New year, new month, new week, a new day – the repeating cycle of our existence always coming with the unachieved plans and deep hopes. It’s a minor impulse, a spark for our willpower, rational thinking and the right action plan for the next cycle to be lightened. End of the cycle is the short-term wisdom flashing in the minds, lighting up Tomorrow. The flash, which opens curtains to see ourselves during the entire cycle via space and time along with all what we achieved. It helps us to make important notes for the next cycle, which called experience.
Every one of us had noticed, that at the beginning of the cycle. we are full of ambitious energy, power, motivation, and plans. But what happens during the cycle? Are we losing the spark? Are we getting tired? Are we achieving what we planned? Are we losing the picture of ourselves? Or we require additional motivation or supervision?
Let’s have a look at the Motivational Mechanisms below, categorized based on the general priority for the Real Estate Consultants and organizations which helps to maintain the healthy cycles.
Groups of Motivational Mechanisms:
• Background of the company;
• Procedures in the company;
• The professionalism of the employees;
• Position in the market;
• Brand awareness, etc;
• The share of the commissions;
• Basic salary;
• Other benefits: insurance, RERA Card, Visa, Car, etc;
• The volume of an advertisement;
• Scope and source of Advertisement;
• Lead Generation, etc;
• Professional culture of the employees;
• Relations of employees of all levels;
• The culture of Management;
• Quality of leadership;
• Development and growth;
• The integrity of the employees, etc;
Every category is vital. Since the entire sales industry is not always progressing, moreover, its existence is based on the cycles, every mechanism mentioned above is the important part of the cycling machine to keep it running and not falling. Chart 1 demonstrates the idea of cycles and the periods, where each mechanism must be initiated.
Cycles – are the lifelong aspects of the sales industry of any business. Sales always have a cycling nature. It’s not necessary for the sales to increase in one month and decrease the next month. The length of the cycle may vary based on the market conjuncture, business specifications, season, management, etc.
Compensation – is the dual mechanism which is to be triggered during two periods of the cycle: High and Low. Initiating current mechanism during these two periods is having its risks and benefits. If the current mechanism is initiated during the High cycle, it will endorse nature for lengthening the cycle’s period further. If the current mechanism is initiated during the Low cycle, it will have encouraging nature to shorten the Low cycle, while at the same time it will always be affected by the risk of losing the investments.
Marketing – is the mechanism which stimulates the growth of the cycle to a certain extent, based on the capability of the business or its employees to turn over the volume of transactions. Marketing must come along with further follow up by the management, meetings, and targets. Marketing is always limited. The key matter is – how effective is the usage of the marketing.
Marketing initiated during the rise of the cycle acts as an additional fuel supply, which boosts the cycle’s growth. Marketing initiated during the recession of the cycle acts as a “Falling-Speed Breaker”, which helps to maintain the number of sales transactions at a higher level than possible it could be.
Marketing at Low cycle helps consultants to recover themselves from the “quiet period”. If no Marketing support at Low cycle, the cycle might continue falling.
At High Cycle, consultants are involved in the processes of the transactions, where Marketing can be less effective due to lack of time for the effecting prospecting.
Company Profile – is the crucial matter for experienced brokers, while for beginners it will not be the first priority. Profile of the Company takes one of the ground positions and will be immediately taken into consideration by employees if the cycle is going beyond the logical bottom. During the High cycle, employees are massively engaged in conducting the transactions, which makes them forget the awareness of the company, the company’s background, etc.
Environment – is the base of any success. It doesn’t matter the organization is large or new small establishment. Without a developed and healthy environment, the growth of the cycle will be paralyzed or partially paralyzed.
How To Determine the Cycle?
For example, during the last month, the number of your transactions was 100. Current month, the number of transactions is 110. Next month the number of your transactions will be 80. So, your High cycle is 110, where Low cycle will be 80 and Mid Cycle is 95.
Once you start noticing a slight decline in your cycle, the relevant mechanism mentioned above must be initiated to control the business and its direction.
Let’s have a look at the real example of cycles in the business. Table 1 demonstrated the total number of transactions during the year. Chart 2 illustrates the determined cycles during and necessary indicators, such as High Cycle, Low Cycle, Mid Cycle.
How To Take The Right Actions?
It’s a massive subject, but let me give you a brief understanding, let’s take the example above. During the cycle period, where the number of transactions is getting close to 40, the organization must execute massive marketing along with other motivational aspects: meetings, setting targets, team building, etc.
Once the number of transactions is prevailing 90, the organization must initiate the compensational stimulation of the sales employees.
Once the number of transactions is lower than 90, immediately the massive marketing support must be initiated, to make the bottom of the cycle higher than it’s a potential target.
By Akhmed Idigov