When do you change gear?

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Being a real estate principal is about being a leader and growing your business. Before you can do that, you have to decide what kind of principal you are and who you want to be.

There are basically two kinds of principals:
• The principal who is an active listing selling agent
• The principal who is a coach, leader and mentor

You might be thinking, in terms of revenue, if you are acting as an agent you can make 60%, 70%, or even 100% of your business revenue, but to do that you must sacrifice your role in coaching, leading, and mentoring your people because you simply have to spend too much time with the tools. And though it is true that you can make a $10,000, $15,000 or $20,000 fee whenever you list a property yourself, when you list a great salesperson they can generate $100,000 to $150,000 in fees every year they work inside your organization.

It is necessary for you to decide what you really want to be best at, and what you want to do with your business in the next five years. Of course you love listing and selling, but you can achieve more by being a leader—and the people who work for you are counting on you to do that and to learn from you.

Consider that the agents who work for you are actually your internal customers. They believe you have a plan they can learn from to help them achieve more in their own careers, and in essence they are paying you up to half of their income to learn from you while they work inside your organization. They aren’t there just to list and sell property; they are there to benefit from your management, coaching and leadership. You should ask yourself if they are reaping those benefits–if they are increasing or declining in their income production.

As a principal, you must first be clear about what you ultimately want to accomplish in your business, and then you must share that vision with your people. Be a good mentor and help them to realize their potential whilst working within your organization. Be available to talk with them and answer their questions. Have coffee or lunch with them. Find out what their dreams and goals are. Find out what their expectations are of you, learn what they have to offer your organization, follow through on your promises, and help them to help your business grow and prosper.

I hope you’ve enjoyed this month’s Growth, Leadership and Management Tip, and I look forward to seeing you here again next month.