How to compensate your real estate setter for qualifying calls

What defines a qualifying call?

A qualifying call goes beyond simply making contact; it's about uncovering a seller's true motivation and situation. This means identifying his or her reasons for selling, his or her timeline, and whether the property condition aligns with your investment strategy.

The setter’s job is to gather enough specific information to determine if the lead warrants a deeper dive by a closer. It is not just a polite chat, but a structured information-gathering mission.

For example, a qualified call might be one where the seller confirms he or she wants to sell in the next 30-60 days due to job relocation, and he or she indicates the property needs significant repairs.

Structuring a base pay plus commission for setters

Most investors find a hybrid compensation model works best for setters: a modest base salary combined with a commission for each qualified call. This approach provides stability while rewarding performance.

The base pay covers the setter's time for administrative tasks, initial outreach, and handling leads that may not immediately qualify. The commission component directly ties to his or her effectiveness in identifying genuine opportunities.

Suppose you offer a base pay and then a set amount for each lead that meets your specific qualification criteria. This ensures the setter feels secure but is also motivated to dig deep on every call.

How to track qualifying calls reliably

Accurate tracking is critical to a fair compensation model. You need a system that objectively verifies a call as qualified before payment is issued.

This often involves call recordings and a clear checklist of criteria that must be met. A supervisor or lead analyst should review a sample of calls or all calls for new setters to ensure consistency and adherence to standards.

Use your CRM to log key data points during the call and mark leads as 'qualified' only after the required information has been obtained and verified. This audit process protects your investment and maintains quality.

Avoiding common pitfalls in setter compensation

One common mistake is paying for quantity over quality. If setters are paid solely on calls made or appointments set, they might rush through conversations or misrepresent lead quality.

Another pitfall is making the qualification criteria too vague, leading to disputes and frustration. Be explicit about what constitutes a 'qualified lead' to avoid ambiguity.

Also, regularly review your compensation structure. What worked when you started might not be effective as your business scales or market conditions change. Adapt to keep your setters motivated and productive.

Keeping setters motivated beyond the pay cheque

While compensation is important, setters also thrive on recognition, clear goals, and opportunities for growth. Acknowledge their successes, especially when a qualified lead turns into a closed deal.

Provide ongoing training and feedback to help them improve their skills. This shows you are invested in his or her development, which fosters loyalty.

Create a positive team environment where setters feel valued and understand how their role contributes to the overall success of the business. This holistic approach builds a stronger, more committed team.

Remember, setters are the front line of your business, and his or her morale directly impacts the quality of leads flowing into your pipeline.