Real Life Scenarios

Real Life ScenariosBack to our goal

58 New Franchises1,928 New Executives

Whats Important to Remember

Weve all got to believe in our abilities and in the value Realty Executives represents

Whats Important to RememberMost of us have been selling franchises for quite some time but, like you tell your brokers and Executivesnow is the time to get back to basics.

Start at the beginning and reframe your approach at franchise sales

The Three Ps of a Successful Franchise Sales Person

The Three Ps of a Successful Franchise Sales PersonProfessionalBe well dressed, well-groomed and acting like a CEOBe prepared for any objection, problem, etc. that might come upBe practicing your traderole play, read the FDD, talk to people in the industryBe honest with everyoneNever let them see you sweat

The Three Ps of a Successful Franchise Sales PersonPersistentNever take no for an answer (No means yes in sales!)Never let someone get to youAlways try to figure out a way to make it workAlways keep coming back for more even when things arent working out

The Three Ps of a Successful Franchise Sales PersonPassionate:Always communicate how excited you are about your brand/companyAlways communicate urgency to get things done (internally and externally)Always have a do it now attitude as it relates to meetings, appointments, closings, etc.Always be convinced you are helping your prospects and customersAlways believe you are the best franchise salesperson in the world

Now, lets talk about the first stepGathering Data in the Marketplace

Gathering DataSelecting MarketsCollecting Market IntelligenceCreating Buzz in the MarketIdentifying Pain PointsMoving Deals Forward

Selecting Markets

How do you currently select markets to work?

Selecting MarketsWhat Guidelines Should We Use to Select Markets?:How much total GCI is in the market?How many quality prospects exist in the market?How much total GCI is in nearby markets?How many quality prospects are in nearby markets?

Collecting Market IntelligenceWhats Going On in the Market?:Use your real estate office/agent listsNew affiliationsRecent Mergers & AcquisitionsAgent MovementEconomic Issues Job lossesNew companiesMilitary presenceLegacy issues

Collecting Market IntelligenceKnow Your MarketPastPresentFuture

Know Why You Are in the Market

Creating Buzz in the MarketplaceMailers:Send a letter announcing your entrance/visit to a marketUse them as a first entry point into a brokerageEmail Campaigns:Break your value proposition/messaging into bite-sized communication piecesReiterates your message throughout the yearKeeps you top of mindGives the perception that youre already in the market

Creating Buzz in the MarketplaceWho is Your Audience?:Title CompaniesChambers of CommerceNewspapersExisting Office ManagersAgents

Creating Buzz in the MarketplaceWork from the Bottom Up:Start with NON real estate peopleTitle CompaniesMortgage CompaniesNewspapersChambers of Commerce

Creating Buzz in the MarketplaceWork from the Bottom Up:Move to Does Not QualifyGood information source and they have nothing better to doDont look at this group as a waste of time but understand that even if they want a franchise theyre not your end goal

Creating Buzz in the MarketplaceWork from the Bottom Up:Then, talk with AgentsTheyll be flattered if you approach them correctlyThis group is a great source of gossiptheyll tell the whole real estate community for youCould be possible candidates for a franchise

PipelinesDiving into our pipelines

Identifying Pain PointsUse MLS data to create the headacheKnow answers better than the prospectKnow the prospect as well as they know themselvesKnow the competition better than the prospectKnow how to use the information

Identifying Pain PointsDiscussion Topics:General market conditionsIs the market up/down? Why?Is the competition up/down? Why?Whats the prospects growth compared to the overall market?Whats the prospect growth compared to its biggest competition?

Identifying Pain PointsUse MLS Data to Identify Company Weaknesses:Track agent turnoverTrack agent productivityTrack agent movementTrack new agents

Identifying Pain PointsOnce Company Weaknesses Have Been Identified:Discuss how each pain point affects their businessDiscuss how each pain point affects the bottom lineAsk, If ____ happened, what would be the result?

Identifying Pain PointsOnce the Prospect Acknowledges Pain:Then, begin presentation modeSchedule a VIP Tour

Moving Deals ForwardWhats Your Job When it Comes to Franchise Sales?:To identify marketsTo identify optionsTo identify dealsTo MOVE DEALS FORWARDTo close deals

Moving Deals ForwardWhat Does it Mean to Move a Deal Forward?:Getting the prospect to see you again after an initial callControlling every conversationIdentifying or creating a need in the prospectDrilling down on that need and causing pain which the prospect must act uponFacilitating their learning about how we can help them succeedBeing closer to a sale after every meeting

Moving Deals ForwardPositioning:Dont be shackled by misconceived perceptionsMake sure everyone you talk to knows you have a timeline in the marketLet everyone know you are talking to everyone else and YOU will be making a choice in the near futurePosition everyone for what YOU want

Moving Deals ForwardDont Act Like a Salesperson:You are not there to sell anythingYou are a facilitator putting the prospect in a position to determine his/her own future in the real estate industryYou are the CEOact like it with your prospectsDont even begin to talk about features, benefits, solutions, tools, etc. until compatibility has been determined

Moving Deals ForwardDetermining Compatibility:Talk about industry issues firstBuild value in the concept of franchisingTalk in very general terms about Realty Executives and its niche in the industryFind out where the prospect wants to be and discuss (in general terms) how we can help them get there

Moving Deals ForwardInflicting Pain:Ask specific questions and take notes (refer to handout)Ask follow-up questionsprobe, Probe, PROBEListen carefullyMake the prospect acknowledge that his/her business has problemsReconfirm the problem areas with the prospect

Moving Deals ForwardExploration:Dont begin to discuss specifics about Realty Executives until a needs analysis has been completedALL interested parties (owners, spouses, etc.) must be in agreement that the business has problemsValidate everything the prospect acknowledgesAlways keep the broker on a strict timeframe

Moving Deals ForwardRemember:Presentations on Realty Executives systems and tools are only part of the sales process; not the heart of the processProspects who purchase a franchise are usually sold on the franchise prior to the introduction presentationPresentations should merely confirm the value the prospect already knows is there

Moving Deals ForwardMeeting by meetingmoving closer to the sale

Moving Deals Forward1st Meeting:If its a cold call, should not last more than 15 minutesIf its a scheduled call, try to keep it under 30 minutesDo not talk about Realty Executives!Talk about market conditions & industry trendsEstablish rapport (this is key for 1st meeting)Close for 2nd meeting

Moving Deals Forward2nd Meeting:More rapport buildingMore market & industry conversationStart learning about what their needs might be and finding places to inflict painAsk lots of questions about the prospect (what theyre doing to deal with industry changes and market dynamics)Establish a timelineClose for 3rd meeting

Moving Deals Forward3rd Meeting:More rapport building (youre earning the right to inflict pain)More information about how Realty Executives is dealing with and creating industry changesDrill into how the prospect is dealing with industry changesTake an application with you, discuss the FDDClose for the 4th meeting

Moving Deals Forward4th Meeting:Focus on one or two of the painful issues that might be areas of improvement through our tools and systemsSuggest validating with a couple of existing Realty Executives franchisees within the regionClose for 5th meeting

Moving Deals Forward5th Meeting:Confirm the prospect agrees they have to do something and that franchising may be the answerPossibly do an introduction presentation (depending on how much pain has been inflicted and how open they are to dealing with their needs)If no presentation, then drill down even more into needs which have been identifiedClose for 6th meeting

Moving Deals Forward6th Meeting:Identify serious objections, put them aside and deal with less serious objectionsContinue to build value in the idea of being affiliated with Realty ExecutivesIf its a big enough company, bring REI sales with youCollect any remaining information (financials, ownership info, etc.) and inform them you are coming back with contractsClose for 7th meeting

Moving Deals Forward7th Meeting:Deliver contractsDeal with serious objectionsContinue to build valueConfirm an understanding of financial aspects of the dealDeal with legal issuesClose for closing

Moving Deals Forward8th Meeting:Deal with any remaining issuesSignContractsAddendumsPersonal guarantees, security agreementsCollect Initial Franchise Fee (if applicable)

Franchise Fee Model SamplesSmall Brokerage SampleMedium Brokerage SampleLarge Brokerage Sample

Earnings ClaimsWhat is an Earnings Claim?:Information given by the franchisor or its agent to the prospective franchisee from which a specific level or range or actual or potential sales, costs, income or profit from franchised or non-franchised units may easily be ascertained.

Earnings ClaimsWhat is an Earnings Claim?:A chart, table or mathematical calculation which demonstrates combination of variables (I.e.: multiples of price and quantity to reflect gross sales) is an earnings claim subject to FDD disclosure

Earnings ClaimsWhat Cant You Do?:Give hypothetical situationsMake other assurances or representations

Earnings ClaimsDont Make Earnings Claims:All earnings claims must be contained in the FDDOur FDD does not contain earnings claims

Earnings ClaimsWhat Can You Do?:Refer prospect to publicly available data (I.e.: NAR)Refer prospect to our other franchiseesFTC guidelines: utilize endorsements and testimonials only if they reflect honest opinions, findings, beliefs or experiences of the endorser

Remember

58 New Franchises

1,928 New Executives

in 2012!

Questions?