For Commercial Real Estate Agents

May 8, 2006 Ezine

May 8, 2006



































Read by More Than 30,000 Agents

Always be determined to become the
best real estate agent in your territory!

In this Issue:

Planning for Your Departure When Changing Companies

When you've been in the commercial real estate brokerage business long enough, you can almost count on changing companies one or more times throughout your career. In some ways it even reminds me of what I experienced one time years ago when playing in a golf tournament with a a lot of Major League Baseball players...

I grew up playing a lot of sports as a kid and a teenager in Santa Monica, California, and two of the guys I grew up playing with and going to school with both ended up played Major League Baseball for 14 years...Tim Leary and Pete O'Brien.

I was fortunate to be invited as Tim's guest to play golf three years in a row at a tournament at Pebble Beach featuring Major League Baseball Players and their guests, and for me I really felt like a kid again being surrounded by and playing with all of these athletes who I greatly admired.

During one of the rounds Tim and I were paired with a young man who had just completed his first year of playing Major League Baseball, and Tim had just completed playing his 12th season at the time. And when the young man was amazed at how many players Tim knew and exchanged greetings with during the day, compared with the relatively few players the young player actually knew himself he said, "Tim, how is it that you know so many players and I hardly know any of them?" And Tim responded with, "When you've played in the Major Leagues 12 years and have been traded to as many different teams as I have, it's really easy to get to know a lot of these people."

And such is the case with your career in commercial real estate also. When you change companies you get to know a lot more people simply because you've been surrounded by them in the offices you've worked in over the years. But problems can sometimes develop when leaving a company that you never planned on or ever imagined when you first joined the company.

Oftentimes brokerage company broker-agent agreements call for the company to be entitled to keep "reasonable"  amounts of your normal net commissions on any transactions of yours that close after you leave the company. This is oftentimes written into broker-agent agreements based on the theory that you'll no longer actually be working on these deals after you leave the company, or at the minimum someone else from the old company will be working on these transactions along with you.

Now in reality, when an agent leaves a company he or she is often still the only person working on the transactions they generated before leaving the company all the way up through their closing. And no one in the agent's old brokerage company is doing any work on these deals at all. But sometimes the old brokerage company decides they're still entitled to reduce the commissions they'll pay the departing agent anyway after these deals close, and this is where bad blood can really begin to develop between an agent and their old firm.

(I've oftentimes wondered about the legalities of an agent continuing to work on transactions on behalf of their old brokerage firm while now having their license on board at the new company. But this still continues to be a normal practice in our industry today.)

I'm bringing all of this up because two of my coaching clients are currently experiencing these problems with the companies they used to work for. The companies are taking big bites out of the agents' normal commission splits on deals that are closing after the agents have left these firms, and the agents are very angry about it. And of course no one at the agents' old companies have done any work on these transactions at all to help them to close.

With this in mind I think it's a good idea to make sure all of this is handled in advance when you're negotiating you're broker-salesperson agreement before you join a new firm. This will probably be relatively easy to do because the firm really wants you to come on board with them, and everyone's thinking you'll probably never leave the new company at that moment in time.

So you may want to negotiate a contract stating that if and when you leave the company, you'll continue working on any deals you have in progress, and your commission split on those deals will remain exactly the same as it always was when you were working with the company. Or, if you find it reasonable and think that you should be paid a reduced commission on these transactions after leaving the company, you may want to spell out the exact amount of commission reduction you'll be facing on these deals.

It's simply unfair to allow the company to utilize their own discretion in these matters, as sometimes the manager who has lost you as an agent can feel justified in keeping a greater share of your commissions from these transactions after you've gone. Sometimes it can be their way of compensating themselves for their displeasure at seeing you leave.

So do a little advance planning on this ahead of time, and if you ever end up leaving another company in the future, you'll be much happier that you negotiated these terms and conditions at the time you first joined the company.

Click here for downloadable E-books and live audio interviews with top-producing commercial real estate agents. These interviews are with industry experts who show you exactly what they do to continually make $500,000.00 to more than a million of dollars a year.

Building Relationships, Power Networking, and Referrals

How are you doing at building relationships with the kind of people you want to do business with? Are you getting repeat business from your clients automatically, or are you finding yourself fighting with your competitors to represent your people the next time all over again?

Are you networking in places that lead to solid, long term relationships with the kind of people you want to be working with? Or are you relying on prospecting people cold and trying and build relationships with them that a complete outsider to them?

In addition, how are you doing at obtaining quality referrals from the people you know and have done business with? Are you obtaining quality referrals from these people, or are you again relying on building relationships with people by meeting them through cold prospecting?

And if this is so, how much money do you think you're costing yourself by not building these kinds of solid relationships, power networking and getting great referrals?

If you'd like to learn how to do this on an entirely new level in your commercial real estate business, and start putting more commission dollars in your pocket, join me on my upcoming Inner Circle teleseminar call on Thursday, May 18th, at 8:00 p.m. Eastern Time, where I'll tell you exactly how to start making this happen in your commercial real estate business.

Normally my monthly rate for Inner Circle membership is $297.00. But to learn how you can join me on both this call and on one more Inner Circle call for FREE (a $594.00 value), receive audio CDs and written transcriptions of both calls sent to you in the mail, ask me questions, and learn how to take your commercial real estate brokerage business to an entirely new level, click here.

Click here if you'd like more information on my one-on-one coaching program to take your real estate productivity to the next level. One-on-one coaching is available for both commercial real estate agents and company management.

"My work with Jim is making me more effective at finding new business with the kind of companies I want to work with."

Larry Crumbley, SIOR, CCIM
Fickling & Company

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Click here to visit my Web site. There you'll find many articles and previous editions of my E-zine to assist you in taking your real estate career to the next level.

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If you find yourself trying your hardest in your real estate career and still not making the amount of money you know you can, you may want to find out more about my one-on-one real estate coaching program. If this is something you may definitely be interested in, please send me an E-mail and let me know.

If you arrange for me to lead a seminar or training for your real estate company you qualify for FREE coaching! Call me or email me for more information.

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