5 Questions to Ask Yourself Before Accepting a New Client

“This may seem simple, but you need to give customers (clients) what they want, not what you think they want, And, if you do this, people will keep coming back.”

-John Ilhan-

A handful of my clients are telling me it feels as if the commercial real estate market is just now beginning to slow down a bit, just a tint bit. Some may be afraid of this perceived slowdown and start scrambling for business resulting in taking listings and new clients that one would never otherwise accept. Don’t fall into this trap, it will suck you dry.

When business slows down, it is very tempting to take on new clients who may be less than ideal. But there is nothing more lethal to your business than accepting poor listing or tenant rep assignments. You know the ones I’m talking about…impossible requirement, bottom feeder, over-priced, poorly located, a dump, unreasonable owner/tenant and so on.

You know in the back of your mind you will never sell or lease this property. Perhaps it’s a tenant rep assignment you have taken or buyer requirement but you know you will never find the a solution that will make the client happy – it’s impossible. But you take the assignment anyway, it’s work after isn’t it. The truth is you are just wasting your time with these assignments.

WRONG! The truth is you are just wasting your time with these assignments. They might make you feel (and even BE) very busy. But you will be busy making NO money. Is this what you want, to be busy (but not productive)? Of course not, So next time you consider a new opportunity ask yourself these 5 questions:

1.   Can You Fulfill the Requirement?

Is the result your client wants attainable? Specifically, can you lease, sell, or find the space for your client within the parameters your client has set out? Or, will you have to beat your client silly in order to convince the client to accept less than the desired outcome? This tactic never comes without a price tag. You will not have a win-win deal transaction when you have to steamroll the client (at either end of the deal).

Buyer’s remorse may be the result here; just think of the time required to fix buyer’s remorse! Think WIN-WIN here.

2.   Will the Assignment Take More Time Than is Usual?

How much time will you need to allocate for this assignment? Are you trying to convince yourself, “business has slowed down, I know this is a long shot but I really need the work” only to discover you have you have spent an ENORMOUSE amount of time and have produced NO results. Be mindful of this. Your time would be better spent implementing a lead generation system designed to deliver your perfect client! And, you’d have a lot more fun doing it!

3.   Is the Client Reasonable?

OK, let’s figure you have decided to take the assignment anyway, what are the chances that the client will be reasonable once he realizes he was incorrect about getting what he wants? Do you have any history on this client?

Also, does the client expect you to be available 24/7, no matter what? Does the client disrespect your boundaries? Don’t ever put yourself in the position of being in someone else’s string. This will get old really fast. You can have a great listing/requirement and an unreasonable client in this regard and then it becomes a listing/requirement you should not get involved in. Let someone else have it!

4.   Are You Working Harder on This Listing/Client Then Your Good Listings/Clients (after all, they absolutely require more work)?

Hopefully you are aware of the typical amount of time required to be spent on a particular client’s needs each week. Is the time you will need to invest excessive? Can you fix it? If not, move on or it will drag you down – guaranteed.

5.   Will This Listing/Client Zap All of Your Energy Leaving Little After Over?

What is the mental cost (mental cost is the amount of time spent thinking and worrying about the client and the desired result expected) of taking this on? How much sleep are you losing waking up at 2 AM consumed with worry over this one client? Whether you waste countless hours trying to produce, or spend time trying to avoid the entire mess the mental cost is bigger then you will ever be able to measure. Your energy will be COMPLETELY drained leaving nothing elso for the “good” clients.

If you answered “yes” to even one of these questions, proceed with caution.

I can’t tell you how many clients have actually lost income as a result of spending an enormous amount of time and energy working on assignments that were doomed to begin with.

The exception to this is when you have a client with whom you set expectations and they are excepted. Remember, the best clients energize you and the worst…well drain your energy.

Cycles in real estate are necessary and you can weather the ups and the downs if you have a strong foundation and good habits in place.

Finally, remember, every time you say yes to an opportunity, you say no to another possibly better opportunity.

Call or email today to get coached by Cindy

312-316-4916 or email [email protected]

Cindy Spivack, CEO and President of Cindy Spivack International, Inc., teaches and coaches Commercial Real Estate Agents/Brokers "The 7 Golden Keys of Today's Top Producers" in addition to a handful of proven strategies for building an enormously successful commercial real estate business in 12 months or less.

Cindy has worked with numerous Top Producers in the business in addition to Teams and Managing Brokers. Many of her clients are recognized in the top tier of the brokerage community as a result of her help. Further, she holds the belief that there is no such thing as a “one size fits all” solution and listens carefully so that proper solutions are implemented.