[Originally posted the week of 01/06/07- 01/13/07.  Apparently there is a 10 post limit if you want full credit.  I am reposting this on for this week because I worked hard on it and want the points.  (I won't worry about the one for my new daughter.)  Sorry if this seems a little lazy and I won't make the same mistake in the future.  Always something new to learn here at AR.  I am sure that I will get the hang of it.  --Erik]

A wise man once said, "A wise servant will rule over a disgraceful son, and will share the inheritance as one of the brothers."  I take from this ancient saying that someone who is a good servant-that is, someone who watches out for the interests of those they serve-will be valued more highly than a son who has not cared about the interests of his family. 

Sometimes when I listen to people teach seminars about getting referrals, I have to laugh to myself.  Being consumer-centric (as Ardell puts it) often doesn't seem to be part of their three step, thirty-three touch, marketing magic, career coaching  system to making bucket loads of money. 

Talk about treating people well is often replaced with scripts and market research about the best words to use to get your desired results.  I have heard all about what the focus groups say and what kind of picture to have on your business card and web site.  I have even heard big long speeches about how my particular personality type is unable to negotiate well.  The speaker's ex-husband had my same "personality profile" and the three of us in the room with that profile got to hear all about how that profile was unreasonable.  Her speech was very passive aggressive...something mentioned in the speakers profile...hmmmm.  ;-)

The worst I ever heard was a seminar teacher recommend that you join a church simply and purely to milk it for leads.  Similar beliefs were not necessary but helpful.  It was a kick to look around the room.  You could tell the people of faith and the people with integrity because every one of their mouths were on the floor.  The others were madly writing down the idea.  I think he lost half his class that day and never recovered for the rest of the seminar. 

I say that all the seminar training and coaching in the world is a waste without the right core in the apple.  Bad core, bad apple.  Good core, good apple.  Consumer-centric servanthood is the heart of every successful referral based business.  You just have to treat people well and care about their interests along side your own.  That cannot be taught in three steps or thirty two touches because it is a matter of character and while character can be taught it is a difficult and humbling experience to learn.   But, if the saying is true, in the end your bucket might have more money than the guy next to you who had all the training but didn't understand the heart of the matter.

Erik Wecks

http://erikwecks.com

2 Comments on One Reason Every Referral Based Real Estate System Can Fail

Amen brother.  You are right on here.

Boittom line, even if you don't have more money in your bucket, you will have done the right thing for the right reasons and that's what really counts.

Marty,

You are right that doing the right thing in the end is more valuable.  However, I think you have to be careful what you define as the right thing.  I am the sole provider for a family of five and I work to feed my childern.  That means that I exist as a REALTOR in order to make a profit.  My clients then are not even the primary people I serve in Real Estate, I exist to serve my childern and make money for them.  During my first year in the business, I spent a long time thinkng about how I was going to do that without becoming consumed by greed.  Let me give you a quick story and then I will conclude by giving you the mission statement which captures that idea.

Since we do so much stuff in our industry before we get paid I think that some of the public doesn't understand or respect our need for profit.  For instance, I get many people who assume that my company reimburses me for milage on my vehicle and that I get paid a salary plus commission for my work.  These clients do not respect my time at all.  When I was first in the business I met a great couple who I liked a lot.  She was a professor and he taught high school science.  They were avid mountain climbers and had some money.  They really wanted a view of Mt. Hood in our area.  Well they didn't quite have enough money to get their view, plus the land, plus the absolutely perfect home they wanted.  They were by far the pickiest buyers I had ever met.  Worse yet they were based out of Wisconsin.  They would call up say every few months and say they were interested in seeing homes.  They would say that they were going to be in town for a week.  They would come out and look for maybe a day turn down eveything I showed them and then spend the rest of the week hiking.  Then when they got home their criteria would change slightly but never become financially realistic.  They were not making the compromises necessary to get a home in Clark County, Washington.

As a new REALTOR I made a mistake and didn't explain to them that they were not profitable for me.  I would certainly have had that conversation today.  That conversation might have reshaped how they thought about my time and saved the relationship.  However, I did do something which I think was equally valuable for me as a new agent.  I fired the buyer because if I were to continue to serve them I would not have been helping my children.

I actually fired them mid-way through my second year in the business but thinking about them and thinking about these issues led to the mission statement below.  It was the mission statement which gave me the courage to fire them. 

"I hold a real estate license in order to create opportunities to assist individuals in achieving their goals as buyers and sellers of real estate.  I always seek to  have my customer's financial interests at heart.   As an agent working to serve the total real estate needs of my clients I expect to earn a reasonable wage for my professional services."

Today I would have handling things differently and had a conversation about how I need to make money before I fired them.  Making money is one vital part of my business and I make no apologies for it.  However finding a way to do that without being consumed by greed is the trick.  For me the mission statement above has been a really good thinking tool for how to do that.

Erik