How many times have you pitched for the business and never got the commission fee you originally asked for or told that particular owner? I think we’re all a bit guilty of dropping the fee we ask for from time to time in order to win and secure the listing. And there’s nothing wrong with that. Sometimes you’ve gotta do what you’ve gotta do.
But what if I told you that you can earn the fee you ask for more often by doing 2 fairly simple things?
Whenever I coach agents, I get them to focus heavily on working people who have no intention to sell, more than the ones that they’ve met only a month or 2 ago that are thinking of selling right now. The reason for this??? If you can service and build a relationship with an owner over a period of 2, 3, 4+ years, then when it comes time to actually pitch and present for the business, they should already know you quite well and hopefully feel comfortable with you. If you’ve advertised yourself properly, they should have also been made aware of deals you’ve done in the past and you and your offices results in their area. And believe me, most people would rather pay an agent a little bit extra if they feel comfortable with them, than pay an agent less if they didn’t trust them or feel comfortable with them.
So for me, the reality is you actually earn part of your fee with the work and service you give a home owner in the months and years leading up to their decision to sell.
Think of it like this… You earn 0.10% every month or 2 when you’re servicing, building a relationship and trust and rapport with someone over a decent period of time. If you do none of this, how can you expect to get the fee you ask for? You’d better be a killer listing presenter.
So get out there and start building and maintaining trust and rapport with people over a long period of time. You’ll have a much better chance of getting the fee you ask for – or at least not being screwed down as much.
People want to do business with people they like and trust, remember that!
Unfortunately lots of agents ask for a specific fee (whatever that is), but fail to show and explain why they’re asking that and what benefit it has to the seller. Hence the reason lots of agents don’t get what they ask for.
I’m a big believer that 70 – 80% of the time you spend pitching and presenting should be about you and your office. Let’s face it, most agents’ marketing and commission are the same or similar. If that’s the case, put yourself in that sellers shoes. What’s going to separate you from your competition when these 2 components are similar? So spend a good chunk of your time showing and explaining your point of difference. Here are a few ideas to help you earn the fee you ask for (or again, at least closer to what you ask for):
In summary of the above 4 dot points, when pitching for the business, prove your worth by explaining your service back to front from day 1 to settlement and how you’re going to add value. If you do this right, it will take you a while. But I promise you that in most cases, that potential seller won’t or isn’t going to hear this from other agents they interview. So that’s your point of difference and where you can get one up on your competition.
Remember, spend a reduced time on discussing price, marketing, method of sale and your fee, because in most cases, what you discuss here will be similar to other agents and the majority of your time explaining why you and your level of service in high detail, because that’s how you’re going to win the business and truly earn the fee you ask for.