Shark Tales

I held my first commission check in my hand. Three hundred and forty dollars! I was standing on the corner of 83rd and First with the check and Mr. Giffuni’s list of eleven new apartments for rent. It was October 17, New York was already turning cold, and the navy blue peacoat I had brought from New Jersey looked just like a navy blue peacoat I had brought from New Jersey. “I’m going to take this money and buy myself the best coat in New York,ʺ I told myself triumphantly.

My new coat became my signature piece and I never took it off. In it, I not only looked successful, I felt successful.

For the next two years, I marched in and out of buildings up and down Manhattan wearing my expensive coat and flaunting my new image for all it was worth.

We’re not poor at all. In fact, I think we’re rich. It’s all in how you look at things. Your nana says that if life gives you lemons, you just make lemonade. And I say we’ve got lots of lemonade around here!”

opportunity does hide in the worst situations. Finding opportunity is a matter of believing it’s there.

After thinking about the systems that made my mother’s house work, I knew the only chance I had of having a well-run office rested on having a place and a system for everything. So, I spent the weekend planning and getting organized. First, I made a list of everything that hadn’t worked at the old office, a long list of time wasters, and figured out how to eliminate them. Then I made a list of what had worked and devised ways to do them even better. I thought through my salespeople’s office needs, numbered the most important ones, and crossed out the ones that could wait.

I had placed a small yellow rose in a white vase with a handwritten note on each desk. The salespeople smiled as they read it: “I’m so happy you’re here! xoxo—Barb.”

The first is that we’re going to have breakfast here together every Monday morning. It will begin promptly at nine thirty and end exactly at ten fifteen.

“The second announcement is that we’ll be starting a brand-new system for our listing information, and here’s how it will work.” I held up four different-colored index cards. “The new listing cards will carry the same property information as our old ones did, but the new colors will make it easier for you to find the right-size apartment when you need it.” I demonstrated each color as I spoke. “All studio apartment information will be written on the white cards, all one-bedrooms on the yellow cards, two-bedrooms on blue, and three-bedrooms and larger will always be on pink. Every time you get a new listing, you’ll write it on the appropriate colored card and file it in the corresponding colored box. As our new colored listing system will help everyone, no one will receive listing credit if the apartment is written on the wrong-colored card. Do you understand?”

“The third announcement is about getting better property information. I’m sure you all agree that the more we know about each property for sale, the better chance we have of selling it. So, from now on, I’ll be paying cash for better information. For example, when David writes up all the details about his new listing, and Sandy, after seeing it, is able to add one more fact to David’s information, I’ll give Sandy one dollar for helping David.” I waved a fistful of dollars in the air and smiled.

“For example, where did you get your customer? Did they call you on a Sunday ad? Find you in an open house? Or were they referred by a friend or business associate? Simply check a box. Where is your customer living now? Is he here in the city? Or is he moving from another state? Another country? Check a box. And what business is your customer in? Is he married? Single? Children? How old is he? Simply check a box. Knowing where our business is coming from will help us all get more business.” Everyone nodded along with me.

“If we know more about our sellers and how each deal was made,” I continued, “we’ll all become much better negotiators.

So some of the other questions are about the transaction itself. How long was the property on the market before it sold? What was the first offer? And how much did the seller negotiate before the deal was done? “The new commission form will take only three minutes to complete. All you have to do is check the appropriate boxes. Commissions will be paid every Friday, and no commission will be paid without it.”

Everyone applauded. “And this brings us to our last announcement today, the Good Idea Box.” I pulled out a cardboard shoe box on which I had drawn a giant yellow lightbulb. “This box is for good ideas,” I enunciated. “Whenever you have a new idea, I’d like to know about it. I don’t care if it’s a big idea, small idea, or even a stupid idea—all ideas are welcome! I’ll pay five dollars for every idea, and I’ll even give five bucks for a complaint—but only if it’s accompanied by a solution.

the Good Idea Box.” I pulled out a cardboard shoe box on which I had drawn a giant yellow lightbulb. “This box is for good ideas,” I enunciated. “Whenever you have a new idea, I’d like to know about it. I don’t care if it’s a big idea, small idea, or even a stupid idea—all ideas are welcome! I’ll pay five dollars for every idea, and I’ll even give five bucks for a complaint—but only if it’s accompanied by a solution.

“‘Seven salespeople needed. . . .’” I read the words of my help wanted ad to the phone operator at the New York Times and realized it sounded desperate. “Wow,” I said, “when I read it out loud, ‘needed’ sounds really needy, don’t you think?” The operator said nothing. “Let me change that to ‘Seven desks are awaiting.’”

I had two problems to solve. First, I had to attract enough applicants to give me the best chance of finding good hires. Second, I knew if potential salespeople saw us as we were, desperate to fill our extra seven desks, they would surely shy away! I knew I needed a way to make the good candidates out there want us.

Sales, Real Estate ONE EMPTY DESK Only one desk available for a positive, high-energy person wishing to earn large commissions. Exceptional company. No experience necessary. The Corcoran Group. 212-355-3550

By the time the calls started coming in on Sunday morning, I had set up a routine as squeaky clean as Mom’s to move the sales applicants in and out of the office. “Hello,” the first caller pleasantly began, “I’m calling about your empty desk advertisement in today’s paper.” Our new receptionist responded with my carefully worded script: “Thank you for calling. If you would hold just a moment, I’ll connect you with the president of our company.” As I picked up the phone, the applicant politely repeated, “I’m calling about your empty desk ad in today’s paper.” “Oh, thank you for calling,” I responded, “but unfortunately that position has already been filled.” “What?” the caller asked with surprise. “How could that be? It just appeared in this morning’s paper!” “Yes, and I’m very sorry,” I explained sympathetically. “But we usually have a long list of people waiting to join our company, and the positions are often taken before the ad even appears. I’m really sorry to disappoint you.” “Well . . . okay,” the caller said, “I understand—” “But,” I interrupted, “new positions do open up from time to time, and I’d be happy to get together with you anyway. Then at least we’d have a chance to meet one another so when another position opens, I could call you immediately.” “Oh, would you? That would be so nice of you.” “How about tomorrow at ten?” I asked. I narrowed twenty-seven would-be salespeople into sixteen appointments and scheduled them all for the next day between ten A.M. and one P.M. Each applicant was surprised to find three other people already waiting, and jockeyed for a piece of the bench at the front of the office. Our receptionist greeted everyone with a very important-looking four-page sales application. Per my instructions, she gave those who appeared well groomed and well dressed a pen. And those applicants who weren’t dressed for success she handed a pencil. This way, when the applicants called to follow up later, I had a surefire way to tell which callers to spend my time with.

The first interview of the day was with a well-coiffed woman in her early forties. After chatting at length about her children, hobbies, and husbands, I corralled the conversation back in with, “Mary, I’m so happy you’ve spent all this time telling me about your family and friends.” I smiled and she smiled back. “But would you mind if I’m totally honest with you?” “Please, of course not,” she invited. “Well, Mary, after working with so many different people, I guess I’ve concluded that great salespeople have a few things in common. The first is empathy. You know, the ability to get along with people. And, Mary, it’s obvious to me that you’re very, very good with people. Would you agree?” Mary straightened her back, sat up proudly, and agreed. “Yes, of course. Yes, yes, I’m very good with people.” I smiled and then paused with obvious concern. “But,” I continued in a more serious voice, “I’ve also found that the other thing all great salespeople share is a real need to succeed—I’d almost call it a killer instinct. And for whatever reason, I’m just not getting that from you.”

Thirteen applicants later, a tall, thin woman named Emily O′Sullivan marched confidently into my office and plopped

herself down. She wore a hot-pink tweed suit trimmed with a contrasting taupe braid. Her suit had more buttons than I had in my whole wardrobe. They were bright gold with two raised Cs on each of them. I immediately made a mental note to imitate their design for my new Corcoran Group logo. When I got to my standard “I don’t think you’re aggressive” line, Emily was so insulted I thought she’d leap across the desk and grab my throat. And as she yap-yap-yapped in my face, I knew Emily was the right gal for me.

Each morning, I hit the phones at eight thirty sharp to finish setting up my sales appointments for the day.

We spent the first twenty minutes reviewing our customer cards and dividing them into three piles based on how urgently each customer needed a place to live. The hot-to-trot customers formed the “A” pile, the I’ll-buy-it-when-I-find-its were labeled “B”s, and the “C” rating was reserved for the annoying I’ll-shop-till-I-drop group of time wasters. I had each salesperson tear up their “C” customers and toss them in the trash.

By eight o’clock, I locked the door and walked the eleven blocks home to my one-bedroom floor-through on East 69th Street. I climbed the stairs to the second floor, turned the double deadbolt lock, took a consoling breath, and opened the door into the only place I had ever lived by myself in my life. I was thankful to be too busy and too exhausted to feel lonely.

Before the interview was over, I knew I’d feel safe with my wallet in Esther Kaplan’s purse. That’s what I remembered as I now desperately needed someone to help me run my new office.

“May I ask what the position would pay?” I hadn’t really thought about this minor point, but suddenly, Wimpy from the Popeye cartoons popped into my head. “I would gladly pay you Tuesday for one hamburger today,” I joked. Esther straightened in her chair, tilted her head, and said, “I’m not quite sure I understand.” I laughed. “Esther, I don’t have any money to offer you right now, but this is more important than money. I’m offering you a partnership, and I could pay you later in stock. In fact, I′ll pay you 10 percent of my company stock in three years, if you help me build my business today.” With

that, I took a yellow legal pad from the shelf and drew three wide columns across the top. The first I labeled “Year.” The second, “# of Salespeople.” And the last column I labeled “Commissions.” I figured my fourteen salespeople would bring in $250,000 this year, so in the first row, I wrote “1978,” “14,” and “$250,000.” Then as Esther watched with interest, I quickly worked down each column, doubling the number of salespeople and commissions on each year as I went. “Thirty-two million dollars!” I exclaimed when I completed the last row. The number astonished even me. I was amazed to see how easy it would be to become rich! I looked up at Esther, circled the impressive sum, and gushed, “Well, Esther, what do you think?” I don’t know if Esther believed me or not, but she bought in, deferring her salary in

the first few years in exchange for her partnership interest. The next day, while Esther was running the office, I was buzzing about town, hustling hard for our $32 million.

“The best way to get your company known is to publish some sort of survey or report on your marketplace. Something with a lot of numbers—the media love numbers. Maybe compare this year’s prices to last year’s.” “I guess that makes sense,” I said, without a clue as to how I was going to get $750. “Could we call it something important, like the New York City Apartment Price Report?” “Maybe,” he replied diplomatically, jotting a few words down in his notebook. “Or how about calling it The Corcoran Group Report, or, even better, The Corcoran Report?” “The Corcoran Report?” I paused and considered the sound of that. “But it doesn’t mean anything,” I said. “No one knows who or what Corcoran is.” “No,” he answered, “but if you do the report, everyone soon will!”

The only information I had gathered for The Corcoran Report was a list of our apartment sales over the past six months, exactly eleven in total. So, I added up all the sale prices and divided by eleven. I checked it twice and the answer was $254,232. I rounded the figure up to an even $255,000 and typed in the words “VERAGE NYC APARTMENT PRICE” next to it.

THE CORCORAN REPORT 1981 MID-YEAR STUDY

THE CORCORAN REPORT 1981 MID-YEAR STUDY “An in-depth 6-month Survey and Analysis of Conditions and Trends in the New York City Luxury Apartment Marketplace.” *rounded up to the nearest thousand dollars For press inquiries contact: Barbara Corcoran, President, The Corcoran Group 212-355-3550 I yanked The Corcoran Report from the typewriter, made sixty Xerox copies, and mailed one to every reporter who had written an article in that Tuesday’s New York Times. I even included the sportswriters, figuring that one of them might know somebody rich, like Joe Namath, who might be looking to buy a big apartment.

Everyone at The Corcoran Group knew the company listing policy, which I had established at our very first sales meeting. Our “share and share alike” policy required that salespeople post all new listings in our office files within one hour of getting the property.

Dear Mr. Trump, I thought you might like to see this before I send it to the press.

President The Corcoran Group I clipped my note to The Corcoran Group’s new Top 10 Condominium Report and sealed the envelope.

I knew I wouldn’t compromise my Top 10 Condominium Report by changing any facts. But I also knew Mr. Trump would be outraged by his lowly ranking, and I didn’t want my report to alienate an industry figure as powerful as Donald Trump. So I had spent the weekend working the numbers every which way and had figured out a way to do both. Once I had found a solution, I practiced a routine on how to deliver it at least a dozen times.

It was my first public speech and I had worked on it for three weeks, editing every word and rehearsing its delivery over and over again. With The Quick and Easy Way to Effective Speaking as my guide, I had typed the first line of each of my paragraphs in caps on separate index cards. I was ready!

I soon learned many ways to write my name on the wall in the crowded New York City market. When I read in every paper that Madonna was pregnant and on the hunt for a new apartment, I immediately sent out a one-page checklist of what Madonna might be looking for. It included the usual things every celebrity wants, like more space, good security, and all the amenities money usually buys. Within hours I was sitting on the set at CNN′s studio as the “broker to the stars,” chatting up my Madonna report on air. She wasn’t my client, but the publicity from that report landed our first celebrity, Richard Gere. It’s easy to find ways to tie your business into news that’s already out there. It’s like hitching your wagon to someone else’s horse and going for a free ride. In today’s very corporate climate, firms are often restricted from disclosing spectacular transactions that might prove newsworthy. But there’s nothing to stop you from talking about another company’s transactions! When a Park Avenue triplex sold for the record-breaking price of $37 million, the selling broker could not talk to the press, so I did! I labeled his $37 million sale a “steal of a deal” that night on CBS Evening News, and everyone assumed the biggest deal was mine, while he had to stand on the sidelines and watch. I learned to use good old-fashioned grandstanding for publicity stunts.

many doggy paws as photographers snapped away. There’s a little-known American Indian ritual called “smudging,” which supposedly chases evil spirits from spaces. When I suggested a smudging to an owner with a hard-to-sell property on Park Avenue to get his

There’s a little-known American Indian ritual called “smudging,” which supposedly chases evil spirits from spaces. When I suggested a smudging to an owner with a hard-to-sell property on Park Avenue to get his property sold, he thought I was out of my mind. But I used it to get four reporters and their cameras out to cover it, and the news coverage it generated sold the property overnight.

property sold, he thought I was out of my mind. But I used it to get four reporters and their cameras out to cover it, and the news coverage it generated sold the property overnight.

the top 10 percent of our salespeople were making 80 percent of the company’s money.

10 percent of our salespeople were making 80 percent of the company’s money. Meanwhile, the bottom 25 percent of our salespeople were draining resources without adding anything back.

Meanwhile, the bottom 25 percent of our salespeople were draining resources without adding anything back.

I find that every big success happens after I think I’ve exhausted 100 percent of my options. For me, success happened only after I gave another 10 percent.

I returned to the office and called Mr. Mendik. “I’m afraid I have bad news, Bernie,” I began. “There’s just no way your apartments can be sold in this market. They’ve been listed for more than three years and there aren’t any takers. I’m sure you’re aware that the apartments need a ton of work and the maintenance charges are way out of line with the rest of the market. I’m sorry, Bernie, I really wish I could help.” “Barbara,” Bernie responded with his trademark enthusiasm, “you’re a smart girl! You’ll figure it out.” And he hung up the phone.

“Because everybody wants what everybody wants.

And when

there are ten buyers and only three puppies, every dog becomes the pick of the litter.”

“Here’s how it works,” I said to Esther and to one of my best agents, Tresa Hall. Tresa had

agreed to be the project’s sales manager. “I’ve priced all the studios at $49,500, all the one-bedrooms at $99,500, and all the two-bedrooms at $165,500.” “Even the high floors?” Esther interrupted. “Yes, high floors, low floors, front apartments and back apartments, all priced the same. Apartments with views or no views, those with new kitchens, old kitchens, or no kitchens at all, all priced the same!” “But how’s that possible?” Esther asked. “I added up all of the original asking prices, divided by the number of units in each building, and then deducted 10 percent, because that’s what people would have negotiated off the price anyway.” Esther shifted slightly in her chair. “And I’ve also taken away every objection that a buyer could possibly have. There’s no board approval needed and one of the banks with a big stake in the buildings has agreed to provide the mortgages. Also, there’ll be no monthly maintenance charges for two whole years! None!” “None?” Tresa repeated. “But that’s crazy! Who’ll pay the maintenance each month?” “The sellers will,” I answered, “because it’s included in the sale price. We’re simply giving the buyers one less check to write each month and moving the high-maintenance objection out of the way.” I pulled out a sample contract and continued, “We’ll have the eighty-eight contracts prepared in advance by the seller’s attorney, and we’ll stack them high for everyone to see. The buyers will sign them right then and there the morning of the sale.”

At the next Monday meeting, I announced to our salespeople that we had eighty-eight new co-op apartments for sale, that they were located in six different buildings on the Upper East and West sides, and that we were going to sell all of the apartments on the same day for the same price. “Pick any studio for $49,500,” I said emphatically, “any one-bedroom for $99,500, or any two-bedroom for $165,500!” When I wouldn’t disclose the apartments’ addresses, everyone wanted to know where they were even more. “This is not a sale open to everyone and it will not be advertised.” I had no money for advertising, but didn’t share that fact. “We will distribute the exact addresses and unit numbers only on the morning of the sale. I ask that you please tell only, I repeat only, your very best customers. And, of course, you can also tell your family. The sale is limited to one per customer and will take place three weeks from today, first come,

“This is not a sale open to everyone and it will not be advertised.” I had no money for advertising, but didn’t share that fact. “We will distribute the exact addresses and unit numbers only on the morning of the sale. I ask that you please tell only, I repeat only, your very best customers. And, of course, you can also tell your family. The sale is limited to one per customer and will take place three weeks from today, first come, first served. Nine A.M. sharp!”

first served. Nine A.M. sharp!” Everyone looked intrigued, and after I ended the meeting, I could still hear the buzz from my office.

Two weeks before the day of the sale, I added fuel to the fire by worrying aloud to a few salespeople, “I’m a little concerned that we might not have enough to go around.” My whisper campaign created a virtual frenzy.

Please have several apartments you’d like to try for, as your first choice may already be taken!

brain. Donald was quoted as saying, “You learn that either you’re the toughest, meanest piece of shit in the world or you just crawl into a corner, put your finger in your mouth, and say, ‘I want to go home.’”

I came to the conclusion that I’d better sit down and size up the changes I’d have to make to get to the

next chapter of my life.

I set out to totally reinvent myself, but knew I couldn’t change my wiring and decided I’d have to repackage myself instead.

So I decided to let go of getting it right and settle for getting it going.

I hit the Send button and also had the letter hand-delivered

When it comes to building a successful business, I’ve learned to fake it till you make it—you’ve got to dress the part.

I find that my over-preparation and the insecurity that drives it have always guaranteed my success.

Sometimes very successful people appear to be winging it, because they look so comfortable on their feet. But don’t be fooled; there ain’t no such thing. They just come across that way because they practiced so many times.

Doing your homework well takes time—time less successful people aren’t willing to give. Putting the extra effort into preparation results

in extra rewards in the execution.

college—but I’ve always had enough common sense not to fall for big words and puffery.

You can bet the more fancy somebody talks, the less capable he is.

results. I had learned long ago that overstaters always underperform.

I regularly tortured Carrie by telling her that someone else at the office was making more money than she, and time and again she took the bait and sold

another five million dollars’ worth of property to prove me wrong.

Good salesmanship is never anything more than playing up the positives and minimizing the negatives, and if you can find a unique gimmick, it will give you a huge leg up over your competitors.

One thing I’ve learned in building my own business is that everybody wants what everybody wants—and nobody wants what nobody wants.

Everybody wants what everybody wants. And if there is no demand for your product, you’ve got to find a way to create the illusion that there is.

By growing up in a family with ten kids, I learned how to grab attention in a crowded market.

Getting publicity for your company is nothing more than finding a way to step out and grab some attention.

Contrary to common belief, the most effective way to build a brand is not by spending millions in advertising, but by finding a clever way to keep your name in the press.

I realized that providing a statistical report to the press was the slam dunk of all good publicity.

the next thirty years. Information that might seem mundane to you because you work with it day in and day out can become the basis of a good story. The figures you know well aren’t boring to an outsider who knows little about your business. If you’re smart enough to package your own industry facts and figures into a simple statistical report, you’re bound to make news, as reporters base many of their stories on statistics.

brand. My first Corcoran Report was one page long and simply provided prices for apartment sales by neighborhood.

When I published my first report, it was based only on the eleven sales I had made. My salespeople were against it and rightfully argued that my eleven sales was not a large enough basis to arrive at an average sale price for all of New York City. They warned that our company would totally lose credibility, but what they didn’t realize was that we had no credibility. The way I saw it, we had nothing to lose and nowhere to go but up. I learned to ignore well-meaning naysayers, even though they’re often the people who care about you the most. The Corcoran Report, published too early with insufficient information, made my company stand out and get noticed. It’s never too early to publish a report.

I made sure I got our report out every six months without fail.

People who get quoted know how to talk short. Although I feel more intelligent espousing to a reporter with a lengthy answer to a question, I’ve learned lengthy answers never get quoted.

If an entrepreneur builds his business thinking the best way to get noticed is by spending money on advertising, he’s overlooking the most powerful tool in brand building: the power of the press. Publicity is the easiest and cheapest way to have your business step apart from the crowd.

Good entrepreneurship is all about staying on the move. Every successful entrepreneur I work with expands before he’s ready. It’s the best formula I know for aggressive growth and the best way to become the market leader.

The Corcoran Group became the innovator in my industry because I was always willing to fail.

When I spot a chronic complainer, I can’t wait to fire him, as one complainer quickly recruits another to join his pity party, and that will rot a business faster than anything else.

I made it a standing policy at The Corcoran Group to clean out the bottom 25 percent of my sales force every year.

I look for the same three traits in every entrepreneur I choose to do business with: good character, lots of enthusiasm, and a genuine sense of thankfulness.