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Recruiting Agents With Listing Inventory

When you begin the recruiting/coaching process you cannot be attached to the result of getting an agent as a recruit. This is the integrity piece to coaching: "Whether you join us or not is OK with me but if in the future, something happens and you need to make a move...I want to be your first choice."

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This must hold true through the process. When the manager is attached to the result of hiring the agent they unconsciously manipulate the agent as a recruit. This breaks down the process. Focus on the process, not the result. Then the result magically appears and all parties are clean in the relationship.

If the agent perceives you as a good coach and leader, he will move over to your brokerage because he sees a totally different value proposition than he has ever seen from a manager before - a high level of business competence.

This is especially effective with the top producer who wants to go to the "next level." But, if the top producer has listing inventory, that can pose some problems.

If the agent has a listing inventory that he needs to move over, coach the agent to call his sellers and let them know he is considering making a change. He should instruct the sellers that they may have a choice. They can stay with the company (and contractually they are bound to) or the seller can tell the agent's broker that the seller wants the listing to move with the agent.

Coach the agent to approach his manager and tell her he has signed a contract with another broker. The agent should ask the broker to give the sellers the choice of staying or moving with them.

What if the broker decides to keep the listings when the agent moves? You, the hiring broker, should immediately contact the past broker and offer to pay a referral fee that is equal to the company dollar that would have been earned upon the closing of the listing.

This continues the process with integrity, with the past broker receiving the financial benefits she would have experienced if the agent stayed on board. The sellers are served in continuing the listing relationship with their agent if they desire. The bad blood that can accompany “agent exits” will be avoided. Of course the payment of the referral fee is only in instances when the listing(s) sells.

This isn't your worry as you could be the beneficiary, but if the other manager/broker tries to hold their agents hostage even after offered a referral fee in exchange for commissions, three problems could occur for her:

  1. She's lost a good agent.

  2. She's minimized any good experiences the agent had at the brokerage and created a negative relationship that will resonate through the office

  3. A possible walkover (walkout) could take place as other agents decide to follow the top producer to your company

Many times it’s not how you say hello, it’s how you say goodbye.

Published: May 18, 2004

Use of this article without permission is a violation of federal copyright laws.


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