Brokers share their recruitment strategies

By Bridget McCrea

Getting new agents in the door isn’t an issue for Yvette Callum Page, broker-owner at Los Angeles-based Callum Page Realty Group. It’s keeping them there that’s hard. "Many agents don’t understand how the market has changed, and they’re not giving it a good shot," says Page, who has three offices and 85 agents. "New agents last only for a short time—even after the training—because the ‘quick money’ isn’t there like it was two years ago." In real estate for 11 years, and a broker for five, Page has had to rethink her recruitment strategy during these leanertimes, setting her sights on agents who are willing to put a little elbow grease into cultivating and closing deals—mainly by catering to buyers.

Using direct-mail campaigns to reach currently licensed agents who might be disenchanted with their current broker, Page puts each recruit through a comprehensive interview process, reviews with him or her the firm’s processes and programs, and works to "personally coach them to success," she says. Page also talks to recruits about the non-commission income streams that can be generated through residuals, profit sharing, and loan origination. Training comprises 12 classes that include role-playing, contract interpretation, and other hands-on activities designed to prep the agent for the "real world" of real estate. "I’m doing a lot of hands-on, and one-on-one training that helps retain agents in my company," says Page, whose other recruiting efforts include visiting open houses (to talk to successful agents) and using direct mail to net agents who are in the process of getting licensed.“I also do a lot of converting: I meet people who look like they would make great sales associates, and talk to them about careers in real estate,” says Page, who converts about 80 percent of those individuals into real estate agents. "I take them through the real estate principles and they follow me and join my company after they pass their exams."

New Realty Show

"The safety net moved," comments Ron Ario, CEO of Intero Real Estate Services' Los Angeles County territory, based in Woodland Hills. "Agents who came out of the previous market didn’t develop the habits necessary to sustain their success, and are lost right now."

With one office and 50 agents, Ario says he’s constantly in hiring mode, and for good reason: he expects to franchise 35 Intero real estate offices in Los Angeles over the next few years. In real estate since 1981, Ario uses postcards and e-mail campaigns targeting top producers in the market, and leverages the relationships that his current agents have formed with other REALTORS®.

Ario’s office also holds “general information sessions” forboth new and existing agents who might be considering a switch, and sponsors events as a way to “establish Intero as an authority in the real estate industry,” says Ario, whose ideal recruit is a mid-level to top producer who is already working in the field.

“By hiring mid-level and top producers, we’re bringing into this company the best and the brightest: experienced agents who have proven themselves in the market," says Ario, who hires 10 to 20 newly licensed agents annually. "This allows us to position ourselves within the real estate community as a high-end, service-oriented real estate company that provides a superior level of service, expertise, and knowledge of our markets."

Those candidates should bewilling to put in at least 40 hours of work per week, and be knowledgeable and committed. "We want to see their hearts," says Ario. "We want to see enthusiasm, and the desire to be part of a winning team that includes other top producers."

Ario doesn’t officially "screen" candidates, but instead relies on his own gut instinct when bringing new agents on board. "I trust some of my intuition and feelings," says Ario, "and look closely at how disciplined the recruits are and how they’re approaching the industry."

Filling the Ranks

Having opened three offices within the last 18 months, Mike Silvas knows how difficult it is to find agents who will “stick” in this challenging realestate market. In the industry since 1972, this president and CEO of Morgan Lane in Napa has set his sights on agents who have already proven themselves in the field, as opposed to those just coming out of real estate school.

“We’re not takingnew licensees,” says Silvas, whose firm has 11 offices and 75 agents. "That’s a change for us." Focused on the luxury end of the real estate market, Silvas says the length of time it takes to train an agent to work in that segmentnecessitates the new approach. To fill the ranks, he recruits agents who are working in the “traditional” market, and who want to get to the next level: the high-end market.

To find them, Silvas identifies the top 100 agents in each of the three markets where Morgan Lane has opened new offices, and then he gets on the phone and “invites them to a meeting where we can talk to them about what we have to offer.” He tracks each agent’s year-over-year production numbers via MLS ranking reports, and approaches those who look like they would make good additions to the team.

The challenge, says Silvas, is that agents—particularly those who are doing very well in comparison to the rest of the agents in their offices and/or markets—don’t really like to move. But with enough persistence, Silvas says, he’s often able to sway the agents out of their comfort zones and onto his roster.

“I’ve found that even the best agent will move if something is going wrong at his or her office, and right now we see that taking place at varied degrees in different marketplaces [thanks to the market shift],” says Silvas, whose primary screening tools are face-to-face meetings with the potential recruits. During those meetings, Silvas talks up his company’s strong points and compares them to the strengths and weaknesses of the agent’s current company.

Silvas’ most effective recruiting strategy revolves around Morgan Lane’s “perception in the marketplace, among agents.” It’s something he sees as being particularly crucial for brokers looking to increase their pool of productive, loyal agents.

“If, for example, you’re not perceived as a strong manager or anethical broker, then the people with integrity are not going to want to join you,” says Silvas. “And if you don’t have a good reputation in the marketplace, you won’t be able to recruit successful agents.”

Residuals Recruit

Financial instability goes hand-in-hand with working solely on commissions. That’s why Yvette Callum Page opens doors for her agents to earn additional income outside of those commission checks, namely through a residual program that entices agents to bring other, qualified REALTORS® onboard to work for her company.

“My agents love the program," says Page, broker-owner of Callum Page Realty Group, Los Angeles, “I’m very happy that it’s part of our business model.”

Through the program, agents recruit other individuals into the company, and then earn a portion of those recruits’ production over a set period of time. That cut comes off the broker’s split, which means the recruit doesn’t give up any commission as a result of the program.

“If they bring someone in and–after interviewing them–I decide to hire them, then any residuals come off of my bottom line,” explains Page, “not from the recruiting agent.”

The company also has commission caps, which “caps out” the broker’s portion of the deal at a certain level, thus allowing agents to earn 100 percent commissions.

Page credits the residual program and commission arrangementfor helping her build her firm from a single agent (herself) in January 2006 to 85 agents. “We’re growing every day because of it.”

Bridget McCrea is a freelance real estate writer.