For too long, I have worked my "STRATEGY".  It has been based on helping my clients find the perfect home.  No pressure.  Low cost.  Very helpful.

Great product at a great price.

It hasn't worked. 

Despite having about the lowest commission rates in the business and trying my best, I have NO business.

My strategy of low listing commissions has always been based on the fact I could make it up in volume.

My strategy is not working.  I have one listing.  They actually have two condos they would like to sell, but for some reason, only one is on the market.

I suck.

Last week, I helped my next door neighbor move into his new house.  I also talked at length with another neighbor who listed their home with a sister.  They got a contract on their home in two days, and will be buying a new home in a month.

I stayed at a friends new house on Saturday down in Chicago.  It was very nice.  I had another friend who was at my party on Sunday who just sold his house, again with another friend agent.  He is still considering a home.

That is 6 transactions that have happened in the last month.  I was involved with none of them.

Yet people seem to love talking real estate with me.  Why? 

Do they think I am smart?  Am I smart?  I think I am an idiot.

Low commission plus low volume equals very low income.  Bad business plan.

Do they think I have some unending passion or love for all things real estate?  That too will die soon.

I am overmatched.  Underpaid.  Overwhelmed.

I hang flyers.  I make calls.  I set up searches. 

My strategy makes sense to me.  Treat others the way you like to be treated.

It doesn't work.

Maybe I should go back to the hard sell.  I used to make lots of money working that way. 

I hated what I did, but at least I got paid and paid well.

I used to own a Porsche.  Then I owned a Mercedes SL500.  The two seater convertible.  It was pretty.

Now my family owns a Jeep Liberty.  It has 65k miles and is out of gas.

What to do?  What to do?

I can't close a door.

Ken

www.kensfeaturedhomes.com

 

 
Post is included in group: RE/MAX Active Rain Bloggers

14 Comments on RETHINKING MY STRATEGY

KEN !!!!

 

I LOVE YOU BRUDDAH! 

laff my ass off every time I read your posts.  Of course, I have ZERO solutions.

04/15/2008 11:19 AM by Lazarus Realty


Ken, I suggest you consider coaching. If you can't afford a coach, pony up the entry fee for Mike Ferry's Productivity School. They're running a special price in 2008. You CAN afford it! It will turn your career around.

04/15/2008 11:33 AM by Vickie Nagy, Realtor, Specializing in San Ramon, Danville & the Tri-Valley! (Empire Realty Associates)


Ken,

Part of the problem may be the perception you are putting out there that "people don't have to pay you much to get your service." 

Start with your value proposition.  You give top notch service, top value to your customer and should get paid top prices.  Absolutely not the hard sell, but the belief that everyone should work with you because you will give them the best value. 

List and Sell (at full rate with exceptional value)   Gary @ RentonHomeFinder

04/15/2008 11:44 AM by Gary McNinch Renton WA Real Estate (Keller Williams SES Renton )


Hi Randy, Vickie, and Gary.  Thanks so much for reading.  Thanks for your advice as well.

Laughter can be the best medicine!:)

Ken

04/15/2008 11:53 AM by Ken Tracy Naperville Illinois Real Estate (Keller Williams Naperville)


Ok Ken...this may take a while. First off, of course you can close a door you silly man. Secondly.....watch the discount commission philosophy. I tried that ONCE and realized people are of the general understanding that even in a difficult market you get what you pay for. Discount commission, discount effort, discount marketing, etc...even if it isn't true.

Now as far as everyone you know selling a house WITHOUT YOU and still wishing to talk about it with you. Have you developed solid relationships with these people or just topical real estate relationships? Sometimes that is all people know to talk to us about....sad.  They need to know you are an agent, a good agent, a hardworking agent, but they also need to know YOU. Even if they aren't listing or buying from you..they like you enough to talk to you..to me that is a beginning right?

Now..I won't clog up your blog. I just know that you are DISCOUNTING  yourself. Be proud of what you offer and your clients/prospects will feel confident in your service.

And if that fails, my friend.

Get a t-shirt that says " Real estate advice 5 cents" and see what happens.

04/15/2008 04:32 PM by Cherimie Crane, ABR, e-PRO (Advanced Real Estate Company)


Hi Cherimie.  Great comment.  Thanks for taking the time.

Ken

04/15/2008 04:38 PM by Ken Tracy Naperville Illinois Real Estate (Keller Williams Naperville)


Ken, I hate seeing you down but I love seeing you tempting towards the "dark side" we discussed just a few weeks ago.  Give in my friend.  Find your inner salesman.  Having a sphere of influence means nothing if you're not willing to work your sphere of influence which means selling them on you and your services.  How many months rent gets paid if only one of those six transactions had worked with you?  How about two?  How about ALL of them?

Further, and I think I tried to explain this a few weeks ago, who said sellers want a reduced commission?  This is one of the silliest misconceptions among Realtors.  Seller absolutely could care less what your commission is, they care what their net is.  Lower commission does not necessarily mean higher net due to disparate skills among Realtors in aggressively marketing a house and aggressively negotiating offers on said house.   

Nothing wrong with a high-mile low-fuel Cherokee, but one would practically have to be devoid of all things ego to prefer it to an SL, am I wrong here?

04/15/2008 07:23 PM by Leonard Thomas (RE/MAX Preston Road)


Hi Leonard.  Awesome comment.  I don't know.  I love the comment though.

Ken

p.s. you are not wrong.  although my SL wouldn't have fit my child seat!:)

 

04/15/2008 09:24 PM by Ken Tracy Naperville Illinois Real Estate (Keller Williams Naperville)


Hey Leonard.  You caught me in a moment of weakness.  If I would have worked it your way, I would have lost 4 friends, not gained 4 clients.

Enjoy,

Ken

04/18/2008 06:13 AM by Ken Tracy Naperville Illinois Real Estate (Keller Williams Naperville)


Hi Ken:  After scrolling through your blogs I have a thought.  People can smell desperation a mile away!!  If they even think for a minute you need a transaction, chances are great they will walk and go elsewhere.  Don't know why but I know a pile of realtors that will attest to it.  Give this some thought.

05/20/2008 10:48 PM by Debbie


Hi Debbie.  Thanks for stopping by.  I am just writing honest thoughts that come to mind.

I am honest, hardworking and fair.  I do write about my struggles.

If they want to go elsewhere, they can. 

They will miss working with a great realtor that cares about them.

Thanks for commenting.

Ken

05/21/2008 08:13 AM by Ken Tracy Naperville Illinois Real Estate (Keller Williams Naperville)


Hi Debbie.  If you are still out there, you know a pile of realtors yet you are reading my blog.

What drew you to me??

Ken

05/21/2008 08:16 AM by Ken Tracy Naperville Illinois Real Estate (Keller Williams Naperville)


I hear ya Ken ! I have been in Real Estate almost 5 years I have not sold anything since Nov. It is the longest Dry Spell I have ever had. Started with RE/MAX in July of 07 sold very few houses!!!! My purse is hurting for money, I advertise, cold call FSBO u name it I have done it. Everybody wants my help and advice and be my friend. I know what u are going through, Hang in there it has got to get better lets face it for me it can't get any worse .....

05/21/2008 09:44 AM by Shannon Whitley RE/MAX OAK CREST REALTY (RE/MAX OAK CREST REALTY)


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Real Estate Agent: Ken Tracy Naperville Illinois Real Estate (Keller Williams Naperville)
Ken Tracy Naperville Illinois Real Estate
Naperville, IL
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Keller Williams Naperville

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