Broker Incentives are Back or Are They?
Real estate professionals love incentives and bonuses.  They will help you move your property in this downturn.  Really think so?   Or are they just short-term, expensive solutions that typically provide only tepid results?  The experts I talk to often compare broker bonuses to liposuction - a quick, painful solution to what could have been accomplished through basic changes in everyday habits. Oh my!

So what can you do in a market like we're experiencing?  The same thing you've been doing with a bit more elbow grease.  And to cut down on the elbow grease part, please, please figure out how to make good use of technology to have great processes.  In this market, it's not optional.  Whoever has the best processes will win. Processes make everyone feel comfortable.  They breed trust.  They show competency.  Right now everyone is scared.  Scared they'll make a wrong decision.  Scared they'll hire the wrong person to help them make the decision they're scared of.  Scared, scared, scared and they won't tell you that.  People are tightening everything and believe they can't afford to make a poor decision.  They're facing the fact that the market won't cover mistakes.  So what the heck is new?  NOTHING.

Here's the truth about incentives as a way to get good results.  The whole truth.  The truth from the mouths of those on both sides of any deal.  Incentives alone are useless.  Before you jump down my throat, notice I said "incentives alone are useless".  They have their place, but not until you've got the "A" team looking at the opportunity to work with you.    And I contend that you can't be an "A" player unless you're seen as the "get it done faster with less hassle" person.  Offer incentives without first accessing the person you want to work with through the following and you're just plain nuts.  You'll attract the direct opposite of what you need and be worse off since there's a promise of a "prize" that's going to cost you big bucks. So here's what you must do...

If you're making a decision on who should represent you, ask questions about a typical day in the life of the agent.  You can certainly judge if they are effective rather quickly by noticing a few little things which will tell you how "process oriented" they are.  If you see a chink in the armor, move on.

Time is everyone's most precious asset. Watch for signs that whoever you work with manages their time well.  If someone representing you doesn't manage their time well, they'll surely waste not only your time, but your dollars and even worse the time of prospective users or buyers of your property.

Remember most brokers who have been in the business for 5 years get 90 percent of their business from referrals.

Just a few questions about how they manage their referrals and how they stay in contact with previous clients will give you great insight about how well they'll prospect for you and the results you'll get.

Once you have addressed the issues above, go ahead and include all the incentives and bonuses you can afford. Just one last word of caution.  Some incentive packages can indicate "desperation".   Make sure your incentive is as much about getting your needs met or your deal noticed as it is about the prize.