JULY 2009
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www.opp.org.uk
Project focus
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Building agent networks |
55
STRATEGIC ALLIANCES
WORDS
|
Andrea Kirkby
INDUSTRINDUSTR
Strength in numbers
YY
Having a large network of international agents will help developers to survive the
recession – but only if the majority are actively selling for you
In these dif_f_i cult times, new sales partners. However, falling network, developers now need plenty Some Spanish developers
PEOPLEPEOPLE
developers that have invested attendance has made this far more of proactive partners covering a range fully expect buyers and
time in building their agent costly. Mark McLoughlin, sales and of buyer markets to see a signif_i cant investors from 10 to 20
networks, to access a wider range of marketing manager at Regnum, favours increase in third party sales. dif_f erent countries to f_i nd
buyers, are faring better – more so now direct contact with agents, rather than “A few developers understand that their website and then
as agents are more motivated to sell. using exhibitions - particularly consumer with prices falling and more resales respond to the online
“I’ve worked with some pretty lazy focused shows. “Most developers don’t coming on to the market they need the content, as opposed to
agents,” bemoaned one Southeast Asian believe in stands at exhibitions any agents far more than the agents need dealing with knowledgeable,
developer (who preferred to remain more,” he says. “It doesn’t make any them, so of_f er full support, information, local agents who understand
unnamed). “We worked with a very high sense; we wouldn’t be reaching the right training, incentives and attractive the needs, buying habits and
DESTINADESTINADESTINA
prof_i le UK agent specialising in top end audience. We just want to get in front payment terms.” culture of their clients.
sales, and they failed to sell anything. of the agents.” Moroccan developer McLoughlin echoes this point, saying David Le Lacheur, OPP
Our inhouse team was far more Property Logic doesn’t have any direct developers need to understand how
ef_f ective.” However, even this developer sales, choosing not to compete with overwhelmed many agents are. “Some
TIONTIONTION
had to admit that, as pro-active as his its agents, so only exhibits at tourist agents have so much on their plate,
team was, leads had dried up and he industry shows where it markets to hotel getting pounded by developers who
“was still open to working with the right partners rather than property buyers. just want them to sell their projects, it
agents” to extend his buyer reach. Hybrid events like the Property Investor can mean they start losing focus,” he
Building a network of the ‘right’ Show & OPPLive in the UK, Cityscape says. “We have to make sure we stay on
agents takes time and money. Spanish in Dubai, and SIMA in Spain promise top of them and remind them they are
developer Alanda started to develop developers the best of both worlds – working for us.”
its network when UK business started with a tailored conference programme Once agents have been signed up,
BUSINESSBUSINESSBUSINESS
falling of_f , and saturation of the Costa designed to attract pro-active trade developers must f_i nd a balance between
del Sol started to shrink its direct delegates. motivating them and supporting them.
sales. Kandy Paterson, sales director Property Logic won an OPP Best
for Alanda Group, says she started by Active investment Developer award for
identifying six countries in which to Any developer that has invested in a its support of agents
expand the network, making initial process to research and evaluate agents, last year, providing
contacts through an exhibition in each. and created a support package for the everything from plans,
“To go to the f_i rst six exhibitions, each ones they choose to work with, will data, CGIs, and photos
one cost say €6,000 - in all it would often still f_i nd that some do not pull to full due diligence
cost €50,000 or so,” she explains. “Each their weight. Antoine Pellet, investment and even includes
DEDEDE
exhibition yielded three or four agents director at Property Logic, admits that exchange rates. Having
VELVELVEL
who eventually joined the network”. only half the agents in its network information available
OPEROPEROPER
“Spending money isn’t enough,” she are active; while Paterson says that of isn’t enough, says
adds. “You have to work the exhibitions. Alanda’s 80 international agents, only Pellet. “Agents need
You’re trying to sell a product at 25 are active on a daily basis. “There’s
€500,000 and you’ve got someone from always a percentage that will work with
Bulgaria selling stuf_f at €40,000 next you much better than other agents,” she
to you - it’s not easy. It takes a while for says. “Your top 25% will be key agents.”
agents to join, too. It can take several Like agents who hope the market
visits and up to a year before sales come will improve without doing anything
MMM
through.” It may be a relatively small to stimulate buyer interest, developers ARKEARKEARKE
investment in terms of the business as a are often guilty of not being ruthless
whole, but payback is not fast. enough with their agents. “In current
TINGTINGTING
Developers have always used conditions the out of date desire to have
consumer events to recruit agents, with ‘just a handful of good agents’ is likely
organisers well aware that exhibitors to lead to just a handful of sales,” says
will be more positive about even the OPP’s David Le Lacheur. “Unless they
quietest show if they have found are partnered with a major agent or IFA
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