This mornings Inman News Highlighted Zip Realty's "new" Feature, Tool, Service, Product for real estate consumers.  Zip is offering a commission comparison tool based on a Zestimate.  The consumer will be shown the range of commissions being charged in their market and an estimate of what they could save.  I tried it and it is not available in my market.  This is still not a bad gimmick to generate leads.

This announcement should have come as no big surprise.  If Progressive insurance can build a business by turning auto insurance into a commodity why shouldn't a real estate company try to build a business by turning their business into a commodity?  There is no shortage of companies helping Zip by putting your business out to bid.  Isn't Homegain offering to send consumers sales proposals from "qualified" agents?  Qualified seems to be code for "agents willing to pay us a referral fee for leads"?  What about Lending Tree, "Making lenders compete"  and then also finding the consumer a "Qualified" real estate sales professional.

I have defined ten characteristics of a Top Producer. I also have characteristics for Mediocre Producers...but who cares about mediocre producers..no one reading this I hope. One of the characteristics of a Top Producer is "A Firm Belief in Their Value".  They are confident in what they can do and what they are worth...but they are "Continuously Learning", another of my Ten, which enables them to know their competition and bring new and more valuable services to their customers.

Remember, we are all business people first, then we are real estate sales professionals.  Any business must be well aware of what their competitors are offering.  Any business must be able to demonstrate and convince consumers why your product is superior and worth what you charge.  "Firmly Believing in Your Value" requires constant evaluation of your competitors and what your market will bear.

Try to think about your business in this light.  You can buy a Ford, Honda or whatever from any dealer and , the car, which is the commodity, will be the same regardless of who you buy it from.  The manufacturer delivers the same cars to all of their dealers.  It is up to the dealer to make the sale.  There is certainly no shortage of "Low Price Guarantees" in the Auto business.  You can easily go on line to shop for the "best deal" and hold this over other dealers' heads.  How do auto dealers survive this consumer juggernaut?  Well, the cars may be the commodities but the follow-up service, the shopping experience, financing, the extras the dealer may or may not offer will make the deal.

Ask yourself about your auto buying experiences.  My wife will not shop at a particular local auto dealer even though they are the largest with a huge selection of great cars with the "guaranteed lowest prices".  My wife loves a deal but she will not shop at this dealer because of their marketing and some of their business practices.  She is also not shy about telling our friends just how she feels should the subject of auto buying come up.  The thing is there are many auto shoppers who either do not care enough or really don't mind how the dealer does business.  They just want the lowest price, period end of story.  Free enterprise...go figure.

We should note that Progressive Insurance advertising promotes fast, hassle free, on the spot service, prompt payments by friendly representatives.  Also not the ages of the consumers represented in their ads.  Ask yourself if Progressive knows its market, how they buy , and what they value?

There are limits to what different consumers will pay.  There are limits to what constitutes "value". Your challenge...Mr. Phelps...dating myself here, is to know what you are selling, be confident of its value, be able to convince enough people you and your product are worth what you charge and keep them and their friends coming back for more.

Consider this scenario:  At the settlement table, how many times has your seller or your buyer, whoever is paying your commission, turned to you and pointed at the commission amount appearing on the HUD 1 statement and asked you this question, "Are you sure this is enough"?  If no one has asked you have you turned to your buyer or seller and asked them, "Was I worth it"?

Of course we are not afraid to ask for referrals...at least Top Producers are not.  When we ask we are in essence stating that we feel we are worth it.  Do not forget to ask yourself, when my buyer or seller gets their paycheck, how does the gross amount on their check compare to the amount they are paying for real estate services?  I know, I know you don't get it all, but they paid it all.  They know how hard they worked for their paycheck. Have you convinced them how hard you worked for yours?  If they are not convinced I expect they will be checking out Zip Realty's neat new idea.