CR Magazine – Autumn 2018

Take the SMART goal criteria into consideration:
• Is it specific? Yes, we’re talking about $ 150,000 after
expenses.
• Is it measurable? Yes, we have a clearly-defined amount.
• It is time-bound? Yes, we have a due date at the end of
the year.
We’re off to a good start.
Tie these sales goals to daily
action plans.
Help the agent determine what actions every single day that will
generate those leads. Door knocking? Cold calling? Open houses?
Whatever the method, the agent needs to establish a good
understanding of how much time or money they need to spend in
order to hit their sales goals.
Let’s now ask if this goal is Relevant. This is an important
question to ask. Why does the agent want to make $ 150k? What
will that amount of money allow them to do - provide for family?
Pay off loans? Invest in the future of their business? If so, what
does that future look like? Many agents fail to hit their goals
because haven’t truly bought in. Do not skip this step.
After you’ve walked through these four steps, it’s up the agent
to decide if this goal is attainable. Now that your agent sees the
entire process drawn out and they understand what they’ll have
to do in order to hit their goals, ask them how they feel. Is this
something they can commit to, and with your help, can they hold
themselves accountable?
Finally, is this goal attainable? Let’s find out.
Break down the metrics.
Now it’s time to work backward from our goal. The idea is
to keep breaking the Big Goal into smaller goals until it’s
completely within a broker’s control. This step can be a bit of
work, so hang in there.
If yes, congratulations, you’ve got a new key player on your team.
If not, it’s worth going back to the drawing board and coming up
with a more realistic goal that will set them up for success within
their reach.
If an agent wants to make $ 150,000, factoring in the agent’s
expenses, how much gross commission will the agent need to
bring in to earn that? Let’s say that number is $ 220,000. You then
need to break that down into the number of buyers, sellers, and
renters it will take to generate $ 220k worth of GCI.
Let’s look at it in terms of listings. Based on what your brokerage
charges sellers for commission, and your average sales per listing,
you determine that it will take 22 transactions to generate $ 220K
worth of GCI. Now we are starting to set some more manageable
goals, but we’re not done yet. You can’t just step outside and
pick a person out in a crowd to sell their house. You need to keep
working backwards.
If they need to close 14 seller transactions, how many listing
agreements get signed? How many listing appointments will it take
to get to that number of listing agreements? How many listing leads
will the agent need to generate to get the necessary amount of
listing appointments?
If this sounds like a lot of work, it is. Software helps. Now would be
a great time to dust off your Excel chops. At Center Coast, we’ve
developed a tool that allows our agents to punch in some basic
goals and assumptions. The tool then spits out a sales and marketing
plan for the entire year and syncs with our CRM to measure results.
Set micro sales goals.
Once you’ve broken down the metrics and understand the
conversion rates between each of those metrics, setting micro
sales goals is easy. Let’s say that in order to close 14 seller
transactions, they need to generate 200 seller leads over the
course of the year. We can now set micro sales goals of 4 sellers
leads per week.
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