Occasionally, vendors will ask Realty Times' advice on how best to reach the real estate community. Here's what we tell them...besides "Buy one of our ads," of course.

To understand how to influence real estate professionals, you have to know how the industry works:

1. Who are you trying to reach? Real estate brokerage is a hierarchy. The broker/owners or managers are the management and the salespersons are agents of the broker/managers. You are either trying to reach the broker/manager to sell services or products, or you are trying to reach the broker/manager's agents. Seldom do you sell to both.

   The broker has the responsibility for the company; sets and enforces policy; usually supplies support, training and office services; and is the party with whom sellers and buyers actually make their contracts. Real estate salespersons are agents of the broker, in the same way that car salespeople are agents of the dealership, or insurance agents are agents of their State Farm or Allstate agency. It is a common mistake to assume that real estate agents are agents of the consumer. They aren't. They are agents of the broker unless a fiduciary relationship has been declared in a binding contract.

   Even then, the fiduciary responsibility is with the broker with the agent acting as the agent of the broker. Because most states allow some sort of dual representation of buyers and sellers, including Texas, Realtors often try to represent both sides of a transaction in a facilitator's role rather than as an advocate for either side. In fact, Texas has a form where a seller can give permission to the broker to adjust his/her service level from fiduciary to transactional or nonrepresentative brokerage.

   This can be confusing, and you may be wondering why you need to know this, but it is important to know who's in charge, who's capable of speaking for the company, and who is responsible for payment.

2. How do you reach them? You can reach the agents through the broker by a number of methods: you can cut the broker in on your profits in exchange for access to the agents, or you can get the broker to give you an endorsement where only the agents benefit. One way to do this is a preferred partnership in which the agents get perks, special pricing, and other incentives.

   The other way is to skip the broker and market directly to agents, which is fine if you have a product or service that doesn't require the broker's oversight. For example, if you were selling Websites, you would have to have the broker's permission to market the agents' listings on the Website. Many vendors don't want to market directly to agents because it involves more expense, including online, newspaper or television advertising. Usually, most agents get their preferred relationships through their brokers so reaching them means using less conventional means such as Web or newspaper advertising.

3. What are real estate professionals like?

   • Real estate professionals and Realtors are different. There are 2.1 million licensees in the U.S. A little less than half of those are Realtors. Realtors are members of the National Association of Realtors, with their own code of ethics and standards of practice, much like members of the National Association of Home Builders, by joining the organization, voluntarily subject themselves to more oversight. There is more transparency and accountability from a Realtor than a real estate professional who does not subscribe to the NAR and its ethical code. However, as we all know, membership doesn't guarantee quality. There are good non-Realtors and bad Realtors.

   • A real estate professional is licensed by the states to practice either as a broker or a salesperson. In most states, passing the tests for licensure enables a licensees to sell either commercial or residential real estate, or both, but most agents will choose one field or the other.

   • Real estate professionals are independent contractors, seldom employees, which means they are essentially self-employed even if they are affiliated with a well-known brokerage. In generalities, it is safe to say that successful real estate professionals have an entrepreneurial spirit which means they believe in taking some risks. What they generally have in common is belief in themselves.

   • As a group, real estate professionals can be as difficult to herd as cats, because they aren't subject to the demands of an employer. They have their own individual ways of doing things which explains why there is such a difference in service levels among agents. Each brokerage and agent has their own definition of what full-service or even full-time work is. Some are technically proficient, and rely on electronics to get work done, while others are "people" persons who prefer to do things in person or by phone.

   • Real estate professionals are field personnel, which means they are seldom in the office except to get specific tasks accomplished. Most sales activity takes place in locales other than the office - a seller's living room, a building site, and in the car while showing homes, to name a few.

   • While mobile, most real estate professionals are concerned about time because of the distances they must travel in their cars. While they can sell real estate all over the state in which they are licensed, most Realtors choose to work in a narrow radius, simply because of the driving time involved with servicing larger areas. this is why they develop farming areas, to cut down on the time it takes to prospect and service clients.

4. What are your chances of selling to them? Services which cut the amount of time they are tethered to the office are always appreciated, along with services which are nearby their offices. This is the reason why so many real estate offices tend to cluster together because it is convenient to do business with competitors that way. Closing services such as title companies also locate their offices nearby for quick and easy service.

   • Most Realtors are deluged by multitasking, so if you make presentations to them, make them short, sweet, benefits-oriented, and easy to understand. Make presentations during times when they would already be in the office such as for Monday or Tuesday office meetings or tours, so they don't have to schedule "one more thing."

   • A good way to get in front of any broker to reach agents is through education. Brokers don't pretend to know everything and relish the opportunity to put experts in technology, building, home design, appraisal, title, and other professions in front of their agents at morning meetings, on their intranets, and at educational seminars, etc.

   • Business purchases, from advertising to technology, have to be carefully considered by most agents, many of whom are in their first year, and financing their new careers. A typical NAR member earned $47,700 in gross personal income in 2001, while 23 percent made over $100,000. To break that down, a typical broker made $73,400 in gross personal income while agents earned $34,100. And, 15 percent of all salespeople and 36 percent of all brokers earned $100,000 or more. Because nonmembers aren't organized, there are no figures that show how much they make.

   • Real estate sales is a relationship-based business, and the professionals tend to look on their business relationships the same way. Trust may be slow to earn for outsiders or new brands. Real estate professionals are used to being courted by title companies and other companies for their business, so spoiling them with food and perks is a usual practice. Patience will win.

   • Real estate professionals are used to giving away a lot of service to get business, and they expect no less from vendors who want to serve them. Be prepared to bend over backwards to earn the real estate industry's trust.

   • If you have a product or service that is truly good for Realtors, you will have no greater sales force working in your behalf. They tell everyone when they like a product, service or company, but woe to the vendor who falls short. You may sell them once, but if they don't see results, you won't sell them twice. Real estate salespeople are their own grapevine - that's how they do business, through referrals and networking. If a vendor cheats, neglects or harms a real estate professional after taking their money, they put that network to work - to put the vendor out of business.

Real estate professionals have heard it all - especially the pricing come-on that it only takes one commission to pay for this fabulous tool, subscription, training tape, or whatever. They are such targets by vendors, that it makes them jaded toward listening to anyone try to sell them on anything. That's why the give-something approach works best.

Remember, real estate professionals aren't here to help you build your business. They are competing in a cut-throat environment in which there is virtually one licensed real estate professional for every 26 men, women and children in the U.S. They have enough to worry about building their own businesses, so anything you bring to the party will be more successful if it is long on benefits, short on learning, and able to show immediate results.