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Destroy your value - Vanity Metrics and Success Theater

By Annette Lawrence , Palm Harbor, FL 727-420-4041

Real Estate Agent with ReMax Realtec Group

September 30, 2015 01:43 AM

The dynamics of Vanity Metrics and Success Theater harm business owners (real estate agents), at all stages, by destroying their value.

Success Theater – trying to create the appearance of success.

Vanity Metrics, reliance on milestones, miscellaneous statistics, non-validated data and whiz-bang demos.

In the circles of business owners (real estate agents), this dynamic goes by the innocuous-sounding term “board management” – and is just a terrible waste of energy and focus.

Success Theater and Vanity Metrics is the distortion created when the entrepreneur or small business owner (real estate agent) are driven by an MBA mindset in an effort to fabricate value rather than exhibit value. The lack of awareness of value is shielded behind a curtain of matrix, a water fall of words, a stage meaningless data.

This is prevalent in the real estate agent marketplace and predictably breeds mistrust.

In such an environment, people look to blame others.

I read a lot about creating barriers regarding qualifications to enter the real estate industry as a licensed real estate sales agent. Higher barriers, they beleive, will chage the reality. The most repeated barrier is,"One must have an MBA before being qualified to be a real estate agent." MBA, success theater, vanity metrics. They wear the same suit.

The press loves to celebrate when start-ups get acquired, and the founder/owner makes a lot of money. But who do you think makes those acquisition decisions? In many cases, it’s MBA’s inside large companies. Who makes the decisions that result in acquisition failures? The MBA's. What is the success rate of new business start-ups? Here's the data from FORBES. Clearly having an MBA is not the solution. Their success rate mirrors that of the new real estate agent. (Be sure to read paragraph 5 under number 2 in the Forbes article)

Unfortuneately, business owners (real estate agents) are only too happy to engage in Success Theater and Vanity Metrics.

Success Theater and Vanity Metrics is damaging to the core moral tenet of capitalism and the ability to determine if the effort is value creating or value destroying.

Fraud, deception, and dishonesty undermine this moral calculus. Vanity Metrics and Success Theater are in a moral gray area; they are masking the fact that some of our industry’s most “successful” efforts are actually value destroying. Even worse, this breeds tremendous mistrust.

Following are common practice real estate agent messages to home owners that model Vanity Metrics and Success Theater.

Example 1 (Vanity Metrics as used by real estate agents that breed mistrust)

“One mark of a great agent is how fast his homes sell compared to the market. We call this ‘Days On Market.’ The better the agent, the faster his homes sell. The average Days On Market for Narnia area is 92 days. However, because of my aggressive marketing, my average Days On Market is only 62. In other words, my homes sell a full month faster than homes sold by the typical agent. What this means is if you are planning to sell, I can get your home sold faster.”

The only thing in Example 1 that has any connection to truth is rooted in engineered deception.
And this is the real estate agent business as seen by the home owner and projected by the agent.

Example 2 (Success Theater as used by real estate agents that breed mistrust)

“95% of all buyers start their home search online. Once they find a home online they like, they visit in person. And you can only sell homes to buyers who visit in person. That’s why the first impression your home makes online is so important -- if you don’t make a great first impression, you lose the buyer before they even visit your home. Typical agents use amateur photos because they don’t realize the importance of the online impression. I use only professional photos because I realize the importance. Professional photography shows off how beautiful your home truly is and gets many more buyers visiting in person. This is just one secret I use to sell my homes faster ... and actually get more money.”

It is possible, a home owner could believe this. Obviously the agents mailing this message hopes so. However, for over 85% of buyers, in the Pinellas County Florida market place, I have proven, the pictures simply DO NOT MATTER. The message in Example 2 is the fabrication of success and presenting it in a fashion that could be believed.

When so much real, local, relevant data is available, why resort to value destroying methods shown in the above Vanity Metrics and Success Theater examples? Why not choose to address the only five question a buyer or seller really have?

With every decision we make, all day long, we choose whether to walk in the light or into the darkness.

With each choice the individual becomes an agent of light or an agent of darkness.

Challenge yourself to make more and more sunshine decisions. This is the deliberate and certain solution to the plead I read recently from a real estate agent, "Why do they look down upon us with so much judgment?"

Success Theater and Vanity Metrics breed mistrust which distroys YOUR real value....

and mine.

Best of success,

Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041

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Gary Coles (International Referrals)

Venture Realty International - Las Vegas, NV

Latin America Real Estate

ANNETTE LAWRENCE Very interesting post. I had not heard about an attempt to require MBA degrees to become a real estate agent --- I think that is a horrible idea.

Sep 30, 2015 01:53 AM

Annette Lawrence , Palm Harbor, FL 727-420-4041

Gary,

Require an MBA is the murmuring rising from the rank and file of REALTORS. Seems those who have advanced degrees thinks it makes a difference in creating a enduring business. As the Forbes article revealed.....that is NOT the magic sauce.

Sep 30, 2015 10:05 PM

Margaret Goss

@Properties - Winnetka, IL

Chicago's North Shore & Winnetka Real Estate

I agree with your assessement of Vanity Metrics and Success Theater and how information can be distorted to gain trust. However, I disagree with the use of your 2nd example - good photos do help homes sell. And bad photos discourage buyers, or at the least, reduce their interest.

Sep 30, 2015 07:16 AM

Patrick Willard

Rio Rancho, NM

Have you marketed a home in a strong community with minimal images. In my case only a street view and shot of the pool.

I HAVE tested the weight images have in SELLING A HOME. The Example two is the manufacturing of something to talk about, the need to created difference, and mindlessly repeating the message of other marketers. That results in a message that misses what the buyer are seller really want.

Sep 30, 2015 10:10 PM

Patrick Willard

I'm with Margaret on pictures. I have seen listings with one poor cell phone picture expire, list at a higher price with a new agent with more and better pictures and sell. I've also heard countless buyers say "If there's no pictures or bad pictures I move move on to the next one".

Oct 01, 2015 06:49 AM

Pamela Seley

West Coast Realty Division - Murrieta, CA

Residential Real Estate Agent serving SW RivCo CA

Annette, this is an interesting post, as you have me pondering. A family friend was telling us the misery of life being a coder in reality is, but I guess everyone wants to be the next Bill Gates, or Zuckerberg. I agree with the article you mention that many of the startups don't succeed because they are not fulfilling a need -- which gets me back to real estate. Agents are needed; and perhaps we are helping in destroying our own value. It's so easy to compare ourselves with other agents, or say there is only one way -- the best way -- to sell real estate, without considering what is best for the customer, or their needs and wants.

Sep 30, 2015 09:42 AM

ReMax Realtec Group - Palm Harbor, FL

Making FLORIDA Real Estate EZ

Pamela, at some point early in an agents career, they MUST be compelled to list what they bring to the table, without using real estate gobbly gook.

Most agents will drone on about licensing, purchased letters. continuing education, memberships, and on and on and on.

What does all this mean to the home buyer or seller? Again a list of manufactured results.

When the agent REALLY knows what they bring to the table that has any value to the buyer or seller, they won't be persuaded to engage success theater and vanity metrics simply so they have something to talk about.

Try it. Find your coder friend and share with him/her the value you bring to the table with out using real estate gobbly gook. When they confirm they understood everything you said and SEE the great value you represent you Will see yourself with greater clarity and in a much different light.

Sep 30, 2015 10:17 PM

Kimo Jarrett

Cyber Properties - Huntington Beach, CA

Pro Lifestyle Solutions

Interesting perceptions, however, sharp, clear colorful photos are essential in marketing properties. Properly illustrated, descriptions of the property wouldn't necessarily be used or could be reduced substantially thus providing the buyer a compelling snapshot to take some action.

Oct 01, 2015 02:34 AM

Margaret Mitchell

Coldwell Banker Yorke Realty - York, ME

Seacoast Maine & NH Real Estate

So.... I agree on so many levels. I see agents distort numbers all the time. A LOT of advertising distorts the numbers, not just real estate. My own background: I do have an MBA in finance and worked for a money center bank for many years. So it drives me nuts to see numbers distorted. I don't use initials and I don't generally try to compete on numbers because it is trying to compete apples against oranges since everyone uses whatever basis favors them.

That being said, I think the lack of emphasis or necessity for photos must be a Florida thing. I hope to be a snowbird from the wintry climes of Maine. I look on line constantly at Florida properties and the bad photos or lack thereof drive me nuts. Maybe that works in Florida but it does not work here in Seacoast Maine. I have seen good, well priced properties with bad photos linger in this market with an inventory shortage.

But I digress: I loved your post because a business focused on vanity metrics is inwardly focused on the agents! We do a lot more business by just focusing on the clients. I leave the initials at home and get things sold!

Oct 05, 2015 05:54 AM

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Annette Lawrence , Palm Harbor, FL 727-420-4041

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