How many new agents do you have in your office?

What does it cost you to hire, train and supervise each new agent until they reach a production level which is making you money?

How many new agents have you had over the past five years? And how many of them are still with you or even in the business?

As the owner/broker/manager you need to know what these numbers are -- new agents are the lifeblood of our business. This is a business expense every bit as important as the rent, utilities, supplies, etc.

Accurate figures on the drop-out rate are difficult to come by, guesstimates range from half to three-fourths of new agents are out of the business within one to two years. Why?

• Minimal or no training of any kind. How can we expect people to do their job if we don't teach them how to do it?

• Structured training programs that are not attendance-mandatory. What other business/profession hires a new employee, enrolls them in a training program, then allows them to drop out before completion and still keeps them on the payroll?

• Training programs -- classroom and in-office -- that teach forms, procedures, sales skills/techniques, prospecting methods, etc. are essential. But what happens when the "formal" training is over?

Trained graduates are immediately thrust into the real world of having to prospect and get appointments on their own. When they do get an appointment they are on their own to convert a customer into a client. The real world is the best teacher, and the harshest.

We are told from "birth" that selling is a numbers game, and it is to a point. However, the human psyche is not equipped to deal with rejection -- too much of it triggers the flight response.

Pamela F. Lenehan, BA, MA, from Brown University, said, "… early in your career the most important thing to learn is how to do your job very well."

Why not consider a mentor program?

There are experienced agents who have many years in the business and have a wealth of information. Some of them are winding down their active selling careers, yet are not ready to retire. They are ideal candidates to serve as mentors.

A mentor would be responsible for the success of new agents. The new agent should not be allowed to prospect, go on listing appointments/presentations, show houses, write and/or present offers, etc., without the mentor being actively involved. Both the agent and the mentor would have goals which must be met within certain timelines.

Mentors must be very carefully screened and their only function is to train, hands-on, new agents. Great care must be taken that the mentor not use the new agent as a licensed assistant for the mentor's business, perhaps the mentor should not be allowed to list/sell except for repeat/referral business and family members. What you as the owner/broker/manager should look for when hiring a mentor(s):

1. Why would someone follow that individual as a leader?

2. Do they have character, honesty, integrity, compassion?

3. What is their reputation?

4. Are they willing to devote the time and energy necessary? How about accompany the new agent on appointments, having a set schedule daily to work with the agent on specific tasks? Mentors should be limited to working with two, perhaps three, new agents at any one time for obvious reasons.

Should the mentor be compensated?

Considering paying the mentor a salary by the company instead of being paid in a referral from the new agent's business.

1. it is too long a "lead-in" time before a new agent starts closing transactions and there would be the risk of burning out the mentor;

2. taking referrals off a new agent's split (which is probably low on the agent side) takes too much from the new agent and is not enough to compensate the mentor.

Best of Luck!

Published: August 22, 2007

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Mark McCloud is the owner of McCloud Seminars, a sales and management training/consulting company. He has over thirty-five years experience in real estate sales, marketing, management and providing educational services. He holds the professional designations of ABR, BA, CREI, CRRS, GRI, MMDP and was awarded the Outstanding Professionalism Award. He is a published author and public speaker, recognized for his insight and common-sense approach. He is available for training, consulting, and public speaking engagements. He can be reached at: 360/281-2086, .