From Sales Agent to Principal: 3 Tips for Success
If you’re an elite sales agent that’s considering becoming a principal, there’s a few steps you can take to help you get there. While many just concentrate on the cash reserves or contacts they need to open their doors, there’s plenty of other things to consider before starting your own agency.
Here’s our three success tips to seamlessly transition from sales agent to principal.
1. Establish the Right Motives
The transition from sales agent to principal can feel like a natural career progression for some. However, it’s important to consider that as a principal, you’ll be spending less time selling and more time concentrating on other areas of your business; such as people management, bookkeeping, rent roll growth and more. If you’re considering making the switch, check in with yourself and decipher what is motivating your decision. Jarrod Perry, Principal of Hutton and Hutton Inner East and 2019 REIQ Young Gun says establishing the right ‘why’ is critical before you take the leap and open your own agency.
“If it’s for the money, don’t do it,” says Perry. “If it’s for the title, don’t do it. If you have an interest in helping others or developing skills, or if you have ambition for growth and love real estate, then it could be for you. It’s very different to being an agent, but incredibly rewarding if you have the right ‘why’.”
2. Develop Leadership Skills
As a sales agent, you need a variety of soft skills to get the edge over your competition: effective communication, negotiation tactics, tenacity, a growth mindset, and much more. When you’re running your own agency, your required soft skills become less about making sales and more about leadership.
While you may still make a handful of sales per month, your main focus should be to provide guidance and support for your staff. John Knight, Managing Director of Business Depot, says principals are responsible for instilling confidence in the team and maintaining a positive company culture, which in turn, determines the success of the business.
“Real estate businesses are people businesses more than anything else,” says Mr Knight. “Principals must empower their team to achieve if they want to have a successful business. I love the old adage, you need everyone on the bus, they need to have somewhere to drive to and have someone at the wheel.”
Of course, these skills aren’t innate to most people. That’s why it’s crucial to consult your mentors, enrol in leadership programs and do extensive research before you open the doors of your very own agency.
3. Get Qualified!
Once you’ve established the right motives and developed the necessary skills, all that’s left to do is get qualified. If you’ve already got your real estate registration certificate, the next step is to upgrade to a real estate full licence. This qualification allows you to work as an independent contractor or open your own real estate business as a principal licensee. If you’re still uncertain whether the transition from sales agent to principal is right for you, the REIQ’s team of career coaches are available to answer your questions, share their experiences and help you on the path to the career of your dreams. Book your free career coaching session here.