Leadership Conference - Marcus & Millichap · • Co-Star • Existing agents • Past clients •...

March 20-21, 2017

Leadership Conference

Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.

©2016 Marcus & Millichap. All rights reserved.

Recruiting

Experienced Agents

J.D. Parker

Senior Vice President/Division Manager

Brian Hosey

Regional Manager, New Jersey



RECRUITING EXPERIENCED AGENTS

Agenda:

• Free Agent Recruiting Overview

• Experienced Agent Recruiting Continuum

• Case Study



RECRUITING EXPERIENCED AGENTS

Why Recruit Experienced Agents?

• Fastest way to grow office revenue

• Fastest way to grow personal revenue

• Immediate impact versus 2-3 year process

with walk-on candidate



EXPERIENCED AGENT DEFINITIONS

Experienced Agent 1:

1. Five-plus years of direct continuous experience as a licensed investment

sales broker or agent (not as an analyst or an assistant).

2. REIS: Closed 20+ sales transactions including at least ten list-side closings.

3. MMCC: Closed 10+ debt/equity transactions totaling $100M.

4. A consistent record of growth in number of deals over the past several years.

5. No major gap in direct work experience that cannot be satisfactorily explained.

6. At least three strong professional references.



EXPERIENCED AGENT DEFINITIONS

Experienced Agent 2:

1. Two to five years of direct, continuous experience as a licensed investment

sales broker/agent or commercial mortgage broker.

2. REIS: Closed 10+ sales transactions including at least five list-side closings.

3. MMCC: Closed 5+ debt/equity transactions totaling $50M

4. A consistent record of growth in number of deals.

5. No major gap in direct work experience that cannot be satisfactorily explained.

6. At least three strong professional references.



Sourcing experienced agents is no different than sourcing clients.

It starts with a systematic approach and high activity levels.



ZONE 3

HARVEST

ZONE 2

CULTIVATE

ZONE 1

GENERATE

EXPERIENCED AGENT RECRUITING CONTINUUM

Branding Campaign



Branding Campaign


PROLOGUE

• History of the firm

• History of your office

• Your “story” in 3 minutes

• Clear vision for your office

• Behavioral Event Interview

ZONE 1

GENERATE



Branding Campaign


RESEARCH / SOURCING

• Create list of all experienced agents and loan

originators

• Recruiters

• Co-Star

• Existing agents

• Past clients

• Competitor websites

• Lenders

• Attendee lists from events

• Trade publications

• Google alerts

• Add to Applicant Tracking System (ATS)

ZONE 1

GENERATE



Branding Campaign


INITIAL CONTACT

• Prepare research file

• Bio

• Comps

• LinkedIn

• Press

• Call agent

• Purpose: Close for meeting in Person

ZONE 1

GENERATE



Branding Campaign


1st MEETING

Purpose: Determine Viability of Future Partnership

1. Intro/Build Rapport

2. Ask Open-Ended Questions

3. Determine “Push/Pull Factors”

4. If Warranted: Lay Groundwork for Subsequent Meetings

1. Division/Specialty Group Manager Meeting

2. Review Agent Resource Guide

3. Team Building

4. Meeting with Top Agents

5. Close for 2nd Meeting

ZONE 1

GENERATE



ZONE 3

HARVEST

ZONE 2

CULTIVATE


ZONE 1

GENERATE

Branding Campaign



Branding Campaign


BRANDING CAMPAIGN

• Scheduled and Consistent Emails

• Just Sold Press Releases

• Research Reports

• CNBC Features

• Follow-up call – every 30 to 60 Days

• Face-to-face meeting – every 90 to 180 Days

• Direct Mail – every 8-12 weeks

ZONE 2

CULTIVATE



Branding Campaign


SUBSEQUENT MEETINGS MENU

• Division Manager/Specialty Group Director

• If appropriate fly candidate to a major office

• Review of Agent Resource Guide

• Mnet

• Mnet Offering

• Research, etc.

• Team Building

• Lay out an invitation to build a team and walk

agent through Team Building Presentation

• Meet with Top Agents

• Recruit non competing agents to sell the value of

association

ZONE 2

CULTIVATE



MNetCompanywide Property Inventory and Marketing System

• Fast, easy electronic access to Marcus & Millichap’s national inventory

• Foundation of matching propertieswith buyers through the firm’s nationalsales force

• Provides output options:

• Executive Summary

• Electronic and Print Marketing Package

• E-brochures and other strategic marketing resources

• Buyer Needs matched to listings

• Posting select listings on the external websites automatically – MM.comand Agent Profiles

• Market Summary

• Master Property Database

• New listing and listing expiration notifications

AGENT RESOURCE GUIDE



• MNet-Offering – a cloud-based application for creating marketing proposals and packages

• Features of MNet-Offering:

• Web-based application providesaccess anywhere, anytime

• Team-based, allowing multiple agents or assistants to work simultaneously

• User-friendly output is in PowerPoint, enabling easy agent customization

• Make edits to existing pages

• Insert and create new pages

Marketing Proposals and Packages:

STEPHEN EBY & PARTNERS

OFFERING MEMORANDOM • ELECTRONIC BROCHURES • MARKET RESEARCH • DEMOGRAPHICS

ESCROW MANAGEMENT • WIRE TRANSFERS • THIRD-PARTY REPORTS ESTOPPEL • PRODUCTION

DEBT & STRUCTURED FINANCING:

Anita Paryani RiceVICE PRESIDENT

CAPITAL MARKETS


Jake RobertsFIRST VICE PRESIDENT

CAPITAL MARKETS

FINANCIAL ANAYLYSIS &

COMPETITOR ANALYST:

Chad PaquetteFINANCIAL ANALYST

MARCUS & MILLICHAP SUPPORT:

Jane SmithMAJOR ACCOUNT SERVICES


COMPETITOR ANALYST:

Anthony LombardoSENIOR FINANCIAL ANALYST


Jan DoeMARKERTING COORDINATOR

AUSTIN WEISENBECKVICE PRESIDENT, INVESTMENTS

SENIOR DIRECTOR, NATIONAL RETAIL GROUP

SENIOR DIRECTOR, NET LEASE PROPERTY GROUP

ACCOUNTING:

Michele EllisTRANSACTION COORDINATOR

Over 1,500 Investment Professionals

in Offices Throughout the U.S. and Canada

Over 1,500 ProfessionalsThroughout the U.S. & Canada

Electronic Marketing(MNet, E-mail, Posting, etc.)

Direct Client Calling Effort

Advertising & Direct Mail

Cooperating Brokerage Community

Confidentiality Registration

Offering Memorandum Distribution

MARKETING – TEAM

MARKETING TEAM

PROPERTY NAME

#






CAPITAL MARKETS



CAPITAL MARKETS


COMPETITOR ANALYST:





COMPETITOR ANALYST:







ACCOUNTING:











MARKETING – TEAM

MARKETING TEAM

PROPERTY NAME

#






CAPITAL MARKETS



CAPITAL MARKETS


COMPETITOR ANALYST:





COMPETITOR ANALYST:




ACCOUNTING:


SEAN SHARKOVICE PRESIDENT, INVESTMENTS















MARKETING – TEAM

PROPERTY NAME

MARKETING TEAM

#




• Constant Contact – The industry’s leading email marketing tool offering bulk emailing and advanced tracking and reporting capabilities

• Features of Constant Contact:

• No cost to agents or originators

• Simple, intuitive interface

• Customizable Marcus & Millichap branded templates as well as Constant Contact’s own templates

• Email Marketing Hub

• Offers a variety of fully designed email campaigns

• Easily move branded emails into your Constant Contact account

Email Marketing:AGENT RESOURCE GUIDE



Research Support and Publications

National Reports

• Covers 46 major marketsfrom coast-to-coast

• National branding and name recognition

• National report by property type (apartment, office and retail)

• Featuring forward-lookingranking index

• Central mailing to avoid duplicates




The Brokerage Continuum As it Relates to Team Building

Research/Database

Biz Dev Call

1st App.

2nd App.

ListingMarketing

Offers

Contract

Due Dil.

Remove

Contingencies

Closing

Post Closing

ZONE 1

ZONE 2 ZONE 3

Generate

CultivateHarvest

ZONE 1

Generate

ZONE 2

Cultivate



Zone 1 = Generate

Research/Database

Biz Dev Call

1st App.

2nd App.

ZONE 1

1. The Phone

2. 3rd Party Referrals: Attorney, Accountant, etc.

3. Internal Referral

4. Tracking On Market Comps

5. Post Cards

6. Networking Events

7. Email Campaigns( Research, Listings, Marketwatch)

8. Mentorship

9. Personal Letters

10. Seminars

11. Client Referrals

12. Company Website Leads

13. Signs

14. Press Releases/Articles you write

15. News Paper Advertisements

16. Social Media (Facebook, Linked In, etc…)

17. Online Advertisements

Ways to Enter the Sales Cycle = Start A Relationship



Zone 2 = Cultivate

2nd App.

Listing

ZONE 2

• Scheduled E-mails rotating Content

• Consistent Direct Mail: Postcards, Letters or Flyers

• Scheduled Personal Letters: Articles, Research or Comps

• Scheduled Follow up Calls

• Product Flow

• Holiday Cards/birthday cards/Seasonal & Closing gifts

• Scheduled Follow up Meetings

• Educational Seminars

• Social Client Events

• Invite all to live webcasts

• Industry Conferences

• Closing Dinners

Methods of Cultivation



Zone 3 = Harvest

Listing

MarketingOffers

Contract

Due Dil.

Remove

Contingencies

Closing

Post Closing

• Harvesting is a by-

product of Generating and

Cultivating the relationship

• Market Share vs

Proposal Market Share

• Find a Project to Work on

For the Client – Sale,

Purchase, Financing,

Consulting/Advisory

Zone 3 – Harvesting the Relationship

Through a Project



Team Creation – The Six Pillars

Team LeaderProlific Deal Generator/Rainmaker

Building a Team to get more At Bats, not to disconnect from the Client

Database

Transaction

Management

Team

MembersStaff

Branding/

Marketing

Proposal

Solution



Team Construct Options

Senior Agent

Junior

Partner

Junior

partner

Junior Agent

on long term

team

agreement

Junior Agent

on long term

team

agreement

Junior Agent

on long term

team

agreement

Junior Agent

on long term

team

agreement

Agent

Junior

Partner

Junior

partner

Junior Agent

on long term

team

agreement

Junior Agent

on long term

team

agreement

Junior

PartnerJunior

Partner

Junior

Partner

Junior

Partner

Junior

Partner

Junior

Partner

Junior

Partner

Tiered Team Structure

Flat Team Structure




Agent

Junior

Partner

Junior

PartnerJunior

Partner

Junior

Partner

Junior

Partner

Junior

Partner

Junior

Partner

Junior

Partner

Flat Team Structure

• Creates Leverage Through Others

• Doesn’t Allow Junior Agents to Grow

• Can create complacency among junior partner as they feel to no pressure

• Creates risk upon junior agent termination

• Allows for the creation of a long-term partnership

• Creates ability to mine the market for proposals across the price spectrum

• Senior agent can become stretched

• Senior agent doesn’t want to train junior agents in perpetuity




Senior Agent

Junior

Partner

Junior

partner

Junior Agent

on long term

team

agreement

Junior Agent

on long term

team

agreement

Junior Agent

on long term

team

agreement

Junior Agent

on long term

team

agreement

Junior

partner

Junior Agent

on long term

team

agreement

Junior Agent

on long term

team

agreement

Tiered Team Structure

• Creates Leverage Through Others

• Allows Junior Agents to Grow

• Creates Pressure on Junior Partner to continue to generate and grow skills

• Allows for the creation of a long-term partnership

• Creates ability to mine the market for proposals across the price spectrum

• Wide adoption of provided database

• Allows you to leverage Junior Agents to train new agents



5 Year pathway to Team Leader

Walk on Agent

mentored by RM

or Sole Proprietor

AgentAgentAgentAgent

Free or

Franchise Agent

Junior

Partner

Junior

partner

Junior Agent

on long term

Team

Agreement

Junior Agent

on long term

team

agreement

Mentee Hired on

basic Mentorship

AgreementSIP

Junior Agent

on long term

team

agreement

Junior Agent

on long term

team

agreement

Junior Agent

on long term

team

agreement

Junior Agent

on long term

team

agreement

0-12 Months 6-18 Months 24-48 Months 48-72 Months12-36 Months

Belief System

Creation

Basic

Mentorship/Resource

Management Skills

Developed

Mentorship Skills

Developed –

Leadership

Demonstrated

Team Leader Skills

Developed

Resource Management

Skills Developed

Team Leader Empowers

others

Creates Leverage through

others

Pillar 1 &

Pillar 2 Required



ZONE 3

HARVEST

ZONE 2

CULTIVATE


ZONE 1

GENERATE

Branding Campaign



Branding Campaign


PRODUCTION HISTORY

• Trailing 3 Years of production history

• Itemized Closed Transaction History:

Property address, price, gross fee

• Under contract

• Listed

• Current Deal

• Marketing

• Staff

• Current Fee Split

• Verifiable Trailing 3 Years of income

• 1099 or Tax Return

ZONE 3

HARVEST



Branding Campaign


OFFER

• 5-year Projection Worksheet

• Quantify Profitability

• Offer Generated by Senior Management

• Present Offer in Person

ZONE 3

HARVEST



Branding Campaign


OFFER

• 5-year Projection Worksheet

• Quantify Profitability

• Offer Generated by Senior Management

• Present Offer in Person

EA1:

• Agent Support (If Appropriate)

• Title

• Split

• Physical Location in Office

ZONE 3

HARVEST



Branding Campaign


ONBOARDING

• Association Agreement

• Computer Setup/Purchase

• Seating Arrangement

• Private office?

• Attend Training?

• How Often Will You Meet

• Business Plan

• What is your “Project” with the Agent?

ZONE 3

HARVEST



CASE STUDY: TIMELINE

Activity Date

Researched/Sourced candidate April 2015

First Contact - Call May 2015

Brian has lunch with candidate June 2015

Brian and J.D. meet candidate October 2015

Brian and J.D. have breakfast with candidate April 2016

Production history & expenses April 2016

Brian and J.D. meet with candidate May 2016

Technology meeting/meeting with agents June 2016

Meeting with agents July 2016

First offer presented July 2016

Updated production history & proof of expenses August 2016

Brian and J.D. negotiate terms of offer August - September

Start date October 2016

Team building meeting with J.D. October 2016

First activity review November 2016

Together won $65M listing January 2017

Closed first transaction January 2017

FAHRI OZTURK

Cushman & Wakefield

Total time to recruit: 18 months



CASE STUDY: TIMELINE

Researched/Sourced candidate April 2015

First Contact - Call May 2015

Brian has lunch with candidate June 2015

Brian and J.D. meet candidate October 2015

Brian and J.D. have breakfast with candidate April 2016

Production history & expenses April 2016

Brian and J.D. meet with candidate May 2016

Technology meeting/meeting with agents June 2016

Meeting with agents July 2016

First offer presented July 2016

Updated production history & proof of expenses August 2016

Brian and J.D. negotiate terms of offer August - September

Start date October 2016

Team building meeting with J.D. October 2016

First activity review November 2016

Together won $65M listing January 2017

Closed first transaction January 2017

ZONE 1

GENERATE

ZONE 2

CULTIVATE

ZONE 3

HARVEST

ONBOARDING



ZONE 3

HARVEST

ZONE 2

CULTIVATE

ZONE 1

GENERATE


Branding Campaign



Scenario 1 (First Contact): You are calling an industrial broker for the first time. You saw

that he sold a $4 million distribution center in your market.

Goal: To get a meeting.

Scenario 2 (First Meeting): You are recruiting a multifamily agent concentrating on $1 to

$5 million deals and closing 10+ deals annually. He is with a mid-size firm and is known as a

talented, up-and-coming broker. Using open-ended questions, mine for the “push factors”

that may cause him to leave his current firm.

Goal: To mine for the motivation and close for the second meeting. RM should layout the

focus of subsequent meetings (technology, team building, meetings with division manager,

product specialty director, top producers, etc).

BREAKOUT

Scenario 3 (First Meeting): You are recruiting a loan originator from a well-respected,

boutique mortgage brokerage in the market. He is a 10-year veteran and ranked 3rd on his

team. He receives company leads but generates the majority of his own business.

Goal: To mine for the motivation and close for the second meeting. RM should layout the

focus of subsequent meetings (technology, team building, meetings with division manager,

product specialty director, top producers, etc).



BREAKOUT

Scenario 4 (Second Meeting): You are on a second meeting with the multifamily agent

from Scenario 2 above. Using the information gathered in the first meeting have a

conversation regarding technology, team building, etc while simultaneously accessing the

target.

Goal: To demonstrate the value of association and get a commitment to receive production

history.

Scenario 5 (Onboarding): You successfully recruited a talented retail agent with 3 years of

experience from a small regional firm! Great job! Training at his previous firm consisted of a

one-day “crash course” in sales. Nothing more.

Goal: To provide a clear roadmap for the agent’s onboarding. Consider the following:

Does he have a business plan?

Where will he sit? Will he receive a private office?

How often will you meet? Will that meeting be an activity review, team meeting, or some other

format?

Will the agent attend training?



Recruiting

Experienced Agents

BEGIN BREAKOUT SESSIONS

RETURN AT 11:50 AM



March 20-21, 2017

Leadership Conference

Leadership Conference - Marcus & Millichap · • Co-Star • Existing agents • Past clients •...

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