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Pay for Performance -- No Whining Allowed!

By
Education & Training with Sell with Soul

A few months ago, I went on the hunt for a Director of Marketing for my Sell with Soul enterprise. I have my talents and interests, but alas, mass marketing doesn't seem to be among them. Glad I figured that out.

I talked with several people about exactly what I needed. A copywriter? A web guru? A publicist? A consultant? What?

And of course, the issue of compensation came up. How much am I willing to pay and how am I willing to pay it?

That's the topic of my discussion today.pay

Almost everyone I spoke with wanted to be paid either an upfront fee or an hourly rate. In other words, a guaranteed payday.

Fair enough.

When I asked them to consider some sort of creative or "pay for performance"arrangement, all but one turned me down with the explanation of "I have bills to pay and am not in a position to take risks with my paycheck right now." Again... that's fair. One person elaborated by saying (and I appreciate her candor) that she has no way of knowing if my product is any good, if there is an audience for it or if my pricing is appropriate.

But remember, I'm a former real estate agent. This is how I made my living, every day. That's the perspective I bring to the table. I perform. I get paid. No excuses. That's a lot of pressure! But it's pressure I welcome because my payday, when I perform, is huge. $10,000, $15,000, occasionally more for a relatively short investment of my time.

Or, of course, a big fat ZERO if I fail.

It's MY job to properly analyze the situation to see if it's a risk I'm willing to take. To have my finger on the pulse of the real estate market. To determine the proper price for the product (the listing) or to decide for myself if this buyer is someone who lead me to a paycheck in a reasonable amount of time.

If I agree to accept the challenge, then it's up to ME to make sure I do everything to sell that listing or put that buyer under contract. If I can't get it done, no whining allowed.

I like working that way. It encourages me to work my backside off or, conversely, to be honest with myself and the prospect about my doubts.

I found my Director of Marketing. She's working her backside off for me because she gets paid when I do. Frankly, she's working harder than I ever DREAMED of working, so I'm very, very impressed. (And she hasn't whined, not once!)

So... THANKS Inna and Jon!!!!! You guys ROCK!

sws

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copyright Jennifer Allan 2007

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Comments(15)

Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros
Your posts are ones that I really wait for and enjoy reading. Thanks
Nov 06, 2007 10:52 PM
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD
Ah yes, the risk capital!  I'm learning more every day how to evaluate that, which I think is a skill acquired with experience (usually negative).  Congrats on finding someone and I wish you all the success!
Nov 06, 2007 11:08 PM
Joeann Fossland
Advantage Solutions Group - Tucson, AZ
Master Certified Coach to Motivated Agents
You make some great points! That's why sales is such a great profession for a motivated person.
Nov 06, 2007 11:13 PM
Al Maxwell
Keller Williams - Marietta, GA
Real Estate Agent
I think it's good when you can give a "base" and then some additional compensation tied to sales.
Nov 06, 2007 11:24 PM
Al Maxwell
Keller Williams - Marietta, GA
Real Estate Agent
I think it's good when you can give a "base" and then some additional compensation tied to sales.
Nov 06, 2007 11:24 PM
HomeSalesForce.com Team Brokered by eXp Realty
eXp Realty - Canton, GA
Canton, Alpharetta, Roswell, Woodstock, Atlanta
It's too bad more of our population doesn't ascribe to the same philosophy.
Nov 06, 2007 11:45 PM
Jennifer Allan-Hagedorn
Sell with Soul - Pensacola Beach, FL
Author of Sell with Soul

Charlie - wow - I'm blushing! Thank you!

Josette - Once you realize that it's your choice to take the risk, it sort of changes your perspective, doesn't it?

Joeann - Absolutely! Great point

Al - Yep - that works too.

John - It's VERY rare to find someone willing to commit to performance and even more rare when they live up to their promises.

 

Nov 07, 2007 01:16 AM
Inna Hardison
ha media group - Orlando, FL
Wordpress for Real Estate & Design, Print HaMedia Group
Jennifer, I am tickled pink! :-)
I am, however, confident that I will make gobs and gobs of money...
Nov 07, 2007 02:59 AM
Chris Pollinger
Berman & Pollinger, LLC. - San Diego, CA
Consulting for Luxury Teams and Brokerages

Commissioned sales is geared for the over achiever.  Where else can you get paid well more than the average for less work if you are good.  You get paid for productivity not activity.  I love it!

Nov 07, 2007 03:13 AM
Irene Morales Ward
REMAX Distinctive Real Estate, Inc. - Stafford, VA
Realtor - e-Pro - Northern Virginia Real Estate
Jennifer - great reminder that we reep what we sow.  I love that you have a Director of Marketing.  Your stuff is very inspirational and I love getting pumped up to be my best after reading your blogs!
Nov 07, 2007 04:18 AM
Kim Peasley-Parker
AgentOwned Realty, Heritage Group, Inc. - Sumter, SC
Great post.  Many people don't understand or appreciate this about agents. 
Nov 07, 2007 05:34 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Jennifer, I've always preferred to work in a "pay for performance" set up. The thrill of victory and agony of defeat is what keeps me going. When I first got into Real Estate I was hired as a property manager for a vacation rental and management company. My job was to manage the single family homes and book and arrange the rentals. I negotiated a very small salary and a bigger commission on all management and rentals. I doubled this guys business in about 12 months and made a ton of money. Even though he was hesitant to do it my way in the end we both made a lot more money. I performed and he paid and paid and paid and then paid some more:)
Nov 07, 2007 08:11 AM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents
I think getting paid when performance are completed is absolutely expected and that would be the only way I would want to get paid. Put your action where your mouth is!
Nov 07, 2007 08:30 AM
Allen C. Wright
RealtyU - Aliso Viejo, CA
NS, AHS, REPS
Lucky you ... I got taken for $6,000 by a guy that could talk good and had great references but was worthless and even frabricated potential clients.  Good Luck in Vegas
Nov 07, 2007 10:02 AM
Irene Morales Ward
REMAX Distinctive Real Estate, Inc. - Stafford, VA
Realtor - e-Pro - Northern Virginia Real Estate
Allen - OUCH!  Live and learn, I suppose.  Sorry you went through that.
Nov 07, 2007 10:47 AM