Our business is becoming more of a sales business and less of a relationship business.
I’ll share what I’m seeing across the board and then what we’re doing at our company to stay ahead.
Here are the 3 things I expect to see happen…
- Agents who got deals only because of relationships are in trouble with these changes to compensation.
- The buyer process will now require consumers to hear a sales pitch from agents
- As opposed to the ‘You don’t have to pay me’ pitch
- or worse… I’ll credit you back $$$
- As opposed to the ‘You don’t have to pay me’ pitch
- Good agents will charge more than agents that aren’t good
- This will allow good agents to be able to dramatically outspend agents that aren’t as good, making the gap even bigger.
Let’s dive into each of these a bit deeper…
The Relationship Agent – (Agents that got deals only because of relationships)
This is the agent who has their license and does a deal here and there because of their network. If this person isn’t a true professional, they’re going to lose a ton of business.
I believe anyone who ‘does real estate’ as a hobby (or anything other than their full-time job) will struggle. This is pretty straightforward. The consumer is going to demand a better experience when buying or selling.
Buyers Sales Pitch – (The buyer process will now require consumers to hear a sales pitch from agents)
“Why should I hire you” is going to become one of the most common questions buyer agents are going to hear. Are you ready?
I think we all know that most agents have no true process that they follow when working with buyers or sellers. The top agents do, and that’s a large part of why they’re top agents.
Sales processes come from doing the job so many times that you find the best way to do it. Once you’ve found the best possible way to do something, why would you change it? There is no need to recreate the wheel once you find the right way to do something.
The Gap Between Good & Everyone Else – (Good agents will charge more than agents that aren’t good)
The top agents win the business more often than other agents; that’s why they’re top agents. However, nobody talks about the biggest impact that will have on the market. This isn’t a real estate principle; this is a business principle.
The best agents will be able to charge more than everyone else. They will not only win more business, more often, but they will also make more money on every deal.
This is going to allow them to spend more money on both their own marketing AND more to make their customer experience even better.
THIS is what I am most excited about with this change. Here is the part I mentioned earlier that we’re doing with our company.
We are going to continue to win more of the business, more often, because we have a clear sales process. This sales process is proven to convert more leads into clients. It also is proven to get clients at a higher fee than the industry average.
Awesome, but here is the business principle.
Step One – When you win the business more often, you’ll do more deals and generate more revenue. You will also do this with the same amount of leads. Meaning you’ll have to make more off of what you spend.
Step Two – Because you charge higher fees, you’ll generate more revenue per deal or client.
Combining steps one and two together means that you are making a lot more revenue than the ‘average’.
Here is where the magic comes in…
Step Three – You can dramatically outspend your competition. Because you’re making more money per customer, you can spend more on marketing and customer service, which leads to more deals. This idea is called the flywheel.
Pro-Tip. Most agents aren’t willing to invest the money, time, or resources back into their business. Those that do are making their business better in the long run.
On the opposite side of this… You have agents who will be lowering their fees, mostly because they have to due to the lack of a sales process. These agents will have to start finding cheaper alternatives and cutting costs because they’ll be making less per deal. This also has a flywheel effect, just in the opposite direction.
Now I will make the argument that they can make it up with volume… Absolutely true. Which is even harder (probably impossible) to do without a sales process.
In my company, we have made a crystal clear sales process for our agents to follow. This process is what our agents are following to get buyer agreements signed left and right. I’ve made the same training our agents get available to you inside our free Skool community called Start to Finish in Real Estate.
I’ve already shared two major trainings.
- Our ‘Onyx Sales Process’ (win the business more often)
- CLOSER Framework (sales-based questions to set more appointments & move clients forward)
Both of these are available for free in the community. Go to the Start to Finish Community to get both trainings.
But wait… I’m also going to be sharing a third training in the next 2 weeks. This is our exact Buyer Strategy Session that our agents are using to get our buyer agreements signed at higher fees more often. I share the entire process (50-page doc), including the full script and a 2-hour training.
If you want access to it, you’ll need to be in the community.
To join, go to: https://www.skool.com/start-to-finish-in-real-estate/about