Elite Agent issue 23 Jul 2018 by Elite Agent

ENGAGED WORKAHOLICS PAGE 22

THE FUTURE OF WORK PAGE 40

BEST IN CLASS PAGE 48

LEARN FROM THE BEST #23 JUN-JUL 2018

How to build your brand online

Sean Hughes

GENERATION TO GENERATION AREC 2018 Itâ&#x20AC;&#x2122;s a wrap

Thriving through boom and bust SELLING YOUR TRUE WORTH

Enhancing employee experience

Relevant and ready when you are ALL COURSES REFRESHED FOR 2018 ELITE AGENT is now delivering online short courses for real estate professionals in partnership with MRT (RTO 41529), including CPD courses for NSW Agents.

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eliteagent.com | eliteagent.academy SAMANTHA MCLEAN Managing Editor samantha@eliteagent.com.au MARK EDWARDS Publisher mark@eliteagent.com.au

FEATURED WRITERS Hannah Blackiston hannah@eliteagent.com.au

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Cassandra Charlesworth cassandra@eliteagent.com.au Kylie Dulhunty kylie@connectedmedia.com.au

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(a subsidiary of A Bit of This Publishing Pty Ltd) ACN 169 805 921 Postal Address: Suite 904, 121 Walker Street North Sydney NSW 2060 Telephone +61 2 8854 6123 Registered by Australia Post/Print Post 100020180 EDITORIAL SUBMISSIONS The publisher welcomes editorial submissions from individuals and organisations within the real estate profession. The publisher reserves the right to edit, modify, reject or contribute to the content of the material provided. EDITORIAL DISCLAIMER: Some opinions expressed in Elite Agent are not necessarily those of its staff or contributing editors. Those opinions are reproduced with no guarantee of accuracy although Elite Agent endeavours to ensure those opinions and comments are factual. Our subscriber list may sometimes be made available to relevant brands who might be of interest to our readers and from time to time we may be in touch to inform you of new Elite Agent products and services. Please visit eliteagent.com.au/privacy for details on how we collect and use your personal information. Please email subscriptions@eliteagent.com.au if you would rather not receive these communications. © Elite Agent 2018. All rights reserved.

2 ELITE AGENT • JUN – JUL 2018

DESIGN Mirko Nestorović

Contents Regulars 004 EDITOR’S LETTER Samantha McLean 008 READER PROFILE Brad Henderson 010 WATERCOOLER Catch up on what you may have missed 026 DATA INSIGHTS Eddie Cetin 028 MINDSET CORNER Jet Xavier 030 PEOPLE PARTNER Sarah Dawson 032 BUSINESS DEPOT John Knight

034 ASK THE COACH Claudio Encina 064 THE HOME STRAIGHT Mark McLeod

Everybody’s talking about 012 AREC 2018 It’s a wrap!

First Person 020 THERE’S ONLY EVER ONE CHEAPEST AGENT Josh Phegan 022 ENGAGED WORKAHOLICS Tom Panos 023 PRODUCTIVITY = PERFORMANCE Caroline Bolderston 024 OFFICE OF THE FUTURE Nick Boyd

Cover Story 036 GENERATION TO GENERATION Sean Hughes

Features 040 THE FUTURE OF WORK Kylie Dulhunty 044 GIFT OF A LIFETIME Laing+Simmons 048 BEST IN CLASS Transform 2018 052 YOUR HOME ON THE WEB Stefan Williams 054 SELLING YOUR WORTH Josh Pyatt 056 FOCUSED AND FEARLESS Kelly Tickle 058 WHY ARE YOU HESITATING? Pancho Mehrotra

060 THRIVING THROUGH BOOM AND BUST Rick Hockey 062 CRITICAL ELEMENTS FOR AN EFFECTIVE MULTI-GEOGRAPHIC TEAM Mark Engelmann

T EDITOR’S LETTER THE BIGGEST BUZZ you’ll ever

hear on a Sunday morning is along the queue of thousands of agents waiting to pick up their delegate passes for the start of two days of learning and growing at the biggest event on the calendar – AREC. AREC always holds a special place for me. Some of you know the story. I was sitting in the audience in 2014; it was a year I wasn’t really that keen on going. Firstly, I couldn’t really afford to and secondly I was feeling pretty over all the questions about the previous publication that I worked for which had, like so many magazines, failed in the wake of digital disruption. There would be questions about what was I going to do. And, at the time, I really didn’t know what that was so was in prime avoidance mode – unhappily sitting in my uncomfortable

to my own personal pain!) I was the obvious go-to for the job. So I sat in the crowd and listened to all that motivational stuff on goal setting, thinking bigger and taking action, and it was kind of impossible to sit there for two days and not set some goals myself. “If you don’t change the direction of where you’re going, you’ll wind up where you’re headed,” said Chip Eichelberger. “Two pains in life: Pain of discipline and pain of regret. Which would you prefer?” (I can’t remember who said that, but I wrote it down and underlined it like they were talking specifically to me). And then I sent a message out into the twittersphere: “Lots of talk about #goals here. Now might be a good time to say @eliteagentmag will launch in PRINT September 15 2014 #goals #realestate.”

“Life is short. Play big; if you fail – congratulations, that’s where the learning is.” comfort zone and unable to answer the tricky questions that were continually thrown at me. But fate had other plans and I received a phone call asking me to take notes in the auditorium for John McGrath. He also takes his own notes, but likes to match them up with someone else’s to see what the audience is taking away. The theory is to provide more ‘value’ from speaker content than the ticket price before the morning break on Day 1. I had done a few interviews in the lead-up and as I wasn’t doing much else (much

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That was 1 June 2014 and 106 days later, with one day to spare, we achieved that goal of an industry print magazine. Sitting on ‘the couch’ this year to interview the event speakers, I couldn’t help but pinch myself really hard a few times. Had we really come this far? Back in 2014 I could never have imagined Elite Agent becoming trade media partner for the same event – I could hardly imagine a magazine at all! Some of those messages I learned back in 2014 served me well. “No one ever complained because you showed them too much appreciation,” “Don’t just be good at starting; be good at finishing as well,” and lastly, “Fear is not the enemy; doing nothing is the enemy.” All tried and tested personally by me and found to be true. The themes this year at AREC that came across strongly (apart from whether men should go with or without socks – still debatable) were to do with teams and what I would call ‘extreme’ personalisation. Here are my top 10 takeaways... 1. T om Ferry, as always, was a stand-out with bags of value. A couple of his tips I liked: document your mission and values – it gives you a filter to say yes or no. I can tell you this works. Our values of ‘educate, elevate, entertain’ have given us a constant beacon for what we will and won’t do as a business. And: an individual cannot grow a repeatable or scalable business, and you need to have personalities that complement you (you don’t need ‘you’ clones). Have several lead sources – how many do you have? The best agents have over 10.

2. P eter Sheahan, whom I spent half an hour with (check out the podcast at eliteagent. com/elevate) pointed out the future belongs to businesses that ‘matter’ to their communities and customers. Also that you can’t complain about commoditisation if you intend to solve problems the same way as everyone else. 3. T aney Jain said the trophy cupboard is not what will get you a listing. “Vendors don’t care about your awards; they care about your passion, energy, knowledge and the

result that you’ll get them.” 4. P eter Fuda said, “There is no time management; there is only choice management.” We all have the same 24 hours as Beyoncé. It’s about the choices that you make within that time that will make the difference. And success is closer than you think; it’s those extra two per centers, added up, that will make a massive difference. Along the same lines, Megan Jaffe said, “There is not one person in this world that doesn’t have the potential to be someone

better. We don’t have control of what happens to us, but we do have control over the actions we take.” 5. S ome wise words from Josh Phegan: “Those who can spot customer moments of dissatisfaction and vulnerability, who take decisive action to support the customer, will have no trouble differentiating themselves from their competitors.” 6. D r Fred Grosse said to lose the mooring lines that are preventing you from going where you want, especially if it’s people. If nothing else, think metaphorically of mooring lines being excuses and bad habits – in fact, anything that is stopping you from listening to your soul and what you want from your life. 7. P hil Harris kept it simple, as always. To move the needle of your business you need to be consumer-focused and totally transparent, know intricate details about every single property, and spend mornings prospecting and afternoons out with clients. 8. S omething everyone might need after two days of hard learning: James Tostevin talked about the need for time out. “Taking minimum time off is not a badge of honour. Make sure you slot in the time you will take off, as well as family time.” 9. C hris Helder, probably most popular man on ‘the couch’, said that if you think times are tough then of course they will be, and that isn’t a ‘useful belief’. He says this is the best time ever in the history of the world to be in real estate. If you’re struggling right now,

remember that everything you are proud of in your life was probably born out of struggle. 10. S eems a good spot to put “10 before 10”, which was a great simple tip from Chris Hassall. He’s gone from receptionist to $2m thanks to one of those two per centers that Peter Fuda talked about. You guessed it: 10 calls before 10 am. Do that consistently and you may have a very different business to what you have now.

One last thing Tom Ferry said, and the thought I’ll leave you with: “Life is short. Play big; if you fail – congratulations, that’s where the learning is.” All the best!

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JOSH PYATT

REAL ESTATE SALES COACH Where are you from originally and where do you call home now? I’m Sydney born and bred – although Canada has a piece of my heart!

Who or what inspires you at the moment? Donald Trump. I’ve been a huge fan of his since long before he ran for and became president.

24 NICK BOYD

HEAD OF SALES AND BUSINESS DEVELOPMENT, BELLE PROPERTY Where are you from originally and where do you call home now? Born and raised in Sydney, I now reside in the Lower North of Sydney Who or what inspires you at the moment? Anyone who wants to be better, do better and achieve more with complete ownership over their actions always inspires me, as they demonstrate incredible resilience – an absolute requirement in business. What’s the most important project you are working on right now? Developing a strategic LMS training system with a tailored approach to assist agents at different levels to progress.

What’s the most important project you are working on right now? I’m working on kicking off coaching events, starting in early 2019. Everything from prospecting to database management to listing presentations. I’m so excited! Trend to watch in the industry or in business? The power of utilising and converting from a database of potential clients.

CONTRIBUTORS TOM PANOS

REAL ESTATE COACH, AUCTIONEER AND TRAINER Where are you from originally and where do you call home now? Sydney has always been home.

Trend to watch in the industry or in business? I believe the property management sector is an area that will see great change in the future, via disruptive technology, to reduce fees and streamline processes.

Who or what inspires you at the moment? My daughters Maddie and Christina – they keep my negotiation skills sharp!

Favourite quote or words to live by? Our need to be liked should never outweigh our ability to be respected.

What’s the most important project you are working on right now? Focusing on delivering incredible value to my Real Estate Gym members and writing my next book. Trend to watch in the industry or in business? Artificial intelligence.

6 ELITE AGENT • JUN – JUL 2018

Favourite quote or words to live by? “It’s nothing personal, it’s just business” – Otto ‘Abbadabba’ Berman

22 Favourite quote or words to live by? “Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.” – Albert Einstein

30 SARAH DAWSON

HEAD OF GROWTH, REAL+ Where are you from originally and where do you call home now? I was born in Kent, England, and now live in the ever-changing, diverse suburb of Marrickville in Sydney’s Inner West. Who or what inspires you at the moment? Salim Ismail inspires me, a thought leader and strategist for futuristic technology. His insights on the future of technology challenge your mind on how we will operate day to day. What’s the most important project you are working on right now? Education in the industry, helping agents uncover new ways of using technology and reposition resources to provide the best outcome for their staff and clients. Trend to watch in the industry or in business? Trust account outsourcing – it’s so topical right now and is gaining further momentum. We are excited to be working with our clients to make a difference to them operationally and allow them to focus on building their business and nurturing their client relationships. Favourite quote or words to live by? “Two moments in life, now and too late” – Terry Hawkins

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READER PROFILE

ONE LIFE, ONE CHANCE Sales agent and auctioneer Brad Henderson has set his sights high – but enjoying life, good health and a sense of fulfilment is part of his long-term vision. Tell us about yourself and your role at OusProperty. Born and bred in the country town of Naracoorte, SA, I moved to Adelaide for sport as a teenager. I then lived in a variety of locations across the state and Australia before being enticed back to Adelaide because the city is so ‘livable’. Today, I’m a sales agent and auctioneer at OusProperty. We’re a boutique brand representing clients all across metropolitan Adelaide, with a higher engagement of service within the western and coastal marketplaces. I love my workplace – we have a lot of fun and I’m excited for the future with our growing team. What motivated you to get into real estate? It’s no secret that Australians have a love affair with real estate; I’m just one of the majority! I see real estate as the profession, the commodity, the people and relationships we formulate – my aligned vehicle towards creating an ideal lifestyle to enjoy now and for many years to come. What is the market like in your area right now? We’re finding different categories of property are performing at different levels. For example, the strata-titled

8 ELITE AGENT • JUN – JUL 2018

market has been flat for some years, while demolition and development sites are in hot demand, in premium coastal suburbs. Adelaide continues to prove a sound investment. There have been steady increases in median property values in recent times, with expectation for a similar trend moving forward. Who or what inspires you? This will sound deep, but I’m

“I love my workplace – we have a lot of fun and I’m excited for the future.”

inspired by the concept of living a fulfilled life by design. I often take quiet time to think, ‘What do I enjoy? Who do I want to be around? What do I want to experience? How am I going to get it?’ Living aligned to my ethos, surrounded by positive people creating memorable moments, is my inspiration. Check out Jack Delosa on YouTube – I’m a big fan. In your ‘briefcase’ right now is… My iPad, notepad, business cards and agency agreements. In my car: Chewy mints, deo spray, Bluetooth speaker to set the mood at opens, and notepads for on-the-fly scribble messages when I want to compliment someone’s garden, or ask them to call me for some insight. In my hand: iPhone, always. Something you couldn’t live without? Good health. Sounds obvious, but I can vouch that it’s so easy to put health and fitness aside and take care of it another day. I’m working through morning

strategies to ensure I get my exercise routine done first thing and letting the day’s agenda roll on from there. What do you enjoy most about Elite Agent/EPM Magazine? It’s a great insight into the people and businesses of our industry from all over the country. There’s always a little piece of gold in each edition that’s relevant. I subscribe to the magazine, I receive #TheBrief daily – well done to your team for producing great content! What apps do you use most at the moment on your iPhone or iPad? Without a doubt, Instagram (follow me @brad_henderson_) socially and professionally. Facebook and LinkedIn for other means to communicate. Google Drive for admin. RP Data Pro for property insight on the go. Spotify for music. And, finally, TheGrint for golf course GPS, because real estate agents are allowed to have other hobbies too. What advice would you give someone starting out in real estate? Play the long game. Consider an ‘apprenticeship’ to give yourself the opportunity to develop a solid foundation of what’s required in this industry – to develop your sales and personal skills and build your factual market knowledge. Starting in a personal assistant or buyer agent role allows you to witness firsthand and learn from experienced agents in your office. Be open to speaking with agents outside your office, too. The good ones will be all too happy to give a little of their time with sincere advice. Any words to live by? I’ve held this short poem in mind for many years: “One earth, one sun, one air we breathe, One soul, one life, one chance we receive.” 

VISIT ELITEAGENT.COM/CATCHUP FOR FULL VERSIONS OF THESE WATERCOOLER STORIES

THE WATER COOLER

Our daily newsletter #THEBRIEF brings you the latest real estate news, tech and marketing tips straight up every day. In case you’ve missed anything, here are some of this month’s trending stories. Subscribe to #THEBRIEF eliteagent.com/subscribe.

Agentbox joins forces with UK-based Reapit to expand offering BELLE PROPERTY COMMERCIAL LAUNCH MAJOR ADELAIDE OPERATION With a solid residential footprint in the region, Belle Property Adelaide consortium leader Calvin Lai said the launch of Property Commercial in Adelaide is part of a long-term strategic plan. “We see a tremendous opportunity in the commercial property market. Having already been involved in major projects and development site sales, we know the sector and all that it offers, and we believe we can leverage strongly off our market-leading position in residential and projects.” David Buenfeld, Belle Property’s new Commercial Director, said, “One of the driving forces behind my decision to change brands is the cultural synergy. I saw that my business and the Belle Property Commercial brand share the same core values, and above all else we value people – that being our team, clients and business communities. Together with the rest of the team at Belle Property Commercial Adelaide, we will bring a progressive and innovative approach to commercial real estate in Adelaide.” The operation includes the introduction of a dedicated Asian Markets division headed up by Calvin Lai and Alan Lim.

Leading Australian real estate CRM solution Agentbox has partnered with the Reapit Group to deliver comprehensive solutions across sales and property management in the Australian market. The Reapit Group is a leading provider of CRM and property management solutions in the UK residential real estate space. The combined company is backed by Accel-KKR, a technology-focused investment firm with $4.3 billion in capital commitments. The two businesses will remain operationally independent, but will form a close strategic and technical partnership to provide Australian real estate agencies with an unprecedented range of options, functionality and support.

CORONIS NAMES NEW SALES DIRECTOR Queensland property services group Coronis has made an internal promotion as part of their 2020 growth strategy to open 40 offices. Managing Director Andrew Coronis has announced Adam Empringham will step into the Sales Director role in July 2018, following 11 years of service with the

10 ELITE AGENT • JUN – JUL 2018

(left to right) Craig Gillies, Andrew Coronis and Adam Empringham

company – six as an Area Leader managing 10 offices. “I would like to congratulate Adam

With both businesses already having achieved the dominant position in their respective core markets, this relationship will see both of their ‘best in class’ real estate software solutions being enhanced further and available across the board to all their clients. The Agentbox senior management team will continue to be led by Eddie Cetin (CEO).

on his promotion; he has been an integral part of our leadership team and instrumental in helping our business consistently achieve year-on-year growth,” Mr Coronis said. “I have watched him create a wonderful team culture in his offices over the years and nurture many inexperienced agents into elite performers, which is why I believe he will thrive in this new role. “We have achieved a lot in the past 34 years, but I’m excited to see the next generation of leaders step up, take control and open our next 13 offices by 2020.”

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• 3 year / 60,000kms complimentary servicing* Availabledelivery on selected 2017/18(ex built vehicles purchased from 01/5/18 and delivered by 30/6/18. Cannot be used in conjunction with the Lexus Corporate Programme. Lexus reserves the right to extend any offer. Recommended drive • Reduced feenew of $995 GST) prices shownbuilt includes months’from registration, 12delivered months’bycompulsory thirdbeparty (CTP) insurance, maximum dealer deliveryLexus charge, stamp dutytoLEXUS and Luxury Car TaxPARRAMATTA (LCT) (ifdriveaway applicable) and premium At participating dealerships. Available on away selected new 2017/18 vehicles12purchased 01/5/18 and 30/6/18. Cannot used in conjunction with theaLexus Corporate Programme. reserves the right extend any offer. Recommended prices shown includespaint. 12 months’ registration, 12 months’ compulsory third OF Priority ordering party•(CTP) insurance, a maximumand dealerallocation delivery charge, stamp duty and Luxury Car Tax (LCT) (if applicable) and premium paint. *Complimentary scheduled servicing expires at 3 years or 60,000kms from the date of first registration, whichever occurs first. Terry Shields Pty Ltd t/as Lexus of Parramatta DL 3698.

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SHAPING OF REAL AREC 2018 once again honoured a promise of delivering to a two day event that included world class real estate practitioners, inspiring speakers and future leaders. Elite Agent was proud to be part of the event in the role of Trade Media partner. Here are some of the highlights.

12 ELITE AGENT â&#x20AC;˘ JUN â&#x20AC;&#x201C; JUL 2018

THE FUTURE ESTATE “To grow you need to be in a growth mindset - you need this to out-market, and out-innovate the competition” Tom Ferry

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“The lone wolf mentality is no longer sustainable in your real estate career. You have to build a team with a great culture.” Brendan Pomponio

“CREATE AN ENVIRONMENT WHERE PEOPLE DON’T WANT TO LEAVE” James Tostevin

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“People are more important than the property” Judi O’Dea

arec 2018

“DO NOT PROSPECT FOR A LISTING, BUT FOR A CONTACT WHO MAY BECOME A LISTING IN THE FUTURE.” Taney Jain

“IF THE RATE OF CHANGE OUTSIDE YOUR BUSINESS IS GREATER THAN THE RATE OF CHANGE INSIDE YOUR BUSINESS YOU ARE IN TROUBLE!” Peter Sheahan

“The future belongs to those that out-contribute the competition” Peter Fuda

eliteagent.com 15

arec 2018

“LOOK FOR SUSTAINABLE WAYS TO GROW YOUR BUSINESS. MAKE IT REPEATABLE AND SCALABLE SO SALES, BUSINESS AND OPERATIONS ROLL ON WITHOUT YOU” Tom Ferry

“Look at all the opportunities around you” Simon Cohen

“It’s not about being in charge, but about being deeply responsible” Megan Jaffe

16 ELITE AGENT • JUN – JUL 2018

“Remind yourself regularly who you are, so you don’t get caught in the extraneous” Dr Fred Grosse

“You have got to be putting in the work before you put it on social media” Gavin Rubinstein

“It’s not about making a dollar, it’s about making a difference” Michael Sheargold

“UNDERSTAND WHO YOUR CUSTOMER IS THEN FOCUS IN. THAT IS PERSONALISATION!” Steve Carroll

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arec 2018 / around the expo

LIGHTS, CAMERA, ACTION! THE EXPO HALL CONTAINED MORE THAN 71 EXHIBITORS showcasing cutting edge

technology, products and services dedicated to the real estate industry. The Elite Agent studio was again a lively centre of activity where we caught up with many of the speakers and exhibitors over the two days.

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Photography Credit: Tim Marsden Photography. To watch our exclusive interviews with AREC 2018 speakers, read our daily wraps with tips and takeaways, view images and more visit eliteagent.com/arec2018. To claim CPD points for attending AREC 2018 (NSW, Vic, TAS, ACT, NZ) visit eliteagent.academy/arec2018.

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first person

JOSH PHEGAN

There’s only ever one cheapest agent If you’re not aiming to be the cheapest agent, you must compete on value. And the only thing that can create value is customer experience. Coach Josh Phegan explains.

WHAT YOU THINK IS THE PROBLEM isn’t the problem. The way you think about the problem – that’s the problem. There are three types of customer you need to get close to. Existing customers of your firm – they know you, love you and chose you for a reason. Competitors’ customers – they chose the competitor for a reason and have valuable insights into the way you present that turned them away. And, thirdly, non-consumers – people who haven’t yet used real estate services but still have valuable perceptions around who they would choose and why. The industry is so transactional in its nature that rarely does it stop for just a few moments to get close to these three customer types to understand what the customers find valuable.

HOW DO YOU DRIVE UP VALUE IN THE CONSUMER’S MIND? Answer: Get more jobs done. What’s the job the customer needs to get done? If you think it’s to get the house sold, you’re wrong. It’s one of the jobs, but there’s far more to a successful transaction. They want to be sold, have successfully purchased, be

20 ELITE AGENT • JUN – JUL 2018

moved and getting on with life post the transactions. The more you can help to alleviate the things they will go through in the transaction, the more valuable you become. Most of what we do is

forgettable, but there are moments that become remarkable. Like the moment when the agent turns up a day after you’ve bought or sold to organise the mail redirection, provides quotes from suppliers

IT’S THE MOMENT WHEN THE CUSTOMER REALISES THEY HAD UNMET, UNIDENTIFIED AND UNSATISFIED NEEDS THAT WERE JUST MET AND EXCEEDED.

like a removalist and organises the disconnection and connection of essential services. While it seems simple, often agents only do these things if they notice their competitor is doing them. When you have a deep understanding of the customer, then you can serve. Designing the customer journey is about identified low points (pain, anxiety and stress), then placing a high point (moments of joy, wonder and amazement) right next to them. The closer the high is to the low, the less likely the consumer is to remember the low. Think price reduction, then 24 hours later there’s a buyer appointment, and the buyer makes an offer. Whenever you have to call a client and you’re putting it off or hesitating because there’s a real chance you’re about to deliver a low, what can you do in the following 24 hours to engineer a high? When you understand the customer journey, you can design the low and high points. Disneyland places an

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.

approximate wait time on all its rides. Then, when you get to the head of the line, you turn to your partner and say, ‘Wow, that was pretty quick’. You’ve just experienced an engineered customer experience. It’s the moment when the customer realises they had unmet, unidentified and unsatisfied needs that were just met and exceeded. Those moments become remarkable, and those satisfied customers bring you your next customers.

DEMONSTRATE YOUR UNDERSTANDING OF DIFFERENT SITUATIONS You may be faced with a potential customer who is the executor of a will. What are the jobs the executor needs to get done and how can you demonstrate value? Here are some questions to ask: • Have you been an executor before? • Do all the beneficiaries get along? • You’ve already got a full-time job, and now you’ve been given

members. At that moment in the transaction, the customer says, ‘Wow, you get me and my situation more than I get me and my situation!’ That’s called situational awareness. The problem is we’re heading into the same situations almost as though it’s the first time we’ve ever experienced them. We have low situational awareness and rarely train our teams around customer service standards.

USE UNIQUE LANGUAGE TO POSITION YOURSELF AS DIFFERENT Every agent talks about styling when they should be talking about the benefit. One buyer is going to walk through five homes this weekend. That buyer is going to decide to buy one of those homes. The home that feels easy to live in and looks as though they don’t have to do anything to is the one they’ll buy. Your job as the agent is to make that happen. That’s why you have a team of people around

WHAT’S THE JOB THE CUSTOMER NEEDS TO GET DONE? IF YOU THINK IT’S TO GET THE HOUSE SOLD, YOU’RE WRONG. another one. How do you feel about the role and the sale? • Do any of the family members want to buy the property? • How much transparency is required in the sales process? • Does the property hold sentimental value? • If so, and the property is ripe for redevelopment, how do you feel about selling the property to a developer? Your role as an agent of value is to take the pressure and the stress off the client. You can help if required to negotiate with the beneficiaries, provide a transparent sales process and discuss proceedings with family

you – painters, furniture people and so on – to achieve those two buyer values, to negotiate that one buyer up and get the buyer’s decision in favour of the seller’s home. The agent who makes it the easiest, the one who demonstrates true empathy for the situation, who can show how many of the jobs they get done that the customer didn’t even know they had to do to navigate a successful move, is the one who wins. There’s only one answer to achieve thriving business success: drop being competitor-obsessed and be customer-obsessed. 

Content marketing is the new black •

One blog post might be all it takes to attract your next listing. If you are stuck for ideas or lack resources to get consistent in your digital marketing, hire a team that is always full of fresh ideas, and always on time.

TO FIND OUT HOW YOU CAN HAVE ELITE AGENT MAGAZINE’S AWARD-WINNING CREATIVE TEAM AS YOUR OWN, CONTACT MARK@ELITEAGENT.COM.AU

eliteagent.com 21

first person

TOM PANOS

Tom Panos is a real estate coach, trainer and auctioneer. He is the founder of Real Estate Gym and weekly commentator on Sky News Business. For more information visit tompanos.com.au.

Engaged workaholics

Whether you are an ‘integrator’ or a ‘segmenter’, Tom Panos urges all real estate workaholics to avoid burnout by developing a rhythm that is sustainable in the long term. AS I WRITE THIS, it is 9:04pm. It’s one of the last things I’m doing for the day. At approximately 10:30pm, I’ll go to sleep listening to a spiritual podcast. My final thoughts will enter my normal nightly ritual which I repeat to myself: ‘God, this is your shift now. I’m going to sleep.’ At 5am I will be up, working though my normal morning ritual of a mindful prayer, coffee, gym/bay run, followed by coffee again, a to-do list and straight into work all day. I’m probably best described as an Engaged Workaholic, who does not see the need for too much recovery because my daily rituals and routines set me free. Why would you need recovery when you love what you do, you find meaning in your vocation, and you get invigorated and gain much enjoyment from your work? I mean, does anyone need recovery when they’re doing something pleasurable, like going to the movies or hanging out with friends for dinner? Yet I clearly remember there was a time when I worked a job I disliked for 35 hours a week. I needed a whole weekend to recover from what I can best describe as a pinstriped prison. Today I work six days a week for up to 80 hours a week and, as long as I’m eating well, exercising, trying to get enough sleep, feeding my mind positive content and hanging around

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optimistic people, I don’t fall into the category of ‘needing work-life balance’. Before I move on to giving you some practical advice, you need to establish whether you’re a ‘Work-Life Segmenter’ or a ‘Work-Life Integrator’. I’m more than happy for my work to bleed into my life. I know there are many other people who need very clear boundaries; they need to walk into their home, turn their mobile off and change their work clothes before they even hug their children. I’m perfectly happy being an Integrator, and so are many successful real estate agents I’ve interviewed. Below are seven guidelines and practical tips that WorkLife Integrators still need to implement in their life to ensure they don’t burn out. 1. Learn to say no. Saying no buys you more time in your life. 2. No emails from 10pm to 6am. Email management at this time is disruptive to sleep.

spiritual or watching something funny. (I know scientists say you’re not supposed to look at screens before bedtime, but I think laughter more than compensates for this.) 4. Have your phone on silent when you’re in the flow zone; for example, during your prospecting time. Don’t give the power to the caller. 5. Work from home. There is enough research to suggest

WHEN YOU WORK A JOB YOU DESPISE, IT’S CALLED STRESS. WHEN YOU WORK A JOB YOU LOVE, IT’S CALLED PASSION. 3. Develop morning and evening rituals. For example, morning: gratitude time, exercise and 10 calls before 10am. Night: three things you were grateful for that happened today, or a calming activity such as meditation, prayer, reading something

around 20 per cent more productivity. 6. Set routine habits around schedules – a structured week, but not an ideal week that is set up like a prison. 7. Have ongoing interactions with similar like-minded agents – for

example, the Real Estate Gym community. Finally, let me just say that without a doubt the most critical thing for a real estate agent to have a long-term, sustainable life, where they’re passionate about their work, is to focus on a method and style of work that is sustainable. The best agents I know have focused on ‘job crafting’. They designed how and what they do in their job and use a system or have assistants to do elements of the job that they don’t like or are not good at. Burnout and having a constant need of life balance comes when a real estate agent uses prospecting methods that they dislike doing, and have no support in low dollar-productive activities that are also draining. When you work a job you despise, it’s called stress. When you work a job you love, it’s called passion. •

first person

CAROLINE BOLDERSTON

Caroline Bolderston heads up the Being Bold Coaching Academy and provides coaching and support for principals and sales leaders. For more information visit beingbold.com.

Productivity = Performance

Caroline Bolderston explains how making a few basic changes to the way you work will help you get the most out of every day. ‘PRODUCTIVITY’ is a bit of a buzzword, not just in the real estate industry but across all sectors – corporate, government, sports... But what does it really mean? What does improving your productivity do for you and your business? Productivity is about getting the most from the daily, weekly and monthly activities that are the drivers of your current and future income. It’s well known that, in real estate sales, prospecting or relationshipbuilding is the key driver, the core of your business. So if your productivity levels are low in this area, what steps can you take to improve them? Focus. Understand that what you focus on is a choice. In life, what we focus on expands, often to the exclusion of everything else! Choosing what to focus on is where the magic lies. The two criteria to apply to your decisionmaking on focus are things that matter and things you can control; where they overlap, that’s where your focus must be applied. Not haphazard focus, not some weeks on, some weeks off; but dedicated, razor-sharp, pinpoint focus and planning. It’s your choice. Time management. Time is the great equaliser, the common denominator of us all. The number one thing I hear from agents is that they don’t have enough time. This is really saying

MOST AGENTS STILL DON’T KNOW THE FORMULA BEHIND THEIR NUMBERS AND THE IMPACT EACH ONE HAS. they are not managing their time. The ability to successfully manage time includes having strategies that create space for your focus activities. There are three key areas to master: selfmanagement, environment and structure. You must draw awareness and understanding of how your emotions, beliefs and core values are either holding you back or propelling you forward. Your internal and external environment has a massive impact on whether you protect your time or give it away. The boundaries and rules that you put in place will either support or hinder your success, and keeping your mind and your business ordered and clear will enable you to manage more and achieve more.

Measurability. To know whether you are improving your productivity, you need to measure your actions and activities. The majority of agents still don’t know the formula behind their numbers and the impact each one has. Do you know how many conversations you have a day, a week, a month? How many conversations you need to have before you book an appraisal? How many market appraisals you do before you get a listing opportunity? You must know these numbers and measure against them on a weekly basis to see whether you are improving or you need to change. Benchmarking. Tracking your numbers delivers reliable

benchmarks. As you continue to track your numbers you will know, in more specific detail, how you are going on a weekly basis against industry or personal benchmarks. Do you need to dedicate more time to your prospecting, to your skill development? Have you met your benchmarks for the week? Are you blitzing those benchmarks, and have they now become your base level? Information provides the power to make better decisions which will improve your productivity. Accountability. Once you have mastered focus, improved your time management and know your benchmarks, the final step is embracing accountability. Consistency is king; it breeds growth and expertise, so being accountable and on track for your plan will ultimately drive your productivity. It can be incredibly challenging to do this alone, so the solution is to find an ‘Accounta-bila-buddy’! This can be your principal, sales manager, colleague, coach, family member, mentor or a target within a structured accountability program. The winning ingredient is that it is a formal and structured arrangement, so there is visibility to yourself and others on your actions and results. What you need is a framework for support that keeps you motivated, inspired and true to the reality of your progress. This is not just a feel-good arrangement, but one where you want to face your weaknesses, recognise your strengths and stay in the productivity zone. •

Caroline Bolderston runs a productivity and accountability program, BOLD 90, which supports agents to break through their prospecting resistance and massively increase productivity and results. Check out beingbold. com.au/bold90 and don’t miss the free eBook on Time Management!

eliteagent.com 23

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NICK BOYD

Nick Boyd is Head of Sales and Business Development at Belle Property Australasia. For more information visit belleproperty.com.

Office of the future

The next five years will continue to transform the landscape of the humble real estate office that sells and leases property. Nick Boyd predicts that the need to keep up with technology and customer expectations will result in ever-larger agencies. OUR INDUSTRY HAS SEEN a remarkable transformation already: new emerging brands, new property portals offering referral fee leads and new customer service platforms introducing AI technology, just to name a few. Many of these advances and changes stem from external resources trying to either create positive steps in our industry or take a slice of the pie. All these changes come at a cost in terms of time and, most importantly, in money to implement. What we need to consider is what we as agents are doing to change, innovate and adapt. With every new piece of technology comes a new pressure on an agent’s fee, dramatically affecting the profitability of business. Ultimately the big change in the future, therefore, will be the size of offices. The small, lean business model which sounds good in theory will, I believe, come under greater pressure in the future as it seeks to keep up with the new advancements in technology that our customers and clients expect. I believe the average real estate office in the future will hold a minimum of 1,000 managements in order to survive, grow and be considered a player. They

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WITH EVERY NEW PIECE OF TECHNOLOGY COMES A NEW PRESSURE ON AN AGENT’S FEE, DRAMATICALLY AFFECTING PROFITABILITY. will be able to offer not just real estate services to buy, sell or rent; they will be a business of multi-dimensional arms. As such they may offer buyer advocacy, accountancy, financial

services and home improvement services, all under the one roof. All these offerings will be there to solve the biggest problem that any service industry faces – value for service. The biggest issue we as an industry need to ask is: what can we do better to serve the customer? Our customer is becoming less patient and more knowledgeable, and it is our responsibility as an industry to offer quality service, in a timely manner and at a fair price, that will meet their needs. The businesses and teams that can offer this will require quality people to do so. Therefore, an office run on performance teams (EBUs) being able to run a ‘Complete solution offering’ will grow and flourish, where those that see themselves solely as real estate agencies will find it tough to keep up. The customer is being morphed into a new type of behaviour and we need to pay attention to this. From grocery shopping online where you can ‘click and collect’ (or have it delivered) to changing mortgage loans or medical insurance at the click of a button, we need to appreciate that the relationship between service provider and customer is under threat. We are quickly becoming a ‘Tinder’ society, as Simon Sinek would say, where if we are not satisfied we simply swipe left.

Customer satisfaction is being influenced daily, and I believe as agents there is a need to audit our customer satisfaction experiences more often than just every other year. Consider for a moment what occurs with a purchaser once they buy from you. Generally speaking, we give them a settlement gift, hand over keys, make a call two weeks after settlement to check they are settled in, and then give a periodic call and anniversary card each year. Now, this is a generic system in place that probably hasn’t changed much in the last decade. Is this experience enough to earn the right to do business again in the future with that client? Or is it what the client wants? It’s the ongoing one per cent improvements that can affect the overall performance of an agent and their business. I recommend that you audit your customers and clients more often to ensure the experience you offer matches their fastpaced expectations. The future real estate office may resemble something closer to the BBC offices in London, where ‘hot desks’ are encouraged and a more flexible, collaborative work environment is created – an environment where selling agents work predominantly from their mobile phones and connect to any available monitor utilising services like Microsoft Office 365. This can give less value to desk space but improve the scalability of staffing capacity, which reduces overheads for the business. Such a transformation will, no doubt, come with its own challenges. However, being on the front foot to adopt, implement and change will potentially provide the largest rewards. •

Data Insights

Eddie Cetin is the founder of Agentbox. For more information visit agentbox.com.au.

Eddie Cetin

I got 99 problems, but a database ain’t one... Top-performing agents work hand in glove with their database, accessing the right contacts at the right time to maximise their listing opportunities. If this doesn’t sound familiar, it’s time to invest a little quality time to assess your database. Eddie Cetin explains.

s a real estate agent your database is your daily go-to. Powering your business forward, it should allow you to see hot vendors, ready-to-go buyers and appointments at a glance to help you get the most from every day. However, this doesn’t mean creating an overly-complex database with an impossible number of categories; in fact, too many categories can lead to overwhelm. If – after a period of exploring what your database offers – you’re still convinced it is the CRM for you, get to work overcoming the database conundrum of what you should focus on and when. Before you start chopping prospects and buyers into A, B and C groups, think carefully about the end goal of your database structure. Plan to access your information without wading through thousands of contacts to find the gold. To achieve this goal, it’s important your CRM supports contacts belonging to multiple categories without duplicating details. Many databases fail at this point, and client data can soon become a nightmare to manage. Here are seven categorisation tips to consider implementing in your database, helping you to organise your relationships and overcome CRM confusion! With these practical structures in place,

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you can kiss goodbye to losing clients in your database.

PROSPECT VENDORS Categorise your Prospect Vendor pipelines into A, B, C, or Hot, Warm, Cool, or Selling in three months, six months, 12 months – whatever categories you choose, be consistent so you can quickly target these groups with your sales activities. Ensure you clean these lists weekly, so you know your Hot Vendors still meet that criteria. Then have another two categories, Owner and Landlord,

which you may want to find easily in your database but aren’t necessarily covered in the current pipeline definitions.

BUYERS Split these into Active and Passive. Active Buyers are those who are bidding or making offers now, while Passive Buyers are monitoring the market but would like to buy within the next year if something meets their needs. Active Buyers can feed directly

into your Hot Vendor list if they need to sell their property before or after purchasing elsewhere. If a buyer isn’t active or passive, they are a contact who may benefit from your automatic email property alerts, which is a useful way to keep them across market activity.

PAST CLIENTS A catch-all mix of past vendors and past buyers. They’re essentially people you have a relationship with that you should continue to nurture every six months.

FAMILY & FRIENDS Encourage family and friends to refer to you with a dedicated category just for your nearest and dearest. It makes communicating family days and Christmas parties much easier! ANNUAL CAMPAIGNS Flag relevant vendor and buyer groups depending on the key campaign activities you want to engage them with throughout the year. Reasons for outreach

could include an anniversary reminder of sale or purchase, festive gatherings, development launches, community events and fundraising initiatives.

REFERRAL PARTNERS Don’t forget to nurture relationships that build your business. Stay in regular communication with bank valuers, brokers, accountants, solicitors, developers, school networks and Planning Department council members. These groups can prove to be good sources of information and referral if someone is considering selling. A recommendation of your services from a ‘trusted advisor’ could be the edge you need to win that listing. FEATURES & REQUIREMENTS Don’t fall into the trap of mixing the terminology used for property features and buyer requirements with contact category names. Add specific property features to their property search requirements profile which will help you better service their needs in future, such as bedrooms, bathrooms, garage, pool. These are different to area-specific needs which could include water views, mountain views, school zone, religious/ cultural needs. Then, when you have a new listing, you can match prospective buyers in your database with those features and requirements. An effective database categorisation strategy will help you avoid ‘blast’ marketing. Mass marketing leads to poor client engagement and unsubscribing from your database. Your CRM should allow you to segment data into your required categories and then quickly send targeted, relevant information to your contacts. •

Listed A new web series featuring experts, insights and places Episode 4: The technology of branding with Josh Hart of One Agency Launceston Starting in real estate at the young age of 17 and now with a decade of experience under his belt, Josh needs little introduction. His impressive sales figures top $155M worth of real estate deals, and he has received numerous accolades and awards over his career. As director of One Agency in Launceston, Josh ensures his team stays ahead of the curve with his disruptive approach to digital branding and marketing. His innovative techniques and dedication to his work have made him a highly sought-after speaker at industry events, where he helps others achieve results through improving their own personal brands.

Watch episode four online now at agent.realestate.com.au/listed

Mindset Corner Jet Xavier

Jet Xavier is one of Australia’s leading mindset coaches for real estate sales professionals. For more information visit jetxavier.com.

Writing it down Oprah does it and so does bestselling author Tim Ferriss. Nelson Mandela did it and Sir Richard Branson swears by it, as do many other successful business leaders. Jet Xavier explains how writing down your thoughts every day can be a powerful tool to clear your mind.

ow before you stop reading, switch off and think, ‘How can something like journaling improve my business?’, let me show you how. What journaling does is alleviate some of the key roadblocks to success in real estate: stress and anxiety, negative mindsets, lack of discipline and consistency. Journaling is a powerful tool to clear the mind. Tim Ferriss says, “I’m just caging my monkey mind on paper so I can get on with my day”. Journaling doesn’t need to solve your problems. It simply needs to get them out of your head, where they’ll otherwise bounce around all day like a bullet ricocheting inside your skull. Journaling provides an outlet for your thoughts, worries, concerns, problems, stresses and anxieties. It gives you the chance to declutter the mind and start from a fresh perspective each day. It is a routine that creates focus and clarity, making you much more productive, efficient and effective. Julia Cameron is the creator of Morning Pages, one of the most popular journaling books, involving three pages of longhand, stream-ofconsciousness writing first thing in the morning. She says journaling is like having

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Journaling gives you the chance to declutter the mind and start from a fresh perspective each day. “spiritual windshield wipers; once we get those muddy, maddening, confusing thoughts, nebulous worries, jitters and preoccupations on the page, we face our day with clearer eyes”. It also helps your creative thinking. As Richard Branson says, “Some of Virgin’s most successful companies have been born from random moments – if we hadn’t opened our notebooks, they would never have happened.” “Keeping a personal journal, a daily in-depth analysis and evaluation of your experiences, is a high-leverage activity that

increases self-awareness and enhances all the endowments and the synergy among them.” — Stephen R. Covey Journaling also helps develop one of the 21st century’s most important performance tools: gratitude. For ten years Oprah wrote down things that she was grateful for. Things that made her heart sing, things that made her laugh, things that tasted wonderful, things that were beautiful, things she loved. And, well, the rest is history. Gratitude journaling makes you happier, healthier, boosts

your career, strengthens your emotions, improves sleep, increases self-esteem, raises energy levels, helps you relax, boosts productivity, makes you more optimistic and improves your decision-making. Also, when you write down positive experiences, it boosts endorphins; Dr James Pennebaker, author of Writing to Heal, has even seen journaling improve immune function. Values-based journaling is very effective as well. A study at Stanford got two groups of students to journal during their holidays and report back at the new school semester. Those who had journalled about their values and how they connected back to their day reported being healthier, with higher energy and more positive attitudes than the group who just wrote down positive things that happened during the day. Journaling is also great for the brain, as neurologist and teacher Judy Willis explains: “The practice of writing can enhance the brain’s intake, processing, retaining, and retrieving of information… it promotes the brain’s attentive focus … boosts long-term memory, illuminates patterns, gives the brain time for reflection and, when wellguided, is a source of conceptual development and stimulus of the brain’s highest cognition.” So journaling is a powerful tool for change. As you connect with a deeper part of who you are on a regular basis, it enables you to grow and focus on what’s important, allows you to be creative and helps you deal with stress and problems. “Keeping a journal of what’s going on in your life is a good way to help you distill what’s important and what’s not.” — Martina Navratilova. •

People Partner Sarah Dawson

Sarah Dawson is the Head of Growth at Real+. For more information visit realplus.com.au.

Enhancing employee experience If employee satisfaction equals customer experience, how long is it since you worked out how your employees feel about the brand? If you want to attract (and keep) great talent, it’s worthwhile measuring employee experience. Sarah Dawson of Real+ explains.

e all spend time surveying our customers, investing in market research, capturing, reworking and analysing data to ensure we are in line with their needs. The same analytic approach applies to recruitment. Viewing our industry from the ‘outside in’, how can you attract the best talent on the market and nurture prospective stars to encourage loyalty and high performance? As employers, the first step we take when we receive an application is to google the candidate, review social media and trawl the internet looking for any insight into both the personal and professional innercircle of their life. We expect that the ‘top talent’ end of town will have thought about the impact of social media sites and made a conscious effort to consider the impression on any potential employer. Just as we take these steps, candidates will also do the same. Making a decision to change career is a big step, and culture and working environments are top of mind. So candidates will research you too. Ensure that your website is in line with the image you would like to portray and that your team’s LinkedIn profiles are professional. Use Instagram with culture-defining snaps that show the ‘lifestyle’ you create for your team. This will all help encourage the candidate to picture how

30 ELITE AGENT • JUN – JUL 2018

Use Instagram with culturedefining snaps that show the ‘lifestyle’ you create for your team. their time may look as an employee in their new seat. Then it’s interview time. The candidate arrives excited – albeit a little apprehensive – for their interview, and their first impression is… what? Think about the first impression you would like to create. In a tough candidate market you may have waited weeks for someone to have

passed your detailed criteria to make it to your front door. The first meeting, therefore, is crucial for both parties. It’s guaranteed the candidate will have thought about their appearance and how to make a positive impact. Think of the steps a candidate takes and emulate them. 1. Make an early connection 2. Showcase the working space

3. Invite colleagues to introduce themselves 4. Share stories and get to know each other 5. Uncover experience through conversation 6. Be clear about expectations and what success will look like 7. Promote commitment to progression Remember, the decision to form a career partnership is a two-way street. Both employee and employer need to feel the connection. So whether you are applying for a role or looking for your next rising star, put your best foot forward and do what we do well – sell the experience! •

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Business Depot

John Knight is the Managing Director of businessDEPOT, a team of energetic accountants and advisors. For more information visit businessdepot.com.au.

John Knight

How much are you making? As every real estate business is different, it can be difficult to benchmark your performance against others. Business expert John Knight comes up with an answer to the regularly asked question, ‘How much should my business be making?’

hen I am presenting at industry conferences or hosting principal workshops, there is always one question I am asked: ‘How much should my business make?’ Usually when people ask this question they are really fishing for a benchmark profit percentage. It is a question that is hard to answer; hard, because every real estate business is different. It is near impossible to compare a sales-only business with a property management-only business, or a selling principal business with a non-selling principal business. There are always different components of the business that can be benchmarked, but it is vital to first understand the differences between business models. Instead, I like to turn the question around and share the characteristics of the businesses that I see achieve above-average results. In my experience, I see above-average results coming from businesses that tend to have the following.

LARGE RENT ROLL COMPARED TO COSTS The important thing here is the relativity between the fixed income you generate from the business (usually property management) and the fixed costs you incur irrespective of performance. The greater the

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proportion of your fixed costs covered by your fixed income the better. This reduces the risk within your business and, because your profit breakeven is lower, you don’t have to sell as many properties before you start to make a profit. In an ideal world, your rent roll is big enough to generate income every month equal to the fixed costs of the business. Although this is rare, it does happen, and when it happens it is a nice place to be.

MULTIPLE PRINCIPALS The key with multipleprincipal businesses is that you have more than one person with a vested interest in the success of the business. This could be a husband and wife team or unrelated parties in business together. Not all principals need to be equal owners for this to be the case, and in recent times it has become more and more common for older principals to be supported by others with a minority ownership interest. Given the many hats a principal needs to wear in business, this works because it enables you to share the hats around. You may have one principal responsible for PM and one for sales, or one has the job of selling while the other looks after the back office.

AT LEAST ONE SELLING PRINCIPAL Irrespective of whether

a selling principal takes a commission on their sales, having one selling principal reduces the reliance you have on your sales team and creates an opportunity for some higher profit margin sales. Also, don’t discount the value a business enjoys by leaning on the profile and activity of a strong selling principal – someone who is not going to just up and leave when they negotiate a few extra commission percentages with an agency down the road.

CONSISTENTLY PERFORMING SALES TEAM The more consistently your sales team performs, the better the profits. Having no baggage in the team and everyone contributing to the profit every month makes a massive

difference to the results. For example, if you have one person on a retainer and not making sales, you need one other person to make a sale per month just to pay for the retainer agent. One way I like to focus on performance is by tracking the average number of sales per salesperson per month. If anyone is not making a sale each month they are not contributing to profit. Getting everyone to consistently meet baseline performance expectations flows straight through to the bottom line. I see net profit percentages of real estate businesses range from 0 per cent (or negative) to around 40 per cent. To my mind, 40 per cent is only achieved when the business is reliant on a selling principal who does not take a commission from the business for the sale. If you are a sales-only business achieving 20 per cent net profit percentage you are doing well. I think the industry benchmark here is closer to 18 per cent. One of the best profit percentage businesses I work with achieves around 27 per cent net profit percentage, but one of the best dollar profit businesses only achieves 16 per cent net profit percentage and it has about 10 per cent of its total income coming from property management. There is no one-size-fits-all. If you are going to compare yourself to others, make sure you are comparing apples with apples. Footnote: To ensure you are comparing apples with apples, when I mention net profit percentage I am talking about profit before owner’s drawings (but after a commission on principal sales) and before tax, expressed as a percentage of total income. 

Q&A ASK THE COACH – Claudio Encina Coach Claudio Encina tackles reader questions on improving communication skills, including the awkward price reduction conversation.

How can I get my vendors to accept an offer in a slow market? I feel they’re starting to lose faith in me. Raymond Indrawan, Win Real Estate Mulgrave Victoria Not many agents put much thought into the words they use when presenting offers to vendors. They don’t seem to understand that words have the power to make or break a sale at any stage. You could have vendors excited about an offer and ready to go ahead, then say one wrong word. The sale comes to a screeching halt and you aren’t even sure why. The vendor stalls. They back-pedal. They want to think it over. What happened? I see it happen all the time. You have to work out why this offer is an advantage for the vendor rather than for your own self-interest (commission). Sometimes our dialogue can create negative emotions. You created doubt about the benefits they would receive from the sale. They got scared and put up a quick defence barrier to keep the sale from going any further. You see, words create pictures in our minds. Those pictures then cause us to have certain emotions – either negative or positive. The goal of anyone in sales, or any other position where they need to persuade others, is to create only positive emotions with positive mental pictures. Negative mental pictures create fear or cause people to raise defence barriers against whatever you’re offering. Be careful in being too aggressive, pushing hard on an offer, as this can cause people to lose interest in you. Before you know it, they’re thinking about using

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proves true. A poor opening line will surely dim your chances of a productive conversation. Remember, you may be calling this person at your convenience. Never say, ‘Is this a good time to talk?’ Why? Because generally the prospect will say ‘No’. Practise saying who you are and know what you do. Know your ‘message’ and ‘outcome’ from the call. Also, understand that your language can create a level of influence and persuasion on the prospect. Think about ‘Seeds of thoughts to plant that can create action’. Follow these guidelines:

Many agents don’t understand that words have the power to make or break a sale at any stage. another agent. The key to closing every opportunity is to eliminate fear in the minds of your vendors. It works like this: Words create pictures that create emotions. People make decisions emotionally, then they defend their decisions with logic. So it’s critical to closing that you understand how to eliminate negative emotions and create positive ones. Vendor empathy is the fastest way to winning more sales!

I feel I need to level up my cold-calling prospecting skills on the phone. Any tips? Neil Carrasco, McGrath Liverpool The first 10 seconds on the phone can make or break that call. Many telephone sales opportunities are lost because

of poor opening technique. Never say, ‘How are you?’ to a stranger. This approach is not sincere. The prospect doesn’t really care and certainly doesn’t have time to listen to a story. They may put up resistance immediately because of this opening and then expect a sales pitch. You dig yourself into a hole and now you have to dig yourself out before you try to regain the attention of the prospect. Give respect to the prospect you are calling and try to avoid asking a question that is intrusive, direct, and too personal. Be polite. Don’t fluff the opening line. It should sound clear, positive, and strong. When a potential customer calls you, the voice he or she hears should be enthusiastic and ready to serve. When you are making the call, the same

1. Be confident 2. Be assumptive 3. Use sentenced word statements 4. Be action oriented 5. Speak in the present. Here is an example: ‘ Hi, is this …? This is (your name)… I’ll only be brief. We just sold (x) just down the road from you, and some of your neighbours who aren’t thinking of selling are curious to know where their home sits on the market based on the recent sale. Would it be helpful if we were to pop in while visiting some your neighbours this week or next week to give you an updated market assessment?’ Sincerity, politeness and brevity, combined with a solid knowledge of your market, are the makings of a successful sales call. Follow these tips and watch your selling productivity rise! 

To have your question answered email askthecoach@eliteagent. com.au. To connect with Claudio visit claudioencina.com.

MARKETS PAGE 16

PAGE 36

PREMIERE ISSUE

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TRUTH PAGE 26

A DOT COM? PAGE 24

PLAN PAGE 18

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A GAME OF DRONES PAGE 36

SELLING PROPERTY TO SMSF INVESTORS PAGE 42

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WHEN SHOULD YOU BECOME A DOT COM? PAGE 24

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#10 APR/MAY 2016 AU$13.50

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THE GIFT OF LISTENING and the power of presence

PREPARING FOR SPRING SELLING SEASON

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with Stuart Benson

INSTAGRAM Every picture tells a story

TACTICAL LISTING WITH JOSH PHEGAN PAGE 26

FIVE TACTICS TO ACHIEVE AND MAINTAIN ZERO ARREARS

LEARN FROM THE BEST

#06 JUL/AUG 2015 AU$9.95 + POSTAGE

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THE TRUSTED ADVISOR

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A GUIDE TO THE ULTIMATE BRAINSTORM

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#03 JAN/FEB 2015 AU$9.95 + POSTAGE

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LEARN FROM THE BEST #05 MAY/JUN 2015 AU$9.95 + POSTAGE

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FEATURE INTERVIEW NAOMI SIMSON SPEAKS ON PRODUCTIVITY AND LEADERSHIP

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#02 OCT/NOV 2015 AU$9.95 + POSTAGE

The resolutions you need to make this year

Get noticed for the right reasons

SOCIAL MEDIA REPORT CARD PAGE 14

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31 May – 1 June, 2015 Gold Coast Convention & Exhibition Centre

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#09 FEB/MAR 2016 AU$13.50

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THE REFERRA SYSTEM THA REALL WORK

YOU SA

Our 20 Sentim Surv

LEADIN THE CHARG

Glenn Curran

STARTIN OU RIGH

The ro

Elite Agent issue 23 Jul 2018

Articles inside

ASK THE COACH Claudio Encina

BUSINESS DEPOT John Knight

PEOPLE PARTNER Sarah Dawson

DATA INSIGHTS Eddie Cetin

READER PROFILE Brad Henderson

ENGAGED WORKAHOLICS Tom Panos

OFFICE OF THE FUTURE Nick Boyd

MINDSET CORNER Jet Xavier

THERE’S ONLY EVER ONE CHEAPEST AGENT Josh Phegan

EDITOR’S LETTER Samantha McLean