Have you ever had to reduce your commission to get a listing? The key to getting the listing every time (with your full commission) may surprise you. Realizing there is no "trick" to earning what you're worth is easier than you think. In fact it's the complete opposite of a trick: being ethical and honest with all clients, at all times, will consistently get the agreement signed and a full commission earned. 
You may know a few agents who will say and do just about anything to get a listing, including slashing their commission. These agents aren't being honest with themselves or with their clients, and in real estate, as in all aspects of life, what comes around goes around.
The less ethical you are, the more potential clients will see you as a "game player" who'll do anything to get the listing ... The more ethical and upfront you are, the more people will see the value you offer as a professional advisor and your genuine concern for their needs. When you portray this image … the prospect will naturally pick you, no matter what commission you charge.
Following are some guidelines which will help you position yourself as the agent of choice:
1. Don't give into client objections.
Stop negotiating! When you negotiate your commission, you're not only negotiating money ... You're also showing you're not worth your fee. The bottom line is you must set your standards and then stick with them. Most clients will ultimately respect this and appreciate what it means for them. For example … explain to clients reluctant to pay your full fee what they receive for the price of your commission and what the value of this service is for them. Also, ask them to consider whether they believe an agent who is not willing to hold fast on something like a commission fee is someone they would want negotiating on their behalf.
2. Always price honestly.
Tell your clients what they need to hear …not what they want to hear! Sometimes clients can make being honest difficult; For example … if a client who must move quickly to take a job in another state tells you she must net at least $500,000 from this home to make the move to another state… (Knowing the home is only worth $425,000), you might be tempted to be dishonest, to agree to list at $540,000, knowing that she's in a hurry to sell and will be forced to reduce in a couple of weeks to $425,000, (which is what you know it to be worth in the first place).
The ethical response would be: "I understand your feeling that your property is worth over $500,000 ... Tell me how you came up with that number? After listening to the details of how they arrived at their price …you have to quickly educate them to the realities of the market.
Do you want me to tell you what you want to hear, or do you want me to tell you the truth?" (Explain how the value of a property is only worth what the top bidding buyer is willing to pay). Frankly and Honestly tell them a buyer does not care what they paid for the property …how much they have put into “extras” …or how much they need to get out of this home to purchase their new one ... After that … it has to be the clients decision whether or not to list.
This is how you lay a solid foundation which will lead to repeat business and many referrals.
3. Treat everyone with integrity and dignity in pricing.
If you were a client, would you want to pay more than someone else for the same level of service? No! So why should a nice young client with no negotiating experience pay full commission while a shrewd business person gets a discount?
No matter what size your market, people will talk. If you're willing to compromise your ethics, word will travel fast and your reputation will be ruined. The best way to keep your ethics, integrity, and honesty in check is to always detach from the outcome of your current situation. Stop thinking about what you're going to get out of the deal and focus on what the client wants. The more you focus on the client, and the less on the outcome, the more you'll get what you want.
Yes, you're in real estate to make money. And when you're strapped for cash, it can be tough not to think about that commission. But when you help others get what they want, you'll naturally get what you want.
4. Earn, don't buy, business.
One way to help ensure you always get your full commission and the listing is to set your yourself up for success. Tell prospects trying to get you to reduce your commission that some of your competitors in your market may reduce their commission, but you won't, Explain how you work … let the client sees the true value in what you offer.
5. Confidence sells.
When you lack confidence, people will look right past you. They see you as weak, timid, and not capable of delivering quality service.
When you meet with potential listing clients, they will choose you if you're more confident than the other agents they have met with. Ninety percent of the time, if you appear confident and competent, clients won't even ask you to reduce your commission. So even if you're new to real estate, be prepared and know your presentation inside out. All successful real estate agents project a strong sense of self-worth, self-reliance, and self-respect. Most people are willing to pay more to work with someone who can get the job done. When you have confidence, people are drawn to you because you speak with authority and appear firmly grounded.
More Listings are in Your Future
To be a truly successful agent, you must consistently value your personal integrity above any commission or choice listing. You must be truly interested in meeting your clients' needs in buying or selling a home, and you must always tell your prospects what they need to hear, not what they want to hear.
Will there be times when reducing a commission is the right thing to do? Of Course ...but let it be your decision ...and on your terms.
Don't forget: Take care of the people …and the money will take care of its self!
Write that phrase down and post it in your office, on your bathroom mirror, in your car...anywhere you'll see it every day. Live by that phrase and you will have success.
Eddie Brown© 2011
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