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50
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DEVELOPER FOCUS Distribution networks www.opp.org.uk
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FEBRUARY 2010
Developer checklist: What to
consider before building a network
Y
Product – is there demand for
what you are building, or can it be
adapted?
Package – how can product be
INDUSTR
packaged to appeal to lifestyle or
investor buyers - or both?
Buyer – what proportion of sales
will come from domestic and
foreign markets?
Region – in which main cities or
towns do you need to fi nd agent
partners?
Support – do you have a multi-
lingual liaison and real time
PEOPLE
updates?
Motivation – can you off er
tailored incentive and commission
structures?
Pioneering process
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Egypt master agent Pioneer Property has sold a
Reassurance – can you provide all
property a day thanks to its targeted distribution network strategy
due diligence documentation on
demand?
protection laws due in the second databases? Celebrity designers and the right local profi le, client databases
Engagement – how will you keep
half of 2010. “These contracts include spa brands are adding greater value and approach to sales. But in return,
your projects front of mind?
TION
the details of the developer guarantees than sports personalities, for example. they want robust systems and control Process – have you made the
to refund if for any reason the over their profi le – something the reservation and sales process as
development fails, and the developer Think outside the border franchises can’t off er.
easy as possible?
backs this with assets in excess of $200 Once clear on all of the above, “Our success in attracting suitable
DESTINA million USD,” explains CEO Kimberly developers must consider the mix of partners is mostly down to creating a for Pioneer Property: “They need to
DeLape. “All of this information is local and international sales partners. demonstrated system and a safe and be supported and motivated to sell.
available to the broker and the buyer Developers in Florida, who have secure business environment where They need clearly set out contracts,
ahead of signing reservation or traditionally sold most to Americans, the overseas partner retains both his white-labelled marketing material
contracts.” saw the proportion of international corporate identity in the eyes of their and a thoroughly researched process.
Turkish developer Regnum adds buyers to domestic rise from 15% client and control over the commission Commissions must be realistic and they
reassurance with an International to 35% last year – but most rely on pipeline,” says Darren Edwards, must be paid promptly.”
Developers Information Pack (IDIP local Realtors to source international managing director of Network Pioneer off ers up to 10%
report), which provides references from buyers. Platforms like Proxio are trying Turkey, a master agent building an commissions, paying 5% on contract if
accountants and lawyers, credit rating, to open up the US market, while the international partner network across the sale is made in resort or sub-agents
BUSINESS
copies of title deeds, building licences, BMV Florida Property Network - an Europe and the Middle East to source take 50% immediately if they make the
and record on delivery. international sales network that buyers for pre-qualifi ed Turkish sale. No more than four weeks should
International agents can choose includes agent partners in Ireland, developers. be the norm and many pay within 14
from a variety of destinations to source Scandinavia, Canada, Italy and China – days of signed contract.
the product type and location their is one of several players creating new Support your network Marketing support isn’t just
clients are looking for before they sales channels. Sharm el Sheikh master agent Pioneer about supplying logos and massive
even get to the developers competing Research into current and predicted Property identifi ed its core markets brochures, adds Warner. “Some
in that market; so developers must residential tourism trends is vital to based on resort sales and regional developers provide micro-sites with
OPER consider the diff erentiating factors that determine the likely mix and profi le tourism data – with Poles, Russians, downloadable marketing collateral and
will appeal most. of potential buyers. OPP is aware of Italians and Brits the most active price lists but I prefer to keep in more
VEL
For example, is the product refl ective one property fund buying up tracts purchasers and potential buyers. regular contact with my agents. Price
DE
of current and future demand - bearing of land in Istria to build boutique Closing over a deal a day at the lists need to be dynamic so agents
in mind trends like inter-generational can see property is being sold every
family travel (with grandparents We particularly understand the benefi ts of stand sharing with day. You need to make the process
babysitting) and the desire for agents who have local knowledge in terms of diff erent cultures as simple as possible so all agents
community elements? Is the project and languages and who will put certain nationalities of client need to do is push the button to their
too ambitious in scale? Investor buyers at ease when dealing with someone of their own culture. databases. These are busy people being
just want well-managed boxes in good Panayiotis Makedonas, Country Rose pulled in diff erent directions.”
TING
locations, for example. Also, ‘experience’ Keeping the project front of mind for
resorts – with options ranging from resort developments for the 80 million beginning of January, its distribution agents is the key to eff ective networks,
ARKE
wine-making to safaris – are a niche German speaking ‘drive-to’ market, for network was a vital component in and this can be achieved through
M
product, with a limited market – so example. sales; but fi nding agent partners in updates on project progress or even
who will buy it? Are brand or design Developers or master agents selling core buyer markets was only part relevant news content about tourism
partners adding value beyond profi le, such projects must not only identify of the process, says Carl Warner, activity in the region, new fl ights
with sales potential from their own partners in key markets but those with Commercial Development Manager announced or favourable changes to
FEB10_OPP_MAG.indd 50 28/01/2010 15:22
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