1. Your Game Plan for Thriving in 2012 REAL Trends Leadership Institute

2. Thriving in the Future Trends that will affect residential brokerage: Trends that will affect residential brokerage: Changing Consumers Changing Consumers Slow Recovery in Housing Sales Slow Recovery in Housing Sales Pressure on Commission Levels Pressure on Commission Levels New Forms of Competition New Forms of Competition Importance of Leads Importance of Leads REAL Trends Leadership Institute

3. Thriving in the Future Trends (cont.): Trends (cont.): Evolution of How Consumers will Select Sales Professionals Evolution of How Consumers will Select Sales Professionals Leadership Leadership Tougher Regulatory Environment Tougher Regulatory Environment REAL Trends Leadership Institute

4. Thriving in the Future Changing Consumers Changing Consumers >71% of new households will be from minority families >71% of new households will be from minority families <50% of families will be traditional married with children <50% of families will be traditional married with children REAL Trends Leadership Institute

5. Thriving in the Future Slow Recovery in Housing Sales Slow Recovery in Housing Sales The “5%” rule The “5%” rule REAL Trends Leadership Institute

6. Thriving in the Future Pressure on Commission Levels Pressure on Commission Levels 19916.10% 19916.10% 20055.02% 20055.02% 20105.40% 20105.40% 20155.00% (projected) 20155.00% (projected) REAL Trends Leadership Institute

7. Thriving in the Future New Forms of Competition New Forms of Competition Virtual brokerage Virtual brokerage Online transaction brokerage Online transaction brokerage REAL Trends Leadership Institute

8. Thriving in the Future The Importance of Business Opportunities and Leads The Importance of Business Opportunities and Leads Brokerage firms and sales professionals will grow or not to a great extent on how well they can deliver business opportunities to their sales professionals/team members Brokerage firms and sales professionals will grow or not to a great extent on how well they can deliver business opportunities to their sales professionals/team members REAL Trends Leadership Institute

9. Thriving in the Future Evolution in How Consumers Select Sales Professionals Evolution in How Consumers Select Sales Professionals +/- 65% today chose due to personal relationship +/- 65% today chose due to personal relationship Of remaining percent, nearly half is now due to web Of remaining percent, nearly half is now due to web REAL Trends Leadership Institute

10. Thriving in the Future Leadership Leadership VisionAccountability VisionAccountability CommunicationEmpowerment CommunicationEmpowerment TransparencyCommunity TransparencyCommunity Discipline Discipline REAL Trends Leadership Institute

11. Thriving in the Future Tougher Regulatory Environment Tougher Regulatory Environment Qualified mortgages, FTC advertising, reduction of tax-favored status of housing, etc. Qualified mortgages, FTC advertising, reduction of tax-favored status of housing, etc. REAL Trends Leadership Institute

12. How Brokers Can Thrive Set Objectives Set Objectives Build a Leadership Team Build a Leadership Team Select a Business Model Select a Business Model Define Your Market Define Your Market Establish a Strong Culture Establish a Strong Culture REAL Trends Leadership Institute

13. Thriving in the Future Set Objectives Set Objectives What are your reasons for owning and operating a brokerage? What are your reasons for owning and operating a brokerage? Equity, Income, or Personal Equity, Income, or Personal Build your strategy and tactics Build your strategy and tactics Develop the P & L Develop the P & L REAL Trends Leadership Institute

14. Thriving in the Future Build a Leadership Team Build a Leadership Team The highest and best use of the time of the leader of a brokerage firm is in building leadership talent The highest and best use of the time of the leader of a brokerage firm is in building leadership talent Identify, select, and expose talent to the challenges of leading an organization Identify, select, and expose talent to the challenges of leading an organization REAL Trends Leadership Institute

15. Thriving in the Future Select a Business Model Select a Business Model In the future you cannot manage multiple models within one organization In the future you cannot manage multiple models within one organization High value – high price High value – high price Low value – low price Low value – low price REAL Trends Leadership Institute

16. Thriving in the Future Define Your Market Define Your Market Who are your sales professionals? Who do they serve? Where is the market growing? Who are your sales professionals? Who do they serve? Where is the market growing? Which part of the market offers the greatest return? Which part of the market offers the greatest return? REAL Trends Leadership Institute

17. Thriving in the Future Establish a Strong Culture Establish a Strong Culture The behaviors and beliefs of an organization are the “glue” that establishes a relationship with your staff and sales professionals The behaviors and beliefs of an organization are the “glue” that establishes a relationship with your staff and sales professionals REAL Trends Leadership Institute

18. How Sales Professionals Can Thrive Set Objectives Set Objectives Become an Expert in a Niche Become an Expert in a Niche Develop Systems for Prospecting Develop Systems for Prospecting Build a System for Servicing Customers Build a System for Servicing Customers Build your Brand Build your Brand REAL Trends Leadership Institute

19. Thriving in the Future Set Objectives Set Objectives What do you want to achieve? What do you want to achieve? How much are you prepared to invest in time and resources How much are you prepared to invest in time and resources What kind of practice do you want to build, i.e. individual or as part of team? What kind of practice do you want to build, i.e. individual or as part of team? What market niche do you want to focus on? What market niche do you want to focus on? REAL Trends Leadership Institute

20. Thriving in the Future Become an Expert Become an Expert Housing consumers are no different than other consumers; they want experts who have specialized expertise in the areas of their personal interest Housing consumers are no different than other consumers; they want experts who have specialized expertise in the areas of their personal interest REO, Distressed sales, Luxury segment, First time homebuyers, Single parents, or geographic niches are some examples REO, Distressed sales, Luxury segment, First time homebuyers, Single parents, or geographic niches are some examples REAL Trends Leadership Institute

21. Thriving in the Future Become an Expert Focus your knowledge on the demographics, market trends and other pertinent factors that demonstrate your level of knowledge of the market segment Use print and social media to reinforce your market expertise

22. Thriving in the Future Develop Systems for Prospecting Develop Systems for Prospecting What are the best ways for reaching my prospects? What are the best ways for reaching my prospects? Print, web, social media, direct mail, etc? Print, web, social media, direct mail, etc? What do I want to communicate? What do I want to communicate? The only prospecting that will work is that which is comfortable for the sales professional, regular and continuous The only prospecting that will work is that which is comfortable for the sales professional, regular and continuous REAL Trends Leadership Institute

23. Thriving in the Future Develop a System for Servicing Customers Develop a System for Servicing Customers What do you expect your client base to look like, how large, etc What do you expect your client base to look like, how large, etc Implement a Customer Relationship Management (CRM) program whether automated or manual to follow up and stay in touch Implement a Customer Relationship Management (CRM) program whether automated or manual to follow up and stay in touch Most housing consumers start their home search 8- 12 months before they will become “active” Most housing consumers start their home search 8- 12 months before they will become “active” REAL Trends Leadership Institute

24. Thriving in the Future Systems for Servicing Customers Build a durable consistent approach to communicating with clients Commitment for the long term

25. Thriving in the Future Build a Brand Build a Brand Be “Memorable” Be “Memorable” SimpleCredible UnexpectedEmotional ConcreteStories REAL Trends Leadership Institute