3 KW Commercial Team Melissa Calles Gloria Sivori
Training Events— Leadership KW Commercial Regional Leadership Tour Team Leader Mastermind Webinars (1/month, start in May) New member orientation (1/week, start now)
Training Events— Agents International Training Webinars (2 per month, start in March) Commercial Mastermind Webinars (1 per month, starting in March) Market Center Training–Directors Regional Master Faculty Training (Starting Q2, 2010) Commercial Vendor Webinars
6 Team Leader First Steps Get KWC business cards Go through new member orientation Read the Implementation Manual Order KWC marketing materials Speak with CLC or KWC leadership Team Leader Mastermind webinars
7 Team Leader Support to Commercial Agents Team Leader Team Building TL + OP + ALC = Commercial Team Building Business Strategy Support Team Leader Business Development C.A.P. Program : Cold Calling + Accountability = $ Production $
8 Commercial Real Estate C.A.P. Program $ Production $ Deficiency = Business Development Deficiency Not Skill Set Deficiency …
9 Commercial Real Estate Production Opinion of Value Property Marketing Market Surveys Tours Property Analysis Lease Negotiations Purchase and Sale Financial Analysis Business Development Networking Cold Calls GRINDING MINDING FINDING $ R/E $ Commissions
10 Commercial Real Estate Business Development 1.Networking and Referrals ALC – Residential Agents, KW Leadership Competitor Firm Residential Agents (ex. Re/Max, Century 21, etc.) CRE Attorney CRE Architect CRE M.E.P.s (Mechanical, Electrical, Plumbing) CRE Moving Companies CRE Communications Firms CPAs CRE Bankers, Mortgage Brokers CRE Furniture Companies 2.Cold Calling and Canvassing
11 Commercial Real Estate Cold Calling 1.Brief Introduction Hello, my name is Buddy Norman and I am with KW Commercial… 2.Brief Hook We specialize in tenant representation… 3.Preliminary Close to Get the Objection Out …and I am calling to see if you are available next Tuesday for a brief, 20-minute business consultation.
12 Commercial Real Estate Cold Calling 4.KEY – The Close Deflect the objection and reinforce/expand upon the reason you need to meet. Get the MEETING! I can appreciate that you are very busy right now, but that is exactly why I am calling. Our tenant representation services will save you enormous time and money, and allow you to focus on your core business.
13 Commercial Real Estate Cold Calling 5.KEY – “Take Away” Close I promise the meeting will be valuable to you and your business, and that I will not call or contact you again unless you ask me to… Avoid the “Tar Baby” scenario.
14 Commercial Real Estate Cold Calling 6.KEY – “Soft” Close You are a commercial Icon in our market…. I have seen your signs all around our city, and I would greatly appreciate it if I could discuss with you on how to best structure a strong commercial real estate business. I promise to not try and recruit you and I will not call you again unless you ask me to…
15 Commercial Real Estate Cold Calling – KEY This process will increase the effectiveness of cold calling by % vs. traditional cold calling … which translates into more MEETINGS! Objection and Deflecting Process
17 Commercial Division Ideal Structure Associate Land Brokerage Director Associate Investments Sales Director Associate Commercial Leasing Director Associate Multifamily Director
Market Center E&O Commercial will not increase MC premium unless commercial exceeds 30-40% of total MC revenue Business brokerage will require an endorsement or separate policy depending on your carrier Commercial property management typically covered Have your policy reviewed by an insurance professional 18
Market Center E&O Henry Font Phone: Toll Free Don Reilly Phone:
20 Myths and Truths Myth Commercial agents bite.
21 Myths and Truths Truth Don’t RECRUIT commercial agents… share business opportunities.
22 Myths and Truths Myth The Team Leader needs to be a commercial expert.
23 Myths and Truths Truth Team Leaders have 95% of the skill set to recruit.
24 Myths and Truths Myth Commercial agents need an extensive commercial services platform…
25 Myths and Truths Truth KWC has the commercial service platform REI Wise REIS Site To Do Business Catylist REA
Myths and Truths Myth Commercial agents make a lot of money on national account business. 26
Myths and Truths Truth Typical transaction$200K Commission Less 25% Client Share-$50K Less 40% Natl. Acct.-$60K Gross Commission$90K 2 Agents split 50/50$45K Each Agent Net Income 50/50 Company Split$22.5K Each 27
28 Why Join KW Commercial? Aggressive commission splits Profit Share Team building opportunity Growing commercial agents – 700 offices 74,000 referral agents Industry-leading training You will make more money!
29 KWC – Industry Disruptive Economic Model with Profit Share Transforming the Industry
30 Transforming the Industry CBRE, C&W, Colliers: $125,000 Average Desk Cost = Agent must do $250,000 GCI for breakeven with 50/50 splits KWC – Full Cap at $80K GCI w/$24,000 Cap
31 Recruiting Big Firm Agents Jones Lang LaSalle - JLL CB Richard Ellis - CBRE Colliers International Grubb & Ellis Cushman & Wakefield – C&W Coldwell Banker Sperry Van Ness Marcus & Millichap
32 Them KWC Agent-centric Ivory Tower– Company-centric Closed books Agent is employee Open books Agent is partner Recruiting Big Firm Agents
33 Recruiting Big Firm Agents Them KWC Commission Splits w/Cap Commission Splits No Cap
34 Annual cost of additional services: $5,000 – $10,000 Recruiting Big Firm Agents CBRE Annual 45/55 split: $200,000 GCI Agent receives $90,000 Some Services Provided 8x8 Cubicle, not an office! COSTAR Shared secretarial services with 6-8 other agents KW Commercial Annual set Cap - $25K: $200,000 GCI Agent receives $175,000 Agent pays for services Office space COSTAR Shared secretarial services LoopNet $90,000 Net Agent Income$165,000 – $170,000 Net Agent Income
35 Recruiting Big Firm Agents Them KWC Profit Share No Profit Share
36 Recruiting Big Firm Agents Them KWC CultureCut-throat
37 Recruiting Big Firm Agents Them KWC Team Building Opportunities TLs help you recruit! No Team Building On your own…
38 Recruiting Big Firm Agents 74,000 Referral Sources…
39 Recruiting Small/Regional Firm Agents Century 21 Commercial RE/MAX Commercial NAI Global Lee & Associates Local & Regional Firms
40 Recruiting Small/Regional Firm Agents Them KWC Industry- Leading Training Based on CCIM No Training
41 Recruiting Small/Regional Firm Agents Them KWC International Commercial Network 700 International Offices No Network
42 Them KWC Team Building Opportunities TLs help you recruit! No Team Building On your own… Recruiting Small/Regional Firm Agents
44 Benefits Overview – Leadership Additional PROFIT! Diversification of Revenue Stream Increased Recruiting Opportunities Increased Market Presence KWRI will Lead Commercial Training
45 Benefits Overview – Leadership Additional PROFIT! – Example ($20K Cap) Qty.Agent TypeAdditional Co. $ 2Director Level (Full Cap)$40,000 6Associate Level(1/2 Cap)$60,000 10Residential (Increased 1/2 to Full)$100,000 Total Market Center: $200,000 $200,000 of additional Company Dollar!
46 Benefits Overview – Leadership Additional PROFIT! – Commercial Referrals The average commercial deal is $750, Average commission is 2.7% $750,000 x 2.7% = $20, x 25% (referral fee) =$5, Time spent for referring agent: 10-minute phone call Or $30,375/hour
47 Benefits Overview – Leadership Diversification of Revenue Stream Countercyclical to Residential Cycle Cycles Within Cycles in Commercial R.E.
48 Benefits Overview – Leadership Increased Recruiting Opportunities Local commercial agents Local residential agents looking to expand their practice Business professionals looking for new career: CPAs, bankers, title company, etc.
49 Benefits Overview – Leadership Increased Market Presence Commercial signs Commercial transactions in local papers
50 Benefits Overview – Leadership KW Will Lead Commercial Training Removes burden from Team Leader to train commercial agents Increased GCI of commercial agents Decreased liability and E&O exposure to Market Center
56 Website Tutorial
57 Cliff Bogart Dallas, TX Lauren Bratich Wexford, PA Chuck Brown Asheville, NC Larry Culbertson Atlanta, GA Jennice Doty Gilbert, AZ James Engel Beverly Hills, CA Charles K. Frankel Spring Valley, NY Ernest Furtado Toronto, ON - Canada Theo Harris Baltimore, MD Mike Kerwin Everett, WA Steve Scheffe Austin, TX Kevin Scragg Austin, TX Tony Solomon Santa Monica, CA Mark Shapiro Baltimore, MD Alan Siebenaler Los Angeles, CA D. Scott Smith Baltimore, MD Peter West Los Angeles, CA Joe Williams Austin, TX Jay Willingham Augusta, GA Lamar Fisher Pompano Beach, FL Tom Lackman Scottsdale, AZ Evan Langert San Francisco, CA Len May Philadelphia, PA Jim McClung San Antonio, TX Scott Miller Mendota Heights, MN David Moskowitz Los Angeles, CA Eric Nesbitt Highlands Ranch, CO Scott Nicholson Austin, TX Nancy Lemas Boise, ID Mark Raccuia Chicago, IL Website Tutorial
58 Website Tutorial
64 Private Website Member Login
67 Introductory Level Courses CRE Referral Business & Qualifying Transactions CRE Basics for Residential Agents Transitioning: Residential to Commercial Brokerage 100 Level Courses 100: CRE Overview: Transactions & Opportunities 101: Fundamentals of Investment Real Estate 102: Fundamentals: Leases & Leasing Process 103: Property Types & Characteristics 104: Marketing for CRE Business- Bringing Value 105: How to Market Properties & Close 201: Investment Real Estate Analysis 202: Lease Analysis & Lease vs. Buy 203: Property Issues: Zoning, ADA, Hazmat 204: Building your CRE Business 205: Creating Marketing Packages 301: General Investor Representation 302: Land Sales & Land Issues 303: Multifamily & Investment Sales 304: Arch. Planning & Construction Costs 305: Alt. Strategies: 1031’s, TIC’s, Ground Lease 200 Level Courses 300 Level Courses 306: Leasing Legal Issues Training Overview
69 Best Practices Library Brokerage and Commission Agreements Letters of Intent Request for Proposals Development Agreements Marketing and Training Documents Leases Disclaimer Letters Purchase and Sales Agreements Ancillary Documents
81 The Seven Commercial Sources 1.Monthly ALC Agenda—Focus on KWC. 2.Leverage residential agents to set appointments with commercial agents. 3.Educate residential agents on building their Profit Share tree through commercial agents. Engage ALC
82 The Seven Commercial Sources Google
83 The Seven Commercial Sources Commercial Websites
84 The Seven Commercial Sources Drive Market—Signs
85 The Seven Commercial Sources Yellow Pages
86 The Seven Commercial Sources Local Business Journals—Closed Transactions
87 The Seven Commercial Sources Local Boards RCA – Realtors Commercial Alliance CCIM – Certified Commercial Investment Member SIOR – Society of Industrial and Office Realtors
88 Setting the Appointment Recruiting Scripts “Hello, my name is _______, Team Leader with Keller Williams in the _______ office. I would like to speak with you about the new Commercial Division of Keller Williams. We are contacting a select few top-notch commercial brokers in our area to be the point person in our office for commercial referral business and commissions from our 73,000 plus residential agents nationwide! ________ (recruit’s name), we estimate that $100 million in commercial commissions are generated by our residential agents annually! Are you available next _____ at ______ o’clock to meet and discuss this exclusive and unique opportunity?
89 Closing the Commercial Recruit 1.Commercial Director Level Agents in Market Center 2.CLC – Commercial Leadership Council 3.Buddy Norman and the KW Commercial Team
90 Membership Payment Plans 1.Up Front Payment Director: $1,500 for 16 month membership Associate: $900 for 16 month membership 2.Quarterly Payment Director: $375/quarter, 12 month membership Associate: $225/quarter, 12 month membership 3.Transaction Payment Director: $200 up front, 2.5% of all transactions to $1,800 Fee, 12-month membership Associate: $200 up front, 2.5% of all transactions to $1,500 Fee, 12-month membership
91 Membership Where We Are Now Where We Are Going 575 Members 300 Directors 275 Associates –1, ,500–2, ,500–3, ,000–5, ,000+ 6,000 Commercial Agents by 2013
92 Commercial Agent Requirements What Do Commercial Agents Want? 1.COSTAR, LoopNet 2.Office Space 3.Executive Assistant 4.Marketing Materials 5.Backroom Support – MCA (Transaction Services)
93 Commercial Agent Requirements What Do You Give Them? 1.Similar services as residential agents = Similar Cap 2.Additional services vs. residential agents = Higher Cap 3.Separate phone line for identity 4.Group commercial agents together in office if possible 5.Add KWC Director to your ALC
94 Three-tiered Structure Associate Level A residential or commercial agent with limited experience in commercial transactions working toward achieving senior level status. Director Level A full-time commercial professional in terms of both transactions and production volume. See IM Manual Managing Director Once an office has multiple Directors & Associates a M.D. may be appointed by the TL & OP to assist with issues, recruiting, etc.
95 What Steps to Take Implementation Manual
96 What Steps to Take 1.Goals – Get a KWC Director 2.Recruit from Director Down 3.Help – Who do I call? – CLC 4.Implementation Manual 5.Buddy Norman – Team Leader of KW Commercial
97 Q & A What questions can we answer for you?
98 Let Us Help You Recruit! Melissa Calles Gloria Sivori