Written by Andrew Trim

Over the weekend, a salesperson within The Smartre Training group was hosting an open house.

A principal of another agency (in a different area) attended, as he was searching for an investment property. Turns out he was also searching for his next salesperson. After a brief conversation with the salesperson asking how long the salesperson had been in real estate and if they like it, the principal asked, “What split are you on? I bet I can beat it.”

Initially, the salesperson thought he was simply joking, an off-the-cuff comment and nothing more; yet the principal insisted he was serious. “I’m looking for my next recruit, I’ll happily beat whatever split you’re on. 

Now, this may seem a particularly normal interaction for many of you reading this article; in fact, you may have been in the shoes of the principal yourself at one time or another.

Yet this is where the majority of real estate principals have been led astray when it comes to recruitment.

The poor man pays twice.

There is an old expression that states the poor man pays twice. Meaning, the man who tries to purchase the cheaper product will often find themselves in possession of a product that doesn’t get the job done, eventually having to buy one that does.

A parallel exists between this expression and the above scenario.

A salesperson that is attracted by such a superficial offering is at best mediocre in their craft, at worst incompetent. Sure, the principal may recruit their next salesperson, but at what cost?

The largest cost to an agency of a mediocre salesperson is in lost business. Losing one listing per month with an average fee of $15,000 is an annual loss in revenue of $180,000.

The principal that recruits this way is indeed paying twice. Once with the higher percentage and once with lost business.

Great salespeople appreciate the environment in which they work – often supported by a great leader, surrounded by a reliable team and able to deliver an above average service to their clients.

Great salespeople know that this combination of leadership, teamwork and service is rare.

Mediocre salespeople are always looking for the perfect environment and will jump to the next opportunity every time.

With Smartre Training’s support and training, our members have been recruiting great salespeople for over 30 years. Contact us to find out how.