When brokers focus solely on commissions, it can create confusion for brokerages, writes managing broker Derek Carlson. Here are some things to keep in mind when hiring top talent:
Having hired over 3,000 agents over the course of my career, I’ve learned how to identify agents with real potential and, more importantly, how to quickly identify agents who may cause problems.
And one of the biggest red flags for identifying these proverbial “problem child” agents is the fact that they are commissioned.
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You already know who I’m talking about. Desperate to get their hands on a commission check, they’re the ones who will do almost whatever it takes to get to the closing table, even if it means ignoring the basics of customer service.
The single-minded focus of these agents can cause disproportionate disruption to brokerage firms. They can frustrate customers, make colleagues feel bad, and sometimes cause reputational damage to your brand.
I understand. This is a cruel industry where agents only eat what they “kill,” so to speak, so all agents prioritize their own commissions to some extent.
But it shouldn’t be their top priority or only focus. And the truth is that this industry is responsible for creating the problem in the first place. That’s because most brokerages use a split model, where the broker receives a significant portion of the commission.
To make matters worse, most brokerages follow a “sink or swim” mentality, where agents are essentially thrown to the wolves and forced to learn and perform almost entirely on their own.
This leaves agents in a scarcity mindset, often resulting in commission breath. So in this article, we’ll detail how to identify these agents so you can steer them toward a better approach or avoid them altogether.
5 signs that your agent is on task
Here are five tell-tale signs you can spot when interviewing an agent.
They have no repeat business
Repeat business indicates that the agent is serving the client well, and lack of repeat business indicates that the agent is not serving the client well.
By asking about their favorite customers, you can get a pretty good idea of how much repeat business they get. People you’ve worked with multiple times will almost certainly be at the top of that list.
And of course, if they don’t mention anything, you can always ask directly.
Few or no reviews
If an agent has few positive reviews, that’s another clear sign that they may have a commission.
Agents who focus too much on commissions tend to leave behind a lot of dissatisfied clients, and unsurprisingly, those who are dissatisfied tend to not post reviews, or worse, post bad reviews.
Conversely, agents with a significant number of positive reviews have clearly invested the time and effort necessary to make a positive impression on their clients.
Seems too pushy to get it listed
In a role-playing scenario, does the agent seem too pushy or willing to do whatever it takes to get the listing, or do they take a more consultative approach and only move forward once it’s clear that it’s appropriate?
While there is certainly something to be said for a certain amount of aggressiveness, agents seeking to enforce non-conforming listing agreements only have one thing in mind. That’s my fee.
they care too much about leads
Leads are the lifeblood of real estate agents, but it’s more than just a numbers game. It’s about relationships. And agents who focus on the right things typically develop strong relationships that generate a steady flow of referrals.
On the other hand, commission-focused agents typically have fewer and weaker relationships and are overly reliant on high volumes of leads. These agents fly through the lead like locusts devouring a field of crops.
It’s important to note that this applies whether you provide the lead to an agent or if the agent is 100% responsible for generating the lead themselves. This is because the mindset is important, not who generates the leads. Agents who are solely focused on commissions will need to spend much more time on marketing to achieve the same sales volume as agents who are focused on providing real value.
They don’t seem interested in anything other than closing the store.
Naturally, you need an agent who can get transactions across the finish line. Because that’s how we all make money. But agents shouldn’t focus solely on that.
If you don’t seem interested in other important aspects of the deal, such as compliance, education, and customer service, you’re more likely to abandon the relationship with the customer, possibly causing more problems than they have. They’re also more likely to move on to another job than agents who are equally interested in everything that goes into closing.
Well-rounded agents understand the value of every aspect of a transaction, resulting in higher customer satisfaction and less potential for administrative, legal, and reputational issues.
