Selling Soulfully with Jennifer Allan

Picking up from yesterday's blog about my agent friend Sam who was referred to a seller who "has a friend who will list it cheap," let's talk about how Sam should handle the whole issue of commission, knowing that his competition is in all likelihood going to charge less.

The question I signed off with yesterday was something along the lines of should Sam address the issue of his competition's lower commission head-on?

In my opinion, no. He should not. Why?

Because, the only way to "address" it would be to criticize it. And that's not cool. Any overt attempt Sam makes to come out on top in a battle of commissions is going to make him look bad.

First, Sam would be criticizing the seller's friend, which in all likelihood will not endear him to the seller, even if he happens to be right in his criticisms. But not only is he criticizing a friend of the seller; he's also subtly criticizing the seller's own judgment! After all, the seller is considering hiring this friend, so if Sam tries to argue him out of it, he's basically telling the seller he's wrong... which rarely goes over well.

Besides, Sam has no idea what level of service the seller's friend will provide. Maybe she'll cut her services, but maybe she won't. Coming from a background of owning a full-service discount brokerage, I can say with all sincerity that it IS possible to run a profitable, full-service real estate business while charging less than the competition. Unless Sam has full knowledge of the other agent's marketing plan, he has no business putting it down.

So, what should Sam do if he wants a shot at this listing? Well, it's pretty simple. He should go into the listing appointment with the heart of a consultant. He should ask a lot of questions and really listen to the answers. He should show empathy for the seller's situation, and be able to provide solutions to any problems they uncover. He should be intimately familiar with the seller's neighborhood and conversant about local market activity. He should demonstrate an ability and willingness to help the seller get his home ready for market.

In short, he should do his best to win the seller to his side by being friendly, helpful, creative and knowledgeable.

And... what if, after all this friendliness, helpfulness, creativity and knowledgeability (?) the seller chooses the friend anyway? No biggie. Sam can walk away with honor, knowing he gave it his best shot, and that he made a positive impression on one more human being on the planet! And you never know when that will come back to bless you!

Got a question yesterday from an agent who was referred to a potential seller by an acquaintance.  However, the acquaintance warned the agent (let's call him Sam) that the seller has a "friend who will list the house really cheap," so Sam may not have a chance at procuring the listing.

Sam asked me how I would approach the situation - how would I respond if the topic of commission comes up in their initial phone conversation? And how would I go about persuading the seller that I'm worth my "full" fee and that the "friend" may not even be worth her discounted one?

Wanna know what I told him? Okay, twist my arm.

First, I always recommend that we be upfront about what we charge if asked. I don't believe in deflecting the issue because it puts us in the position of being a salesperson instead of the professional advisor I feel we are. So, if Mr. Seller were to say "Sam, what do you charge to sell a home?" I'd advise Sam to answer the question without hesitation. No hemming, no hawing, no creative avoidance. Just get it out there on the table.

"My fee is X% to sell a home, which includes the buyer agent's fee of Y%"

If the seller responds with "Well, I have a friend who will do it for X-minus-2%..." Sam can say: "That's great - and that might be the best deal for you. But I'd still be happy to get together and talk about your situation, so you can be sure you're making the right decision. No pressure, I promise. And I'll respect whatever decision you make."

Reverse psychology ("that may be the best deal for you") works great here!

If the seller agrees to meet with you, that means he's probably open to paying your fee, if you can prove you're worth it.

And as you probably know if you read much of my stuff, that's a BIG DEAL to me - actually being WORTH the fee you charge... and knowing you're worth that fee. Getting the point of being and knowing you're worth it might take some time and soul-searching, but it's well-worth every minute.

(And by the way, BEING worth your fee has nothing to do with how much you NEED that fee).

Anyway, I digress.  Next question - once you're face to face with the seller - should you address the issue of your competition's lower fee head-on?

Whatcha' think? (I'll share my thoughts tomorrow.)

I read a featured blog the other day written by an agent who was regretting not insisting on a buyer agency agreement and was subsequently ditched by the buyers she was working with. She was disappointed, and in her blog, reconfirmed her commitment to always get that agreement in place before investing much time in a new buyer client.

Fair enough. I disagree with the agent's conclusion that the solution to being ditched by a buyer is a written contract, but that's okay. To each his own.

But one of the many comments on the blog caught my eye. It was something about how now that we're in a new decade; it's a perfect time to set new priorities. In this case, the commenter meant that he or she intended to be even more committed to getting those agreements signed before working "for free."

Again, fair enough.

But it occurs to me (yep, here comes a soapbox) that it would do us and our industry far more good if we set our priorities a little higher. If we set them based on what the customer wants and needs, rather than on what we want and need. Don't get me wrong, I'm all about looking out for #1, but when you put your customers first, my experience has been that Your Favorite Real Estate Agent benefits right alongside!

So... how about instead of making it a higher priority to be more diligent about contractually obligating your buyers to you... you commit to making yourself indispensable to your buyers so that no contract is necessary?

How about instead of making it a higher priority to more efficiently beat the streets looking for more and more and more and more listings... you commit to figuring out how to sell the listings you already have?

If we shift our industry's priorities away from the face in the mirror and focus them on the consumer we're licensed, hired and well-paid to serve, I promise you we'll all benefit. Our buyers will buy and our listings will sell, so we'll attend more closings and see more repeats & referrals.

It really might be that simple!

RELATED BLOGS
How to chase away your perfectly qualified, perfectly loyal buyers
Any idiot can give his house away...

I'm doing a little one-on-one consulting with a relatively new agent (who's gonna ROCK!) in Denver. We have similar personalities when it comes to our feelings about prospecting and business-building, so our conversations about prospecting always lead to some interesting A-HA moments for both of us.

Anyway, yesterday, my agent friend told me about a conversation he had with a like-minded career coach - one who specializes in matching personality types with business-building strategies. According to this coach (and my friend's score on the MBTI), my friend is capable of cold-calling and door-knocking for business, and he might even be rather good at it, as long as he feels he has something of value to offer.

HOWEVER, the coach cautioned him that even though he might be moderately successful in his cold-prospecting efforts, his personality type is simply not one that tolerates rejection well over the long term. That if he spends too much of his time and energy on prospecting activities that involve a steady dose of rejection, he'll eventually become depressed and discouraged. And probably won't realize why he's so lethargic and unenthusiastic about his career... and his life.

That makes perfect sense to me! I've been preaching for a long time now that there's no reason to spend your days doing something that you aren't comfortable with when there are perfectly acceptable alternatives. And if there AREN'T perfectly acceptable alternatives, maybe you're in the wrong business!

The good news is, of course, there are plenty of real estate prospecting techniques that don't involve much rejection. Oh, sure, rejection is a part of life, but that doesn't mean you have to put yourself in positions of pursuing it in the name of generating business if you don't want to. There's no need to "suck it up" or "just do it" if the sucking-up or just-doing makes you miserable.

Life's way too short for that. Figure out what you enjoy doing that brings in business. Do that. It really is that simple.

RELATED BLOGS: 
Be Yourself... Have More Fun... Sell More Real Estate! 
Stay IN Your Comfort Zone!
When to Venture Out of Your Comfort Zone... and when to stay in

It's Here!!!! 
The Sequel to Sell with Soul
Own one of the first 1,000 copies printed, numbered & autographed.
www.SWSStore.com

Most prospecting training is focused on... FOCUSING. Laser-focused prospecting. Doing "it" for three hours a day, whatever "it" is, no interruptions, no excuses. Do "it" until you reach your goal of so many contacts, so many appointments, whatever. Lather, rinse, repeat. Every day.

And eventually, you might even enjoy "it." You might start to see relationships between how much of "it" you do and how many houses you sell. The more of "it," the more of the other.

Whatever your "it" of choice is - FSBO's, expireds, cold-calling, door-knocking, farming, blogging, advertising, SOI'ing, open-housing, lunch-dating - just remember the Good Old Numbers Game and do "it" more.

Fair enough.

But it occurs to me that my business never worked that way. I, frankly, didn't have any sort of formal system for prospecting and my business came from dozens of different sources.

I got business from my best friends, my good friends, and my acquaintances. I got business from open houses, sign calls and floor time. I got business from my lawn guy, my graphics gal and my insurance agent. I got business from my broker, other agents and lenders. I got business from street fairs, coffee shops and happy hours. I got business from current clients, current prospects and past clients. I got business from my website, from blogging and even one House Values lead.

See where I'm going with this?

Just because you met your last client at the coffee shop - does that mean you should only prospect at the coffee shop from now on? Or just because you listed a FSBO last week, does that mean you should only seek out FSBO's? Of course not - I hope that's obvious.

Real estate business is everywhere; it's all around us. Good prospects cross our paths every day, from a wide variety of sources.  Sometimes they cross our paths in the course of doing business, like when we hit it off with an open house visitor or have a great conversation with a walk-in. Other times, it seems much more serendipitous, like when we meet a new-home builder at a friend's wedding or share an elevator with a man who was just transferred. And even if these particular encounters don't result in immediate business, you never know who THEY know who might need someone just like you.

Keeping your antenna up and a smile on your face as you go about your day really IS a tremendous prospecting strategy!

Happy New Year - Love y'all!

It's Here!!!!
Just Released, like TODAY!
The Sequel to Sell with Soul.
Own one of the first 1,000 copies printed, numbered & autographed.
www.SWSStore.com

As it happens every year ‘round this time, New Year's resolutions are being made with a vengeance.

In our world of real estate sales, these resolutions tend to focus on revving up one's prospecting efforts in hopes of having a Great New Year. Promises to more fully commit to a cold-calling or door-knocking campaign, to more aggressively pursue expired listings and FSBO's, to formally choose a farm area or finally figure out what SEO really means.

All well and good. I wish you luck with that!

But in addition to all these Numbers Games, I submit the following plan for your consideration...

Rather than attempting to contact 100 people a day in hopes of catching the attention of a few, how about trying to impress just a few every day, in hopes of making a memorable impression on every single one? If you were to impress two people a day, at the end of a year, that's over 700 people on the planet who think you're really cool - instead simply sort of recognizing your name from your mass-marketing efforts.

Instead of pestering your sphere of influence once a quarter with requests for referrals (which I promise you are not welcomed with open arms), try reconnecting with the people you know as a friend or acquaintance first - a friend or acquaintance who happens to sell real estate.

Instead of focusing all your time, energy and budget on hunting down new prospects, spend at least half of that time being a kick-a$$ real estate agent for those clients who have already honored you with their business.

It is possible to run a perfectly respectable real estate business without doing ANY formal prospecting other than what I describe above. If the people in your world think you're a pretty darn cool person AND a terrific real estate agent, they'll take great care of you throughout your career.

No game-playing required.

Join us on January 16th for a FREEEEE Teleseminar on the
Dangers of Referral-Begging (and what to do instead).
Register HERE!

A long time ago (last week? The week before?), I promised to continue a little series I was running about Turning Cheese into Soul - that is - taking yesterday's tired old prospecting techniques and making them less, um, cheesy. Well, I got a little distracted, but it's been driving me NUTS to have the remainder of the series on my to-do list... so, I'm back.

Today's topic is about greeting cards. Specifically, a program called Send Out Cards.* If you aren't familiar with the product/program, it's a greeting card system where you choose a card from an online selection, customize it, and "sign" it... hit SEND and a real, live greeting card goes out in the mail with what appears to be your signature. You can even provide samples of your handwriting and the system will "handwrite" your personal note in the card so that appears to actually have been written by you. Pretty slick.

I've been rather critical of the program for awhile now. I did try it a few years ago, had a negative experience - my cards were sent out twice, thus destroying any notion the recipients might have had as to the authenticity of the cards. I've never used or recommended Send Out Cards again. Here's a blog I wrote on the topic, in fact: http://activerain.com/blogsview/430334/if-you-re-gonna-soi-don-t-over-systemitize-

However, I had a conversation a few weeks ago with my new friend John Lind who might have changed my mind. At least, sorta. Maybe I should say that he opened my eyes to a better way to use the product/program; one that is much more in line with my philosophies of how such things ought to be done.  

John uses his Send Out Cards membership in a decidedly non-dorky/non-cheesy manner. In fact, his use of the program falls right in line with what I teach about staying in touch with your Sphere of Influence. Instead of simply relying on the program to sign and mail a mildly clever, but run-of-the-mill greeting card, he takes the time to use the technology offered by the program to create a truly memorable card - one that will almost certainly make the recipient smile; maybe even LOL!

Here's an example of a card John sent me:

John generated this card after our discussion where I explained why I didn't like the idea of Send(ing) Out Cards. He "wrote" a very nice note on the inside of the card; one that was personal to me and our conversation. I am, in a word, impressed. And yes, I did LOL when I opened it. I even kept it!

Here's another card John did at Thanksgiving...

So, what's the punch line? While it's cheesy (IMO) to rely on technology to do your staying-in-touching FOR you, it's not at all cheesy to use technology to make your staying-in-touching memorable!

See the difference?

Let me know if you have any cool ideas I can steal admire.

* I have nothing to do with the Send Out Cards program - I don't sell it, promote it or distribute it, so the above is definitely not any sort of infomercial for the product. However, I'm sure John would be happy to brainstorm ways that you can make more of an impact with your staying-in-touching! Here's his email address. 

After a week away (thank you Robin!), I'm back in the saddle, talking about turning Prospecting Cheese into Soul... Today's topic is the non-cheesy Open House.

First, allow me to pontificate for a moment that I believe the first priority of any open-house-giver is to attempt to sell that house. After all, someone owns that house and has hired you, or an associate of yours to care enough about his listing to try to sell it. And no matter what you tell a seller ahead of time, he really does expect the offers to start pouring in at 4:05. 

So, just remember that your primary obligation is to the seller, not yourself. Lecture over.

(For a discussion on whether or not to even hold open houses, click here for my series on the topic).

All that said, most of us do look at an open house as an opportunity to pick up buyers. Maybe even sellers. So, how can you do that without resorting to Old School Cheese? (That sound kinda gross, doesn't it?)

My best advice for figuring out what NOT to do is to spend a sunny Sunday visiting other agents' open houses. Egads, some of us are cheesy. Or, if not cheesy, just plain dumb, aka, unprepared. I visited an open house last winter and eavesdropped in as a visitor asked the agent how old the furnace was. The agent smiled brightly and said those magic words: "I don't know, but I'd be happy to find out for you!" This piqued my curiosity, so I actually went into the basement and, get this - LOOKED at the furnace. It was obviously brand new. I'd think that anyone who had ever seen a furnace could tell that. Of course, that would have meant that the agent would have had to have made that long journey down the stairs to see for herself - but clearly that was too much to ask.

I've also heard rumors of agents requiring ID before allowing visitors into the property. Okay, maybe in a multi-gazillion dollar home, but your run-of-the-mill listing? Puh-leeeeeaze.

Do I require sign-in? No, I don't. I just don't feel comfy doing it, but it's not something I advise against. When I hold an open house, I'm looking for quality over quantity. I'm hoping to connect with one or two visitors; someone I have a natural rapport with. When I find that rapport with a visitor, it's easy for me to draw them into a conversation about real estate and most of the time; they ask ME for my card. I like that. If I had people sign-in, I know I wouldn't follow-up unless I felt that rapport, so I just don't bother.

When you hold an open house, pretend that there's a hidden camera watching your every move (who knows?). Don't do anything the seller wouldn't approve of. Don't criticize the house (that guest you're talking to might know the seller and report back, or he might be a seller prospect himself and be less than impressed with your professionalism!), or aggressively direct visitors toward your fancy list of "other properties they might consider instead."  It's far less cheesy (and effective) to be able to simply discuss the market conversationally, rather than push a pre-prepared package on guests.

(If you're enrolled in the SWS Winter of Soul, we'll be doing a thorough discussion of Open House Strategies on January 23!)

Next up... non-cheesy greeting cards...

The other day I got a very timely question from my cyber-friend Ron, considering this week's Cheese-to-Soul series.

Ron asked if I knew of a source for good real estate-related newsletter content that would be "meaningful" to his Sphere of Influence (his "SOI"). He's frustrated by the material available for purchase, most of which simply feels canned. Moreover, he's uncomfortable using much of it because it relates to topics he's NOT an expert in, such as tax planning, home staging and credit reports.

I agree. As I may have mentioned a time or two, I refuse to use canned, boilerplate material. I think it's cheesy and dorky. (My definition of Dorky is any written, self-promotional communication that is dull, dry, boring or corporate. Most content-for-purchase pretty much qualifies. )

But let's go back to Ron's quest for real estate information that would be "meaningful" to his SOI.  Here was my response to him:

"Here's the thing - your SOI doesn't have a lot of interest in real estate on a day-to-day basis. Therefore, there's not much in OUR world that would be generally meaningful to people outside of our world, with a few exceptions that come up from time to time.

You want your newsletters to be interesting to your audience, more so than "meaningful." And you know what's interesting to your SOI? Stuff from YOU.  From YOU, their friend, Ron. Maybe an observation about the real estate market, if it's interesting, or to pass on a funny story from your career. Or maybe not related to real estate at all.

I write to my SOI every month in email form, not newsletter form. I want my SOI communications to clearly come from me, not some canned product I bought off a virtual shelf. If newsletters/emails are going to be part of my marketing plan, I'm going to put some effort into them in the hopes of inspiring my friends and acquaintances to think fondly of me, rather than to just simply remember that I sell real estate (and promptly forget)."

So, to pick up from yesterday's blog post on this very topic, remember that the primary goal of your "newsletter" is not to impress, educate or overtly prospect. It's simply to remind the people you know that you exist and that you're a pretty cool guy or gal.

What topics might do that? Well, kinda like blogging, the list is endless... and once you're in the habit, it gets easier and easier to come up with ideas. Here are a few of mine:

Didja' See Me on the News?

Denver Dwellers, what's YOUR special day?

And I thought I was so smart...

I recommend that you always have a notebook with you to scribble down ideas for SOI newsletters - and I think you'll be pleased how quickly your list will grow once you get in the habit.

This seems like a good opportunity for a little SWS plug - I just released my SWS Mega-Toolkit which includes a section of several dozen real-life SOI letters and emails that might give you some ideas for your own 2010 newsletters.

Okay, so that's three blogs on the Art of the Non-Cheesy Newsletter. I think I'll move on now... next up - Greeting Cards! Or... maybe listing presentations... or maybe... heck, I dunno. Just stay tuned!

In yesterday's installment of the Cheese to Soul series,  I commented that I might have half a dozen posts in me about how to create an effective newsletter. Fortunately, or unfortunately, that might actually be true. We'll see how far I get today.

Remember, the goal of a newsletter is to make the recipient of the newsletter smile and think of you fondly. Which is best accomplished not with gardening tips, Just Sold notices or descriptions of your listings, but rather with interesting content that reflects YOU - your voice, your personality. And the best way to do that is to write the content yourself.

Now, don't freak out on me. Writing interesting content YOURSELF is not all that hard, especially if you work under the principle that less is more. As in - don't feel your newsletter has to be formally formatted with a Volume Number, Table of Contents and a three-column layout. Nope. In fact, a simple email-style newsletter will work much better. If you're on my mailing list, you've seen my "newsletters" which are nothing more than me rambling about something, hopefully of interest, with my cute little signature logo at the bottom. No sidebars, very few graphics, and only the occasional sales-pitch (which I usually apologize for).

And, by the way, my newsletters are probably the most important (and effective) self-promotion I do.

Write your newsletters with the goal of inspiring your audience to respond. Responses are good. They open the door to ongoing conversations with your readers and you never know where they'll lead. You're much more likely to get meaningful responses to your newsletters if they're done in a casual format, rather than a formal newsletter format. Whenever I get a newsletter that appears to be professionally-designed, I might be impressed, but I'm not inspired to respond. And, frankly, I make the assumption that the newsletter is mostly boilerplate or sales-pitchy anyway, and not likely to be of interest to me. If I'm pressed for time, I hit DELETE. Which is most of the time.

Make sure your newsletter goes out from YOU - as in, from Your Name. Not from some professional-sounding company or even your fancy tagline. YOUR NAME. Period. I can't tell you how many newsletters I get from people I know, but I'd never know who they were from because the "From" field is a company I've never heard of.  

One last tip for today ... DON'T use a program to send out your emails that doesn't allow replies! I was recently added to an acquaintance's Avon drip campaign and right across the top of my daily marketing email (sigh) is the note:  "PLEASE DO NOT RESPOND TO THIS EMAIL. This email box is not equipped to handle correspondence." Sheesh.

So... what might you write about that would be "meaningful" to your audience and inspire them to respond?

You know the drill... stay tuned.