PHOENIX, ARIZONA -- Many people try their hand at sales—selling everything from tech products to pharmaceuticals—to quickly learn that it isn’t easy. The career is made even more difficult by capped commissions, poor management and long hours. According to Peak Sales Recruiting, the voluntary turnover rate for salespeople averages around 16 percent, which is higher than in any other type of employment.
As these individuals search for new sales jobs, they may consider bringing their skills to the commercial real estate industry. Commercial real estate brokers find value in helping business owners achieve their real estate goals—all the while enjoying a flexible schedule and generous commissions.
However, not all commercial real estate firms are created equal. When considering which brokerage to join, here are five questions to ask to ensure a salesperson has success:
- Does the brokerage have a solid support staff?
Brokers will be more productive when they have the support of a team to help with marketing, invoicing and other daily tasks. Phoenix-based Menlo Group Commercial Real Estate has a six-member staff to support its ten brokers, which enables them to better focus on their clients.
At Menlo Group, each broker is assigned a licensed transaction manager to help facilitate each deal, including preparing lease and purchase contracts. The efforts of the transaction managers free up time for the brokers to generate more business.
- Does the brokerage provide its brokers with tools for success?
A brokerage’s processes, especially the way it facilitates deals, can make all the difference for a broker. Menlo Group leadership has developed a structured process for helping clients find a space or sell or lease a property. The Ideal Space Navigator™ and Ideal Outcome Navigator™ guide both the client and the broker throughout the entire deal.
“When I first started Menlo Group, I wasn’t looking to do anything different than any other firm, but I discovered a better way to start and close deals,” said Tanner Milne, president and founder of Menlo Group. “Our Ideal Space Navigator™ and Ideal Outcome Navigator™ benefit both the client and the broker by ensuring they are always on the same page.”
Technological elements, such as communication channels and customer relationship management software, can also affect how brokers do their jobs. The commissions payment process and even the office space should be set up with the broker in mind.
- Does the brokerage encourage education and professional development?
In addition to the requirements to remain licensed, brokers strive to improve industry knowledge and refine their skills. Commercial real estate firms should encourage additional education and even foot some of the bill.
At Menlo Group, brokers are required to complete a professional development course each year, and within five years of joining the team, brokers must also complete the Harvard negotiation course. They are also encouraged to become Society of Industrial and Office Realtors (SIOR) Designees and Certified Commercial Investment Members (CCIM). The majority of Menlo Group brokers have completed or are currently completing the requirements to become CCIMs, and two brokers have earned both designations.
Menlo Group also hosts a biweekly book club, where team members discuss ways to apply business principles to their daily responsibilities. Some of the team’s favorite reads are Essentialism, Good to Great and The Trusted Advisor.
- Does the brokerage have a culture of accountability?
Goal-setting is important to ensure brokers achieve success, and their production goals should be discussed often. The Menlo Group team meets weekly and evaluates the success of the past week, focusing on meetings held, letters of intent created, and deals closed. Brokers also have monthly and quarterly meetings to consider ways to better reach their goals.
The overall production of each advisor is broadcast on a screen in the Menlo Group office. The unique scoreboard holds each broker accountable for their contributions to the company. Brokers often collaborate on deals and encourage each other to achieve at a higher level.
“In any other environment, my production would be a fraction of what it is at Menlo Group,” said Rich Andrus, Executive Vice President at Menlo Group. “The collaboration between brokers energizes me and helps me to find success.”
- Does the brokerage recognize individual achievement?
Brokers who receive recognition for their efforts have higher workplace satisfaction. Additionally, a study by DCR Strategies found that 77 percent of employees would work harder if they felt better recognized. Menlo Group achieves this by notifying the entire office when a deal is closed and celebrating the individual’s success. Company leadership also regularly highlights the strengths of team members and the way they represent the company’s core values.
Each year Menlo Group takes a trip to an exotic location with all brokers who achieve their annual production goals. If a lofty monthly goal is met and each broker contributes, the entire team—including the professional staff—is treated to lunch and a massage. These events are special opportunities to praise brokers for their success.
When considering a career in commercial real estate, skilled salespeople should look for brokerages that provide support, education and other tools to ensure brokers have a positive experience and reach their full potential.