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Establishing the Correct Order in Team Building
If you think success is a one-step process. . . think again. The goal of building a champion team is to identify the steps and apply them in the correct order. You must have both the steps and the order correct. The right steps in the wrong order will leave you well short of the success you desire.
Step 1 – You
Step 2 – You and your first helper
Step 3 – You and the Closing Coordinator and Registration Coordinator
Step 4 – You and the Closing Coordinator and Listing Coordinator and Buyer’s Agent
Step 5 – You and the Closing Coordinator and the Listing Coordinator and the Multiple Buyer Agents and the Field Coordinator
Step 6 – You and the Closing Coordinator and the Registration Coordinator and the Multiple Buyer Agents and the Field Coordinator and the Senior Manager
Step 7 – You and the Closing Coordinator and the Registration Coordinator and the Multiple Buyer’s Agents and the Lead Buyer’s Agent and the Field Coordinator and the Lead Manager
Step 8 – All of the above and COO
I really believe you can’t deviate from this order until you’ve passed step 5. You can add additional buyer agents between step four and five, but you shouldn’t change the structure until you’ve reached step 5. step 5.
Don’t put the cart before the horse
The biggest adjustment most agents make is to add buyer’s agents before they get admin help. I guarantee you will see significant consequences for this mistake. Your customer service will be below standard. Your time invested in closing their deals, even if it is an experienced agent, will be needed. The relationship with the client will always be with the buyer’s agent, not the team. When they decide to leave, the clients they have worked with will leave with them. The reason is that there was really no team serving them.
If you cut short-term production to help your buyer’s agent and only received a fraction of the gross fee, you haven’t secured the long-term client. . . did not place the cart in front of the horse. A great administrative assistant is the horse of your practice.
If you build it, the sales will come
I know the first extra mouth to feed is scary. Having another dependent person or family who relies on your production for their livelihood is a crushing burden. I understand how scary this position is as an agent and business owner. In over twenty years of business sales experience, I have never had to fire anyone because of slow sales. I didn’t want to do this to the people and families who rely on me and my businesses. I’ve certainly fired people for non-performance, but I’ve never had to fire anyone.
The first time you hire and start paying someone a base salary on a 100% commission job, it will scare you to death. When you have to pay them and forfeit your paycheck during that pay period, you’ll want to go back to the comfort of no assistant. The best way to solve this problem is to increase your time in direct income generating activities. Increase your time in prospecting and especially in lead follow-up. When your cash is low, you need to respond quickly to this command.
1. Aggressive action on price reductions
You can never keep a good announcement secret. Make sure you have good ads – bring the price down. The shortest line between a commission check and you is a price reduction.
2. Sell a home to your committed buyer
Anyone who is committing exclusively to you, who hasn’t purchased yet, and who is reasonable in their expectations needs you to find them a home. Take them out more frequently and put them in a house now. With the first or second step, you could cash a commission check in thirty days.
3. Review all your tracks
Call all prospects (even the oldest or longest running ones) and make an appointment with them. One of the fastest ways to manage short-term cash flow is to consult with your prospects. They are the third closest customers and prospects to a commission check. Make sure you haven’t overlooked anything with your desire to convert, engage, and create a high level of urgency in your database leads. Remember that there is a direct link between motivation and time.
4. Increase your prospecting
When you increase your number of contacts, you increase the volume of leads. Some of the leads you create will now be leads, and some will be long-term leads. The source you select to prospect will have a strong influence on lead timing and urgency. You are more likely to get long-term leads by prospecting your domain and past customers. You will receive short-term leads with a higher level of urgency when prospecting FSBOs or timeouts, for example. This is due to the difference in the level of motivation of these groups.
Avoid major errors of out-of-service construction
The most common mistake made by downed agents is to add production assistants, such as buyer’s agents, before adding support staff. When this happens, the lead agent is forced to train, manage, and coach someone to a reasonable level of productivity while trying to do all facets of their own production. When the buyer’s agent makes a sale, it creates even more administration that the primary agent must also take on. The problem is that their administrative tasks are usually worth half the money. It’s worth it because the other half goes to the buyer’s agent. You’ll end up doing most of the paperwork to close the deal for just half the normal fee. Their efficiency model is blown, the bottom line is demolished, the hourly wage is reduced, and prospecting ceases. All of these things add up to disaster in their business.
Champion Team Rule – If you spend more than 50% of your time on admin, you probably don’t have enough admin help.
We do not want too many people because it causes too many problems in the management area.
In my years of experience, the tendency for agents is to have too few staff rather than too much work. Check your time allowance. This will tell you if it’s time to add staff.
I meet many agents who have been considering adding a staff member for years and have never done so. It’s as if they’re waiting for the perfect situation or the perfect person to walk up and give them a good pat on the head and say, “I’m here!” You will never act on your desire or find someone exceptional with this philosophy.
If you’ve been evaluating building a team or adding to your existing team for more than six months, it’s time to act. A decision is needed. . . now. The biggest waste of time in life is from the moment you know a decision needs to be made until the moment you actually make it – when you act and take action with that decision. The amount of time we waste on knowing and not acting is killing too many people’s success – don’t let it kill yours.
Your systems, processes, procedures, checklists and other supporting structures for your business will never be perfect. You will never make it compound, so there will be no changes going forward. If you don’t change, you don’t grow, improve, and stay ahead of the competition.
Establishing your company vision, organizational chart, hiring and monitoring practices, checklists, schedules, task lists and team communication systems is enough to create a solid foundation to start the process of team building.
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