seemed inflexible, and we have to get legal advice on the contract prior to auction which could be costly. (Varies from state to state.)

4. Getting finance for the auction is a pain; we need a large deposit, the bank is reluctant to help us get finance and we don’t know what amount to apply for.

eliteagent.com.au 55

sales 5. We don’t like the pressure of having to decide right there on the spot what we are going to pay for the property and having to compete for the home in that environment.

Now let’s take our agent’s hat off for a while and have a look from the consumer’s perspective. These five things can easily be overcome with a little thought, planning and structure. Some of it will create a bit of work upfront, but the 6P rule definitely applies with auctions. (I’m sure you know it: proper prior planning prevents poor performance.)

THE FRIENDLY AUCTION SYSTEM (FAS) The Friendly Auction System is a system we have developed and tested in our marketplace and some others across Australia for over five years now. It works especially well in ‘non-auction’ marketplaces but also in areas where auctions are the done thing, and it can

comparison figures.

It is important to invite buyers with a logical comparison range, and if an emotional price is out there we will achieve it through finding the ‘must-have buyers’ and creating competition. You need to explain this process to the vendor from day one. A good tip is to pick a comparable that is clearly inferior or at the very lower end of comparable (worst case scenario, fire sale price). Use this, or just above, as the lower figure. Have four to six sales in the total range, with the upper being clearly better or at the upper limit of what you can achieve. These sales will come in very handy later with valuer information kits.

Now the key thing with having this information is how you communicate it to buyers. Most agents who sell a lot at auctions will be familiar with the term ‘cooking’ an auction, by quoting a price guide or indication too high too early and losing buyer interest. The buyers must know that

Most agents saw the benefits for all parties in auction, though one of the main fears they had was that if they went for an auction listing and the vendors didn’t like it, they would lose the chance of listing the property. create separation from competitors.

It starts with a consumer-centric point of view that says if we can address the concerns of the buyers, we will get more buyers. If we get more buyers, there will be more bidders. If we get more bidders, there will be a better sale result for the vendor. Therefore the FAS is better for buyers and sellers.

Let’s look at the five main concerns listed above and find a solution for each one.

1

USE A PRICE GUIDE, VERBAL OR WRITTEN

If legislation allows it in your state, go written. (I believe those in states where guides aren’t used should lobby their governing bodies to allow guides, using consumer-based research and a clear set of rules and protocol for how guides are to be used.)

The guide should have a lower figure no less than that on your agency agreement.

You may choose to use a range of 10 to 15 per cent or just an ‘Over’ guide. When listing for auction, your agency agreement figures may be within a range of 10 per cent or so. You may explain to the vendor that there is no ceiling on the price that can be achieved, but start with conservative

56 ELITE AGENT • OCT-NOV 2015

‘Although the vendors may love to achieve a price in line with some of these other sales at the upper end of our comparison sheet, they are fully aware of the sales at the lower end as well. They have chosen auction as they are willing to listen to the market and, based on their investment into the campaign and their desire to sell, if you have capacity anywhere in this range, it’s definitely worth your while pursuing. Is any part of this range in line with your budget?’

If yes, move them through the prep steps (download our Friendly Auction Guide for buyers at friendlyauctions.com.au). If no, use the ‘John West’ principle and get as many buyers early as you can, though let them know once you start getting interest well above them. This alone will gain you massive acceptance and credibility amongst buyers due to your honesty and transparency.

For example, the buyer has a budget of early $500s and your guide is ‘over $550k’.

The vendor may initially want $600k, but as we know that can change. ‘Well, Mr Buyer, although the guide I’ve just given you is above the budget you’ve mentioned, often the guide can shift throughout the campaign and sometimes it can be downwards. It would be an advantage for

you to be prepared in advance if this was to occur, as often the guide may move in the last week or so of the campaign. This may be too late to prepare for auction and you could miss an opportunity to buy around a price you could afford. If the serious interest is moving well over your head, though, I’ll let you know so as not to waste too much of your time.’

2

IF THEY DON’T HAVE A SUBSTANTIAL FINANCIAL OUTLAY JUST TO REGISTER AND BID FOR THE PROPERTY, THEY WILL BE MORE LIKELY TO REGISTER AND BID Simple. Of course some buyers will wear this cost on a regular auction, but try this method and watch how many extra bidders than normal you will get, especially those who are on the fence about bidding.

Get a panel of contractors to sign off that if you refer the vendors to them to get a pre-sale pest and building inspection done, they will be prepared to let buyers view the report too (the NSW State Government is currently looking at making this mandatory), and will talk to buyers about questions on the content. These contractors must also agree to sign the reports over to the successful buyer, so they can know the report is prepared in a neutral fashion and will have any associated warranties.

Many inspectors will claim that their insurance doesn’t allow this; it may be so some of the time, in which case they can’t be on the panel. My research has confirmed there are plenty who will do it.

The insurance is most likely an excuse to try and get more reports done. The ones on the panel will likely end up with more work anyway, as more auctions create more reports.

Get them to write all of this on a cover note to the buyer that their solicitor can also see; it will earn them more acceptance and the information will be more credible.

I recommend using a panel, though, so you aren’t coming across as using one inspector for the vendor’s benefit, which is what a buyer may suspect. A reputable inspector will write the report the same, no matter who it’s for.

3

DO THE SAME AS THE PEST AND BUILDING INSPECTOR PANEL, BUT WITH SOLICITORS

Most solicitors or conveyancers who are looking to grow their business will welcome dozens of potential referrals a month from your company of buyers who would like a PDF contract looked at prior to auction.

It can take a solicitor as little as 15 minutes to highlight any issues for the

buyer to watch out for. Even if the buyer doesn’t buy that home, the chances of them using the same solicitor or conveyancer next time become much higher. It’s a win-win. Other solicitors will soon join in the trend anyway, as they will be losing business if they don’t. If they need to put their overall fee up slightly once the buyer buys, I doubt this will have a negative impact on the market.

4

FINANCE IS A KEY FACTOR IN GETTING UNCONDITIONAL BIDDERS FOR AUCTIONS

Get the broker’s details off the buyer very early in the piece, like week one or two. (This is part of the ‘preparing for auction’ checklist in the FAS guide.) Pass on a ‘valuation kit’ to the broker, with the property details, floor-plan, contract front page, lot plan and the two highest comparisons on your sheet of six (maybe even one over).

Comment as a valuer would on the facts of each property and how they compare to your subject property. Most of the time valuers haven’t seen inside these homes or known the back-story of the sale. Include

this commentary; it will give them the evidence required to value the home at its upper capacity, so your buyer can bid freely up to their limit, rather than an overly conservative figure you will likely get from a valuer given nothing but a guide of what the buyer may like to pay for it, or no information at all.

Your price guide may confuse some valuers into going towards the lower end without a valuation kit too. Once again, you need to communicate transparently what this is all about to the buyer, so you don’t ‘cook’ them. This is just about the valuer giving the property a fair go so the buyer can decide for themselves, not be hamstrung by an overly conservative valuation.

5

TO ALLEVIATE THE PRESSURE ON YOUR BUYERS, START THE EDUCATION ABOUT THE AUCTION DAY EARLY Follow the 10 steps in the free FAS guide referred to earlier. The key thing on reducing stress for buyers is to book a face to face meeting or a 10-minute structured call (both partners on speaker-phone)

about how to bid, payment of deposit, negotiating reserve and the opportunity to buy for their price.

Get them thinking on four levels of price; 1.

Hot buy. 2. Fair deal. 3. A bit of a stretch. 4.

Walk away. Tell them to pre-plan these four figures and stick to them. It will alleviate stress and also help get your first bid!

I hope this has been helpful; I know it made a massive and measurable difference to the bidder numbers, clearance rates and marketplace acceptance in all the areas I have trialled it.

I would love to see more consumercentric approaches to auctions used fully across the country in time. I’m sure if that was to be the case auction numbers would rise and the marketplace would be thriving with a sale method that is win-win-win for buyers, sellers and agents.

Mark Kentwell is the Managing Director of PRDnationwide Newcastle and Port Macquarie. For more on Friendly Auctions and a FREE 90-minute download from Mark head to friendlyauctions.com.au.

eliteagent.com.au 57

leadership

8

ways to keep the peace in 1 your workplace

Here are eight ways leaders can avoid these impacts and turn conflict into clarity with ease:

How leaders can turn conflict into clarity with ease

DEFINITION IS DECISIVE

How we choose to view something determines how we interact with it. Create an empowering context for conflict by defining it as ‘an opportunity for clarity’ rather than a painful win / lose situation. This is more positive and simply feels better. If truly believed, it will inspire you and your teams to get to the heart of what is going on and find a resolution for the greater good of all.

2

BE RESPONSIBLE

When conflict arises check your response. Does it stir an aggressive response in you, a passive / victim response, or can you view conflict objectively in order to help others overcome their defensiveness? If you do not have control over your own reaction, you will be less able to help others.

3 LOOK UP CONFLICT IN THE dictionary and you will read

‘a serious disagreement or argument, typically a protracted one, to fight or contend; do battle, or struggle, especially a prolonged struggle; strife.’ Any wonder why many of us avoid it like the plague. Why would we actively step into situations where pain will be felt and feelings will be hurt? Tanja M Jones looks at the ways that we can create a more harmonious and productive workplace.

W

E AVOID conflict

because of our core desire to be liked, the pursuit of acceptance and the longing for stability in our lives.

It is often caused by our unconscious addiction to ‘being right’, by having a ‘my way or the highway’ attitude and the inability to see a situation from another person’s perspective.

Unresolved conflict has been linked to miscommunication resulting from confusion or a refusal to cooperate and it affects our level of creative collaboration, team problem-solving abilities and overall trust.

58 ELITE AGENT • OCT-NOV 2015

The individual and collective impacts of avoiding conflict are significant and should definitely not be ignored. They include: • Compromised and strained communication which fosters negativity and erodes connection • Reduced productivity, lack of clarity and poor decision-making ability • Increased levels of stress and elevated risks of work cover claims • Compromised customer experience which weakens brand value • Reduced sales revenue and market share • Increased cost of business due to fractured teams and inefficiencies • Toxic air – a palpable negative energy in working environments

SEEK TO UNDERSTAND ANOTHER PERSON’S PERSPECTIVE BEFORE YOU PASS JUDGMENT

Keep an open mind and ‘get over there’ with them. This will give you a much deeper appreciation for where they are coming from. You might also learn something new about your business, identify skill gaps or even areas for improvement within organisational processes and procedures.

4

GIVE THE GIFT OF LISTENING

When you are seeking to understand the perspectives of others, practise the Gift of Listening (which was featured in the July / August edition of Elite Agent Magazine). Be deeply present with others and when they finish speaking, simply respond with ’I hear you’. People don’t need fixing; they simply need to be heard.

When people are truly heard they can then begin to step into finding solutions to the conflicts they are experiencing.

Great leaders can hold a space for the answers to arise within others.

This practice empowers your team and deepens the levels of individual ownership as a result.

5

DON’T TAKE THINGS PERSONALLY

The biggest cause for upset is when we take things personally and as humans we do it all the time. You must consistently deconstruct ‘what happened’ from ‘what

you make it mean’. Many conflicts are not actually based on reality. They are based on the decisions we made about others, a situation and ourselves. Always separate the facts from the feelings and focus simply on finding solutions together and improving practices.

6

POSITIVE PREPARATION

Minimise reactive conflict resolution by articulating ‘how it’s done here’ upfront as part of your induction process. Gain agreement and

7

MAKE MISTAKES OKAY

Develop a working environment where it is safe to make mistakes; in fact, encourage it as this means you and your teams are ‘in the arena, giving life a good go’. If you are not making mistakes you are not learning; if you are not learning you are not growing.

Share your learning in your weekly sales meetings for the betterment of everyone.

Imagine adding ‘the best mistakes last week’ to your weekly agenda and having everyone feel celebrated as they

Create an empowering context for conflict by defining it as ‘an opportunity for clarity’ rather than a painful win /lose situation. alignment from your people from the beginning and create a culture where your core values will be followed and swiftly addressed if broken. Most importantly, as the leader, make sure you are a living, breathing embodiment of your values; otherwise you will swiftly lose any respect you may have earned from within your team.

share and learn from them. Learning from your mistakes helps drop egos and cultivates a light-hearted, safe space to evolve together. Equally, acknowledge where your team members are positively demonstrating the values of your business. Don’t just celebrate the sales results.

8

HAVE ZERO TOLERANCE FOR GOSSIP

There are two types of conversations; we can either talk ‘about things and people’ or ‘for things and people.’

One erodes connection and the other builds connection. Great leaders know how to build connection and they do not engage in or allow low-level conversations that are personal, belittling or degrading to occur.

Whether it is about team members, clients, stakeholders or industry professionals it should not exist, not even in a tongue-incheek kind of fashion. It’s good to have a laugh and it’s great to share a joke, but never at the expense of others.

Conflict avoidance can buy time; however the human and financial cost of conflict avoidance in the workplace can be significant and can end up costing you more money in the long run.

Tanja M Jones is a Leadership, Mindset and Peak Performance Specialist. Her clients are usually real estate COOs or GMs who want up to 40 per cent more time to grow their business. For more information visit tmjcoaching.com.au.

* CPD Points are approved by RTO 21687 BPG Training Pty Ltd

12 CPD Points for NSW agents, online, in your own time, from just $89 eliteagent.com.au 59

The Home Straight Mark McLeod

It’s not just the extra mile; every inch counts Many years ago the term ‘customers for life’ was bandied about the industry as if it was going to save the world. I have discussed many times with our teams the need to have a marathon runner’s attitude to our clients: long-term relationships, longterm commitment and long-term engagement in communities. Why do some agents approach these critical aspects with a sprinter’s mindset?

M

ANY agents

do not have enough contact with the owners of homes in their territories. But these people could so easily have been – with some structure and process – customers for life.

A CHRISTMAS CARD IS NOT THE ANSWER As it’s nearly October you may be thinking about your Christmas card list. Every year I get Christmas cards from people I have spoken to maybe once or twice in my life. For some reason they think this card is going to build a relationship with me. I can’t help but wonder if these people spend an hour generically signing their name to a pile of cards and send them out in bulk.

If you’re someone who sends Christmas cards every year in the hope that you will miraculously build relationships, then you need to understand that all these cards do is hang on fishing line between the curtains. It doesn’t build a relationship. You need to be consistent for the other 364 days in the year.

CALL ME MARK One weekend I attended an open for inspection and while

60 ELITE AGENT • OCT-NOV 2015

I was there I gave my name and my address to the agent.

I only live 50 metres from the open home and the agent acknowledged I was a home owner in the street. Yet two days later I received a letter from this agent to my home addressing me as ‘the home owner’. All I ever wanted to be called was Mark.

prospect stage where the real relationship lives. I believe it’s further on. As you interact with prospects and work with their agenda – not your own – over a period of time, they become clients.

If you ask many agents who their clients are, they would nominate their current listings.

The new breed of real estate

Think of an agent who spends the day letterbox dropping. For every letterbox he drops a flyer in, the front door to the home is just a few steps further.

The best way to build a relationship is to actually call someone by their name.

DEVELOPING STRONG RELATIONSHIPS Like a great bottle of red, relationships take time to develop. A large number of those who live in our suburbs and communities are cynical and sceptical of our roles as real estate agents, and who we are within the community.

Many people in our industry believe that it’s at the

agents is recognising that their clients are part of a different group. From this existing client list a consistent and strong flow of business can occur, but it’s not the end of the relationship model. You need to continue beyond the sale, to develop advocates. This is where the long and sustaining business lives.

Ask yourself: are you taking the time to develop your relationships through all these stages, or are you continuing to drink cheap and nasty red?

ANY GIVEN SUNDAY (OR SATURDAY) One of my favourite movies, Any Given Sunday, pretty much sums up the point I want to make.

In it, Al Pacino tells his football players that life is a game of inches, the margin for error is so small. He goes on to say that when you add up all the inches gained and lost – in life and football – that’s the difference between winning and losing.

I believe we can apply this theory to real estate. So often the win is so close yet we don’t seize it. Think of an agent who spends the day letterbox dropping. For every letterbox he drops a flyer in, the front door to the home is just a few steps further.

The challenge I would like to give you is to find out what would happen if you went the extra inches, knocked on the door and had a conversation with the homeowners.

Because, even when it comes to real estate, the great Al Pacino was right: the win is most certainly in the extra inches.

Mark McLeod is the Ray White Group’s Chief Executive of Growth. He works alongside both agents and businesses across Australia, helping them reach their ultimate potential to achieve success.

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