The Sales Process…Both of Them. First Thoughts.

 

Unique CRE Sales Model

We are in a very unique business as it relates to the commercial real estate sales process we need to go through to get hired for the job and then to sell the business we were hired to sell. You see, as you really start looking at the process we go through to win the business of selling an asset for a client, we need to go through two different sale processes for each deal.

Let’s start by looking at a conventional sales model of let’s say, a widget. These are those mythical things that people who teach and write books use to give us street folks and students something to hypothecate about. Anyway, let’s sell some of these magical things.

Typically, the sales organization of these type products are structured internally or externally. Both will have a sales team headed by the sales leader that focuses on selling these widgets to people that use them or people that will re-sell them to the public. The main function of this group is to develop relationships with the users or re-sellers and sell as many as possible. Once the order has been made, this group hands the order over to the folks that will handle the order and ship it to the buyer.

If the order is for software or a non-physical widget, the process is the same except the order handlers will on-board the users and help them with understanding the product.

In either example the sales person or team, after the order is taken, is done with that order and will focus on other sales or the next sale to the group they just sold too.

This process is not the same in our commercial real estate business!

Switching Gears

After most other industry’s sale’s teams have finished their sales responsibilities, ours now has to switch gears and get the property we have been given the assignment on prepared for whatever the sales person that won it, is supposed to do. Lease it, sell it, or raise debt and equity for it.

Well this actually takes us back to what we told the client about our process, the story and the team you have in place to sell the story of the property you have won. You now need to coordinate the marketing information and flow for the assignment, send the campaign out to the correct folks that have an interest and generate the reporting needed to support the campaign.

If you have prepared everything properly and set expectations at a reasonable price and time, you will most likely assist the client in completing the assignment at the pricing discussed and the timing expected. If not, you will not get paid, right?

Hopefully, while marketing this campaign, you were able to show your expertise to the client and the prospects so that hopefully you will be allowed into the next process these folks have so you can get hired again. You will then be able to sell yourself and the property all over again.

 

Why do some get hired and others don’t?

Sell your company.

Sell your expertise.

Sell your team.

Sell that you know who the folks are that you should sell to.

I have never been hired by someone I do not know.

Market, Market and then Market Some More (2)

 

magnet-15205557_l

It is very important to make sure you are always consistently marketing your expertise to the correct audience! I know most of us are doing this on several different social networks and are in “groups” on those where we can show our expertise and discuss CE matters with others.

If you are doing this, be sure the profile you have developed has all of the pertinent information and that there are no typos and things like that.

MYRETA has a profile developed that focuses only on the CRE business. You can put in your normal information like on other sites but, MYRETA allows you to both connect with People and with Properties. This will let you communicate and collaborate with colleagues that are also connected to the property.

Additionally, there are areas for both your professional resume, your company resume and your personal resume. You can also add the transactions you have done so that everyone can see your deal resume.

Email me at jack.minter@myreta.com for your demo!

Marketing Properties and their Availabilities

There are really only four transactions and therefore four types of marketing for an asset. You can lease it, sell it, raise equity for it and place debt on it. If someone decides to “scrape” the asset that is currently there, you will have to get equity and debt to develop another property and then lease that asset and sell it! Owners and their representatives will continue using these during their ownership to maximize their returns.

While there are some of you that have the skills to market and transact each of these, most of us usually focus on just one type. Since there are usually numerous available spaces in each property for lease, there are many more leasing professionals in the CRE space than other types of professionals. Additionally, while there may be a couple of brokers on a specific asset, there can be a couple of tenant representatives for each tenant in that asset.

Therefore, let’s start by discussing the different skills and marketing styles that are required to both win the business you want and then market that effectively.

The Sales Process…Both of Them. First Thoughts

We are in a very unique business as it relates to the sales process we need to go through to get hired for the job and then to sell the business we were hired to sell. You see, as you really start looking at the process we go through to win the business of selling an asset for a client, we need to go through two different sale processes for each deal.

Let’s start by looking at a conventional sales model of let’s say, a widget. These are those mythical things that people who teach and write books use to give us street folks and students something to hypothecate about. Anyway, let’s sell some of these magical things.

Typically, the sales organization of these type products are structured either internally or externally. Both will have a sales team headed by the sales leader that focuses on selling these widgets to people that use them or people that will re-sell them to the public. The main function of this group is to develop relationships with the users or re-sellers and sell as many as possible. Once the order has been made, this group hands the order over to the folks that will handle the order and ship it to the buyer.

If the order is for software or a non-physical widget, the process is the same except the order handlers will on-board the users and help them with understanding the product.

In either example the sales person or team, after the order is taken, is done with that order and will focus on other sales or the next sale to the group they just sold too.

This process is not the same in our commercial real estate business!

After most other industry’s sale’s teams have finished their sales responsibilities, ours now has to switch gears and get the property we have been given the assignment on prepared for whatever the sales person that won it, is supposed to do. Lease it, sell it, or raise debt and equity for it.

Well this actually takes us back to what we told the client about our process, the story and the team you have in place to sell the story of the property you have won. You now need to coordinate the marketing information and flow for the assignment, send the campaign out to the correct folks that have an interest and generate the reporting needed to support the campaign.

If you have prepared everything properly and set expectations at a reasonable price and time, you will most likely assist the client in completing the assignment at the pricing discussed and the timing expected. If not, you will not get paid, right?

Hopefully, while marketing this campaign, you were able to show your expertise to the client and the prospects so that hopefully you will be allowed into the next process these folks have so you can get hired again. You will then be able to sell yourself and the property all over again.

Why do some get hired and others don’t?

Sell your company, Sell your expertise, Sell your team, Sell that you know who the folks are that you should sell to!

I Have Never Been Hired By Someone That I Did Not Know.

The Sales Process…Both of Them. Second Thoughts.

ID-100353860

Why Would Anyone Hire YOU?

That should be the question you are always thinking about if you are a service provider in the commercial real estate business, right? It is easy sometimes to blame others for not being hired. Let’s do a little introspective thinking now. Kinda like an internal inventory of skills for what we do.

What skills do you have to win the business? How do you sell those skills? Do you have a team, if so, how do you sell their expertise? If not, how do you sell the fact that you don’t need one? Do you work for a company that is in the commercial real estate business? If so, how do you use that company affiliation to win business? If not, how do you sell that you don’t need a company affiliation or brand?

This should be enough to get you started. I have learned that you must have the skills needed to win business. You may get away with not having those skills a time or two, but in the long run, you need to have market-leading skills. What are those skills? Really, are you asking that question and you are already in the business? Shame on you for coming into our industry and basically scamming clients. No wonder they think we get paid too much for what we do, when they have had someone work for them that doesn’t know how to execute their deal!

Let’s Look at Having or not Having a Team.

So, let’s say that you have figured out that you can win business and you have also realized that there are others with the skills to execute that business. That is great! You have or are building a team that will allow you to service your clients!

I believe in developing teams. I know a lot of you don’t, so I will give you my arguments and look forward to hearing yours. I have developed teams my whole career, and I now have a large group of “partners” that still work together when needed to execute deals. Even though we are all from different firms and in different geographic areas, we still call each other when we have an issue or a need.

Although some of you are incredibly talented, no one can say they have “all of the skills” needed to execute all of the deals they are working on. So, it is appropriate and wise to recruit and build a team to expand your capabilities.

Another reason to have a team is to teach others our business, and in turn be pushed in our skills by the team. By teaching and being taught, all participants learn and benefit from collaboration. Although you have skills because you have shown you and your team can both win and execute business, it is imperative now in our business to have team members that are capable of expanding your capabilities and results, both qualitatively and quantitatively, or by offering speed in execution. Your team members will be looking harder at technology as a way to help execute business at first, but as team members mature and start wanting to win business, they will use technology in different ways than how you might utilize technology to optimize your profitability and achievements.

Finally, Let’s Look at the Firm or the Lack of the Firm you are Affiliated With.

I have been a broker for around 30 years now, and 25 of those years had me working at a brokerage firm. I think there are many reasons to affiliate with a firm. The broader the geographic area you want to pursue, the more you may think that you need to be affiliated with a firm where you can trust the skills of your team members, as they execute deals for clients that you have cultivated. Also, if you have really strong relationships with tenants or sellers that are regional, national or international, you may think that you need to be at a firm, so that the client will be comfortable that you can execute their business.

If you aren’t working on these types of deals, or you have built a team that can execute these types of deals, you really don’t need a firm and you will benefit by keeping all of the fees you generate.

Some of the firms are starting to recognize the need to have different “splits” for different brokers, depending on their skills and ability to win and execute business for the firm. I assume this continues as you start looking at what they say your desk costs are, when a lot of the costs are not in areas that help you win and execute business.

I Have Never Been Hired By Someone That I Did Not Know.

Photo Credit: “Hands Together” Source: freedigitalphotos.net

– See more at: http://blog.thebrokerlist.com/?s=sales+process#sthash.VlfRZVWk.dpuf

The Sales Process…Both of Them. First Thoughts.

ID-100234308-e1455224980995

Unique #CRE Sales Model

Conventional Sales ModelWe are in a very unique business as it relates to the commercial real estate sales process we need to go through to get hired for the job and then to sell the business we were hired to sell. You see, as you really start looking at the process we go through to win the business of selling an asset for a client, we need to go through two different sale processes for each deal.

Let’s start by looking at a conventional sales model of let’s say, a widget. These are those mythical things that people who teach and write books use to give us street folks and students something to hypothecate about. Anyway, let’s sell some of these magical things.

Typically, the sales organization of these type products are structured internally or externally. Both will have a sales team headed by the sales leader that focuses on selling these widgets to people that use them or people that will re-sell them to the public. The main function of this group is to develop relationships with the users or re-sellers and sell as many as possible. Once the order has been made, this group hands the order over to the folks that will handle the order and ship it to the buyer.

If the order is for software or a non-physical widget, the process is the same except the order handlers will on-board the users and help them with understanding the product.

In either example the sales person or team, after the order is taken, is done with that order and will focus on other sales or the next sale to the group they just sold too.

This process is not the same in our commercial real estate business!

Switching Gears

After most other industry’s sale’s teams have finished their sales responsibilities, ours now has to switch gears and get the property we have been given the assignment on prepared for whatever the sales person that won it, is supposed to do. Lease it, sell it, or raise debt and equity for it.

Well this actually takes us back to what we told the client about our process, the story and the team you have in place to sell the story of the property you have won. You now need to coordinate the marketing information and flow for the assignment, send the campaign out to the correct folks that have an interest and generate the reporting needed to support the campaign.

If you have prepared everything properly and set expectations at a reasonable price and time, you will most likely assist the client in completing the assignment at the pricing discussed and the timing expected. If not, you will not get paid, right?

Hopefully, while marketing this campaign, you were able to show your expertise to the client and the prospects so that hopefully you will be allowed into the next process these folks have so you can get hired again. You will then be able to sell yourself and the property all over again.

 

Why do some get hired and others don’t?

Sell your company.

Sell your expertise.

Sell your team.

Sell that you know who the folks are that you should sell to.

I have never been hired by someone I do not know.

 

Photo Credit: “A Handshake Between Business People” by stockimages. Source: freedigitalphotos.net

– See more at: http://blog.thebrokerlist.com/?s=sales+process#sthash.VlfRZVWk.dpuf