Unique #CRE Sales Model
We are in a very unique business as it relates to the commercial real estate sales process we need to go through to get hired for the job and then to sell the business we were hired to sell. You see, as you really start looking at the process we go through to win the business of selling an asset for a client, we need to go through two different sale processes for each deal.
Conventional Sales Model
Let’s start by looking at a conventional sales model of let’s say, a widget. These are those mythical things that people who teach and write books use to give us street folks and students something to hypothecate about. Anyway, let’s sell some of these magical things.
Typically, the sales organization of these type products are structured internally or externally. Both will have a sales team headed by the sales leader that focuses on selling these widgets to people that use them or people that will re-sell them to the public. The main function of this group is to develop relationships with the users or re-sellers and sell as many as possible. Once the order has been made, this group hands the order over to the folks that will handle the order and ship it to the buyer.
If the order is for software or a non-physical widget, the process is the same except the order handlers will on-board the users and help them with understanding the product.
In either example the sales person or team, after the order is taken, is done with that order and will focus on other sales or the next sale to the group they just sold too.
This process is not the same in our commercial real estate business!
After most other industry’s sale’s teams have finished their sales responsibilities, ours now has to switch gears and get the property we have been given the assignment on prepared for whatever the sales person that won it, is supposed to do. Lease it, sell it, or raise debt and equity for it.
Well this actually takes us back to what we told the client about our process, the story and the team you have in place to sell the story of the property you have won. You now need to coordinate the marketing information and flow for the assignment, send the campaign out to the correct folks that have an interest and generate the reporting needed to support the campaign.
If you have prepared everything properly and set expectations at a reasonable price and time, you will most likely assist the client in completing the assignment at the pricing discussed and the timing expected. If not, you will not get paid, right?
Hopefully, while marketing this campaign, you were able to show your expertise to the client and the prospects so that hopefully you will be allowed into the next process these folks have so you can get hired again. You will then be able to sell yourself and the property all over again.
Why do some get hired and others don’t?
Sell your company.
Sell your expertise.
Sell your team.
Sell that you know who the folks are that you should sell to.
I have never been hired by someone I do not know.
Photo Credit: “A Handshake Between Business People” by stockimages. Source: freedigitalphotos.net