Updated Friendship Algorithm
Ladies and gentlemen, let’s talk about the friendship division, an updated algorithm that’s coming to you soon.
Well, number one, what the heck is an algorithm like? We’ll discuss that. Number two, the friendship division. As we’re talking through that, we’re going to say here’s how we’re doing things. Here’s what’s going on. Here’s the way that when a new person is assigned and it comes in, what we’re trying to do, it’s going to take some period of time to work through this.
And we’re trying to do it in a fair, equitable way, understanding that we do run a business and we are a for profit business. So we want to understand who’s closing, what’s going on in each one of those different items. So I’m going to go ahead and share some of the details, not every single one, because we’re still working through and looking for some assistance from you as agents to give us better insight.
So some of those things that we would be discussing and considering here for that are going to be as I pull them up, maybe I should have had them ready in advance, but I thought I had it real quick.
So an algorithm is an equation that basically puts weight on different items in different scenarios. So what we would have is inputs would be things like what is the referral source? Have you is an agent had success closing this type of transaction in the past? Right. What is the buying time frame? Are they buying now? Are they buying in the near future or are they buying in the distant future? Have you had success with nurturing the client for a long period of time until they close? Right.
So if it’s one that is closing in six months or when school ends or school starts or when the husband gets a new job or whatever that happens to be, have you been successful at nurturing a person for that length of time, whether it’s short, medium or long term, the type of client? Is it a fire? Is it a seller? Is it both? Have you had success there? Is it a lease? Is it a tenant that we’re representing?
You know, those are each different things and will have a different weight quality score. So we put a quality score together and the whole quality score is going to discuss the price point, the location, the likelihood to close the amount of details they gave us. If they are fully financially approved, you know, if they’re paying cash for the property, what types of things they’re in each of those as they are positive, they’re added up and it goes to the quality score.
So as you have, you as an agent had success closing high quality score ones in the past, or have you had success closing low quality score ones that might not be likely to close, but you’ve done an excellent job at closing them that would add in and being more in your favor.
If you have, we would go ahead and take success that agents have had in the near term, like the last recent 90 days and their whole career, to play that into account to see who should get what in each different case. What about your max capacity? Are you fully busy right now? Some agents have a max capacity of one transaction simultaneously or two or ten. It just really depends.
So what we need to know is where are you in relationship to your max capacity as an agent for clients can handle simultaneously and still give them great service. Everyone has a different number and we need to know how where you stand in relationship to your max capacity. So that’s part of the formula that’s getting built out as we speak, the proximity to where you happen to live.
So if you live maybe in North Dallas, that would be one thing. If you live maybe in Dallas or to the east or to the west, there’s maybe a different place that you as an agent are closer to the client. We want to try to make sure that we’re handing out things that are in close proximity to you. So that will be taken into account as a certain factor as well. Each one of these things are different factors. They’re not the definitive end all be all. For now, we’ve been trying to pass allowed items based on our understanding, based on certain formulas that we have.
But now we find that there’s a need to further expand in work with our formulas. So we’re going through the agent assigner process of putting all this together and working deeply with our programmers in the technovation to get this all completed for you guys will also play in parts to this that are what have you closed in the last 90 days?
Last year with the friendship division in particular, what’s your success been like for your personal business and what’s it been like in particular for the friendship division? So we’ll talk about that then. We’ll also have a number in there for how often you accept or decline when something is handed out, if you reschedule it right. And we set a definitive time and then that’s rescheduled, that’s an opportunity for failure, a high, high opportunity for failure.
So that will play a big role in it. That would have a higher weight. The notes do you put amazing notes in the system. Do you follow up and have great success there? Do you give the feedback to us through notes on how, why and when do you keep your calendar updated so Friendship Division can assign something to you in a positive manner? All those are the items that are currently going into the equation that we’re working through. If you as an agent have some feedback that you think would help us out, then we’d be likely to want to hear from you.
So please send me an email and give me some other additional factors that you think would help. We’re always willing to learn. We’ve kind of listened to what the agents have said and we’ve heard you. And what we want is for the best success and the most likely person to close to go ahead. Get said transactions, but what we need to know, are there some factors that we’re not currently considering with this new and updated algorithm, it’s going to take some period of time to build this out, but it is something we’re working towards and your input is always desired.
Ladies and gentlemen, we’re looking for increased visibility for agents in transparency. And we think by sharing the factors that go into it, then you as an agent will have more information and you’ll feel a little bit better about what’s going on. And we’re always here to continue to have higher close rates, put more money in everybody’s pocket and do the absolute best we can as brokerage. Thank you guys very much. And that concludes what we’re talking about here.