Most real estate brokerages believe their training programs for new agents are effective and successful. But how effectual are they, really? In this market of change—where newbies go sometimes two to three months before getting their first listing—new sales associates need a program that’s designed for the market now, not two years ago. Here, Clark Toole, regional president and chief operating officer of NRT’s Coldwell Banker Residential Brokerage-Dallas/Fort Worth operation, talks about the decision to reinvent his company’s training program and the impact it’s made on newer—and more-seasoned—sales associates alike.

Real Estate magazine: Please explain the decision to redesign your training program.
Clark Toole: About 18 months ago, I discovered that only 30% of our new sales associates had a sale or listing in the first three months. This is a problem throughout the industry and we decided to do something about it. I brought the entire education department in and we basically threw out the old program. We want sales associates to come in and have a listing or sale within the first 30 days, and we redesigned our skill development efforts to make that happen.

RE: What is the most important lesson to convey in the new education program?
CT: We believe we’re on the right track if we can focus in and say, “who do you contact and what do you say?” It starts with the success cycle—have a great contact management system so when an associate has someone with even the start of a good relationship, they can develop and nurture it.

RE: What are some of the differences between the two programs?
CT: We have altered the original program to focus in on what it takes to get business in 30 days. The greatest thing that has made a difference is that we can now measure and track those in the training program. We are very specific when associates first come in—how many contacts do you have? Who are they? Did you pass out business cards? What about FSBOs? We get this information from them everyday and then post it in our training room.

RE: How is tracking/measuring making a difference in their training?
CT: We look at each person’s training individually. If they’re making a lot of contacts, but have no appointments, there is a problem with something they are saying. If they are going on multiple listing presentations, but not getting the customer, we need to review their presentation. This really allows us to evaluate our people—and our classes.

Overall, the measurement of education is lacking in this industry. A lot of companies say, “we have great training,” but what information do they have to validate that? The ability to track progress allows us to go back and adjust and tweak. It’s a quantitative approach, really. By looking at the numbers, the beautiful thing is that we can see what’s working and what’s not. If we can monitor profits and losses, why can’t we do that with training?

RE: What’s the next step after they’ve completed the basic training program?
CT: Once sales associates complete the FastStart program, they immediately move into our coaching program. All of our managers are certified coaches through Ron Willingham’s Integrity Coaching. We have tuned the program for our company, and included more prospecting.

We also have a written scripts book, which we implemented with our managers about 18 months ago. The managers hold script practices with our sales associates. I have always found it interesting that people will go out and practice their hobbies, but not their profession. They don’t envision practicing for business as fun. Yet, at every script practice I’ve been to, everyone is laughing and having a good time.

We’re building a new culture, where instead of coming to the office on Monday and saying, “how was the movie?” people are asking, “how did you handle this objection?” It’s been tremendous.

We also hold educational workshops every week where we work with the sales associates to develop business plans and implement them. I think these workshops are going to work well as we move into 2007.

RE: What are your short-term as well as long-term goals for the training program?
CT: As we move ahead, we’re looking to focus on and build powerful sales associates. If we have that, we will give truly remarkable service. Not only repeat business—but referrals as well. As we build this new culture in our company, our agents are getting better at their jobs. I’ve been in this business a long time. To have people in practice—and enjoying themselves doing it—is a beautiful thing.

RE: Thus far, how has the response been from your sales associates?
CT: New people are excited about the program and our experienced sales associates are very curious about it. Our associates are coming into our script practices and wanting to be coached.

You don’t build a culture in a few weeks, but we’re starting to see the start of some great things—and great business.

RE: Do you think this type of revised training will become more prevalent in the industry?
CT: We’re seeing more listings, and more competition between listings in terms of more homes on the market. The question is, “What do you need to get them sold?” You need knowledgeable sales professionals who can not only talk to customers, but are also convincing, great at marketing, and superior at negotiation. A skilled agent who knows what to say and how to say it is going to be in tremendous demand.

Overall, in real estate, so many Realtors—about 50%—fail in their first year. Shame on the industry. By having this program, tracking and working with our managers, we are minimizing loss and retaining valuable sales associates.

Source: Real Estate magazine, December 2006

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