Massimo-group

It seems contradictory for a professional coach, motivator and mentor to suggest that there is one, overwhelmingly important word a commercial real estate broker must use and use regularly.  But once you appreciate the value of this one word, you will then understand why only a small percentage of all commercial real estate brokers make a vast majority of the commercial real estate commissions.  You will better appreciate what specifically top performers do that the rest of the brokerage community does not. 

The vast majority of commercial real estate brokers get caught in the minutia of details in regards to running personal brokerage business.  We all understand that commercial brokerage requires managing a manifold of responsibilities; however, top performers both command and understand the value of their personal time.  Top performers outsource, delegate and/or delete those activities that do not generate their targeted level of income. 

Probably the best advice I received during my commercial real estate career was to create a “Not To Do List”.  Ironically, the concept was presented to me during a seminar I attended, hosted by Bob Corcoran.  Bob is a residential real estate coach, however, he was presenting to the commercial organization I was affiliated with at the time.  Since then I have had the good fortunate of befriending Bob, and he is one member of my personal board of advisors.

Earlier this week I contacted several associates, potential alliances and promising promotional sources which all had the same basic theme.  The messages were professional and respectful, but more importantly they were decisive.  For all three, the message was “no”.    However, this was very hard to do.  As entrepreneurs we all strive for the positive.  We strive to be everything and anything to our clients.  There is no room for “no”.  It’s YES I CAN!

But here is the secret.  The more you say “no”, the more you can do.  The longer your individual “not to do list” becomes, the more productive your “To Do” list gets.  Go ahead, and give it a try, just make sure you put a “thank you” at the end.

Generating commissions in this market place are seemingly more problematic than ever before.  Velocity is down, market values are vaporizing and liquidity continues to be nothing more than a mystical concept.  Many brokers and agents are looking for alternative approaches, tactics and strategies for manufacturing brokerage fees.

In addition, once an opportunity is found, the process of the transaction itself can be slower and unpredictable as a Tim Wakefield (Boston Redsox pitcher) knuckleball.  For the record I am a fan of the Yankees.

However, sometimes creating commissions is much easier and closer than you think.   Many times we overlook the most fundamental source for income – referrals. 

Yes, it seems like the most obvious of methods, but it is by far the most underutilized approach by commercial real estate brokers.  For reasons unknown to me, commercial brokers simply have a hard time asking for a referral. 

The first thing you need to do schedule the request in advance.  That’s right.  Schedule the request for a referral as soon as you ink the listing or representation agreement.   As soon as we get a new coaching client we set a referral request 3 months from contract date.  We know that period will provide the adequate time for a client to go through our process, complete a series of one-on-one or team coaching sessions and recognize the value of our program.   The same principals hold true for you as a commercial broker.  Whether you are using ACT, ACTCRE, REA, Realhound or Outlook (hopefully not the latter) you should set a task to ask for that referral upfront, so you don’t forget to ask when it is appropriate.

Secondly, “Ask the Questions”.  What are the questions?  Well it is simply one of three. 

1.       Where else are you doing business?

2.       How else can we help you with your real estate holdings/lease obligations?

3.       Who else in your personal network would benefit from our services?

There are more aggressive ways to ask and more defined value propositions to integrate to these questions but this is a good start.

Finally, keep your clients up to date on your activity with each referral provided.  This communication will instill the trust level in you and reduce any inhibitions you may have in asking for future referrals or the client providing them.