Here's your guide on creating a coaching plan for the new agents in your real estate teams. Learn about the how's and why's to scale your team for success.
The Important Of Coaching In Real Estate
The ultimate goal of your real estate business is to maximize profits. It is not uncommon for new agents to feel inept at channeling adequate effort and more to reach the goal.
If you're scaling your team and hiring new agents to grow your business, a coaching plan for the recruits must be at the top of your to-do lists.
For a new agent that is eager to grow and open to new ideas, real estate coaching can be invaluable for them to learn how to create and cultivate leads and sharpen their sales skills for desired results.
- Jared James, Real Estate Coach/Trainer.
Over 85-90% of real estate agents quit the profession within the first 5 years. Out of the myriads of reasons behind such poor retention, the three most glaring reasons are -
- Their marketing game and lead generation is not up to the mark
- They often lack the skill set to complete a sales process - from setting an appointment to closing the deal
- They lack a boost of motivation to hustle till they succeed
Creating a real estate coaching program for the new agents on your team will ensure that they have the right tools and frame of mind that set them up for success and grow your business.
Companies that provide quality coaching can reach 7% greater annual revenue growth.
The Challenges In Coaching New Real Estate Agents
Most brokers and managers face two challenges that hinder the creation and implementation of a coaching plan for their agents -
- Lack of time that they can devote to coaching new agents
- Lack of adequate skill, knowledge, and experience to coach
Coaching requires a massive time investment, and that isn't the end of it. A 2016 report by the Sales Executive Council discovered that the skill and experience of managers to coach the agents was the topmost challenge that made most coaching plans and strategies ineffective.
The overwhelming question then looms over the industry - To coach, or not to coach?
ROI In Coaching
Coaching in real estate is indispensable.
If you're constantly battling with the how's and why's of coaching, this article is a great place to kickstart your coaching plan.
A real estate coach will effectively help your team with lead generation and marketing, setting up systems, creating processes that work for your agents, and implementing strategies to ensure greater accountability. All of this directly affects the performance of your new agents and maximizes your business profit.
The data of our 2015 MHI Sales Best Practices Study shows that there is a big difference between world-class performers and everyone else - 84% of the world-class sales organizations spend adequate time coaching each individual on the sales team in an average month.
-Tamara Schenk via CSO Insights.
What You Need To Create An Effective Coaching Plan
We have compiled a list of 4 must-haves that will get you started on building a coaching plan for your new agents -
Automate Your Data Entry
Manual data entry is time-consuming and takes away the focus from what's important - working on your leads! Step away from multiple spreadsheets and tools that become yet another system where you need to update data. Always remember, less is more when you have access to the right platforms.
Unify Your KPIs
Going back to multiple sources to study the KPIs of your agents is cumbersome. Adopt technology that allows you to gain complete visibility and integrate all the metrics from your CRM and transaction management tools into a single source of truth.
Use Analytics To Track Agent Performance
A CRM and a transaction management system aren't enough. Add an analytics platform to your tech stack to track your agent's performance at a team and an individual level. Using analytics can give you better visibility and control, and help you chalk out coaching strategies in a data-driven way.
Being able to deep dive into our agent performance that way tenfold improves our conversions tenfold. We've been able to maintain really steady conversions because of the data-driven coaching with the help of Auctm.
- Samantha Boyd (Hillsborough & Pinellas Team Leader, RST) on using Auctm.
Conduct Regular 1:1 Meets With Your Agents
Once you have visibility on the agent effort, it is time to step back, reassess what needs to change, and sit down with the agent to discuss the action plan. 1:1 meetings with the agents are a great way to track the progress of their goals, understand challenges they might be facing, and ensure accountability for the targets set.
Steps To Create A Coaching Program For Your Agents
Now that you have all the prerequisites to plan an effective coaching program for your agents, here's a list of some simple steps that can get you started right away.
- Make the best use of your analytics platform to achieve data accuracy. Numerical inconsistencies can make your entire action plan ineffective. Rely on a single source of truth for all the key metrics.
- You can only control and improve what you can measure. Keep all your decisions data-driven and get more visibility into your agent effort on the leads they are working on.
- If the output does not match your desired expectations, take the bottom-up approach - look at the results, then look at the pipeline, and finally deep-dive into the effort.
- To understand the movement of leads in the pipeline in tandem with agent effort, focus on the top of the funnel metrics such as - the speed to lead of the agent and the number of attempts per lead.
Types Of Real Estate Coaching
There are primarily two types of real estate sales coaching -
This is a more involved form of coaching where you deep-dive into the agent's performance and pipeline review, mark out areas that need improvement and discuss the next steps to yield the expected results.
Team Coaching/Group Coaching
This process can involve more than two agents who show a similar lack in performance during their pipeline review. They often show a common pattern that requires improvement, and group coaching can save time and promote a healthy competition to do better.
The manager or coach needs to understand performance red flags and segment the agents based on experience, past metrics, and any existing challenges with team culture, methodologies, and adoption of new technology to correctly identify the suitable form of coaching for the agents.
Bonus: 5 Tips To Ensure Effective Coaching For New Agents On The Team
Here are five quick tips for doing it right for the first-timers on your team!
- Take a people-first approach & align conversations with long term business & personal goals
- Prioritize coaching by blocking time for it and be strategic with who needs more help
- Set expectations & goals for yourself and the team, and back them up with reason
- Make yourself accountable and motivate the rest to follow suit
- Get training on how to coach and keep yourself updated
Making The Best Use Of Technology To Coach New Agents
Your end goal is to maximize profits.
What if we told you that some of the top real estate teams boost their ROI exponentially and effectively coach their agents by spending an average of just 15 minutes on Auctm daily?
Auctm removed all of the spreadsheets, data tracking and has automated so many things. It is a beautiful layer on top to help with data analytics that allows us to see where the gaps are within our team, and make better decisions faster.
- Jenny Usaj, Broker Owner, Usaj Realty LLC
Top real estate teams are using Auctm to do what their CRM alone cannot do - effectively boost conversions and prevent leads from slipping through the cracks.
Here are 5 daily rituals with Auctm that will help your run your real estate business better.
Leading a sales team is all about finding the right level of activity, figuring out who your top performers are, how they succeed and using those insights to coach up your lower achievers.
-Mark Kosoglow, Outreach.io, VP of Sales