Secrets On How Brokers Recruit And Increase Production As Rates Rise

Times are tough in real estate. Mortgage rates have steadily increased and for many of our users, the number of transactions they have closed has significantly decreased from previous years. 

November 2022 saw a drop of more than 45% in closed transactions compared to the same period a year before. And at the time, that number was increasing. 

We know that many of our customers are fearful of the future. 

That’s why at the end of 2022, we invited our customers to a seminar. The aim was to provide them with help and support so we can:

  • Get through these difficult times, together.
  • And prosper in the good times, together.

We believe that in difficult times like these, the Paperless Pipeline user community needs to show leadership and strength.

We believe the three factors involved in achieving this are:

  • Data 
  • Questions
  • Community

The seminar was led by our Founder, Dane Maxwell. He talked the attendees through the first two points.

Data

He opened up with some pretty frightening figures on the number of transactions closed on Paperless Pipeline. 

Questions

Next, Dane posed some tough but potentially life-changing questions that attendees should ask themselves:

  • How can my team close transactions more cost-effectively and in less time?
  • How can I reduce my costs per transaction?
  • How can I reduce my office costs?
  • What other questions can I ask myself to create success for my business during this unprecedented time? 

Dane wanted our users to ask these questions for two reasons. Firstly, they help our users identify solutions to make their businesses more sustainable. And secondly, they show that there is hope that their business can survive this period. 

He also reminded attendees that crisis propels innovation. The real estate models that came out of the 2008 financial crisis led to 14 years of continuous growth in the industry. 

In other words, if we can survive this crisis, we will emerge stronger. 

Community

Here’s the main reason we called this seminar. We wanted to bring together our community of Paperless Pipeline users to share tips and experiences. 

We heard from six Paperless Pipeline customers: 

  • Robb Campbell
  • Daniel McClam
  • Hal Barnett
  • Joe Weinzetl
  • CeCe Ellis
  • Brian Owens

Each provided us with their own valuable tips on how to weather these challenging times. 

Here’s an overview of the pointers each person had.

Robb Campbell: Use personal relationships to find good agents in a downturn

Robb used to have a RE/MAX brokerage. His was the first franchise to make $1bn in sales in one year. Today, he helps brokers and real estate business owners to grow their businesses and make them more efficient using disruptive technologies. 

He’s also the person who came up with the idea for Paperless Pipeline and was our very first customer. 

  • Robb was once one of the country’s top real estate recruiters. He explained his process for recruiting top agents using personal relationships. 
  • Rob also explained that the more established an agent is and the more they produce, the longer it will take them to make the decision to move. That’s because high-earning agents have more to lose.
  • His advice is for brokers to recruit hard now. When agent production starts to drop (as it has now), they will blame the broker. They will be looking for a new brokerage that provides better, more innovative tools. 
  • Providing tools to make your brokerage more efficient and effective is also a good way to retain your best agents. 

Daniel McClam: Create a lead generation system

Daniel is President of Hawks Real Estate, an investment firm that buys properties and then sells them wholesale to private equity firms. 

  • Hawks has created a lead generation machine to help them find properties to buy.
  • Institutional investors increasingly want to buy single-family homes. 
  • Hawks real estate uses a call center based abroad. It cold calls owners of these properties across the U.S. and asks if they would consider selling.
  • This benefits all parties. The institutional investor gets their property, the seller gets a good deal, and the agents get a commission. 
  • Daniel says in the future Hawks intends to offer the lead generation service to other brokerages.

Hal Barnett: Smaller business—greater profit

Hal Bartnett is the Qualifying Broker/Owner at Southwest Realty in New Mexico.

Hal told us how downsizing and streamlining his business made it more profitable.

In the past, the brokerage had a major franchise, with 45–50 agents based out of two offices. 

The overheads for the company were huge and so Hal and his business partners decided to downsize the business and become independent. 

Today they are a more profitable business and they are able to offer their agents a better commission split. 

Hal also has a really simple but effective way to retain good agents—make sure you genuinely care for them and look after them. Southwest Realty doesn’t need to worry about recruitment because agent turnover is so low!

Joe Weinzetl: Diversify with technology

Joe recently became the broker/owner at Minnesota-based Greater Midwest Realty. The firm has 190 agents and completed 850 transactions in 2022.

When Joe acquired the brokerage, the agents were loyal and happy. But the company hadn’t kept up with technology. As a result, the business was declining. 

Joe has come up with a number of innovative ways to use technology to make the business more efficient and to diversify its services. 

Here are some of the changes he made:

  • Create more efficient processes: The company started using Paperless Pipeline to make transaction coordination more efficient. 
  • Create a system for agent recruitment: He started using software called Bombbomb.com to send personalized video messages to agents. This is quick and easy for Joe and more effective than an email. 
  • Give agents the opportunity to earn passive income: Any agent that does more than 10 transactions can offer mortgage loans to clients. 
  • Rent out your office: GMR’s offices aren’t used as much as they were so Joe has started renting them out as shared workspace.
  • Sell your specialist services: Joe is going to hire his in-house transaction coordinators under a different company. And of course, it will use Paperless Pipeline!
  • Sell your expertise: Joe is highly experienced in real estate. He plans to sell that experience, providing coaching and mentoring to agents. 

CeCe Ellis: Always be recruiting

CeCe Ellis of Ellis Luxury Homes started her brokerage at the end of last year. 

CeCe had been paying high franchise fees and her broker wasn’t good at building relations. As a result, she decided to start up on her own. 

Her advice is to always think about building relationships. Always send a thank you and always care about the people you work with.  

  • When CeCe started her business she was immediately contacted by several agents asking to join her because she had put so much effort into building relationships and showing them the technology she uses.
  • She also highlighted how important it is to keep track of things like commission and that Paperless Pipeline helps her to do that. 
  • She highlighted that having a flexible system like Paperless attracts agents because they can still use their favorite tools. 

Brian Owens: Reputation is everything

Brian runs Successful Closings LLC with his wife Christy. The company manages transactions from contract to close for real estate agents. 

Brian tried 10–15 software products before settling on Paperless Pipeline. He loves that it is so customizable. But more importantly, he appreciates the per-transaction pricing. This means he pays less during a challenging time.

  • His advice is to work hard on your reputation as it will lead to referrals. 
  • A good marketing message is also key. As a transaction coordinator, it’s important that his company has a reliable system to prevent things from going wrong.
  • Being proud to represent agents and work hand in glove with them is also helpful.

Brian says that if you have a proven, reliable system for managing transactions then you can work quickly without having to worry that something will go wrong.

Help Your Real Estate Business Survive the Downturn with Paperless Pipeline

We hope you found the ideas shared in this webinar useful. Let us know if you have any advice for your fellow realtors that can help make their businesses more competitive. 

One way to survive the real estate downturn is to make your closing process faster and more reliable with Paperless Pipeline. 


We know that switching to new software during this time feels risky. That’s why we offer a free trial—no credit card details are required.