Why 90% of the market is controlled by 10% of the agents

By
Services for Real Estate Pros with PRCMPG

"In a sea of other REALTOR® faces, what do you do to stand out?" 

I've asked this question countless times to agents across the country and I am constantly astonished with the answers I get.  Some reply that they give great service, some always wear a hat, some do coloring contests in their geographic farm.  But most, just look like a deer in headlights, shrug their shoulders and  stare at their shoes and mumble "I don't know." 

I won't try to help those that work in real estate part-time here. Honestly, the kindest thing you can do for the field and  your clients is to get out of the business and stop pretending.  It's not that you aren't a great person, that Jesus doesn't love you or anything, it's just that both your family and your clients deserve better.  Nor am I trying to help those who are content doing a transaction every few months and call real estate home because they need a social outlet.  Again, there is room in the world for these fine people, we need those that have perfected making coffee and will work the up-desk in the office.  But for those who really want to win and make real estate your profession and business, command of market share is not a luxury but a necessity. 

90% of the market is controlled by 10% of the agents and it is not by happenstance.  When all else is boiled away, the real estate business is dominated by those who understand how to market themselves and are willing to invest the money to do so.  Yes, those that prospect can do well, but those who understand marketing create the rules and leverage them in an unfair way to work toward their advantage.  In today's marketplace the "I'm number 1" is quickly losing ground to the values based marketing message.  Authenticity is starting to rule the day and our consumers are demanding a level of transparency in light of the collapse of the major institutions that have ruled Wall Street for the last few decades. 

Real Estate and the world in general is becoming far more consumer centric which is a very good thing.  And those at the top of their game should be taking a look at refreshing their marketing and business before the next cycle takes hold.  Now is the time to be making those changes, not when business picks back up and the cash flow is strong.  The best place to start when looking toward your next marketing makeover look to connect to your perfect clients through those things you care most about and the values you hold most dear.  When your business is based in those ideals you won't have to fake it, you'll love waking up each day and you will build a business that will never be in need of clients.

 

Want more? Give us a call to set up a strategy session with one of our marketing coaches!

If you are a Realtor® who enjoys working with families, have been licensed for at least three (3) years and have lived in the area you serve for at least three (3) years, we invite you to APPLY to become a PRC Council Member.

 

***Parent Relocation Council, Inc. is looking for Regional Directors for Northern California, Texas and Hawaii, if you know of anyone who has a great reputation within the industry, has been full time in the real estate industry for more than 3 years and has leadership qualities please let us know at chris@parentrelocationcouncil.org***

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Rainer
90,977
Ted Komenda
Dunhill Group - Osterville, MA

Thanks for the blog!  I think the most important thing today is figuring out how to use the marketing tools that are out there!

Ted

Oct 22, 2008 03:58 AM #1
Rainmaker
287,587
Barb Van Stensel
Chicago, IL

Great post but one thing that makes the good Realtors stand out from the rest is that they know and understand the product.  Builders are tired of having a Realtor look good, smell good, etc., they are now looking for Realtor's who understand the construction of the home, the mindset of the buyer and where that buyer is coming from.  I don't think the ratio is 10% but I believe it has dwindled down to 5%.  I look at Realtors who used to sell 20-30M every year and they are at a bottom low of $2-3M now.  Why?  It's about attraction in action - having everything you posted plus the brains to understand the product - financing and the product - what the consumer requires in design, finishes, etc.

Oct 22, 2008 04:09 AM #2
Rainer
82,781
Patty Carroll
Vancouver, WA

Interesting post. But not sure if we want them to get out of the business as you suggest.

A rule of thumb in any business especially sales is the Pareto's principle. While your numbers of 90/10 differ from the 80/20 this proven principle still applies. 

Oct 22, 2008 04:17 AM #3
Rainmaker
698,749
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Interesting post.  I believe you should give it your all no matter if you are in part or full time.

Oct 22, 2008 04:54 AM #4
Rainer
32,280
Evelyn Panning
Property Connections Realty Inc. - Alturas, CA

You must be good at what you do AND you must stick with real estate and not give up to early.  I think more people could be successful if they committed to the business and decided to tough out the difficult times. ~ Evelyn

Oct 22, 2008 05:25 AM #5
Rainer
120,529
Carol Swain
Keller Williams Real Estate - Langhorne, PA
Realtor, -www.swainsells.com- Bucks County, Pa

Great Post!  I think it all comes down to personality and drive.  You either have it or your don't.

Oct 22, 2008 10:19 PM #6
Rainer
75,548
Barbara "Barb" Bodnar, Licensed Associate RE Broker
Coldwell Banker Residential Brokerage - Yorktown, NY
Coldwell Banker Residential Brokerage

Chris

Agree...real estate has always been consumer centric, but some people really didn't understand the concept.

Barb

 

Dec 20, 2008 01:11 PM #7
Rainmaker
175,187
Richard Stabile
Re/Max Real Estate Limited - Oradell, NJ
Bergen County New Homes Builder Realtor

Talent, tenacity, a marketing plan, sincerity, knowledge, or be have it available, hard work, organization if you can, finding a market position, saturation.

Richard

Dec 20, 2008 01:25 PM #8
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Rainer
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PRC Market Positioning Group

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