Selling Soulfully with Jennifer Allan

I'm on a ranting roll this week and it's only Tuesday.

My friends... let's stop complaining about "working for free." Let's stop proclaiming that we need to better protect ourselves from the home-buying and -selling public who live to abuse our willingness to do work "without any guarantee of compensation." 

WE DON'T WORK FOR FREE. WE WORK ON CONTINGENCY.
There's a big difference!

Our willingness to work on a contingent basis - that is - to not be be paid until or unless we perform, is precisely WHY real estate fees are what they are. We are able to charge a lot of money to do what we do, far more than we could charge if we were paid by the working hour or by the job, upfront.  

Working by contingency is risky. And when something is risky, it means, by definition, that there's risk involved (duh). In our industry, the risk is that we may not be paid for our efforts. No, we don't much care for that outcome, but it's the chance we're willing to take to be able to charge the hefty fees we do when we're successful.

If you don't want to work on a contingent basis, you're welcome to find a different model that better suits your personality. There ARE other models out there - Mollie Wasserman's ACRE program is a great one, and there are hybrids where you reduce your fee in exchange for a retainer or upfront marketing fee.

But if you, like most of us, enjoy the challenge of shooting for the sweetest possible payday, stop worrying so much about those "wasted" hours!  As long as you were doing something that taught you more about your real estate market and/or put you in front of a warm body to impress with your wonderfulness, you weren't working for free. You were just building up credits toward that next sweeeeet payday!

Rant over.

I was watching TV the other (sleepless) night. Caught a Tempur-Pedic commercial. Seems the Tempur-Pedic is a spectacular bed for whatever reason, so spectacular that the company gives you a 90-Day trial period. Not 90-days of simply looking at your new bed, but 90-days of actually sleeping on it. If you don't love it, you give it back. No questions asked.

Now, that's a guarantee.

I'm not in the market for an expensive bed these days (I'm actually sleeping on a blow-up right now - don't ask), but I tell ya - I'm impressed. I'm sure Tempur-Pedic's 90-Day guarantee is mostly gimmick, and I have no idea if they stand behind it, but I'll give them the benefit of the doubt. And proclaim that we could use more gimmicks like this in our world.

What if everyone guaranteed their product or service this way? Wouldn't that be SWEEEEET? If your doctor doesn't cure you, he returns your money. If your publicist doesn't increase your exposure, he doesn't see a payday. If that pay-per-click campaign you shelled out $500/month for doesn't produce results, you get a refund.

Sure, there are innumerable flaws in this model, but isn't the overall philosophy wonderful? Put the pressure on the provider to 1) be worth his or her fee, and 2) analyze the situation before accepting payment to determine if your money will be well-spent, and I imagine we would see an exponential improvement in the quality of products and services delivered to the marketplace. I can't tell you how many times I've paid for a service and been told after a disappointing experience - "Well, we never guaranteed results!"

Why not? Why did you TAKE my money if you didn't think it was a good investment for me? (Okay, that's a silly question, but I still think it's a fair one).

While I believe that the real estate industry's compensation model is seriously flawed, I do like the message we send that if we don't perform, we don't get paid. Unfortunately, all too often we DON'T perform, even under this model, but that's a topic for a dozen different blogs. Philosophically, though, I like it.

That said, and yeah, this will sound really inconsistent, but I could also get behind the model of real estate agents as salaried professionals or pay-per-project consultants. Which I'll elaborate on next time!

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Um, what exactly is an "Alternative Business Model?"

Glad you asked. Depending on whom you speak with, there is or is not such thing as an "alternative business model" (or ABM for short). Because real estate commissions and policies are negotiable and not set by law, one might be of the opinion that there is no "traditional" model and therefore, there cannot be an "alternative" model.

Fair enough.

But that's not stopping us from putting on a program that we're calling "Alternative Business Models!" On Saturday morning, August 1^st, Margaret Rome, Mollie Wasserman, Nishika Jones and I will be discussing four different approaches to running a real estate business; approaches that most would consider to be non-traditional, perhaps even controversial. (Cool!!!). We've all promised not to criticize each other's models, which might be harder than we think, especially if we're pretty enamored with our own. We'll also ask this of our audience - this will be an ABM-friendly zone!

Mollie Wasserman, the Founder of the Accredited Consultant in Real Estate® designation will discuss real estate consulting (it's very cool). Nishika will discuss how she runs a referral OUT-only business, I will tell you how I ran a profitable discount brokerage and Margaret will share with you how she wouldn't dream of offering a discount and yet has a waiting list of clients!

Care to join us? We'd love to have you! Again, the show is on August 1^st at 8:30 am (pacific) / 11:30 am (eastern). To register, just go here.

Hope to see you on the 1^st!

I just heard that my Get-More-Business interview with Jason Sanders from earlier this week is on iTunes! Not being an iTuner, I'm not sure exactly what that means... but I'll take my friend's word for it that it's a cool thing.

Here's where you find it... I think it went pretty well.

Other stuff coming up at SWSLand...

Monday, July 20^th, I'll be presenting at the RE Training Center's Real Futures program on the topic of Painless Prospecting: Improving Your (Numbers) Game. Here are the details and log-in information (it's free):

EVENT:  Painless Prospecting with Jennifer Allan at The RE Training Center
DATE & TIME: Monday, July 20th at 10am Pacific / 1:00pm Eastern
FORMAT: Simulcast! (Attend via Phone or Webcast -- it's your choice)
TO ATTEND THIS EVENT, CLICK THIS LINK NOW...
http://instantTeleseminar.com/?eventid=7885614

On Saturday, August 1^st, I'm hosting a panel discussion on Alternative Business Models (ABM) with Mollie Wasserman, Margaret Rome, Nishika Jones and me. We'll each discuss a different non-traditional approach to running a real estate business - Mollie will explain Real Estate Consulting, Margaret will explain how she runs her business off a waiting list, Nishika will discuss Flat-Fee Brokerage and I'll talk about running a respectable, profitable discount brokerage. Please be advised... this will be an ABM-Friendly zone - no bickering or criticizing or otherwise rude behavior shall be tolerated!

You can get more details and register for the Alternative Business Models show here.

See ya ‘round, my friends!

www.SellwithSoul.com

Like most of you, I talk to other real estate agents on the phone pretty regularly. Some in the course of my real estate business, some in the course of my writing, training & speaking career.

And I tell ya - there are a lot of unfriendly voices out there.

Within an hour the other day I spoke with two different agents, about two totally different topics. The first was calling me to ask about some Open House signs I had listed on Craigslist. He was distant and dismissive and didn't seem much interested in having a conversation with me. The second was calling for information on a listing and she was delightful. The kind of voice you'd like to ask to meet you for Happy Hour, and be pretty sure you'd have a wonderful time.

Last week, I participated in a couple of Real Estate Week online seminars in which all participants had the opportunity to chat one-on-one with other participants on the call. The difference among the various voices I was matched up with was striking. Some of the voices were hesitant and unsure; some were bold and somewhat abrasive and a few were warm and inviting. I naturally have fond memories of the warm & inviting voices; not so fond memories of the others.

Hey, I'm the last one to tell someone to change who they are, but it's a fact that many of your clients and prospects are going to judge you by your phone voice. Of all the real estate agents I've spoken with on the phone this week, only two or three of them would have inspired me to pursue a professional relationship with the person, had I been in the market for a real estate agent.

If you can stand it, record some of your phone conversations. Then listen... and see how you feel about both the warmth and confidence of this person (that would be you!). Try to be objective - I know it's hard - on one hand you hate the sound of your voice, but on the other, it's tough to admit that perhaps you sound a bit unsure or conversely, brash.

You might also pay closer attention to the people you speak with on the phone, whether they're in the biz or not. What is your impression of this person? That they're confident? Competent? Caring? Knowledgeable? Or bored, scared or clueless?

It sounds trite, but if you stand up (or sit up) straight when you talk on the phone, put your shoulders back and smile, your phone voice will improve exponentially.

By the way, I met the afore-mentioned "distant and dismissive" agent in person later in the day, and he was quite pleasant in person. But that phone voice... ugh!

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Taking a little break from the Confident Rookie Series (which shall return tomorrow)...

A lot of agents I'm talking to are seeing a glimmer of hope - that is - they're busy! The phone is ringing! The email's jangling! Listing contracts are being signed and buyers are getting approved! Woo hoo!

I always say that when you're busy and feeling like hot stuff, go look for more. You have momentum, you have MoJo and that's apparent to everyone you meet. Even if you're feeling overwhelmed, do more of whatever it is you've been doing to generate business, with a smile on your face and gratitude in your heart.

BUT

Don't lose sight of the fact that since you actually have clients, this is a wonderful opportunity to knock their sox off with your service. The very very very best source of future business is your Satisfied Past Clients, so even before you run off to do "more of what you're doing that's working" make sure all these current clients are tickled pink with you. Stay in touch, keep that brochure box full, hold an extra open house. Return phone calls quicker than you have to. Aggressively pursue and deliver feedback.

There's no better prospecting strategy than taking exceptional care of your current clients! If you're busy right now, don't miss this opportunity!

 www.SellwithSoul.com

It's not too late to register for Saturday's
"Representing Your Buyer in a Short Sale" teleseminar with Janie Coffey.
Details and Registration here.

Next Week...
The Art of Commission Negotiation
Details and Registration here.

In my last blog, I mentioned that I refuse to work with agents (on a consulting basis) if their only explanation for their struggles is to blame the Other Guy. If someone isn't willing to first look in the mirror to find the solutions to their dilemma, I know I'll be of no use to them!

But let's talk about blame for a moment... rational blame versus irrational blame.

I think it's pointless to "blame" our clients for our troubles. Oh, we real estate agents are experts in doing this - after all - the phrase "Buyers are Liars" is deeply ingrained in our industry, as obnoxious as it is (don't get me started). We ridicule our sellers for wanting Top Dollar for their home in Less-than-Top condition, or for "needing" a certain sales price to be able to sell. Well, guess what? The ability to resolve these transaction-specific issues IS our job and the reason we're paid the way we are. If we can't empathize, thus effectively communicate with our clients, then that's our fault, not theirs.

That's a topic for a different day.

Today I want to talk about the other thing we blame for our struggles - The Market. And y'know what? I'll buy that. I do think it's perfectly reasonable to blame the market and/or the economy for a failing (or frustrated) real estate career. Hey, if buyers aren't buying, there's NOTHING we can do about that - we certainly can't manufacture buyers if none exist!

So, what if YOUR market sucks? And some certainly do. I've been contacted by agents in most of the infamously sucky markets, including Las Vegas, Florida, Michigan and Phoenix, wanting to know if I can help them. Well, frankly, I'm not sure I can, at least not in the time-frame they need in order to survive.

Here's what I ask these struggling agents:

JA asks: "In your market...

...is there business to be had, if you could figure out how to get it?" (One agent I spoke with said that the very top producers are selling no more than a dozen homes per year. If this is true, I'd say that no, there is NOT much business to be had at this time).

....are there buyers?" (Of course, this is related to the first question, but a bit more specific. In some markets or specific market areas, there simply may not be a buyer on the planet right now. Again, there's nothing that can be done about that.)

... are houses selling?" (Many agents ask me for help getting listings, but when I ask this question and the answer is "no, not really," I have to wonder why one would want listings!)

If you work in an unviable market, then you need to make some tough decisions; decisions that may conflict mightily with your gut. Here are your options as I see them:

1.       Focus on the future - stop fretting about the NOW and strive to increase the number of raving fans in your Sphere of Influence. When good times return (and they will), you'll be one of the few still standing. Of course, this requires that you have an alternative source of income or that you drastically curtail your lifestyle.

2.       Back off... slow down... take a deep breath. ARE you doing what you know needs to be done to generate business or are you so scared and frustrated that you're spending most of your time bon-bonning on the couch (or behind the keyboard)? Don't declare the market dead if you haven't given it a good effort. Even if your good efforts fail, at least you'll know you tried. Re-evaluate your business plan and review (or create a list of) your activity goals. Are you holding up your end of the bargain? If you can honestly say that you aren't, give it a few more uber-focused months and see if things turn around.

3.       Quit. Yeah, quit. There's no shame in throwing in the towel and moving onto something else that pays the bills and allows you to sleep peacefully at night. I know lots of agents, great ones even, who have chosen this path and they're actually proud of themselves for making this very tough decision.

But... if your market is okay (and many are), stop blaming the Other Guy for your troubles and let's get you back in the saddle!!!

JUST RELEASED!

While I don't advertise it, I do some one-on-one consulting for Very Special People. By VSP, I mean, people who buy into the Sell with Soul philosophy (yeah, I discriminate) and who are intelligent and self-aware enough to 1) be willing to play outside the box and forego traditional wisdom most of the time and 2) are willing, even eager to ask "How did I contribute to this problem" rather than simply whine about how everyone else on the planet sucks.

Anyway, wanna guess what the most common consultation I'm doing these days is? Seducing a Sphere of Influence? Nope. Writing a Non-Dorky Announcement or Reconnection letter? Nope. Getting a difficult listing sold? No again.

"I'm thinking of quitting. Can you help me decide?"

Sounds kind of grim, doesn't it? And yeah, most agents who contact me with this question are, frankly, out of time. Either something has to happen RIGHT NOW or they're in deep doo-doo. Or, rather, deeper doo-doo.

What I'm about to say here may not be popular but the answer many of these consultees have gotten from me is: "Yes, I suspect you need to quit, at least for now. Maybe not forever, but for now, it's probably the right thing."

Are you asking yourself this question, or some version of it? You don't have to answer me out loud, but if you're at this point in your career, please don't be afraid to explore your options. There is NO SHAME in redirecting your career if that career is putting you and your family at risk of financial ruin. THIS IS A TOUGH BUSINESS! Yeah, we all know that, but sometimes we forget the reality of that statement. When something is "tough" that means a whole lot of people aren't going to make a go of it - maybe even you or me!

I'm not saying that giving up is the only option; of course it isn't. But it IS an option. Don't let your pride, ego or fantasies get in the way of making the right decision for you.

I'll probably write some more on this topic - stay tuned.

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Ahhhhhhhhhh... I remember when my average monthly income was $23,500... which meant some months were even higher. I remember two $50,000 months in a row. I remember the year I broke the $300,000 mark. I remember the year I burned out and half-heartedly worked only six months ... and brought in $179,000.

Sigh.

Trouble is, I got into the habit of spending those dollars, not frivolously, but spent them I did. If I wanted a new kitchen, I got it. A sweet little investment property that seemed like a good deal - I bought it. And yes, there was a bit of the princess in there - weekly massages, daily "maid" service and a cute little Caribbean blue Miata I just had to have.

Easy come... easy go.

And speaking of easy - it's an easy habit to fall into when you work on commission - treating those enormous commission checks like Monopoly money and assuming there are plenty more growing on that money tree in the back yard.

I haven't seen a $23,500 month in awhile! Neither has anyone I know.

We Old Fogie agents developed some poor spending habits during the days of prosperity; habits which are hard to break.  But break them we must. We need to practice using that dirty little word... NO.

I can proudly admit that I have curtailed my lifestyle, although it took awhile to admit to myself that I needed to do so. And then some more time to actually listen to myself when I told myself NO. I'm far from perfect and I still spend money I probably shouldn't, but I can promise you, when those $50,000 months return, I intend to maintain my frugal lifestyle (although I really miss those weekly massages)!    

Many of my Old Fogie agent friends are giving lip service to the idea of cutting back. But they aren't doing it. They're so used to the good life they don't see that many of what they consider "necessities" are actually ridiculously luxurious. New Years Eve in Aspen, a ski pass to Vail, season tickets to the Nuggets, gourmet coffee imported from Costa Rica, monthly facials and weekly visits to the acupuncturist.

Hey, I understand how hard it is to sacrifice in response to what we hope is a temporary downturn in the economy. And I hope with all my heart that my current state of frugality soon becomes a choice, rather than a necessity. But in the meantime, I can almost FEEL that character building!

Okay, okay - if you MUST spend a few dollars... 

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As promised, I'm writing a little series of blogs on how I'm coping with this ... ahem... more challenging real estate market that my not be going away any time soon. Phooey on affirmations and positive thinking - let's get to WORK! (okay, so there's nothing wrong with positive thinking - please continue to do it).

In the past, I've written about how it's just fine to stay in your comfort zone - especially if you're an introvert. My assertion has been that most of us are just fine the way we are - that we have plenty of skills and talents and wonderfulness about us that we can utilize in our business-building efforts, without doing something new and, well, scary.

Been thinking about this lately, especially with the dramatic decrease in the volume of business up for grabs in this less-than-vibrant real estate market.

When the pickin's are scarce, sometimes it's necessary to be a bit more aggressive to get your share of the available pie. Let's face it; in many markets there simply aren't that many buyers and sellers out there, so it's likely gonna take some extra effort to track down the ones who are.

For the Power Prospectors among us (which certainly doesn't include ME), this is no big deal. In fact, the PP's might actually enjoy the challenge. But what about us more Reluctant types? Those of us who shudder at the thought of chasing down our prey? Am I advising us to do it anyway? To ignore our fears, our hesitancies, perhaps even our conscience?

Probably, maybe and no.

Ignore your fears? Probably. Your hesitancies? Maybe. Your conscience? NO.

FEAR: Earlier this year I started speaking publicly which terrified me at first, but I got over it and now I LOVE it. I conquered that FEAR by facing it and am a better person for it (and a bit wealthier since now people pay me to speak!).

HESITANCY: I have a HESITANCY of approaching FSBO's and Expired listings. I worry about making a fool of myself and dread the thought of being rejected, although I believe with all my heart and soul that I can help and might just be the best thing to ever happen to them. To date, my hesitancy to prospect to FSBO's and Expireds has kept me from doing it. I also HESITATE to spend any money on advertising, farming or web-lead purchase because I don't believe it's an effective use of my precious dollars. However, if you think it might work for you, there's certainly nothing wrong with such promotional activities.

CONSCIENCE: However, my CONSCIENCE will not allow me to do anything that resembles making a nuisance out of myself - that is - pestering my friends or pestering strangers with cold-calls, door-knocks or annoying pleas for referrals. No matter how desperate for business I might find myself, I will not subject other human beings on this planet to that desperation. That good old Golden Rule... don't do to someone else what you wouldn't want done to you...(and I tell ya, I despise telemarketers).

So, what's the punch line?

Well, that it may very well be necessary to step out of our comfort zones in order to survive this real estate market. However, that doesn't mean we have to abandon all our principles and throw ourselves on the altar of Old School sales philosophies.

When considering a new prospecting technique that you aren't terribly excited about...check with your gut. If your gut is just nervous because you haven't done it before, you might want to give that idea a shot. However, if your gut is telling you that it's wrong, then mark that particular idea off your list!

What are some of your fears & hesitancies that you're willing to explore? REO's & Short Sales? Daily blogging? SOI'ing? FSBO'ing? Foreclosure auctions? Open houses? Networking? I'll share mine if you share yours!

www.SellwithSoul.com