How to Recruit When You Aren’t the Cheapest Brokerage in Town
Two weeks ago, I took an informal survey of brokers’ biggest recruiting challenges.
The most common response?
Competing against “cheaper” brokerages.
Now, not everyone phrased it that way. Some brokers said “overcoming objections about splits and fees”.
But the core issue is the same…
How do you recruit and retain agents when you don’t have the cheapest commission plans in town?
And the fact this was the most common challenge makes sense.
After all, there can only be one “cheapest” brokerage per market.
Even discount brokerages face commission competition from other discount brokerages.
But before we dive into how you can recruit and retain agents when you aren’t the cheapest brokerage in town, a quick disclaimer.
Entire books, seminars and training courses exist about dealing with price competition, distinguishing price from value, etc.
So, there’s no way I can cover everything here.
Instead, I’m going to give you three actionable strategies and then invite you to hop on the phone with me if you’d like to go deeper into the subject.
Here we go.
#1 – Talk Results
The single biggest mistake I see brokers make is sharing nothing but bland, generic features in their recruiting materials and appointments.
They talk about training, brand, location, broker support, technology, etc., etc., etc.
In other words, the same thing every other broker talks about.
And when agents can’t distinguish one brokerage’s offerings from another, they default to price.
That’s why you want to talk results.
So, it’s not that you have a great brand, it’s that your agents get “come list me” calls from sellers who would never imagine listing with another brokerage.
And it’s not that you have training, it’s that you can help agents get five extra listings in the next three months.
#2 – Get Your Message Out There
You know the old real estate saying that you don’t want to be a “secret agent”?
Well, the same thing is true about being a “secret brokerage”.
You must share the results you get your current agents with the agents you want to recruit.
Make calls, send emails, use social media, mail postcards and notes. Whatever gets your message in front of the agents you want to recruit.
Because even being the cheapest brokerage in town won’t help you if you fail to get your message out there.
#3 – Head-Off Objections Before They Come Up
I’m betting agents give you the same one or two commission objections.
And since those objections are predictable, you can head them off early in appointments so they don’t come up later.
I’ll give you an example.
Let’s say you charge a $500 monthly fee that’s an issue for some agents.
Early in your recruiting appointments, ask prospects about recurring expenses they pay for marketing, prospecting, E&O, coaching, and so on.
Listen for and point out any expenses you can help them eliminate or reduce when they join your brokerage.
Then, when you get to the discussion of your monthly fee, remind the agents they aren’t paying an extra $500 per month because you’re saving them money elsewhere.
Ok, so here’s the point where I’m going to invite you to schedule a one-on-one call with me if you want to discuss:
How to differentiate yourself from your competition by sharing the results you get for your existing agents
The best ways to get your recruiting messages out into the market
How to head-off the objections you get to your commission plans before they come up
There’s no charge for the call because my goal is to help you recruit regardless of whether we ever work together.
Here’s the link you can use to book time directly on my calendar: https://meetme.so/DrewPeterson
I look forward to our conversation!
P.S. - Next week I’ll cover the second most common challenge brokers reported…
Closing the deal.