How to Encourage Listing Agents
How to Encourage Listing Agents
Two simple math exercises to help all agents focus on more listings.
What does it take to create a sustainable real estate sales career? Lots of motivation. Clear goals. Effective training. A great value proposition. Cool tech tools. Encouraging coaching. And one more thing:
The right sales math. Here’s why.
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How to Help Your Agents Build Sustainable Careers
Leaders know that real estate burns out a lot of people — but do they know why? Decades of data show that more than 60% of agents don’t make it past 2 years; and 90% of all new agents today won’t be around in 5 years. Is it just cyclical markets or the difficulty of being an entrepreneur?
Or do agents who sustain careers for years know something different — and if so, what?
They know the answers to two important equations:
How to avoid competitive crowds
How to build a $20M pipeline on 2 things
Two Math Problems
The first equation that long-term agents solve is how to avoid competitive crowds. This prevents burnout, and spending money faster than it comes in. It’s especially important when the market is tilted against buyers, such as the one we’ve experienced for over a decade: a lack of inventory, coupled with rising home prices and inflation. But even if the market were balanced, the old maxim still rings true:
In real estate, you have to list to last.
Still, many agents won’t be convinced until you show them the numbers. So let’s learn how.
Math Problem 1: How to Avoid Competitive Crowds
If you’re trying to show a buyer-focused agent the disadvantage of focusing too heavily on buyers, walk them through this process:
First, remind them how many agents are in their area (MLS). Let’s say the answer is 1000 (keep the math simple).
Next, ask them what percent of competing agents focus mostly on buyer business. A typical answer is 70-80%.
Third, ask them how many transactions occur each month. Let’s say 200. That means 200 listings and 200 sales/buyer sides.
Now, do the math:
1000 agents x 80% buyer-centric means 800 agents focused on pursuing 200 sales
1000 agents x 20% listing-centric means 200 agents focused on getting 200 listings
You almost don’t need to go on. It will be obvious why they’re running out of time, money, and success. They are competing in the crowded end of the pond, for the same 200 fish that 800 other agents are seeking. And that assumes each agent has one buyer client. If they have two, the scales rise dramatically.
This is why they’re burned out.
Their sales strategy is unbalanced, and unsustainable, if it’s overly focused on buyers.
👉 I’ve put two worksheets plus checklists, charts and sources of seller prospecting in the downloadable “Simple Math for Real Estate Sales Success” e-book at the end of the article.
Still, some agents aren’t convinced. So mention these additional benefits of listings:
Every buyer only brings one deal; but a seller brings two deals frequently (50% of the time), since they sell and then buy right away.
With a listing, you can go on vacation: Other agents will gladly cover your listing in hopes of a referral/buyer fee. If you have a buyer on the other hand, nobody will volunteer to drive them around while you’re sitting on the beach.
Over 80% of sellers only interview one agent. You’re not even competing with other agents most of the time. You’re dealing with your sphere of influence, who is already inclined to work with you.
Listings attract attention online (nobody searches for buyers agents on REALTOR.COM or Zillow). You’ll have signs in the neighborhood (nobody puts a sign out announcing their buyers). Open houses attract the neighborhood’s attention (nobody holds a party to promote buyers to sellers).
This doesn’t mean agents should abandon working with buyers. But it does mean they should balance their sales mix to emphasize listings more than sales. As long as there’s a seller’s market - which looks like a long time to come.
Besides, their buyer will start out as sellers — for whom they’ll already have proven their value proposition!
Math Problem 2: How to Build a $20M Pipeline on 2 Things
The second problem successful listing agents solve is building a sustainable, profitable pipeline using the most effective time- and effort-strategy possible. To do that, they work through a slightly more in-depth formula, that leads to a $20M sales pipeline. It looks like this (worksheet at the end):