A Scary Trend In The Real Estate Industry
The way our industry is progressing today we can expect a large portion of sales possibly 40-50% generated by agents in the business will have been paid for either by a fee for service, subscription or referral fee % charged to the agents’ commissions.
Why?
How can that be possible Wade? Because everywhere you look, people and companies are trying to wedge their way into our industry… to become that “go to” resource as the first step in the buying or selling process – all so they can sell you a lead… …A lead that should have come directly to you in the first place! A lead that they used your inventory that they scraped and placed on their own platform and charged back their fee for you to have it.
When you’re suddenly paying 25-42 percent on a transaction, that will mean just one thing – you’ll need to work much harder to maintain the same income you’re earning now.
Sound good to you? No, it doesn’t. Of course not.
So let’s do something about it. Here’s the thing – this isn’t a simple fix. Those Big Tech entities pursuing your pocketbook already have deep pockets of their own. They’ll out-fox you, out-spend you and out-market you – if you let them. This dilemma requires you to get really serious about your business and do the work. I don’t say that to imply you’re not serious or you’re not doing the work already. Some agents are. Some aren’t.
The strong will emerge victorious from this battle because they built their moat and protected their castle by doing the right things. The way I see it, it boils down to three big-picture actions you need to take. Let’s look at those action steps.
Step One: Establish Trust Through a Powerful Personal Brand – Who do you want to work with? People you know, like, and trust. Right? Now ask yourself… does your current marketing allow people to know you, like you and trust you? If not, it’s time to finally build your own brand. If you don’t have the creativity or inclination to do it yourself, hire a professional marketer or an agency to do it for you. Without a strong brand, you simply can’t compete with the Zillows and Redfins of the world, even in your local market. Which means you’d better get used to paying those referral fees and working extra hard to make the same money.
Step Two: Proactively Educate and Inform Consumers – How do I? How can I? Should I? Answer the consumers questions. Once you’ve established a brand identity, one of the quickest ways to elevate it is by consistently providing consumers in your market with relevant, useful real estate information. Whether it’s a direct mail campaign, email/BombBomb campaign, social media – you need to establish yourself as the definitive source of real estate information inside your marketplace. (Think “video first” to accelerate your ascent.) Send them an unsolicited CMA. Keep them informed of local sales, market trends, tips and tricks. Don’t be afraid to have some fun, too, to inject some of your personality. Be the knowledge broker for these people so when that day comes, YOU are top of mind.
Step Three: Make Your Calls and Stay in Touch – Branding and education will protect you from Big Tech to an extent, but to completely encircle your business with a protective moat…You’ve got to pick up the phone and make your calls! Put simply, you can’t rely on the consumer to make the call – unless you love the sight of competitors’ yard signs sprinkled throughout the neighborhoods you (supposedly) serve. Call them, build rapport, get to know these people. They’re your lifeblood. You don’t have to be “salesy.” You can be yourself, reach out, ask how they’re doing, see if they have any real estate questions, and move on. But you’ve got to make the effort. This is a full contact sport and a relationship business and keeping in touch and checking in on people is key to our relationship with our clients. Now that you know these three “big picture” steps, the question becomes – Are you willing to do the work? Protecting your business from Big Tech will be a big part of your future. I hope you’re as concerned about this trend as I am and let’s reverse the trend!
Strength and courage,
Wade
