Increasing Brokerage Commissions in a Decreasing Economy

To no one’s surprise commercial real estate insiders are projecting that 2010 will not be significantly better than 2009.  The real question of course is what is the projection for your personal brokerage business?  Does the declining velocity in your market correlate to declining commissions for you?

It would be easy to provide you a simply answer, however the answer varies bases on market, focus, level of experience, dedication to your business and yes your personal brand and personal marketing plan.  2009 showed the same level of failure in new-to-business brokers as seasoned industry veterans.  The same holds true for the levels of success.  Many new to the business brokers have out produced their seasoned veterans.

It is also true that many commercial real estate brokers have had extremely rewarding years in 2009.  They have leveraged their market presence, existing client relationships and current market conditions to identify new opportunities, and in many times for new clients.

The obvious road to greater commissions has been targeting banking relationships, and pursuing the economic stability that property management and leasing can provide.  The less than obvious strategies, albeit more fruitful have been based on a longer term perspective of crafting a social marketing campaign and leveraging spheres of influence beyond the typical commercial real estate sector.  It is the later which will benefit you more from the coma-like economy.

Likewise, as many commercial practitioners begin to falter and leave the commercial real estate brokerage arena, those who are dedicated to their craft will continue to increase their market share.
With that said, here are some proven strategies for identifying opportunities in the market, no matter the economic outlook:

•    Thoroughly examine market velocity in all sectors.  Not just what was sold or leased, but what was/is for sale and for lease.
•    Thoroughly examine your historical commission generation by source, property type, client and activity.
•    Examine your database – yes look through all 50 or all 15,000 and determine the relationship, opportunity and/or marketing campaign required for EACH and EVERY contact.  By the way, this is also a great time and approach to purging or updating your information.

From these three simply steps, you will identify opportunities that you have not considered in the past.  You will identify clients, market niches and trends where commissions can be generated.

The market will not be significantly better in 2010.  Will you?

Tags: brokerage economy success