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Do You Have A Succession Plan for Your Real Estate Business?

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real estate succession planN.A.R. released in June 2015 their recent agent demographic statistic report and the average agent in North America is 57 years old in a member population of just over 1.2 million agents in the U.S. and Canada. I am sitting here thinking what will the 62 year old real estate professional be doing when the next market change comes along?

Some of you are thinking well they will just keep selling, or maybe they will retire or maybe they will be considering a succession plan involving a business model that allows them more time and freedom and still keep their hand in the real estate industry. It amazes me how many times I meet, speak or coach to agents that are senior in their career and they have no vision, plan or idea of what they will do in the next 1, 5 or ten years.

What would it mean to these agents to have a model, system or vehicle that could allow them more time, freedom and a business that they are just working on and working in?

Imagine seeing a residual income from your knowledge, clientele and years of hard work that allows you a successful succession plan into retirement?

Now for those of you on the building side of your career looking for a business opportunity, isn’t it time to plant some seeds and approach these agents and present a strategic lucrative exit strategy beneficial to both you the rising agent and them the departing agent?

This exit strategy does not just happen on its own and takes a plan and some effort and time on both the rising agent and exiting agent to get this strategy to work and be profitable!

Agents leaving the industry will not just be able to send a letter, email or call and say bon voyage and do all your buying and selling with this agent who you don’t know anything about! The first thing your clients will do is call a friend or family member and get another referral to another agent, I see it all the time in our business. Sadly without a system and plan we are all as good as our last listing or sale.

Key Points for A Successful Real Estate Succession Plan

Preliminary Planning

  • Collecting, organizing and entering database (CRM) name, address, phone number, email (Sources – cell phone, email, past client, prospect, friend and family address book)
  • Choosing CRM – Client Retention Management system – Top producer, I Xact, Referral Maker, Property base, Microsoft Outlook.
  • Determine Timeline – 1 year, 3 year, and 5 year plan. Ideal timeline is 2 years working together prior till retirement and then 3 years of residual income after official retirement. If you do not have the 2 years until retirement then spend $6,000 to use the Retiring Agent’s name for the next 2 years.
  • Branding – for example… Agent – Webb & Associates transitioning to Webb – Agent & Associates and then finally webb and Associates (Agent is part of brand as unlicensed consultant)

Plan

  • Introduction Letter co-branded
  • Introduction Email co-branded
  • Monthly newsletter co-branded.
  • Websites co-branded
  • Listings co-listed. Webb as secondary.
  • Client appreciation event.
  • Client coffee
  • Client lunch
  • Client pop-by
  • Client calendar/day timer.
  • Print co-branded
  • Un addressed ad mail co-branded
  • Sales tools co-branded

Compensation

  • Separate income and shared co-branding expenses. Pre-retirement.
  • Retirement – Income 60/40 year one, 70/30 year two, 75/25 year three.
  • Retirement – expenses all Webb.
I trust this week’s post has opened the rising agent and the exiting agent to the possibilities for a succession plan and exit strategy that can be very successful and beneficial to the agents and the brokerage. Send me an email if you are interested in diving into this topic on a much more in depth level, as a real estate coach I’d be happy to help.

Strength and Courage,

Wade

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MY GOAL

“I am committed to serve, impact and improve the lives of real estate agents and leaders creating a stress free lifestyle while having as much fun as possible along the way.” ~ Wade Webb ~