Broker Bryant recently wrote a post about why discounter's don't sell their service.  His thought was if you really can give a client good service for cheap, why not tout your good service?

I am an ABM (Alternative Business Model) as defined by BB, and in no way shape or form was offended by his post.  I thought it was well thought out and made some good points.  I think the issue he was getting at has nothing to do with the business model though.  The question I think he was really asking is are you a sales oriented agent, or a service oriented agent?  This issue has nothing to do with how you get paid, but rather how you choose to conduct business. 

I would suggest that the reason that SOME discounters sell the cost and not the service is because they are sales oriented companies, not service oriented.  The reason that some traditional agents tout their million dollar production is because THEY are sales oriented and not service oriented.

Sales oriented agents are focused on cost and numbers as their "catch" for business.

• Examples of sales oriented tag lines
• "Home of the 3% listing"
• "I can save you thousands"
• "I will sell your home in 120 days or I'll buy it."
• "Million dollar producer"
• "#1 in sales"

When I looked at the best producing groups/agents here in Salem, I found something interesting:  They don't mention those things.  Not one.  I KNOW they are top producers, yet they don't bold it in neon on their ads. Why?  They are service oriented.  The quality of their service has become known over time, and that is what is important to them.

You know you are a sales oriented agent when you start spewing your fees and your stats first.  This is your catch.  You are relying on these "impressive" numbers in order to capture and woo a potential client.  Your goal is they will be so impressed with these that they may or may not realize that they are not getting the best service.  Many traditional agents are sales oriented as well.  This attitude is not limited to alternative business models.

How do you know if you might be sales oriented?

• You take listings/buyer clients even when you really don't like them. You really need to meet your numbers.
• You are willing to take overpriced listings. 
• You are focused on quotas and numbers.  Being #1 in sales has a lot of meaning for you. 
• You have the need to tell all of your prospects that you are a "million dollar producer, the cheapest agent, or #1"
• You don't get a lot of referrals from previous clients.
• You are overly focused on your points on AR.
• Clients ask you regularly to cut your commission/compensation.

How do you know if you might be service oriented?

• You will take overpriced listings as long as the seller makes a commitment to lower the price to your recommend price within a certain time frame or you decline the listing.
• You interview clients (not the other way around) and then decide if you WANT to work with THEM. It's important to you for your clients to have a positive experience.
• Quotas, numbers, AR points, and accolades are nice, but more of an after thought.  You have no significant need to use them in your advertising.
• You tend to talk about your fees LAST in a listing presentation.
• You get a lot of referrals, cards, or gifts from your clients.
• Clients rarely ask you to take a pay cut, and sometimes offer to pay you more. They can SEE and are experiencing your value.
• Clients don't ask you to mow their lawn, or other inane tasks that have nothing to do with a real estate transaction.  You have already "sold" them on your value.

Why I think some traditional agents have issues with so called discounters advertising their costs, is not because they oppose the model, they oppose the attitude.  They are service oriented agents.  My personal opinion is that service oriented agents, as a group, don't get the sales oriented agent.  They already know that providing service is the only way to grow and prosper in this industry. 

Many in the alternative business world of real estate understand this as well.  They can and do provide excellent service.  So I encourage you to think about agents not along the lines of business models, but rather about attitudes towards serving clients.  Agents who are good and know their value, can sell their service at whatever the market will bear and what they perceive their value to be. 

Really good service oriented agents know and understand that sales oriented agents aren't going to be around for long regardless of what business model they use.