Commercial Real Estate Teams – Setting Sales and Listing Targets That Really Mean Something

Commercial Real Estate Teams - Setting Sales and Listing Targets That Really Mean SomethingIn this commercial property market, it is not unusual to see salespeople with absolutely no idea about their personal commission targets and goals for this year or next. They may know that the boss or team leader has given them some targets, but the salesperson will not have set their own goals to pursue.

Commonly you see the agency or sales manager setting the rules and targets at the beginning of the year when it comes to a number of transactions and commissions to be earned. But that is relative to the business; what about the salesperson?

Whilst the salesperson may accept the numbers provided from the team leader, the reality is that they are just numbers and most salespeople will not normally commit to the activities required to achieve the goals.

So this is where the error comes in. The team leader or the agency principal has set real targets for the business, yet the salesperson fails to commit to the process of achieving the targets. The salesperson has not taken ownership of the required goals and therefore will not take the necessary steps of change and escalation in targeted prospecting.

We need to create some leverage and ownership when it comes to helping salespeople achieve better income and listing opportunity. Here are some rules that should apply to the salesperson performance criteria and goal implementation process:

Targets need to be established in keeping with the property type and the discipline relevant to each particular salesperson. The commissions will be different between sales and leasing activity. The commissions will also be different when it comes to property type and property size within office, retail, and industrial property. The team leader needs to give due regard to the differences when the targets are set. Expectations should be set and applied to each salesperson based on their ability to create new exclusive listings within their property specialty, and then their ability to convert those listings to successful transactions. There will be a lot of difference in the conversion factors across the team. Some newer salespeople will require specialized assistance with better presentations, negotiations, and conversions. Whilst performance targets are set prior to the beginning of the financial year, and allowances are made for the overall total team performance, the actual results for each team member should be checked and monitored on a weekly and monthly basis. You need to see where salespeople are not reaching goal expectations so adjustments can quickly be made or assistance can be provided. It may also be the case that the property market is under stress or change and the goals that you set some months ago are now irrelevant. Modification of the goals and KPIs are appropriate in such circumstances. Quality commissions and growth of income will only come from a dominant market share with quality property. Each and every salesperson within the team needs to be focused on the properties and the transactions that suit the goals and targets of the business.

Setting the right targets for each team member, helping them take ownership of those targets, and then monitoring their ability to reach the goals, is part of the role of the team leader. Respect the different characters within the sales team and apply different management principles as necessary to get them through the challenges they will individually experience.

It pays to split the team into three levels such as top agents, solid performers, and rising stars. They all require different management strategies to achieve sustained results. You should meet with them separately and in different groups weekly so your management style and focus doesn’t confuse their performance.