How to Reduce Recruiting Friction in Q3

by | Jul 8, 2024

Over the weekend, Inman reported the results of their most recent Intel survey on recruiting.

The survey attempted to draw contrasts between large franchise companies and independent brokerages.

While the survey highlighted some small differences in agents’ perceptions between these competing business models, the overall trends were more interesting and insightful.

Here’s a quick summary of the top five insights:

Value the Most: When agents were asked what they value the most, the top three responses were Culture (about 30%), Perception of the Brand, (about 25%), and Technology/Educational Opportunities (about 15%).

Top Business Concerns:  About 70% of agents reported Lack of Inventory and Mortgage Rates as their top business concerns. Only 10% reported Lawsuits/Settlements as their top concern.

Production:  About 20% of agents reported closing 20 or more transactions per year (the Pareto Principle is still alive and well in real estate).

Commission Splits:  About 25% of agents are on commission splits below 80% (i.e., about 75% of agents are at 80% or above).

Leaving the Industry:  About 30% of agents have considered leaving the industry in the last 12 months because of market conditions.

As you head into the third quarter, do a quick inventory of your recruiting messaging.

Make sure you’re focusing your attention on the things agents care about most and find creative ways to address their most pressing concerns.

When you’re offering what they already want and need, making a move won’t feel so difficult.

 

The Simple Psychology of Real Estate Recruiting [2nd Edition]

Unlock the secrets of effective real estate recruiting. Revised to include actionable frameworks for sharper execution and to help you turn psychological theory into a repeatable recruiting system.

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According to a nationwide survey of more than 1,900 agents, those who consider themselves “experts” at generating leads earn nearly four times as much as agents who struggle with this activity. It’s probably safe to say, the same principle holds true for recruiting.

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But if you’ve been around long enough, you know the business and real estate world doesn’t allow us to indulge in this comfort. It requires us to adjust or be left behind. It also rewards those who recognize that the connection between people, systems, and opportunities needs constant adjustment.

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To keep yourself from getting caught in this trap, do the hard work of creating and maintaining a large and vibrant recruiting database. Poor prospects don’t look so great when you have lots of other choices.