This broker spoke of his company with pride. And kept coming back to the one idea dad broke his back and wrenched his gut for while building the firm:
People first.
His boutique firm commands an impressive slice of local market share. So it seems to work, too.
Brand, schmand
In the course of doing the brand discovery that kicks off many of our engagements, I was told that this company matches leads – people – with an agent who fits their needs. I liked that idea. It’s not new or novel. But sadly, while it may seem to be the obvious way to run a real estate company, this sort of arrangement is not something a consumer can assume.
I wanted to learn more about this company’s agent selection process. Is it automated? Manual? What is it that they actually match up?
A majority of brokerages I’ve spoken too in the past match users with new agents or those with whom they have the best commission split.
I typically question this practice. “You present a benefit to the user, one who has actively sought help and then slide them to the least experienced agent to help them transact the most important purchase in their life”, I’d say with a dollop of concern. “What sort of brand experience is that?”
“Brand, schmand,” most brokers say. This isn’t about building a brand. It’s about survival. This is how we make money.”
Sometimes I suggest, then, that they boldly and proudly alert the user to the truth. Why be secret about it? Create a call to action that reads: Need help choosing an agent? We’ll match you with one of our new agents. They get to land a deal and we profit more on their split.
Uncomfortable silence typically ensues.
Hot, sticky, humid silence.
That kind that fogs up the discussion.
So says the son
Many brokerages route leads based on splits. It’s time tested. Accepted. It’s how they survive.
He’s grappled with this ideology. And many others during our discussions. Weighing the benefits of this practice against the silent but deadly stench of pulling the wool over peoples’ eyes seems to challenge many brokers. Not this guy.
He’s interested in building something that will last. He wants to create a digital brand experience that brings to the Web the soul of his organization. Fooling people to make a buck doesn’t fit into that plan. It never did. Not for dad. It never will. So says the son.
People first
He did make one adjustment as a result of our talks: When someone fills out the form on his company’s website asking for help finding an agent, the inquiry will go directly to him. He will read each one. And attend to each request personally. He will oversee the selection process. And choose the agent that best fits the needs of the prospective client.
Even if he’s the 95/5 guy.
It’s a price he is willing to pay to keep the promise dad made. The one written in stone.
People first.
Local, Mobile, Social and the future of real estate
20 Tools to Bring your Real Estate Business to the Cloud
15 Ways to Make Your Marketing Mobile
Nice one Marc. We’ve been doing something similar here for the past 3-4 years. While it pisses some agents off because they think in terms of an “up schedule” and “their” leads, we think it serves the client better to match them up with the agent who is best to serve them, based on whatever criteria we get from them – price, area, type of service (hand holding, analytical, etc).
Now, that does not excuse the fact that all of our agents should be trained properly and know the inventory inside & out. It is just that some bring different qualities to the table, just like our clients.
One more reason to have the same split across the board. If you get a client that is requiring an extreme amount of hand-holding and explanations about every minute detail, you probably don’t want to pair that client with an agent that is short on patience.
What continues to amaze me about the real estate business is that no one – not even the brokerage – treats it like a business. It seems like the way of things is to throw as much shit against the wall and see what sticks.
You don’t hire a plumber to fix your car … It’s true, to some extent, that real estate is a numbers game but why would you put yourself at a distinct disadvantage from the get-go by placing a client with an agent that is not going to serve them properly?
Repeat and referral business is key to any company that wishes to survive. There is way too much “one and done” people in real estate.
I couldn’t agree more with this philosophy. As the Director of Relocation, my goal is to be a “match maker” between a transferee and one of our agents. A referral is never given out based on “who’s up” or “who needs a lead” its all about finding the right agent for that transferee. Fortunately that philosophy is supported by our Broker/Owners.
Marc,
As an SOB (Son of Original Broker), this post spoke to me. My father’s promise, and our Mission Statement, has always been; take care of your customer and your success will take care of itself.
I never consider “splits” when it comes leads. I consider conversion; who is best able to service this lead?
The challenge, from a brokerage perspective, is balancing the “speed of response” versus the “quality” of the responder. Another mantra my father had was, “management has it’s burdens” and personally vetting each and every lead could back-fire. Sure, there are alternatives (scrubbers, auto-responders, etc.)but the customer doesn’t want to wait as much as they don’t want to be treated like a “lead”.
Guess that’s why we still call it “work”, eh?
Jim
I believe that’s what divides good brokers from bad brokers. Sometimes it’s not easy to apply this philosophy, but it definitely pays off in the long run.
[...] Davison of 1000Watt Consulting talked about how clients should be matched up with agents. Great post, as [...]