THE MILLION-DOLLAR MYTH PAGE 18
IT'S THE CLIMB PAGE 28
BEGIN WITH THE END IN MIND PAGE 56
LEARN FROM THE BEST #27 MARCH 2019
MARKETING
19 WAYS TO GET MEDIA ATTENTION LEADERSHIP
WHAT ARE YOUR AGENTS WORTH? AUCTIONS
SETTING A DYNAMIC RESERVE STRATEGY TECHNOLOGY
TO 2020 AND BEYOND
GLEN COUTINHO a i n r o f i l a C o t Welcome
+ Industry magazines for Real Estate Agents and Property Managers
Issue 27 MARCH 2019 eliteagent.com | eliteagent.academy
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SAMANTHA MCLEAN Managing Editor samantha@eliteagent.com MARK EDWARDS Publisher mark@eliteagent.com
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VERONICA KING Designer, Art Director veronica@eliteagent.com CONTRIBUTING WRITERS Cassandra Charlesworth Kylie Dulhunty editor@eliteagent.com
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34
MARCH 2019
CONTENTS
ON THE COVER 034 WELCOME TO CALIFORNIA Glen Coutinho
ELITE AGENT 004 EDITOR’S LETTER Samantha McLean 006 CONTRIBUTORS 008 PODCAST HIGHLIGHTS 010 READER PROFILE Samuel Thompson 012 THE WATERCOOLER
EVERYBODY'S TALKING ABOUT 014 TO 2020 AND BEYOND Steve Sammartino, Futurist
FIRST PERSON 016 THE REAL DEAL Josh Phegan
10
018 THE MILLION DOLLAR MYTH Caroline Bolderston 020 HOW TO SET A DYNAMIC RESERVE STRATEGY Andy Reid
022 A NEW REALITY Kate Strickland
REGULARS 024 DATA INSIGHTS Eddie Cetin 026 PEOPLE PARTNER Sarah Dawson 028 MINDSET CORNER Jet Xavier 030 BUSINESS MATTERS John Knight 032 ASK THE COACH Claudio Encina 056 THE HOME STRAIGHT Mark McLeod
FEATURES 038 DOMINATING THE BUY SIDE: Ben Auchettl 040 THE COMPETITIVE EDGE: Malek Younan 042 ON HER OWN TERMS: Michelle Kerr
44
044 WHAT ARE YOUR AGENTS WORTH? Andrew Acton 046 CHAMPION OF CHANGE Kylie Walsh 048 STREAMLINE YOUR DIGITAL MARKETING Tim Dean, Campaigntrack 050 TIME FOR A TECHNOLOGY APPRAISAL? Andrew Herrmann 052 DESTINATION LAS VEGAS Cassandra Charlesworth 054 PRESS TO SUCCESS Samantha McLean
eliteagent.com 3
EDITOR'S LETTER
T
HONOURING THE CLASSICS
homas Jefferson (aka President number 3 of the United States of America) was responsible for the biggest real estate deal in the US history - the purchase of Louisiana from the French in 1803. He also famously said, “If you want something you’ve never had, you must do something you’ve never done.” I’m sure he never imagined the phrase being repeated by millions of motivational speakers (and yes, real estate coaches) around the world without proper attribution. And he’s not around today to get his knickers in a knot about it – but it occurred to me, while immersing myself in a 30-day challenge by Perry Marshall in January, that much of the guidance we all look to when we need a lift or lack personal motivation was written way before our time. Part of Perry's challenge was to read each day from a book dating back to pre-Gutenberg (also known as the printing press). Pre-Gutenberg authors and books include Seneca, Plato, The Bible, The Qu’ran, The Art of War, Dante’s Divine Comedy and many others. Without a printing press, each of these old books had to be painstakingly reproduced by
hand – which would have been a fair bit of work given they are all quite a bit longer than your average 600-word blog post! Not to mention they are bit of a challenge - at times a little tougher to work out what the author really meant with all of today's urban dictionary word options. But still, their timelessness, wisdom and simplicity shine through and are as applicable today as they were back then. So many times when we’re presented with problems we are tempted to look to the new to solve them, adding complexity as we go. The latest piece of technology, more listings, more managements, more people, shiny new objects... the list goes on. It’s so easy to get wrapped up in more, more, more that it’s easy to miss what’s already here and right in front of us – which may, in fact, be less. Fewer clients, fewer people, less complexity. So, this year, my New Year’s resolution when solving new problems is to remember looking at a few old books back in January. That and another Thomas Jefferson classic: “In matters of style, swim with the current; in matters of principle, stand like a rock.” Enjoy the issue.
“In matters of style, swim with the current; in matters of principle, stand like a rock.”
SAMANTHA MCLEAN MANAGING EDITOR samantha@eliteagent.com
4 ELITE AGENT • MARCH 2019
1
WORTH A WATCH
WORTH A READ
2
Who moved my cheese is not pre-Gutenberg, but Michael Sheargold recommended it (somehow I missed it 20 years ago). Despite its age, it’s still an interesting framework for navigating change. Who are you, Hem, Haw, Sniff or Scurry? elite.ag/readfeb19
3
"As you think, so you shall be.” If you feel as though your cheese has moved since last year, the teachings of Wayne Dyer still provide a great compass. His Five Lessons To Live By on YouTube are healing, uplifting and empowering. Start asking yourself some good questions; the answers are all within you. elite.ag/watchfeb19
EDITOR'S
picks
5
WORTH A LISTEN
Well before the printing press came the teachings of Seneca. The first one is about protecting your time and becoming productive. Tim Ferris helpfully created some PDFs and also an audiobook. elite.ag/listenfeb19
4
WORTH REMEMBERING Again in the words of Jefferson, "Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude." If you know Glen Coutinho he may tell you the story of how hard he worked to get on the cover of this issue. One could say the classic lessons (charm, customer service and persistence) never go out of style. We all wish him the best in his new adventures.
WORTH ANOTHER LOOK
The Matrix. Twenty years ago the year was 1999. Steve Jobs first demonstrated how wi-fi was going to work. We were all stressed out about a Y2K bug (which amounted to not much). And a little movie filmed in Australia, The Matrix, made its debut in March of that year. The film was categorised as science fiction back then, but in 2019 could easily be the real-life documentary Keanu Reeves allegedly said it was. And, if you don’t believe we are in a version of The Matrix right now, it’s worth another look – along with having a think about how you might unplug from it every now and then. elite.ag/lookfeb19
eliteagent.com 5
CONTRIBUTORS
JOSH PHEGAN In 2018 Josh Phegan was the drawcard speaker at 208 events in the US, UK, New Zealand and Australia. This issue, he writes on how good agents can survive any market. The next big change in real estate Josh is hoping for is cohesion across the country in licensing and legislation. “Having to remember all the different quoting legislation as you move around the country makes you realise just how chaotic it is. The sooner we get this sorted, the better the outcome for today's consumer.”
6 ELITE AGENT • MARCH 2019
ANDY REID KATE STRICKLAND This issue Kate Strickland tackles the important topic of burnout and what to do if you’re feeling overwhelmed or at the end of your tether at work. As a director of Marshall White Brighton since 2011, Kate knows about having a lot on your plate and she’s very careful to monitor her own stress levels. “You must have an awareness of what works for you; whether it’s time on your own to recharge or, as it is with me, spending time with other energetic people [which] helps me regain perspective! I know who my people are that I love spending time with.”
Auctioneer Andy Reid swaps the gavel for a pen to write about the importance of a good campaign strategy for agents taking property to auction. After switching to real estate from a career in hospitality, Andy found his passion in auctioneering after conducting his first in 2012. He’s now at his happiest with a gavel in hand. “It’s my escapism. It’s literally the only time my mind’s crystal clear; nothing else matters when I cross that threshold.”
CASSANDRA CHARLESWORTH Elite Agent features writer Cassandra Charlesworth spoke to Michelle Kerr and Andrew Acton for this issue, plus checked in with this year's Consumer Electronics Show to see what’s happening in the area of smart homes. While Cassandra loves hearing everyone's stories, her favourite interview, she says, was former PM Malcolm Turnbull. “It was long, long ago in a TV newsroom far away and he was head of the Republican Movement at the time. Even then, it was pretty clear this was a man on a mission with a political impression to make. Polite, courteous, and oh so media savvy, he was a master at the interview.”
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ELEVATE The official podcast of
s t h g i l h g i H NERIDA CONISBEE Chief Economist, REA Group
RIK RUSHTON Coach, Author, Speaker “2019 consumers expect far more value for their money than just giving us $20,000 to be Maitre D’s at a restaurant taking names and numbers…” There is still some summer left and this means you might want to catch a recap of the 12 months just passed with coach Rik Rushton. There’s something for everyone in this podcast including advice, cautionary tales and inspiration for 2019. elite.ag/rushton
ELITE.AG/PODCAST 8 ELITE AGENT • MARCH 2019
PETER BAINES OAM Hands Across the Water “There’s nothing more levelling than everyone walking down to breakfast in Lycra; when you’re on that bike, it doesn’t matter what your position is because you’re all equal.” There are a few agents this year taking part in the ride of their lives with Peter Bains, Steve Carroll and the Hands across the Water crew. In this podcast, we discuss how shared experiences create unbreakable cultures, motivating a team through adversity – and how to lead with innovation. elite.ag/baines
“There is a lot of negative media coming out about Australia – and it’s hitting the (Asian) market really hard..” How’s the market? This month we unpacked all the pressing issues to do with the property market in Australia for the next six months with Nerida, who gave us a helicopter view of what’s happening with the Royal Commission into banking, interest rates, stamp duty, bitcoin, investor activity, negative gearing and the upcoming Federal Election. elite.ag/febmarket
CAMERON NICHOLLS Principal, Nicholls and Co “It provides the consumer with information that’s easy to read, and it places your property back at the top of the pile after looking at half a dozen others.” Cameron Nicholls of Nicholls and Co went into business for himself four years ago, at the age of 27. Although he’s had his ups and downs along the way, Cameron has carved himself a niche in a competitive area with a tribe of fiercely loyal clients. Here he talks about the financial and emotional aspects of setting up shop, along with some costeffective ways to wow buyers with quality content. elite.ag/nicholls
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eliteagent.com 9
READER PROFILE
HUNGRY AND HUMBLE Counting youthful enthusiasm as a major strength, Samuel Thompson is generating a lot of buzz on the Canberra real estate scene. A marketing specialist at LJ Hooker Belconnen while still completing his double degree, Samuel has set his sights high in 2019.
What was your first job? I started my first job at the age of 14 working in a supermarket; packing shelves, cleaning the floors and assisting customers. It taught me time management and the importance of a high level of product knowledge. Fitting in school, representative rugby and working each afternoon was a balance, which taught me to prioritise. What’s the best thing about your job? Having the ability to assist someone with their real estate transaction, whether it’s a million-dollar property, a suburb record or an entrylevel apartment. I also love overcoming the stigma of being a young agent competing against career veterans at the age of 21. What are the key areas you're focusing on for 2019? Balancing work and university to complete my double degree in Business Administration and Marketing at the University of Canberra. For business, focusing on market share within my farm area and looking to assist over 50 families for 2019. Where would you like to be by this time next year? I would like to be a member of
10 ELITE AGENT • MARCH 2019
easy; the integrity and hard work that many agents provide is phenomenal but, due to a few who don’t act in the same ethical manner, we’re all brought down. What’s the best piece of advice you’ve ever been given? Stick to the basics and simplify everything. Learn from the best and understand that real estate is not a sprint, it’s a marathon – and it’s one genuine relationship at a time.
LJ Hooker’s Multi-Million Dollar Chapter Club for elite agents. If you could wave a wand and change one thing in the industry, what would it be? I would love to change the stigma around real estate agents. Clients come to us for our sound, expert advice because we are professionals within the field and we have an obligation to be honest with them. Real estate is not
“I love overcoming the stigma of being a young agent competing against career veterans at the age of 21.”
If you had to start from scratch in real estate tomorrow, what would be the first thing you did? If I were to start again tomorrow I would become a student to the game, focus on dollarproductive activity and learn the essential processes about how you generate a lead, win a listing and sell. I believe people get too caught up in the social media side and don’t focus on the oldfashioned basics of prospecting to 150 connects per day and networking to your client base and personal network. No one is going to give you a listing; you have to work for it. Be hungry and humble. What do you like the most about your job? I love real estate. The ability to meet people every day, create relationships and learn about others can make some very inspiring memories. Also to simply learn about others’ lives, hobbies and interests can create incredible knowledge. To work freely without being tied down to a desk is great; also the knowledge that there is no ceiling in terms of earning capacity, as what you put in is what you will get out. What is the most important part of your day? For me it’s 5:00 am. A solid morning sets the precedent to the day. I wake up at 5, am in the gym at 5.15, home by 7 and start making calls by 7.30. This is my morning routine each day. I find that I’m most productive in the mornings and when in a set routine.
Elevated customers receive 32% more views on their Agent Profile page* *Omniture and realestate.com.au analytics data, average increase in agent profile page views comparing at least 30 days pre and post activation of Agent Elevate (Jul 2018).
THE WATER COOLER Our daily newsletter #THEBRIEF brings you the latest real estate news, tech and marketing tips every day. Here are some of this month’s trending stories. Subscribe to #THEBRIEF eliteagent.com/subscribe.
MOMENTUM RETURNS FOR 2019
R
ealestate.com.au has announced a new and improved format for Momentum 2019. The series will be returning to Brisbane, Sydney, Melbourne, Canberra, Adelaide and Perth in March. Hear from world-renowned motivational speaker Yossi Ghinsberg followed by breakout sessions – with Amanda Stevens (property management focus) and Steve Carroll (sales agent focus). Each breakout session will be followed by a topical agent debate – discussing the merits of old and new schools and thought, and how you can apply the best of both worlds in your business. Registration is free of charge for industry professionals, and space is limited. Visit the Agent Marketing centre to register: agent.realestate.com.au/events
CENTURY 21 SIGNS MULTI-YEAR MEDIA DEAL
C
entury 21 announced a multi-year partnership with Seven West Media that will see the new look Century 21 brand, properties and agents promoted across several media assets. Home Beautiful will feature the Century 21 brand on the cover of the magazine and exclusive Century 21 property listings within it in 2019. Century 21 agents and branding will also feature prominently in the next season of House Rules that will see Jamie Durie appear for the first time. Century 21 will also provide regular insights into all things real estate on The Morning Show in 2019. Chairman and Owner of Century 21 Australasia, Charles Tarbey, said of the partnership, “Seven West Media has an impressive array of complementary media assets that are well followed by buyers and sellers of real estate in Australia. “We are currently focused on ensuring we leverage the partnership to the full benefit for our offices and agents, who couldn’t be more excited about its prospects.”
12 ELITE AGENT • MARCH 2019
Ray White attracts star power in inner west
A
superstar agent in Sydney’s inner west, Matthew Carvalho has just joined Ray White Erskineville | Surry Hills & Alexandria as an ambitious associate director with big plans for the future. Mr Carvalho is well known for his calm, friendly and patient style, plus he’s highly regarded for guiding his vendors through the sales process to achieve the best result. The elite sales operator – who has more than 14 years’ experience – has the ambition of expanding his existing business to Glebe, with the full support of his new Ray White family. “I have been friends with Ercan Ersan for many years, and I have always clicked with him and Shaun Stoker. We are keen to grow our footprint onto the other side of Parramatta Road to cover the inner city fringe in yellow,” Mr Carvalho said. “I am the same familiar face, joining the well-known Ray White stable.”
MICHAEL COOMBS JOINS LJ HOOKER AVNU
M
ichael Coombs has joined the team at LJ Hooker Avnu on Sydney’s Lower North Shore, bringing with him his team of six. “There’s no denying there’s an opportunity to consolidate and automate the fractured world of real estate,” Mr Coombs said, something he believes the LJ Hooker Avnu brand will do. Mr Coombs is a co-founding agent of LJ Hooker Avnu Lower North Shore, along with Adrian Bridges, who recorded over $118 million in sales last year. Together they lead a growing team of sales consultants in the blue-chip region. LJ Hooker Avnu’s platform aims to centralise a lot of the tasks necessary in a real estate office and give clients access to real-time sales data.
DiJONES opens doors on the Lower North Shore
D
iJONES has officially opened its doors on the Lower North Shore of Sydney with local agents Dean Mackie and Piers van Hamburg at the helm. The group leadership team will remain the same under the new banner headed up by Mr Mackie as Managing Director, Mr van Hamburg as Principal,
Pamela Styling leading the Property Management division and Brent May as Head of Sales. “This collaboration represents an exciting new chapter in our business. With a new name but the same great team, 2019 promises to be a dynamic year for us within the DiJONES family,” said Mr Mackie.
eliteagent.com 13
EVERYONE'S TALKING ABOUT…
THE ROBOTS ARE HERE, but they’re
not going to conquer all and take over. That’s the take-home message futurist Steve Sammartino hopes to convey loud and strong to agents at IGNITE, the 2019 REIQ Summit being held in Brisbane next month.
REIQ SUMMIT 2019 “To 2020 and beyond”
W
ith the evolution of technology, digital creations and products, virtual reality and artificial intelligence progressing at warp speed, you’d be forgiven for thinking we humans may be living on borrowed time. Steve himself is a champion of change and a leader in the futurist thinking world. He has developed a full-sized, air-powered Lego hot rod, launched a Lego space shuttle into space from Germany and is currently planning to build the world’s most modern 3D-printed house. Despite his belief in technology that once would have looked at home on hit 1980s television show Beyond 2000, Steve says one fundamental thing won’t change. Humans. “The overriding thought among many right now is that robots and AI are going to replace everything, but that’s just laughable,” he says. “Robots are very good at memorising things, giving you information and creating
14 ELITE AGENT • MARCH 2019
Steve Sammartino
more efficiency, but they are not good at humanity, creativity and understanding. “What humans want is other humans. Humans want interactions with other humans. “Music is very telling in this regard. Technology allows you to download all of your favourite artist’s music, categorise it, create a playlist and we’re happy to pay for the service. However, we will still pay even more to go to a concert and see that artist play live.” Steve says technology in real estate is no different. It will continue to change, grow and challenge the real estate agent. It will continue to reduce the time and distance it takes to complete mundane tasks, but it will never replace the agent. “Agents know and invest in community; robots don’t,” Steve says. “What we’re going to find is that more and more administration tasks will be outsourced to technology so that agents can maximise face time with vendors and buyers.” So where does this seemingly illogical fear of technology come from? Steve says his presentation will make all that crystal clear when he discusses the history of the industrial era. “Children are not scared of technology, because to them it is not new,” he says. “But children haven’t had 20, 30 and 40plus years of indoctrination. Our business model and our model for living and doing things has been stable for a long time, since before our parents and before our parents’ parents. “If you think about schools, we’ve been taught that we have to follow the rules and not make a mistake. At school we are going to judge you and use a bright red pen to show you where you were wrong. Schools weren’t made for this technological era we’re now in; they were made and funded to create compliant workers. “We have to go through an unlearning process.” Steve says we need to look at technology and how it behaves differently to the slow-moving, concrete world we’re used to, allowing for the Law of Accelerating Returns. For the first time in history we have access to the world’s leading information as it happens. The idea that there’s always someone who knows more than we do has changed. Technological progress is inevitable, and to a large extent we struggle with this perceived lack of control. However, Steve says we didn’t really have control to begin with; what we can do now
is change the way we approach technology and leverage it to our advantage more than ever before. “While some may think that technology may replace the real estate agent, it won’t,” Steve says. “What it will do is give agents the opportunity to reduce things such as screen time and free them up to focus on the human aspects of the job – and that includes listing and selling. “Technology will help with the creation and management of databases, while the move to blockchain will see self-executable contracts used. When blockchain arrives – and it will – people will wonder how they ever had the internet without it.” Steve says prospective buyers will also end up being sent a digital key when they inquire about a property; this will contain photographs and crucial information such as sale price or auction details, land size and features. “That kind of thing isn’t selling; it’s just admin, and technology can take care of that for you so you’ve got time to do business instead of filling forms out,” he says. “It will work in property management too. Prospective tenants can send you their keys with all the information needed for an
CHILDREN ARE NOT SCARED OF TECHNOLOGY, BECAUSE TO THEM IT IS NOT NEW.” application, such as their income, employer, driver’s licence and references.” Technology is also already making the industry more transparent, with buyers, vendors and real estate enthusiasts now able to access all of the same information on a property that an agent can. “It used to be the case that an agent knew more than the person buying the house, but in a very rapid transition that is going the other way. I think that agents today need to assume that buyers and sellers know more about the property than they will,” Steve says. “Just with something like Google Street View you can find out what the house looked like 10 years ago.” The look of new homes could also be vastly different 10 years into the future. Steve is building the world’s most futuristic house. It will be 3D printed, have
AI installed in the walls, be fully off-grid and come equipped with a drone landing pad on the roof so he can fly to the city. While he remains tight-lipped about the home’s exact location, he did reveal it will be about an hour outside Melbourne, on the coast. “Talking to the walls used to be reserved for crazy people, but now it’s for everyone,” Steve laughs. “It will be fully IoT (internet of things) enabled, so the fridge will know what is inside it, what is normally stocked; it will prepare a shopping list and do the shopping online.” Steve also expects to see a boom in regional real estate, with more people moving to cities and towns within commutable distance of the capital cities. “Working in offices in major cities is an outdated idea,” he says. “It used to be that offices worked because equipment like photocopiers, faxes and computers were expensive and we couldn’t afford to work from home. That’s not the case any more. People want to live in beautiful locations where there’s a lake, a river or the beach; they can work where they are and just commute into the city one or two days a week, or just as needed. And soon they’ll be able to do just that and fly to work with their own drone.”
IGNITE, the 2019 REIQ Summit, is being held on 14 and 15 March at the Royal International Convention & Exhibition Centre in Bowen Hills, Brisbane. Steve Sammartino will speak on Day 1. For more information on the summit, including tickets, visit reiq.com.
eliteagent.com 15
FIRST PERSON
JOSH PHEGAN
The Real Deal Despite what you read online, the property market isn’t about to collapse. Coach Josh Phegan looks at debt cycles and how agents can get on the front foot of the next move in the market.
T
he five to eight-year short-term debt cycle has entered a new phase. After unprecedented growth we’ve moved into contraction. Since the GFC, world banks have flooded the market with cheap credit. Cheap money leads to an increased supply of cash. People rushed to the banks, borrowed money at low interest rates and bought. They bought houses, cars, trips overseas and filled those houses with goods and services. It’s been great. Every time you spend, you help someone else earn an income. That’s the growth phase in the economy. As people’s incomes grow, they spend more, asset prices increase with more demand and generally the overall population feels wealthy. You then reach a point where consumers come to the end of their borrowing capacity. They can’t get an extra $1m from the bank, so in the last run of growth to keep up these new lifestyles
16 ELITE AGENT • MARCH 2019
they rush to last-minute financial products, like credit cards and now AfterPay, which is non-assessed credit. They finally realise that they can’t keep spending as they have and at some stage they need to start repaying the debt they’ve accumulated. The mood of the market changes and people begin to repay the debt; they pull in their spending. As they do that, incomes drop as fewer people are spending as much money in the economy, and there begins the contractionary phase of the cycle. Some people are forced to sell assets; as income drops they can’t service their loans and, as there are fewer people in the economy to spend cash, asset prices come back. With a greater supply of houses and less income production, that fuels media speculation about a house price crash. The reality is the government usually then steps in at the appropriate points to help the economy land softly; measures like a first-home owner grant, reduction in stamp duty, reduction in interest rates or government grants like the famous $1,000 TV grant are put in play to re-stimulate the economy. We call that the short-term debt cycle, and it happens over and over again over a five to eight-year period. The great thing is once you know it you can read the market, so you know what to do next – check out ‘How The Economic Machine Works’ by Ray Dalio on YouTube. What’s fascinating is how media articles and poorly articulated opinions by market
IF YOU RELY ON OPENS, YOU OPEN YOUR BUSINESS TO RISK. commentators send shockwaves across the general public. In January alone headlines like “Auctions No Longer Work” set panic into the market. These headlines are backed by stats: 800 properties sold in Sydney this week via for sale, and only eight via auction. Industry specialists know the auction market doesn’t return until mid-February, but yet the unhelpful headlines persist. So here’s how to ride the rapids and produce more income than ever before, regardless of the economic cycles.
INVEST IN RELATIONSHIPS The depth of the relationship demonstrates the real needs of the customer. Customers only move if they are dissatisfied, have a vision they are compelled towards and are prepared to make the first steps. You build relationships by being relevant, frequent and consistent. Relevancy determines frequency. When there is a listing or sale, pick up the phone and let your customer know because you care. Be interested.
+
Josh Phegan is a highperformance real estate speaker, trainer and coach to some of the best agents and agencies around the world. For more information visit joshphegan.com.au.
THE DECLINE OF SOCIAL SPENDS WITH DIGITAL SATURATION Technology doesn’t recognise recessions or economic uncertainty. It maintains its progress. However, as it does, plenty are caught out investing in areas that won’t yield results. Social is billed as the great panacea; however, when everyone (including retailers and big corporates) is rushing to attract more of the eyeballs, we start seeing spends increase to get in front of fewer customers as there’s so much demand for eyeballs that can only consume so much social content. The other challenge is curation. Newspapers, when they were at their best, were great; general news was at the front, followed by business, TV guide, classifieds, including motoring and real estate, then sport. Social, however, is all of that all of the time in no order; it’s a mess at best. Phone addiction is real, and big tech’s recognition of it is starting. Apple's release of Screen Time is making people aware of what they are doing. And anecdotal evidence is people are switching out. Well thought out, engaging content and strategies always win, with powerful stories and so on, but seeing an agent post about 'open for inspection life' has run its course. As incomes contract, my prediction is social will be among the first things agents cut from their spend.
INCREASES IN AVERAGE FEE In the previous set of conditions, it didn’t matter who you chose; properties would sell. In the new
market, the agent you employ has a massive bearing on whether you’ll get sold. The ability to navigate the conditions of the day, to achieve a sale, to know what to do, make you worth more than you’ve ever been before. Increased service levels, combined with ever-precious consumers, clearly demonstrate that leaders will lead and slowly increase fees. Margins are required, as you need profits to reinvest and to reinvent the service. A margin of 0.5 per cent might not sound a lot, but for some businesses that’s a 25 per cent increase in total fees per transaction. If volumes drop in sales (which they will in some markets, but not in others) then fee growth is critical for surviving and thriving.
MERGERS AND ACQUISITIONS New agencies that have opened over the last five years and have relied on sales income alone to cover fixed costs will have to tighten their budgets. Ideally, you want recurring revenue models, like property management and blended services like finance, conveyancing and connection referral fees, to drive more revenue. That recurring revenue needs to meet fixed costs so that sales revenue can be the profit or cream. Even agencies that bought property management rent rolls will have some challenges, especially if those revenue
RECURRING REVENUE NEEDS TO MEET FIXED COSTS SO THAT SALES REVENUE CAN BE THE PROFIT OR CREAM. streams are funding rent roll debt from the purchase and not yet contributing to covering fixed costs. The logical move is mergers with other firms and acquisitions, which is okay as with scale come massive opportunities for cost savings and bigger play strategies, especially around where landlords live. New strategies around increasing total customer spend, the lifetime value of a customer and frequency of spend will nail overall growth.
10-15 PER CENT FEWER AGENTS REQUIRED Some heat will come out of boom markets, like project sales, apartment sales and the speculators, which will see in some markets periods of adjustment, requiring fewer agents to service the market. We’re already seeing it: a changing of the guard as some retire, move on or fail to adapt. It’s refreshing, as great agents take market share and business-savvy agents emerge.
LEAD SOURCE SHIFT With fewer attendees generally at open homes, new lead sources will need to be worked. Personal networks, past clients, social proof marketing and landlords will create plenty of opportunities if you adapt. If you only rely on opens, you open your business to risk. Overall, this is an incredible market. Australia is one of the best markets in the world. We have a relatively stable government, amazing real estate, tightly controlled credit markets to prevent bank failures, great revenue opportunities and an appetite to buy the great Australian dream. Every market makes a market, and this is a market where great agents are made. They’ll thrive in these turbulent conditions. With an election, Easter and potential changes to Capital Gains Tax and Negative Gearing, there’s plenty to keep ahead of; but we predict the agents who will have the best year of their careers will be those who stick to the basics and place big bets on tried and true methods of being a real deal-maker.
eliteagent.com 17
FIRST PERSON
CAROLINE BOLDERSTON
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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.au.
The million-dollar myth
It wasn’t that long ago that achieving $500K in sales commission was a big deal. Earning elite status didn’t mean writing one million, but many agents now set their sights on a big round number they may never be able to achieve. Caroline Bolderston investigates.
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s a coach, I constantly hear agents talking about the Million Dollar goal, almost as if it is expected and that anything less is not a worthy pursuit. I have seen firsthand what chasing the million-dollar dream takes and, in many cases, what it costs. Here’s the bottom line: most agents are not cut out to be million-dollar writers. I am the first to applaud million-dollar writers; I appreciate the hard work, determination and commitment that is required. Let’s not forget, however, the journey and milestones achieved along the way. Many
of the robust and sustainable businesses I see are not filled with million-dollar writers; instead they are a collective of agents writing anywhere from $300K to $600k consistently. The definition of success is a very personal thing. As we work towards our goals this year and achieving a sense of fulfilment and accomplishment, have you truly thought about your own version of success? Follow these five steps to determine if the 'one million' target is your dream or potentially someone else’s:
1
Define what you value in your career – is it just about the goal or is it how you get there? In what areas of your business would you feel a sense of achievement if you mastered them successfully?
2 TRANSACTIONS VERSUS GCI IS A DISTINCTION THAT YOU MUST BE VERY AWARE OF IN THE PURSUIT OF SUCCESS.
18 ELITE AGENT • MARCH 2019
Create a clear and simple plan – work out your average gross commission income (GCI) per sale and how many transactions you need to write to hit different commission targets. Then work back through the number of appraisals and listing appointments you will need in order to ensure you list enough properties. Is the 'one million' target even possible for you this year, given your personal business structure, time in market and skill level?
3
Don’t compare – look at your own marketplace. What is realistic for you? Transactions versus GCI is a distinction that
you must be very aware of in the pursuit of success. I have long had my focus on number of sales versus GCI, as it takes serious skill to sell 50 properties in a year at a lower average sale price or commission versus selling 20 properties at three times the selling price and fee.
4
Scalability – you will need to have replicable and repeatable processes in place so that you can scale your transactions and run a parallel open house schedule, ensuring it all doesn’t completely rely upon you. Having to be the gatekeeper and final decision-maker on everything does not give you freedom; instead it delivers more pressure and responsibility.
5
Profitability – take the time to look at the numbers behind the 'one million'. As your overheads increase – wages, business expenses, client gifts and insurances – are you actually earning more for the extra responsibilities, time and pressure that come with the territory? We’ve all heard the phrase 'Be careful what you wish for’. In the case of the million-dollar dream, take a good look at what truly matters to you in your version of success; and it may just start to look like the million-dollar myth. n
FIRST PERSON
ANDY REID
How to set a dynamic reserve strategy In an unpredictable market, you need to have a pricing or reserve strategy that adapts to market feedback whilst maintaining positive progression with your vendors. Auctioneer and coach Andy Reid looks at why sticking to a set target figure can increase anxiety, while a more flexible framework can be beneficial to you and your vendor.
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t is crazy where you can find wisdom. I was watching the Disney film Ratatouille with my daughter when the lead character (Remy the mouse) made the most profound comment: “The only thing predictable about life is its unpredictability.” Think about that and how it applies to real estate. We deal with humans every day, all of whom have completely different life journeys and different decision-making capabilities.
At an auction we can qualify buyers to within an inch of their lives, but ultimately we do not know what each one is going to do on the day in that crucial moment. So when we make our strategy for the auction call, why do we insist on forcing ourselves and our vendors to fit into a single rigid plan? Especially since we know one thing… we don’t exactly know what’s going to happen out there! When we have so many variables, we need to have the ability to ‘read the play’ as it is and adapt to the situation in order to maximise the outcome for our clients. It also means that we need to collaborate with our vendors and allow them the room to breathe with a change in thinking around auction day. Here are the three keys to setting up a dynamic reserve strategy.
wolves from the door. It is the clients’ safety mechanism that protects their interests, and by referring to it with more warmth you will melt away much of your vendors’ ‘unnecessary’ anxiety, making the whole topic a lot easier to talk about.
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ALWAYS REFER TO THE GREATER GOAL
Nobody wakes up one morning thinking, ‘I fancy selling my house today!’. Selling property is a vehicle that takes vendors towards achieving something greater in their lives. So any CHANGE THE conversation around the reserve PERCEPTION AROUND needs to relate to that end goal THE RESERVE (which I hope you have already Everyone gets nervous when ascertained at the appraisal it comes to talking about the stage!). reserve. We panic as agents, Basically, we as agents are fearful that the bar is going to be employed to provide perspective. set ridiculously high. Vendors get Whenever I ran any sort of really anxious, because they are campaign, I always made sure putting a single figure on their that I positioned myself in a way property and, effectively, their that put the market as a separate future! entity. I made it clear that we are Because it is such a finite all dictated to by the market. number, it almost has a feeling of So my role was to interpret being at the edge of a cliff – that that market and suggest the ‘no turning back’ moment before best plan of attack out of the launching into the great unknown. various options, always with the This is where a shift in mindset vendors’ end goal in mind. It is so needs to happen from the very easy for all of us to get caught up start of the campaign. in the moment, so consistently So I always refer to it as bringing focus back to what the a comfort blanket – a warm, vendor actually wants to achieve snuggly blanket that keeps the is crucial.
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20 ELITE AGENT • MARCH 2019
IT IS SO EASY FOR ALL OF US TO GET CAUGHT UP IN THE MOMENT, SO CONSISTENTLY BRINGING FOCUS BACK TO WHAT THE VENDOR ACTUALLY WANTS TO ACHIEVE IS CRUCIAL.
3
THE MISSION: GET ON THE PODIUM!
Instead of having the one target figure, explain that you will have three tiers to the strategy (Gold, Silver, Bronze). Not only will there be an increase in flexibility, but it will also allow the vendors to feel a lot more in control over the outcome. This is how I explain them. GOLD The dream figure, the amount that will not only buy you the next home but also pay for a holiday, a car and pay off all the credit cards. (Insert tangible items according to their situation.) SILVER Still good… but the holiday might have to go on hold; you may have a credit card left but most of that is sorted. BRONZE You’ve still won, but any lower and you’ll walk away with nothing. This is the minimum
amount you need to make your end goal a reality. By referring to the three tiers as gold, silver and bronze, you will be able to suggest any tier with positivity. For example, “If we need to move to the bronze level we’ve still won a medal, and that medal represents your original core reason for selling.” If you set this structure from the start of the campaign, not only will you build a more collaborative relationship but there will be a greater sense of control, as opposed to panic, for both you and your vendors. My advice? Mention this to them during your appraisal. It will set you apart as an agent with a greater level of strategic thinking, as well as easing the tension and providing structure to that awkward conversation about the reserve. n
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Andy Reid is the director of the Sold By Group. Having spent 15 years leading teams in hospitality and real estate, his focus is on driving energy and positivity into the industry. For more information visit soldbyauctions.com.au.
SILVER
GOLD
BRONZE
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eliteagent.com 21
FIRST PERSON
KATE STRICKLAND
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An accomplished real estate professional, Kate is Director of Marshall White Bayside and is at the forefront of their training and leadership program. To contact Kate visit marshallwhite.com.au.
A new reality
It isn’t just the practical problems of a tougher market you need to be aware of. If you are working harder for less reward the risk of burnout increases. Kate Strickland looks at how to maintain balance.
focus to combine, to create structure for my clients and team. I’m working hard to keep up the good vibes with my team because it’s important that my hen Jess first started her job in real estate, team feels valued. My attention she loved it. She went to work every day filled is always on the processes and with passion and purpose, excited about the outputs, not solely focused prospects her new job offered. Fast forward a on the outcomes as the only few years and she now wakes every morning scoreboard measure. with a feeling of unease. Her sleep is suffering, Lastly, be kind to yourself. she’s putting herself last and as such her health is under strain. This is a Throughout the year, commit familiar story. to taking breaks so you can perform at your best with The current market is is nervousness in the industry maximum focus and energy. and it’s unsettling. I used to love presenting real estate Spend time doing things you professionals with challenging creating my own destiny because enjoy, with people you love. dynamics. For the past few years, the sky was the limit. Now there’s Whether that’s lying by the pool real estate in Australia has been a ceiling above me. or working on the tan, laugh booming and it’s been very kind Most people think burnout is and be present. Change your a result of long-term emotional to agents, with buyers adopting voicemail and switch off; don’t a ‘fear of missing out’ or ‘FOMO’ and physical stress, but you can be accessible. Make time for mentality when it came to getting also experience burnout when self-care and give yourself a big in on the action. your efforts at work have failed to cuddle. In fact, cuddle everyone With the effects of the Royal produce the results you expected in your life that matters. Switch and you feel deeply disillusioned Commission still filtering down your focus from clients to family and making it more challenging as a result. You start thinking, ‘Is and friends, then take some for buyers to acquire finance, this for me? Am I better to go and time to envision a better way along with interest rate issues work in a ‘safe’ job? Should I throw forward. and concerns of a market in the towel?’ Real estate is high risk, but downturn, ‘FOMO’ has been To deal with this I ensure I still it’s also high reward – and I just replaced with ‘FOOP’ – ‘fear of make time for me. The energy know 2019 is going to be the overpaying’. you give out is more important best year yet. n Real estate professionals are than ever. Your clients and your now faced with a new reality. team will find comfort in your We’re working much harder to optimism. make the same or less financial If you’re falling apart internally return. This correlates to a time you won’t be an agent of investment but also an emotional choice and buyers will sense one. Working in real estate is no a lack of confidence in your day-to-day approach. If you’re longer seen as a ‘safe’ job with easy money-making prospects. looking through a lens of anger, Conversations in the hallways frustration and fear, both buyers are ones we haven’t heard in a and sellers will eat you alive. It’s long time. Is my job safe? There vital for my on-field and off-field
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IF YOU’RE FALLING APART INTERNALLY, BUYERS WILL SENSE A LACK OF CONFIDENCE IN YOUR DAY-TO-DAY APPROACH.
22 ELITE AGENT • MARCH 2019
DATA INSIGHTS Eddie Cetin is the founder of Agentbox. For more information visit agentbox.com.au.
The Hit List 2019 will be another eventful year for the property market, and rather than trying to convince unsure clients, Eddie Cetin says it's time to focus on buyer and seller circumstances.
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24 ELITE AGENT • MARCH 2019
l A growing family l Job loss l Moving interstate
or overseas l Illness lSenior members of the community who are asset rich and cash poor, wanting to sell before the market declines further l Divorce.
CHARACTERISTICS OF MOTIVATED PURCHASERS
o the best you can until you know better. Then when you know better, do better.”
This fine Maya Angelou quote is a powerful way to frame 2019 as the market-leading agent in your area. What can you do differently in 2019 that will help you overcome forces beyond your control – like a tightening market and reluctance from lenders? New market conditions require service that goes beyond a customer’s expectations, supported by internal systems that maximise every interaction you have with a prospective buyer or seller. Now is the time to reflect on what you know better about your market – and how you can use that knowledge to secure more business. Australia’s real estate market will continue to be impacted throughout 2019 by the Financial Service's Royal Commission and resulting tighter lending conditions. The Federal Election is primed to have negative gearing and capital gains tax changes presented as core voter issues, which may lead to further instability. Additional areas of concern for Australian investors include stock market volatility and pending state elections. Here’s how to keep a clear head
CHARACTERISTICS OF MOTIVATED VENDORS
Moving jobs Need to be in a particular school zone l Have finance approved l Need to move out of a rental property l Those who see there are bargains in the market l Investors who want to buy before negative gearing rules potentially change at the next federal election. l l
TO RISE ABOVE THE MEDIA MAELSTROM FRIGHTENING BUYERS AND VENDORS, FOCUS ON RUNNING YOUR OWN RACE. and consistently list and sell in times of market flux. l Invest in education so you can get the most from your tech investments. l Focus on improving internal systems to minimise waste and maximise time. l Segment your buyers and sellers into categories that allow you to target your communications. l Action relevant campaigns to deliver useful content that
connects with prospects who are considering selling or buying in the next six to 12 months. So how to find the hottest buyers and sellers lurking in your database? The short answer is: in 2019 you will need to identify and work with those who must sell and those who must buy. Those who don’t have a burning need to make a change simply won’t do so in these market conditions – instead, they’ll take up your time and energy in ‘testing the water’.
The best way to prospect these groups is to create content that relates to their circumstances, helping to prompt them into taking action. For example, you may develop a ‘mature client’ database, with whom you can share articles about the benefits of downsizing, presenting examples of people you’ve helped to sell and buy. There are few things more compelling than a ‘test case’ featuring a client who has downsized to the tune of an extra $500k in the bank to help enjoy their retirement! The property market has its peaks and troughs; we must do our best to serve those who need our expertise, regardless of the market dynamics. Agents who prosper in changing conditions are those who are the most efficient in their daily business functions – and the most connected to their prospective buyers and sellers. n
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PEOPLE PARTNER Sarah Dawson is the Head of Growth at Real+. For more information visit realplus.com.au.
Message received People are usually very aware of the brand message their business is delivering to clients, but less so when it comes to individual messages delivered by employees. Sarah Dawson looks at the impact of this on customer experience.
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s a manager, leader or business owner, it is important to ensure that you consider the impact your messaging will have every time you have a conversation. This is not just in a group session, but also one-on-ones, networking events, peer-to-peer catch-ups – in fact, in every interaction there is impact in message delivery. This is especially so when it comes to what your audience may hear versus what you believe you are saying. Within an organisation, engagement and staff performance will be a direct driver to results. In an article by Bruce Temkin, Head of the Qualtrics XM Institute, he says, “The bottom line is: Employee experience is a fundamental enabler of customer experience.” When looking to minimise impact and keep up morale, consider these five points in delivering information to your teams.
If you believe in the message, your passion and support of the new direction will be infectious and help people feel secure.
1
2
Keep it real – be authentic!
Be very clear before you begin on the reasoning behind your decisions or the need for change.
26 ELITE AGENT • MARCH 2019
questions or queries that bubble up. Consider your team’s general workload and how it may disrupt their performance that day. Thought on this is key and shows consideration and respect to impact.
Encourage discussion 4 – no need to deliver and run!
EMPLOYEE EXPERIENCE IS A FUNDAMENTAL ENABLER OF CUSTOMER EXPERIENCE.
Be respectful
Think through the language you are using. Jokes and relaxed banter may make you feel more comfortable, but everyone else
could feel awkward and unsure how to react.
3Timing is key
Consider how the time of day and the day of the week will impact your team – delivering a message on a Friday afternoon means that you may not be available to ask answer any
Feeling comfortable enough to encourage healthy conversation will more likely uncover perspectives that others in the room hadn’t considered and your team will help navigate these with you. You don’t need to have all the answers; just be open to listening and see questions as an opportunity.
5Be available
Offer an open door. Everyone takes a different approach to processing information, and what may feel okay when first heard may spark a different feeling over the course of the next few days. Make sure everyone feels empowered to be able to tap on the door for a chat, or to grab a coffee to talk these through. Strong, thoughtful messaging will drive respect, engagement and productivity, leading to a positive and successful working environment. n
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MINDSET CORNER Jet Xavier is one of Australia's leading mindset coaches for real estate sales professionals. For more information visit jetxavier.com.
It's the climb Whether you’re scaling a mountain or climbing the real estate ladder, the basics are the same for tackling major life and career events according to mindset coach Jet Xavier.
up for work just for the sake of it then every day will be a struggle. What do you really want to do with your career? Why are you doing it?
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n May 2019 I will be taking a group of real estate professionals on a personal development trek to Mt Everest’s Base Camp. The aim of the trek is to help them grow as humans, and also to raise money for the charity Seven Women, which is based in Kathmandu, Nepal. But what many people don’t realise is that the biggest challenge takes place before the trek. The Base Camp trek is one of the most spectacular on earth as you head to 5,500 metres above sea level over 12 days. This will be a challenge for most who have not been at that high altitude before or spent so many days trekking five to seven hours at a time. To make it to Base Camp there are a few things that you need to do. These are the same as climbing the mountain to success in real estate and, if followed, increase your chances of getting to the top in 2019.
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PREPARATION So many real estate careers
28 ELITE AGENT • MARCH 2019
3
WITHOUT THE HELP OF A SUPPORT CREW AROUND YOU, IT IS HARD TO CREATE HIGH-LEVEL SUCCESS. would be outstanding if only they had just prepared better. Preparation is also paramount in trekking to Base Camp. You have to train your body to be prepared for the rigours of trekking and the altitude or you won't make it. In real estate the two crucial areas you have to prepare are: Your body, mind and emotions. These are the foundations to success. Get these right and you will create consistency. Your organisation. Unorganised agents are rarely successful. You need to ensure you are highly structured or have people around you to help you be so. Being
organised can double your dollar productivity. What are the areas you really need to focus on to prepare at the highest level?
2
PURPOSE You need purpose to drive you to accomplish things in your life. The agents going to Base Camp want to experience something they have never experienced before in their lives. They have a sense of purpose in life to achieve something very few people do and to make a difference along the way. As an agent, if you are turning
SUPPORT Without the help of a support crew around you, it is hard to create high-level success. The big mistake agents make is thinking they can do it all themselves. There is no leverage at all in this. For Base Camp support crew we’ve enlisted a professional trekking training company to get us physically fit and mentally prepared. We have the best logistic company that summits Everest climbers to take us. We have an advisor who has actually climbed Everest helping guide us. We have our own Facebook group so we can share stories, ask questions and get help when we need support, and to keep everybody accountable. We are rallying around each other to ensure all bases are covered and everybody makes it. The best agents have a team around them, whether directly connected to them in the office or externally: Mentors, coaches, friends, family and others who ensure they do what they need to do to create success. Who are your support crew? To get to the top in real estate it's actually about what you do before the climb more than on the climb. Top agents don’t take shortcuts. n
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BUSINESS MATTERS John Knight is the Managing Director of businessDEPOT, a team of energetic accountants and advisors. For more information visit businessdepot.com.au.
Independent contractors and the tax man While independent contractors might seem like a costeffective way to grow your business, John Knight looks at why both sides could end up paying more than they expected.
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veryone wants to recruit and grow their team, but for many the costs and risks associated with adding more employees are
prohibitive. While it may seem like an ideal solution, entering into independent contractor arrangements is fraught with danger for both the business owner and the contractor. Even before we worry about the industrial relations risks, the main tax risk for a business owner is that any payments made to the contractor are essentially deemed wages. If such payments are deemed wages a business owner is potentially required to take care of the following: 1 Pay guaranteed superannuation on the amounts paid 2 Deduct PAYG Withholding (income tax) from the payments made – but of course it is too late after the event 3 Pay payroll tax on the amounts paid, assuming the business exceeds their state payroll tax threshold 4 Pay interest penalties on amounts not paid at the time they are deemed payable. One of the common ways to reduce the risk associated with independent contractor arrangements is to insist that contractors only operate
30 ELITE AGENT • MARCH 2019
ENTERING INTO INDEPENDENT CONTRACTOR ARRANGEMENTS IS FRAUGHT WITH DANGER FOR BOTH THE BUSINESS OWNER AND THE CONTRACTOR. through a company structure. This reduces the risk for PAYG withholding and superannuation, provided a genuine contractor relationship exists. However, you can still be liable for payroll tax on these payments which vary from state to state. There are also risks for the contractor should their payments be deemed wages rather than a contractor payment. These risks include significant unexpected tax liabilities. The contractor should also not ignore the cost of putting in place such an arrangement which includes: 1 Setting up a company structure 2 Principal real estate licence cost 3 Preparation of company
accounts and tax returns annually 4 General bookkeeping services and the costs to prepare quarterly BAS’s 5 Own professional indemnity insurances. It is impossible to provide an outline of an independent contractor arrangement that meets all the requirements for all the relevant authorities across Australia, but to minimise we suggest: 1 Insist on putting in place a company structure to trade through 2 Ensure the company is fully licensed 3 Formalise with a conjunctional agency agreement 4 Have the contractor identified on the listing forms 5 Allow the contractor to
employ others within their company to assist with the delivery of their services, for example PAs and lead generation 6 Introduce a desk fee to ensure they pay their way like any other independent party 7 Get evidence that professional indemnity insurance is always up to date 8 Ensure their entity has an ABN and is registered for GST 9 Avoid payments being made direct from the business to the independent contractor, for example payment direct out of trust settlement from the vendor. Overall, the general rule to apply across all jurisdictions in Australia is that the arrangement must be commercial in nature and must reflect a true business-tobusiness relationship, not one of master and servant. Some of the factors which would indicate a business-tobusiness relationship include: 1 Ability for the contractor to delegate to others 2 Contractor reward structure is contingent on achieving a result, e.g. commission only 3 The contractor provides their own tools of trade 4 Risk of the overall transaction is shared by both parties 5 The contractor has control to deliver the services they provide as they see fit 6 Ability for the contractor to provide services to others with no ongoing restraint. Please note that these requirements are complex and I have only focused on the tax side of things. You must seek your own advice specific to your circumstances. Overall, the taxman does not like independent contractor arrangements and he is empowered with legislation that gives him the ability to challenge any arrangement he does not consider a ‘legit’ business-tobusiness relationship. n
ASK THE COACH Top coach Claudio Encina answers questions about increasing your listing conversion rates and adapting in a slow market.
Q A
How can I increase my listing conversion? Henry Burgoyne, Capital One Real Estate When your potential seller hires you, what are they actually buying? Ultimately, in this market, they are buying certainty. In a market where they are seeing heaps of uncertainty and negativity, every human needs to feel some level of certainty. So how can you demonstrate certainty in a falling market? Certainty is a combination of clarity and confidence. Clarity is how you will take them on this journey and confidence is that you can actually get them their price. If you ever wonder why you didn’t get the listing, it's usually because the prospect doesn’t feel certain about you or your strategy. You need to establish this certainty right at the very start of the listing appointment, not at the end of your presentation. Most of your listing appointments will be with people who have no idea how the presentation will actually go. All they know is that they want to sell and have someone who can get them the highest sale price, in the least amount of time, with the least amount of hassle. Simple, right? But, in the back of their mind, there’s some hesitation. There is a fear about what you are going to pitch to them, how much your commission is and whether they can trust and feel comfortable with you to get the result they’re looking for. First, you need to lay out an
32 ELITE AGENT • MARCH 2019
IF YOU EVER WONDER WHY YOU DIDN’T GET THE LISTING, IT'S USUALLY BECAUSE THE PROSPECT DOESN’T FEEL CERTAIN ABOUT YOU OR YOUR STRATEGY. agenda so they know exactly how the meeting will go. Once they know what the next hour of their lives will look like, they can relax and trust the process. Once they understand the process and, more importantly, your degrees of separation or points of value – why they should hire you – they will lower their defences, because they know you’re taking them where they want to go. The second thing you need to do to lower their resistance is to give them control instead of taking it from them. Once they feel like they have control, they’ll feel the need to exert that control and they’ll happily list with you. Lay the foundation and give them control!
Q
2018 was a challenging year. What should we be focused on for the next 12 months? Anne Stone, McGrath Bowral This is the year to adapt or become extinct. Confidence is a powerful thing. When abundant, it propels booms. When lacking, it crumbles markets. Optimists with a plan lead in real estate, so how can you take charge in any market? 1 GOALS Write down what you would like to achieve over the next 90 days in sales, listings, presentations and market appraisals. 2 URGENCY In slower markets fast-paced agents clean up while others stand back as if nothing has changed.
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3 CONTROL A slower market means buyers will be fussier and less compromising with their expectations. They will also increase their perception of value. You will need to control your listings, set to sell meetings, marketing and negotiation skills. 4 SKILL Some agents will take listings on at any price in a changing market. This doesn't mean you have to overprice to list; on the contrary, you need to be an expert at showing how your process and company will optimise the result. Agents without real benefits and resources only have overpricing and low fees in their tool bag (practise fee strategies – you’ll need them! Don't wing it). Points of difference between you and the competition will be key. 5 ACTION Stock is everything. Want to double your business? Then hold double the conversations, double your profile marketing. 6 DOMINATE In this market you want to be seen as the expert. Agents who have market share or have a plan to build market share will lead in this market. 7 FOCUS In a changing market it’s so easy to get distracted with different ideas. Stay focused by choosing four things you will excel in. 8 ACCOUNTABILITY Daily discipline is the key to owning this market. Hold yourself accountable to your set goals and someone else. If your mindset is still switched on to ‘but the market is tough’, you need to lose it today. The market is no longer an excuse. n To have your question answered email askthecoach@eliteagent.com. To connect with Claudio visit claudioencina.com.
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cover story
Welcome to HAVING NOTCHED UP a hugely successful real
estate career spanning more than 30 years, agent and auctioneer Glen Coutinho is proof nice guys don’t finish last. The committed family man has built not one but two successful real estate agencies, received numerous awards, featured as the 2016 auctioneer on The Block and still finds time to write and send 3,000 Christmas cards to friends, family and a huge database of clients each year. Now he’s embarking on a totally new adventure in the US, heading up Harcourts in Beverly Hills.
G
len Coutinho recently sat down and penned a quick letter. It was a short note to his first ever client in real estate, thanking him for his support. “I hope you’re enjoying your home,” he wrote. “Just letting you know I’ve been in real estate for 30 years now, but I wanted to remind you that you were my first sale, and I’ll never forget it.” The truth is, Glen rarely forgets anyone or anything. From staff birthdays to client anniversaries and appreciative notes to the waiter at dinner, Glen makes a point of remembering the special interests, events and achievements of the people he meets. It’s part of what he describes as a “people-loving” approach to real estate that just happens to be paired with the mindset of a hunter. “I’m often asked if I love houses. The
34 ELITE AGENT • MARCH 2019
honest answer is no. I love people of all types, and I’m focused on building lasting relationships and friendships in real estate,” he notes. That philosophy, combined with pure hard work, has seen Glen rise to the top of the industry pile in his career. He has sold more than $340 million worth of property this year and over the last three years has overseen more than $1 Billion worth of sales. Along the way he has picked up numerous awards, including an international Bronze Stevie Award for sales and customer service in 2017. The same year he was named an industry influencer by Elite Agent as a champion of customer service. That’s no small feat for a man who started life in Australia in the housing commission flats of Fitzroy.
PURE HARD WORK
Glen notes he was taught the value of hard work at an early age. His family immigrated to Australia from Bahrain when he was just five, his mother and father – a talented chef – working tirelessly to support them in their new life. “My parents were modest, hard-working people who took us from Fitzroy in the 1980s to Vermont. We spent most of our lives in a little 10-square home,” he explains. “I knew if I wanted money I had to work hard for it.” At 14, Glen was juggling three jobs: butcher’s assistant, kitchen hand and assistant cook, in addition to school. “I developed a strong work ethic at an
Everyone gets treated equally, from the cleaners to the millionaires.� eliteagent.com 35
early age; days off and sick days were nonnegotiable in my mind.” By his 20s, Glen was working for Westpac, initially in branch banking and then in treasury dealing in financial markets. The shift into real estate happened by chance. “I was out one Saturday, and I was following a young bloke in a convertible Mercedes,” Glen recalls. “He went into Woodards Real Estate in Camberwell and I was so impressed with this car that I walked in after him and asked for a job because I wanted a nice car. I know it sounds silly, but that’s how I got started.” In his first year in real estate, the company recognised him for the “best first year in sales”. He went on to win the award of best salesperson for several years running and was promoted to associate director. Then, in the mid-1990s, Glen decided it was time to go out on his own. He accepted an offer to open a Hockingstuart franchise, which quickly became the number one office, and was joined in the endeavour by his brothers-in-law. It marked the beginning of a family business partnership that continues to this day. Recognising it was time for a change, Glen sold out of Hockingstuart in 2012, only to be offered a new opportunity with RT Edgar in Boroondara. For the past six years, Glen and his brothers-in-law have been building their stake in the RT Edgar brand with near partnerships. They now have three offices and 35 salespeople under their stewardship.
A PEOPLE PERSON WITH ‘RAVING FANS’
In over three decades in real estate, Glen has compiled an astounding database of over 30,000 contacts. He works hard to maintain and grow this list, regularly touching base with clients and forging new connections. From the people he meets at social events to the 40 proactive phone calls he makes each day, Glen networks relentlessly with the view that everyone is a potential client. That approach has paid off in spades. Glen cites countless examples of meeting strangers in restaurants or unlikely social settings who later become his clients. He makes a point of introducing himself to the people he encounters, to talk to them and understand what piques their interest. And without fail, he follows up. “Everyone gets treated equally,” he stresses, “from the cleaners to the millionaires.”
36 ELITE AGENT • MARCH 2019
Success to me is all about happiness and love, and based on that measure I am successful.”
Glen with his whole family
Not only does this approach garner him new leads, but the consistent attention to his clients’ interests has also helped him establish relationships with sellers that span multiple properties over many years. He counts competitors amongst his friends, believes praising achievement is more important than making a complaint and notes that, although real estate can be a “rejection game”, the long game and the lesson are more important than the immediate sting. “I’m the best loser in the business; if you don’t give it to me, I’m okay with that. If someone comes back to me and says ‘No, we’re going with another agent,’ they automatically get flowers or a nice letter and card to say, ‘It was really nice to meet you, I wish you all the best.’ “I think, how can I turn this loss into a win and, although I lost the deal, how do I create a lifelong client?” All these factors make up his business approach, but equally represent his personal philosophy. Glen notes he’s a true believer in the laws of reciprocity: that in this life you
must give boundlessly to receive. He aims to consistently exceed expectations and in doing so create ‘raving fans’. “I wake up thinking about what I can do for a client today. How I can make someone’s day special or [assist them] if they need my help? Every time I meet people, they matter to me. It’s that simple.” And he’s a staunch advocate of the theory that this kindness starts at home.
ALL IN THE FAMILY
When Glen talks business, he inevitably talks family. He credits much of his success to his wife Simonne and their relationship that has lasted over 30 years. Together they have five children, Brooke, Jack, Billy, Mason and Jules, ranging in age from 12 to 23. His eldest daughter Brooke has been in real estate for six years now and is also making the move to Beverly Hills. Now those family values are set to see the Coutinho clan embark on an exciting new adventure. “To me it’s about happiness and family values, making sure you share time with
Glen w it sons Ju h and Ma les son
GLEN’S TOP 10 NETWORKING TIPS
1 2
Seek out and meet bankers, lawyers and accountants in your area.
Connect with friends and family members of all completed sales, buyers and vendors.
3
Reach out to people who are active in your area, like drivers, tradesmen and gardeners, plus local business people such as shopkeepers and restaurant owners.
4 loved ones, that you are true to yourself and that you don’t compromise your integrity for anyone,” he says.
HELLO HARCOURTS
Each year Glen sits down and sets goals. He encourages his children and staff to set them too, and often incorporates their planned outcomes into what he hopes to achieve over the year. This year Glen’s goals are his traditional mix of family, staff and business success. But perhaps the most notable is the one he achieved on 21 January, when he launched Harcourts Beverly Hills. It was a move prompted both by family goals and his own personal dream. “I always wanted to work in Beverly Hills. It’s the most exciting property market in the world. In truth, I probably wanted to go and sell real estate to rock stars in my 30s but felt family was a priority at the time. “Now we have two boys, Mason and Jules aged 12 and 14, who are embarking on a singing career. They’ve already launched one album with a second underway, and their dream was to go to LA as that’s the
place to be. “We decided to pack up as a family and move here to support them.” In typical style, Glen quickly put his networking prowess to use. Already he has 250 US contacts, highly regarded local agents as partners and three or four listings on the books. His goal this year is to sell a $50 million property and become a high-profile agent in Beverly Hills. That ambition sits neatly against his other aims, like launching his book The People Lover, making a difference in the lives of those less fortunate, being an amazing husband and father, and hosting charity auctions. Odds are he’ll accomplish all of that and more – if not this year then the next. And, regardless, he’ll have already ticked the boxes that he believes equal success. “Success to me is not just financial, but what I’ve created. Success is living an honest, ethical life, teaching all you can to your children and creating great relationships. Success to me is all about happiness and love, and based on that measure I am successful.”
Touch base with other residential, commercial or leasing agents who you meet on the journey, and connect with builders and developers. Go to the site, if need be.
5
Use your social connections such as school families, teachers, and those who share the same passions as you, for example, football. And always get partner and children's names!
6 7
Touch base with your staff and get the names of their family members.
Reconnect with school friends and use social media to build as wide a digital network as possible.
8 9
Send a weekly automated email to your main clients and potential sellers.
Get everyone’s birthday or special dates, and spoil as many people as you can.
10
Make a monthly call to prospective sellers, and your Top 100 clients and bankers.
CASSANDRA CHARLESWORTH
eliteagent.com 37
DOMINATING THE BUY SIDE
OBTAINING THAT PREMIUM PRICE for any property is
all about finding buyers and creating competition. Ben Auchettl wears two hats at realestate.com.au – he is the National Sales Director leading the sales teams as well as being responsible for the listing products such as Premiere, Audience Maximiser, Exclusive Showcase and Front Page. At the forefront of helping agents find buyers on Australia’s largest property platform for buyers and sellers, he sat down with Elite Agent Editor Samantha McLean to share some tips for how agents can dominate the buy side in 2019.
I
Ben Auchettl
t’s all about understanding what your potential buyers look like. And then putting the right information in front of them at the right time. That is the clear message from Ben Auchettl, who keenly watches enough facts and stats direct from the realestate.com.au platform to understand what branding and advertising strategies are working right now. And, he says, it’s being armed with the right knowledge that can help you differentiate your service; not just to win you the listing but also to pull off the trifecta of finding more potential buyers
38 ELITE AGENT • MARCH 2019
while increasing agency branding at the same time. “If advertising is vendor-funded it's got to work for the vendor first and foremost. But we also understand that every agent is part of our sales team and it’s got to work for them as well.”
GETTING INITIAL EYEBALLS
To bring in the greatest number of potential buyers, you need to get the maximum eyeballs possible. Auchettl says that most agents are aware of the hierarchy of listing products on realestate.com.au, starting with Standard, then moving up to Feature and Highlight, then finally Premiere, where listings appear at the top of all search results. Additionally, Premiere listings reach a global audience on overseas partner networks, along with additional features such as custom videos, property brochures and more. “Premiere alone is going to bring 80 per cent of your audience, possibly more,” says Auchettl.
THE EXTRA TEN PER CENT
Premiere add-on products such as Audience Maximiser regularly bring agents 10 to 15 per cent more enquiry than Premiere alone, says Auchettl. But, while Audience Maximiser has become popular, he says the real power of the product itself is still not all that well understood. “Imagine, Sam, that you are searching for a property in North Sydney on realestate.com.au and you click on a couple of them. We begin to understand the profile of the property that you are looking for in the area in which you want to live. “What Audience Maximiser does is suggest other properties in that same location or close by on Facebook, Google and the news.com.au network while you are visiting those other sites. “Basically it says, hey, if Sam was interested in that property, maybe she’s interested in this one or this one.” Based on a Nielsen study, every week the average consumer spends around 44.5 minutes on the realestate.com.au website and app – but more than 42 hours in total online. It’s during this total ‘online time’ that Audience Maximiser targets them when they’re not on realestate.com.au and brings them back to the site. Auchettl admits that Audience Maximiser is not the only product that does this, but the major differentiator is the depth of information realestate.com.au has about its users due to size. “That is really the secret sauce: knowing more about the market and being able to use that to re-target buyers and bring them back,” he says.
drops and those sorts of things,” says Auchettl, “this is way more targeted than that and reaches the audience with an experience they want, rather than something they don’t want or is being pushed on them.”
LISTING POINTS OF DIFFERENCE
Once you understand the different products and when they apply, says Auchettl, you can use them as points of difference in your listing presentations. “Some agents get the listing, then present the advertising schedule; other agents like to talk through how they are going to reach the maximum number of buyers before signing the agency agreement. “But these agents know their customers well and can use their product knowledge to differentiate themselves from others. “It all depends on what the customer is looking for. Some vendors really appreciate a detailed explanation of the products being recommended and how the agent will work to attract the best pool of buyers possible.”
FOLLOWING ‘MOVING’ BUYERS
Ultimately, says Auchettl, it’s crucial to think about not just what suburb your buyer may come from but also where your agency is at. And this is where an Exclusive Showcase add-on might very well provide a win to both the vendor and the agency – and it’s now available on mobile as well as
THE ‘PAPERLESS’ LETTERBOX DROP
Audience Maximiser has recently undergone a few changes to make it more attractive to more vendors. Previously it was only possible to purchase on a perlisting basis, but now agencies can purchase a contract to be shared between all listings at a lower price point – similar to Premiere All. Auchettl says this is great for agency branding which is more targeted than the ‘traditional’ letterbox drop. “If I had bought a 30,000 impression Audience Maximiser package and I had 10 listings for the month,” says Auchettl, “that would make it around 300,000 times my brand has been seen by an audience which isn’t searching on realestate.com.au. “When you think about the money that is invested in billboards, outdoor, letterbox
PREMIERE ADDON PRODUCTS SUCH AS AUDIENCE MAXIMISER REGULARLY BRING AGENTS 10 TO 15 PER CENT MORE ENQUIRY THAN PREMIERE ALONE.
desktop platforms. But, to use this product to its full advantage, you also need to closely follow buyer migrations, says Auchettl. “Let’s say you have a property for sale in North Sydney, but you actually don’t think the buyer is going to come from North Sydney; you think it might be a great property for a new empty-nester couple coming from a house in Manly who want to move closer to the city. “You might let the vendor know that you feel strongly that buyers might come from out of area. If you have an Exclusive Showcase in a particular suburb as it is an exclusive product, you will be the only agent who is able to say that. “It’s a really strong listing tool.”
HELPING CUSTOMERS TO SIMPLIFY THE COMPLEXITIES OF DIGITAL
Auchettl acknowledges that navigating the world of digital and the myriad of marketing options for anyone is a complex task. So, while focusing on improving the listing products in his set, he is also ensuring the sales team are well equipped to provide customers with the right solution at the right time. “We’re putting ourselves through a number of digital training events. We want to be able to talk to customers about trends on a wider range of digital issues that we hope will be helpful. “Adding value all round is an important part of the service we’re able to provide. “2019 is going to be an exciting year, with heaps more to come in the area of listing products,” says Auchettl. “Watch this space!”
If you would like more information on listing products from realestate.com.au, contact your local account manager or visit the agent marketing centre: agent.realestate.com.au.
eliteagent.com 39
The competitive
EDGE
WITH OVER 17 YEARS’ experience in the real estate
industry, it comes as no surprise that Malek Younan is sitting at the top of his game. He and business partner Phillip Mercieca lead the team at Ray White Gladstone Park in Victoria, a business they’ve only been running for nine months but one that’s already pushing into the top sales offices of the state. Add that to the fact he’s just been named SQM Research’s Top Residential Agent for 2018 and it’s easy to see why 2019 is set to be a very good year for Malek.
“A
fter I finished high school I got into an engineering course, which I didn’t start because I just didn’t have a passion for it. So I deferred it and thought I’d try and get into real estate.” After completing his licence and with a vision to one day having an office of his own, Malek walked into his local real estate office and asked for a job. Despite a
40 ELITE AGENT • MARCH 2019
resounding no from the owner, partly due to Malek’s age and partly due to no role being available, Malek returned the next day. “I walked back in and said, ‘Look, you can’t judge me; you don’t know my work ethic, you don’t know my character’. So he said, ‘Well, because of your eagerness I’ll take you on, but you’re going to be on probation and I’ll start you in property management. If, two years from now, I think you’re ready for sales, I’ll move you.’” Six months later and Malek was moved
into sales, beginning a career in real estate he’s never looked back from. He was just 21, but he had the passion and the drive to turn his career into something great. Fast forward 17 years, Malek and his business partner Phillip Mercieca have had the doors open at Ray White Gladstone Park for nine months and have already made the top 15 Ray White offices for Victoria. While that in itself would be a great achievement for an office which, as Malek says, hasn’t even finished crossing its t’s and dotting its i’s, Malek himself was also recognised at the end of 2018 as the top residential agent in Australia, according to SQM Research. The Top 100 Residential Real Estate Agents 2018 list was released in December 2018 and is the first of its kind by SQM Research. This list was compiled by analysing the sales figures of 53,650 residential agents who had their name published on an advertisement in 2018. It stands out from other lists which focus on dollar value, choosing instead to highlight an agent’s role in focusing on their vendors’ needs and market share. Malek ranked highly in the five
IN THE NEXT TWO YEARS WE’RE HOPING TO CRACK THE TOP TEN OFFICES FOR RAY WHITE, THEN THE TOP THREE, THEN EVENTUALLY THE TOP. YOU’VE GOT TO HAVE A BIG VISION.”
categories considered by the list, including market share and days on market. With 76 sales, an average of 29 days on the market and a 78.4 per cent conversion rate, Malek’s results speak very highly of the level of service he provides his clients. “When I found out I had made top of the list, I was thinking, ‘That’s great news’. I didn’t realise it was national; I thought it was in my market. I was thinking about the sales I’d done and I was pretty happy with it. But when they told me it was across the whole of Australia, I was a bit speechless and very humbled. And then I spoke with Ray White Victoria CEO Domenic Belfiore and Chairman Brian White and I realised what a massive achievement it was. I feel very humbled and very, very grateful.” Market share was a very important factor in the SQM Research ranking, and it’s something Malek and his office work hard to maintain. They’re intent on doing things differently than the other agents in the area, with a focus on social media and marketing. Over the last four to five years, Malek has been championing Facebook and targeted marketing. He works closely with a creative director to create standout
videos for the properties he lists. It helps that he’s working in the area he grew up in and has a strong sense of connection to the community. Malek and his team support local businesses and give back as much as they can, which has allowed them to become very well known in the area. While some offices are struggling in a cooler market, Ray White Gladstone Park is currently clearing around 80 per cent of their stock and seeing big crowds turn up to their auctions. “I think that, with 17 years in the industry and a lot of local area knowledge, I’ve got the stats behind me and the confidence to talk with my clients. I’m honest about what they’re going to get for their homes, I don’t deceive them,
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and I make sure I’m meeting with my clients every week of the sales campaign. On top of that, I’m calling them; there’s a lot of touch points so they know what’s happening in the campaign and there are no surprises on auction day.” Being named number one agent has opened up a lot of doors for Malek. He’s been invited to speak at AREC 2019, he’s been approached to do sales training and the media attention has only served to boost his profile. Which is good, because for someone as ambitious as Malek growth is always on his mind. “In the next two years we’re hoping to crack the top ten offices for Ray White, then the top three, then eventually the top. You’ve got to have a big vision.” HANNAH
BLACKISTON
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profile
ON HER
WEST AUSTRALIAN AGENT Michelle Kerr has enjoyed a lifelong passion for property, but only recently did that translate into a career in real estate. Now she’s ranked as one of the top agents in WA, and last year took the leap of establishing her own agency, rapidly gaining a reputation as a real estate leader embracing the industry on her own terms.
OWN TERMS F
rom her newly opened agency in Nedlands, WA, Michelle Kerr says she never expected to become a real estate agent. Rather, it was a career she fell into that ultimately saw her thrive. “I’d had a long history of property development and renovations,” Michelle explains. “I enjoyed 15 years of buying and selling, and saw the best and the worst of real estate.” Then circumstances outside her control revealed an opportunity. “The GFC happened and we lost just about everything, which was really traumatic at the time,” she reflects.
42 ELITE AGENT • MARCH 2019
Michelle took a job in real estate administration, with little idea that the industry would turn out to be her niche. “As soon as I was in it was like being a kid in a candy shop. I’d been happy to help from a back-end perspective, but started looking at agents and thinking, ‘I can do this and deliver the service I want. I can be a good, honest person and do really well.’” Michelle’s focus was communication, honesty and transparency, all aimed at building a relationship with the client. “I used my poor experiences as an agenda for what I wanted to change,” she says. In six short years this ethos has seen
her rise to the pinnacle of real estate in WA. Last year Michelle was named the Top Assisted Salesperson by Value Sold at the REIWA awards. She also currently ranks as the number one agent in WA on Rate My Agent in terms of buyer and seller recommendations in her region, along with total sales price in WA.
Going it alone
Late last year, success and the drive to offer more saw Michelle take the major step of opening her own agency, Duet Property Group. The name is derived from her philosophy of establishing a partnership
IF YOU’D ASKED ME TWO YEARS AGO IF I WOULD OPEN MY OWN BUSINESS, I’D HAVE SAID, ‘NO, NOT IN A PINK FIT’.” with the client, and the focus is on delivering outstanding customer service and very real results. Again, it was a career move Michelle never envisaged she would make. “If you’d asked me two years ago if I would open my own business, I’d have said, ‘No, not in a pink fit’. “Then I started to think about it at AREC a year ago. As much as I had loved the support of the previous agency, I knew that to go any further I would need to do it on my own terms.”
Honesty, transparency and pure hard work
Michelle notes her business model is built on strict ethical guidelines. She only takes on 10 properties at a time, is brutally honest about the price she expects to achieve and works tirelessly to attain a result for the client. “I believe that when you take on a lot of properties at a time, that’s when the wheels potentially fall off. “People want a concierge level of service, and I’m conscious that the general experience people have with the real estate industry tends to lag behind. “If people hire me, they get me.”
The result of this approach sees Michelle’s listings spend an average of only 15 days on the market. “I move more properties than other agents because they are on the market less time. Having a limited number allows me to match buyers and properties more efficiently.” Meanwhile, she notes she never regrets losing a listing because of setting realistic expectations at the outset. That doesn’t mean those prices are low; they are positioned where she firmly believes the seller and buyer will meet. “I lose a lot of listings because I am absolutely straight-up about the price,” she says. “I am not interested in a home spending six weeks on the market and then being reduced. “It is my moral obligation to sell a property for the right price in the shortest amount of time.”
Authenticity and the educated buyer
This level of commitment, authenticity and honesty translates through every level of Michelle’s new business, and she notes it often has a “full-circle” effect. The results she achieves garner her good reviews, which attract high-calibre clients. Her marketing then incorporates the favourable outcomes. “Because I price homes realistically, people trust me. Then I dedicate a huge amount of energy to getting them what they want or more. What vendor doesn’t want that? “People want transparency. If you are honest and straight people buy into that.”
An agency with a difference
It’s not just Michelle’s personal approach that offers a point of difference, but also the way she has set up her new office. Describing the space as a “conversation with her community,” Michelle spent a lot of time with architects, designing the office to be as welcoming and accommodating as
possible to both staff and clients. “There’s a library, kitchen, free Wi-Fi, and virtual reality stations…all the cuttingedge technology you’re likely to see in the US and Europe,” Michelle says. “Basically, we are a tech-enabled service company. I wanted this space to be a clean slate where ideas could be generated.” For the staff, the space is designed so they feel they are coming home to work. “There are 10 different places that they feel they want to be. I wanted to make it fun.” And yes, Michelle concedes the new office and new business are a risk. “There were days when I was highfiving myself and days when I was terrified,” she reflects.
A philosophy that resonates
Just 12 weeks into the new venture, Michelle’s risk is paying off. The philosophy not only resonates with clients but with others in the industry as well. “It’s been so well received. We are busier than ever. I was amazed at how quickly people understood the brand and the cool things we are doing behind the scenes.” Among those attracted to the brand philosophy were property consultants Susan Janes and Emily Hiskins, who both recently joined the Duet fold. Last year Susan ranked second behind Michelle at the REIWA awards, while Emily boasts 12 years’ experience. “These are very like-minded people and I’m honoured they have partnered with us,” Michelle reflects. “I never expected to be inundated with such high-calibre peers.” With 2019 shaping up to be her biggest year to date, Michelle’s eye is firmly fixed on the future. “I hate stagnating,” she states. “I’m driven to achieve and believe if we’re not growing, we’re dying.” But in the interim it’s clear she relishes the opportunity to be a leader in her own right, enjoying real estate and the challenges it affords on her terms.
CASSANDRA CHARLESWORTH
eliteagent.com 43
HOURS CAN BE SPENT discussing the percentage of market growth or decline, listing prices, sales prices and the total value of properties that an individual agent has sold. But what about that all-important figure that impacts agents and principals alike: What should an agent get paid? According to Andrew Acton of Explore Property, “what they’re worth” – and in the case of an experienced agent that might be more than you think.
What are your
Andrew Acton
AGENTS WORTH? I
n 2017, the Macquarie Residential Real Estate Benchmarking Report found the national average commission had slid from 2.6 per cent in 2009 to 2.18 per cent in 2016. Meanwhile, agencies were ‘looking to get more value from their investment in salespeople’. The percentage of people paid commission only had risen to 54 per cent, up 10 per cent on just two years prior. “At the same time, commission splits have risen to a median of 50 per cent,” the report noted. While 50 per cent might be the new industry average, seasoned agent and principal Andrew Acton of Explore
4 4 ELITE AGENT • MARCH 2019
Property believes one size should never fit all in real estate and, when it comes to investing in people, it’s about paying them what they’re worth. “Every agent is an individual,” he reflects. “The days of a blanket 50 per cent should be history; instead, it’s about looking at where an agent is on the journey.”
How can I help you?
As a second-generation real estate agent who has experience building both franchise agencies and his own successful real estate businesses, Andrew explains that leadership has taught him to ask one important question in all areas of business:
“How can I help you?”. An agent who writes 15 to 25 contracts a year will require more assistance to grow than an agent writing 50 to 100, he says, and often more experienced agents come with their own teams and resources that they need to support financially. He argues the more experienced agent should receive a greater share of the commission split, and for a top performer that could be up to 70 per cent, including superannuation, and in special cases even more. “Once there was a time where agency/ agents were seen as being equal in the equation. That’s changed. That doesn’t diminish the value that a good brand and principal bring, but that’s just the way the industry is going. If you look at the US, it’s been that way for a long time.”
The business balance
When operating at their maximum efficiency, every real estate business will have agents of varied experience. There will be the newcomers, who need the financial stability of a salary but the incentive of commission; the established self-starters who readily write 20 to 25 contracts but need the backing of an agency, the support of a leader and the benefits of a brand to get to 50 contracts and beyond; and the top performers, who come with a team of their own and a reputation that surpasses the brand they work for. The question here is, “What are they worth to you, and you to them?” Andrew notes, and in business, it’s all about balance.
The industry newcomer
If an agent requires extensive support to learn the game and needs assistance with marketing while benefitting from the brand, Andrew starts them at award salary and 50 to 55 per cent commission after they reach an agreed target. “When new people are starting, I believe they should be rewarded. They need to feel how wonderful it is to earn money,” he says. But it’s also about being pragmatic. “A business needs the salaried agent to generate twice their salary in fees in the first year to be viable. Things are never that perfect but that’s the minimum aspiration. The principal will have to help, but whilst on salary an agent should be looking to learn and pay back the principal for all that they are giving. So you might be looking at $60,000 salary with $120,000 fees minimum target. “Whilst on salary there is still commission but only after targets, so the $120,000 target is to set the benchmark for establishing if the agent is to continue in
the business. Andrew’s advice to agents starting out on salary? “Show what you can do by generating fees, then the time will come to sharpen your commission deal. “Salary is just a stepping stone and, for a true aspiring agent, they’ll wish to get off the salary for a more lucrative commission share.”
The established self-starter
Andrew notes that any agent worth their salt can generate 20 to 25 contracts a year at pretty much any agency they work for, but getting beyond that is often when the challenge arises. “Going from 25 to 50 contracts a year is where most people struggle. If you do 50 settled sales a year, you’re a very good agent.” But to get there, some agents need marketing assistance, others need the support of a brand, and this is where leadership and that all important question, ‘What can I do for you?’ comes into play. “There is a whole world of agents who want to become more, and we need each other. The key is to identify people I want to work with, and I can make a difference to.” Andrew encourages principals to renegotiate with their rising agents as they reach the different levels.
The top performer
In an age where the individual agent can be bigger than any brand, Andrew notes that top performers can be a valuable investment for an established agency. But they can and should come at a price. “I might look for an excellent established agent if I’m looking to build my brand,” he says. “But I ask myself, ‘Am I worthy of what they’re going to bring?’ I also ask, ‘Would I rather have them with me than with someone else?’” Importantly, he notes the top agent can prompt a leader to lift their own game in terms of selling and leadership strategy. “Selling is demonstrating leadership, and principals should be out there selling for the pure profit it delivers,” he says. “Leaders need to be great sellers and sometimes that’s about working with people at your level.” But top performers are also likely to come with a team of their own that may include a PA, or their own marketing outlays, which means their personal costs will be higher. “Good people can be worth 70 per cent of the commission split, but above that and it’s a fine line as to whether the principal is making money.”
A BUSINESS NEEDS THE SALARIED AGENT TO GENERATE TWICE THEIR SALARY IN FEES IN THE FIRST YEAR TO BE VIABLE.” The magic number
For Andrew, deciding on the magic number for each agent comes down to two important factors: what the business can afford, and what’s fair. In terms of affordability, he looks at the basic metrics of his business, determining the volume of sales and their cost. He explains it works like this: A sales department might cost $50,000 a month to operate (including the leader’s salary and all running costs). If they’re averaging 15 sales a month in total for the office, each sale is costing $3,300. If they’re averaging 20 sales a month, each costs $2,500. “By looking at it like this, a principal soon works out what they can and can’t pay an agent,” Andrew notes. Then it comes down to negotiation, and it’s something he revisits with his agents as they grow. “If I find a great person, I’ll sit down with them to find something that will work for them, looking at what they bring and what we can offer in terms of assistance and commission. And often I’ll ask them: ‘What do you think is fair?’ “If someone comes back with something ridiculous, often they’re not the person we’re looking for. As a principal I can also just say no, while being transparent as to why. I’ll tell them, ‘Look, at that level the business would lose money.’ “But the truth is that most of the time people come back with a reasonable request.” CASSANDRA
CHARLESWORTH
eliteagent.com 45
THEY SAY HEROES and heroines come with capes, but for DiJONES General Manager Kylie Walsh her suit of armour comprises passion, determination and authenticity. Named the 2018 Most Influential Woman in Property at the Annual REA Excellence Awards, she tells Elite Agent’s Kylie Dulhunty the secret to her success.
Champion of change K
Tracey Fellows and Kylie Walsh – AREAs Most Influential Woman in Property
46 ELITE AGENT • MARCH 2019
ylie Walsh puts a different spin on the old saying, ‘You can’t have it all’. A dedicated voice for women in the real estate industry, the DiJONES general manager was recognised as the Most Influential Woman in Property at the AREA Excellence Awards late last year. Like many female role models before her, including Oprah Winfrey, Ita Buttrose and Madeleine Albright, Kylie agrees that women can have a career as well as a successful and fulfilling personal life – so long as they’re smart about achieving set goals. “You can have it all – you just can’t have it all at the one time,” she says. A prolific speaker and mentor within the industry, Kylie says events provide her with the platform to drive professionalism and raise awareness within the real estate
industry of women’s capabilities. “There is simply not enough airtime outside Women In Real Estate events to elevate what we are really capable of whilst addressing what can hold us back,” she says. “I want to encourage women who attend to be honest with their colleagues and with themselves about all the balls they are juggling. “Women need to stop trying to be invincible or self-sabotage through not putting themselves up for a pay rise or a promotion. “By communicating the message that it is okay to put your hand up or say you are struggling, I have had numerous women say I have changed their life and expectations of themselves.” Kylie says realising you can’t do everything at once isn’t about failure, but the opposite – a chance to succeed in all areas of life and career, otherwise known as ‘having it all’, sequentially.
AT THE BEGINNING
from 39 to 107, including 33 new employees in the past year. The team sold more than 400 properties in the same period and auctioned 381 properties at an average clearance rate of 87 per cent. In property management, the DiJONES rent roll organically increased 22 per cent in the 12-month period, while the Thornleigh and Beecroft sales team merged to form a super-office in Beecroft.
PROUDEST ACHIEVEMENT
Yet Kylie says her proudest achievement was being the only female real estate agent invited to speak at Parliament House on the need to drive change in industry practices. Kylie believes an industry-funded hotline should be developed where consumers can phone to receive independent advice on buying and selling, and read agent reviews – including up-to-date information on agents’ professional development and real estate regulations.
Taking a look at Kylie’s real estate career, which started at Elders Eastern Suburbs in Sydney when she was just 18, it’s proof she practises what she preaches. Never one to shy away from a challenge, Kylie moved to LJ Hooker in Tamworth, where she polished her skills and became a licensed stock and station agent and real estate agent. At 21 she went back to the Elders group and purchased her own office, which she sold in 2006. “I didn’t know any better and I wanted to be my own boss and lead a team,” Kylie says of the decision to go it alone. “When I sold the office in 2006 I moved into franchising, where my roles included positions as state manager in NSW and Queensland for Elders Limited. Later I was promoted to national operations manager. “My last role at LJ Hooker Corporation saw me take on the challenge of network performance manager for the group’s topperforming offices.”
“If we are serious about being customercentric and transparent then we should support and fund something like this,” she says. “Agents have the REI at state and national levels, but who is there to lobby for the consumer?”
NUMBERS SPEAK
THE FUTURE
Since joining DiJONES in 2014 Kylie’s star has continued to rise. Along with CEO Rob Ward, who has steered the ship since April 2016, Kylie and the team have achieved results that have left AREAs judges astounded. In the 12 months leading up to the awards submissions, revenue has risen 228.8 per cent, while the size of the team has jumped
I WANT TO ENCOURAGE WOMEN TO BE HONEST WITH THEIR COLLEAGUES AND WITH THEMSELVES ABOUT ALL THE BALLS THEY ARE JUGGLING.”
In 2015, Kylie introduced breastfeeding rooms at all DiJONES offices for staff and members of the public to use to express milk or to feed their babies. In the coming three years her plan is to open a creche to engage and better support mothers returning to work. “Nothing is more stressful when you’re returning to work than putting your child
into childcare,” says Kylie, a mother of two daughters, aged eight and five. “We also have a desire to hire more mothers on maternity leave in our customer care business unit. Our customer care business monitors client experience and searches for lead generation opportunities for finance, property management and insurance. “This role, with our technology platform, can be done from home at any time of the day or early evening. This would provide flexibility and, I believe, better results and engagement of the workforce. “We’ll grow our network to 10 offices and 5,000 managements by 2023 and be the employer of choice for women.” Other plans include developing a workshop for male sales agents to equip them with the skills to help nurture and support women in the workplace. Kylie also intends continuing to shine the spotlight on health and wellbeing after being diagnosed with breast cancer in April 2016. “I have received emails following conferences from women saying, ‘Thank you, I had the mammogram I had been putting off,’ and this makes me incredibly proud,” Kylie says. “What made my year was when a man came up to me after a conference and said thank you for helping him understand what his wife was going through.” Kylie says her final, vitally important, goal is to inspire the DiJONES team members to support each other in their times of greatest need. “When I was undergoing chemotherapy all 107 team members cooked for my family for seven months, so we had meals delivered every Monday and I didn’t have to cook,” she says. “I would like to roll that out as a benchmark for our people when their families are going through tough times – almost like an astral program offered in skills. “Our values are family, passion, authenticity and collaboration, so I cannot think of a better way to empower our men and women to support their own team.”
KYLIE DULHUNTY
eliteagent.com 47
sponsored
most technologically challenged person in the office to create sophisticated marketing campaigns that will impress potential local buyers.
CAN YOUR DIGITAL MARKETING BE STREAMLINED? Campaigntrack, the largest real estate marketing company in Australasia, has launched Artspeed Evo – a new online design platform to help its customers deliver marketing solutions with more ease and efficiency than ever before. We spoke with CEO Tim Dean to find out how real estate offices can use the technology to streamline their marketing. What can you tell us about Artspeed Evo? Artspeed Evo will revolutionise the way agencies tackle their marketing. The dynamic elastic templates reduce the number of artwork templates for most brands by typically 90 per cent. Think about that for a second. Most brands require hundreds and sometimes more than a thousand templates to deal with their supplier network. But by dramatically cutting this we allow faster rebrands, faster rollouts and faster onboarding of new suppliers too. In partnering with our customers and leveraging the best developments in technology, we’ve spent the last 12 months evolving our unique software to further streamline the creation of marketing campaigns for our clients. The result is a range of exciting new capabilities, delivered with a speed that the market has not seen before.
48 ELITE AGENT • MARCH 2019
What was the idea behind the platform? Campaigntrack remains focused on our mission to radically simplify and improve the entire marketing process for real estate professionals, drawing on the latest digital technologies available. The development of this online design platform is critical to our roadmap for delivering a vital service that remains at the forefront of the real estate industry. We’re really invested in cutting-edge technology. We have a dedicated research and development team that’s continually trialling new strategies and systems, finding the optimal solutions to deliver what our customers are trying to achieve. What are the features agents are going to love? Three things – ease of use, speed and efficiency. The product enables even the
How does the product save the average agent time? Artwork is pre-filled with all photos plus property, agent and agency data, and you are able to type directly into your artwork and see the creative come to life. The artwork updates in real time so there’s no need to refresh or apply your text changes, and you can simply use your mouse inside the template to move, resize and rotate images or elements. Will the finished product look professional? Artspeed Evo is based on InDesign technology, so the templates are pixelperfect replications of supplied files, reducing artwork turnaround times. It’s a mobile-friendly HTML5 platform which allows for designs to be edited on the go. And unlike other systems, it's fast: the platform also supports multiple page documents in one screen and has eliminated the refresh data behaviour of other systems, making it much faster to use. What types of layouts are supported? On Artspeed Evo the templates are dynamic and one template can be automatically sent to any supplier with any specifications. Those same templates can be intuitively adapted for portrait, square or landscape designs. The platform also supports a range of traditional marketing requirements, as well as important digital advertising channels, generating on-spec ads for Facebook, Google, Instagram, LinkedIn and more. With the templates so easy to adapt, an office is able to cut the number of templates required to one-tenth, which reduces the effort required to perform brand-wide changes or updates by 90 per cent.
For further information on how to achieve a more focused, streamlined and effective approach to residential, commercial and development marketing, visit campaigntrack.com.
sponsored
TIME FOR A TECHNOLOGY
APPRAISAL? WHEN YOU’RE LEAPING into a new year and getting started on your goals, it’s important to make sure everything around you is working optimally to give you the best chance for success. Andrew Herrmann shows how you can save time and money by appraising the tech in your business.
I
t’s that time of year again; the holiday break is a distant memory and our focus shifts to hustling hard and chasing sales targets. But there’s no point focusing on your goals if the things surrounding you in your business are holding you back. Having your tech audited and analysed early in the year can not only save you a huge amount of time and money, but increase productivity and ultimately aid to increase sales and listings. Here are the three key areas you should be focusing on for maximum reward. MANAGED PRINT (PRINTERS AND PHOTOCOPIERS) This is an area that is so often overlooked but can really make a big difference in your business. We see time and time again agencies who are stuck in managed print plans that do not allow them to be flexible or shift in times of change. Interestingly, we also see during a slowing market that our print volumes do the opposite and increase. This usually occurs as agents
50 ELITE AGENT • MARCH 2019
become more active with their marketing. It’s important to ensure your print management plan is set up for these peaks and troughs and that your spend matches the volumes you’re doing. Another aspect of managed print is document automation. In slower markets it’s good for a business to find new and innovative ways to reduce manual data entry, resulting in money saved both in time but also in resources. Look at the options for your business and make sure time isn’t being wasted on tasks which could easily be automated. OFFICE EQUIPMENT (LAPTOPS, COMPUTERS, IT INFRASTRUCTURE) This is another key area to spend some time auditing early in the new year and will become increasingly important as we see more businesses move to the cloud. We’re finding that many agencies don’t know when some of the equipment they are using was purchased or whether it is compatible with a hosted
environment. Our suggestion is to do a device audit, build an asset register and understand where the business currently sits. This will not only help you keep track of what you have but also help you properly plan for the future scale of the business. It will also help create a standard operating environment for all staff, making life easier – especially when sharing roles or assisting other departments. DATA/STORAGE AND SECURITY The truth is, when it comes to data and storage the best time to analyse this is now. Today, with so many different threats in the marketplace, it is imperative that you have a solution in place that allows you to properly store your data and ensure that it is managed and can be accessed by the business quickly and easily. More often we are seeing varying hybrid solutions that have just evolved within the agency over time, with no set rules in place as to where data should be stored and then ultimately backed up.
This is not only an operational nightmare when trying to find a piece of information quickly, but also very dangerous with data breaches of confidential or sensitive information. This also leads into another piece that we are seeing this year, which is identity management and security. The good news is there hasn’t been a better time in the real estate world to analyse and audit your technology. For some time we have been running at a furious pace; it’s time to have a good hard look under the hood and identify some key areas to save time, money and find efficiencies to ultimately sell more property.
Andrew Herrmann is the Director of EFEX. Through his real estate and technology experience, Andrew has been able to help agencies save money and improve office efficiency. For more information visit efexgroup.com.au.
FIND THE ELITE COMING SOON!
ELITE.AG/JOBS
Destinationas g e V s a L AS THE HAZE OF NEW YEAR subsided, everyone who is anyone in the tech world had one destination in mind. Not Aspen for skiing, not Bondi for the beach; they were all off to Las Vegas for the three-day juggernaut that is the Consumer Electronics Show, or CES. There, in the mecca of all things bright, shiny and new, attendees were witness to the world’s latest and greatest gadgets at an exhibition spanning almost three million square feet – all coming soon to a smart home or office near you.
52 ELITE AGENT • MARCH 2019
T
his year’s CES was the biggest and brightest in the event’s history, with 180,000 people in attendance as 4,500 exhibitors showcased their wares. Among those leading the charge were innovators in the smart home, with a range of new gadgets and new technology set to hit the market this year. So what are the major trends emerging, and which smart tech is likely to make it into our homes, offices and cities courtesy of CES 2019?
THE SMART HOME IS GROWING UP
If one thing was clear at CES 2019, it’s that the smart home is growing up. Now it’s not so much about individual appliances and the tricks they can do but how they interrelate and, importantly, how the consumer communicates with a product. Voice activation was a major theme at
this year’s event, with two players vying to own this space – Google with Google Assistant and Amazon with Alexa. Between them they have ensured voice activation is available in almost any imaginable smart home product, from smart mirrors that display your schedule and emails as you groom for the day to robot vacuum cleaners that clean your home on command. Often these products are now also operating as part of scenes and routines, allowing smart home users to awaken in the morning to a smart alarm that automatically tells you what’s on the agenda and then sets the house in motion, opening blinds, turning on the shower to the prerequired temperature and kick-starting the coffee machine.
SMART SPEAKERS AND DISPLAYS
Last year smart speakers truly arrived in Australia, with Amazon Echo and Apple Homepod joining Google Home in the local marketplace. 2018 also saw these manufacturers go beyond just speakers to incorporate smart displays. As a result, smart speaker adoption Down Under increased to an estimated 1.35 million devices in Australian homes and workplaces. CES revealed more innovation and offerings in the smart speaker and display niche. Now there’s smart speakers and displays for specific purposes. For example, KitchenAid unveiled a splash-proof benchtop display that lets you make video and voice calls while also searching your favourite recipes, controlling your other smart home gadgets and seeking out local restaurants. GHSP (ghsp.com) went a step further, showcasing a concept kitchen with smart screens as splashbacks. Digital Trends explained: “The display can do a lot of the same things a smart assistant with a screen can do – play music, show you the view from your smart doorbell camera, let you add items to your shopping list – just on a much larger scale.”
vacuum cleaner, who uses GPS positioning, 3D mapping and AI to create a detailed plan of the home and a corresponding cleaning routine. Admittedly, robot vacuum cleaners are far from new, but the growing supply of smart cleaning aids is indicative the market is taking off. In addition to helpful robots, there were also some just to keep you company, including Lovot, a little number designed to cure loneliness. Looking somewhat like a cross between a Teletubby and your favoured ‘blankie’ from childhood, Lovot moves about on retractable wheels and interacts with you based on the stimulation of sound, touch and physical movement. On the business front robots took a more practical turn, a highlight being the unveiling of LG’s CLOi SuitBot. A wearable robot that acts like an exoskeleton, SuitBot is designed to offer additional support and strength for people engaged in heavy lifting.
GHSP WENT A STEP FURTHER, SHOWCASING A CONCEPT KITCHEN WITH SMART SCREENS AS SPLASHBACKS.
ROBOTS, ROBOTS EVERYWHERE
Once a futuristic fantasy explored in cartoons like The Jetsons, robots are now becoming commonplace. CES saw new robots revealed and old favourites finetuned. There was Temi, the three-foot-tall personal butler, who rolls about the house behind you and offers a hands-free way to help you with daily tasks while accessing information using Alexa. Then there was Trifo, the robotic
LG’s CLOi SuitBot
THE WEIRD AND THE WONDERFUL
CES is nothing if not a deep dive into truly imaginative tech, and there were some stellar innovations on display. Moen unveiled a shower that activates via voice command and sets itself to the desired temperature. Foldimate was looking to take care of all that extraneous laundry folding by enabling users to feed their clothing into the machine and see it emerge, neatly folded, 10 to 15 seconds later. Meanwhile, Haier was keen to clean shoes. They unveiled a modular sneaker cleaner that uses airflow, ozone, UV light and carbon to keep your sneakers disinfected and prevent discolouration. Even the humble toilet and toothbrush were not immune to a rethink. Plumbing giant Toto unveiled a toilet that opens and closes using sensors and also has a selfcleaning feature, while Kohler previewed a loo with voice control and the ability to play music. And French company Fasteesh believes two minutes brushing your teeth is one minute 50 seconds too long. They revealed a toothbrush like a mouthguard with bristles built-in. Oh, and the televisions – how far they’ve come! Some took up entire walls, others unfurled from cabinets, but all were crisper, sharper and offered greater resolution than ever before, because 4K is no longer enough. Now it’s 8K and nothing less, in a world where success is defined by the size and resolution of the TV plastered on your wall.
THE BIG ISSUES
Gadgets might be the drawcard of CES, but there’s also major innovation up for discussion and the big topic of the conference this year was 5G. This latest incarnation of cellular communications will replace the 4G mobile network and is set to roll out in many nations, including Australia, throughout this year. And yes, it’s a game changer. “5G will change everything – 5G is the promise of so much more than what we have seen from wireless technology,” CEO of Verizon Hans Vestberg explained during his keynote address. Why? Because it’s fast, efficient and allows more devices to be connected, offering a potential speed of 20Gbps. To put that in context, it means you could feasibly download a full HD movie within seven to 40 seconds using mobile internet. 5G is tipped to be the catalyst for the next wave of smart technology, impacting everything from self-driving cars to smart cities and the smart home. CASSANDRA
CHARLESWORTH
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PRESS TO SUCCESS
19 ideas for getting noticed by the media IF YOU’RE LOOKING TO get more publicity for your business this year through the media, it’s not that difficult - it’s simply about pitching the right story at the right time to the right outlet. Elite Agent’s award-winning editor Samantha McLean has some tips for getting noticed by the media for all the right reasons.
WHAT’S THE STORY AND WHAT’S NEWS?
Write down the piece of news you want to share, in a sentence or two if you can, and then look for a newsworthy angle. For example, you might be getting ready to publish a new suburb report, white paper or case study. That's the story, but it isn't that newsworthy as far as an editor is concerned. To be newsworthy, your press release has to be relevant to the publication's audience and this may require a bit of customisation, including how your research will impact the readers of the publication to whom you are pitching. In the case of the suburb report or white paper, make it about how your findings will affect the end reader. For example, “Property prices to increase in Smithville as a result of new infrastructure plans”.
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The opening of your business.
Local media are keen to know about comings and goings on their beat – primarily if you are offering a helpful service to the community. Make sure your press release highlights any community benefits. Throwing in a gift or special offer to entice people to visit your shopfront doesn't hurt either!
2
A change in your service offerings. If you’re launching a new
product, service or pricing model, this might be very newsworthy. Just keep in mind how your customer and/or reader would benefit and make that the focus of your release. Joint ventures. If you’re combining forces with another company or individual and it benefits your target market, share that information in a press release.
3
WHAT SHOULD GO IN A PRESS RELEASE?
W
riting and sharing a press release is an excellent way to generate awareness and buzz for your business, and it can even be an integral part of your content or property marketing strategy. But writing a press release is a bit different from writing a blog post, as you can’t just hit a publish button - you need to get past a gatekeeper to get to the eyeballs of their bigger readership.
54 ELITE AGENT • MARCH 2019
Always go back to the five Ws: who, what, where, when and why. Answer these questions yourself before writing up your press release and keep in mind, what do I want the person reading to know, what do I want them to feel and what do I want them to do? At the same time, think about where you can use quotes – and which personnel you might quote to give your press release some star quality, as well as some extra credibility.
WHEN MIGHT I SEND A PRESS RELEASE?
Here are a good news events you might use to get publicity for your business (plus some things people send us press releases about!)
4
THE LAUNCH OF YOUR WEBSITE.
Just like the launch of a business, the launch of a website can also be newsworthy – particularly if it has useful features for the community or does something that is really different to others. Again, offering a sweetener such as a gift in return for checking out your website can be an excellent strategy to raise awareness.
5 6
Make a prediction. Use local or
national buzz to make a prediction that resonates with your intended audience. Include supporting evidence, facts and statistics for credibility.
Capitalise on current events.
A popular news story is a perfect tie into your release. If you can relate the story to your business, it is quite likely the media will be interested. For example, if your auction results aren’t what the national numbers are saying, that’s a pretty good story for a publication with a real estate audience.
move, many people issue press releases that demonstrate the impact on consumers given the new data.
12
Recognise new leadership.
There is not enough good news these days, so if either your company or a professional or charitable organisation makes it into leadership it's worth talking about. Just make sure it includes what it will mean to the people you serve.
13
Launch a social media group or competition. Have you
created a local area or investor information Facebook group or LinkedIn group that offers a benefit to members? Ask the media to get involved in the conversations to keep up to speed with what's happening in your area. Earned media coverage. This can be a tricky one; however, you can issue a press release if you’ve received media coverage from another publication. For example, if Choice rates your product as the best in real estate, you could issue a press release announcing that recognition. Just make sure the publications don’t compete!
14 7
SOLVE A PROBLEM.
Is your target audience up in arms about a community issue or problem? Create a solution and present it to them, or provide an outlet for them to be heard. For example, if there has been an unfortunate increase in criminal activity, work with other businesses and parents to help solve the problem.
8 9
Teach a course. Perhaps you have
hidden talents, like Iolanda Gow of Green Street Property who last year held a self-defence class for women. Share the details of the class, who can take it and why you are offering it.
Announce an upcoming speaking engagement. This one
is a good one for potential AREC speakers – talk to the local media about why you’re speaking and your chosen topic. Mention others who will be speaking or attending. Make sure you include how this will benefit your clients in the long run.
10
Recognise employees who give back to the community.
Issue a press release celebrating one of your team who has done something worthwhile in the community. Highlight charity work. If you are particularly passionate about a charity or cause, partner with them to raise money, or make a donation (just make sure it’s a 'give to give' situation, rather than 'give to get').
11
Make a public statement on future property trends or conditions. You see plenty of
this in the real estate industry. When interest rates change or ABS numbers
WRITING A PRESS RELEASE IS A BIT DIFFERENT FROM WRITING A BLOG POST, AS YOU CAN’T JUST HIT A PUBLISH BUTTON - YOU NEED TO GET PAST A GATEKEEPER TO GET TO THE EYEBALLS OF THEIR BIGGER READERSHIP.
15 16
A business restructure.
Sometimes restructuring your business or business model can be newsworthy if you focus on the benefit for the customer.
Establish a unique agreement. Sometimes it’s
newsworthy to discuss any innovative working arrangements you make with customers, employees or vendors. Again, highlight the benefit to your audience in the release.
17
MAJOR MILESTONES.
When is your company's anniversary? Have you reached x million in sales or properties under management? If you’ve reached a significant milestone, a press release can help you share your successes and build your agency brand.
18
Share a story of personal challenge. If you or someone
within your company has risen above adversity in some way, it may resonate with the media as a personal interest story. Tell them about the experience to inspire others.
19
ANNOUNCE A BIG SALE OR RECORD RENTAL.
Think about why your sale is newsworthy (or create an interesting reason based on the market and the community). Is there a particular angle (such as an organic veggie patch) that the community might be interested in? Lastly, make sure you add a few important pieces of information to your press release: your company name, contact details, a paragraph about your company and any images that might be relevant to a story. If the media calls, make sure you are available to clarify any details or provide further comment. The more organised you are, the more chance you’ve got of getting in the news (or even on TV). Good luck!
If you have a news release to send us at any point in time, please email newsroom@eliteagent.com.
eliteagent.com 55
THE HOME STRAIGHT 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.
Begin with the end in mind
In a tough market, instead of looking forward and hoping things fall into place, it can be better to take a different view. Mark McLeod explains how starting at the desired end and working backwards can help ensure the right conversations are happening.
T
hrough the strong part of the cycle, it was a fairly easy task to look forward and feel energised and excited about what was inevitably about to happen: solid numbers through opens, bucketloads of enquiry, plenty of offers. Vendors not always but often had their expectations on price exceeded. The world of real estate seemed relatively simple and you know it was. Off the back of these inevitabilities, we were able to have conversations with both vendors and purchasers that enabled us to create and control plenty of sales. Now it’s time to work backwards from these conversations. I want you to think about a vendor, maybe 10 to 15 per cent overpriced, and ask yourself, ‘What conversation do I need to have with that owner next week?’. Think about that conversation, think about the information that you need at that conversation and work backwards from that point.
56 ELITE AGENT • MARCH 2019
them you have a database chock-full of buyers; where are they all of a sudden?
STEP 2 Think about the feedback you want to discuss with the owner from these OFI attendees, and start to ask the questions of these people that will help you craft the conversations you need to have.
STEP 3 The vendor report should deliver the information that is the catalyst for the conversations you need to have. I am constantly amazed at how many people tell me they don't use them, or how little thought and effort goes into what I believe is one of the most important tools for a professional agent.
STEP 4
IF IT WASN'T POSITIONED RIGHT LAST WEEK IT’S HARDLY GOING TO BE POSITIONED RIGHT THIS WEEK.
Let’s break it down into simple steps. Having no one through the previous weekend’s opens hardly creates a great topic of conversation, I know. I hear you say the market has rejected it at the listed price or the quoted price (if you feel the need to use them), but
ultimately the vendor requires far deeper evidence than a noshow weekend.
STEP 1 Start to think about how you can drive traffic to your opens to give the vendor the evidence they need. You probably told
Think about how you want the home presented at your next OFI. So often agents go back every weekend with the same price and method, and wait for those wonderful real estate pixies to turn up. If it wasn't positioned right last week it’s hardly going to be positioned right this week. The art of understanding where you need to be, week in and week out, then working backwards from that point and creating the environment that you need, is the art of creating sales. Because, ultimately, this is the difference between the agents who get it and those who are merely looking to the future, hoping and praying the strong market returns.
LEARN FROM THE BEST
Persona your owlise n course COMING IN 2019!
Elite Agent is now delivering online short courses for real estate professionals in partnership with MRT (RTO 41529), including CPD courses for NSW agents.
ELITE.AG/ACADEMY
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