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Over the next 12-18 months we’re going to see who’s a sales person vs an entrepreneur. With commission compression and NAR lawsuit, outside sources are doing everything they can to eliminate the need of using a real estate agent or lender. It’s in times like these that HUGE opportunities come up, it’s just a matter of whether or not you see them.
My predictions over the next few years is that agents or lenders will pivot in ways we don’t even know about yet, but however they do it, they will be wearing their entrepreneur hat. A long term career in real estate or mortgage will involve you thinking long term, not short.
On this week’s podcast we bring in business expert, Jen DuPlessis, where she shares the fundamentals in letting go to grow. There are going to be some hard choice everyone needs to make, but it’s going to be those choices that will be the difference between success and failure.
Consumers Expect More From Their Real Estate Agent
Roughly 1 in 5 people regretted hiring an agent and wished they did it on their own!
Yes folks, 19% of home sellers surveyed regretted using an agent. This isn’t a real estate problem, this is an industry problem and the exact reasoning behind why all of these “let’s cut the Realtor out of the equation companies” are growing.
Lack of value is the industry’s problem right now.
I believe that the answer to this problem is rooted to how we, as real estate agents, view our occupation. Are we sales people or business people? There is a major fundamental difference between the two and we now face an option as to how to respond to the the increased competition and the “less expensive” options. The public is speaking up and telling the industry to shape up or ship out!
We aren’t entitled to a 6% commission!
We aren’t entitled to be involved in a transaction!
We need to earn it!
The public doesn’t want more real estate sales people. They want more real estate problem solvers. If the industry as a whole began to teach agents to run their practices as small business owners vs. sales people, I believe we will redefine the value a good Realtor brings to the table. The reason for this is simple. Sales people play the short game and business owners play the long game.
Let’s start off defining the main difference in motivation between the two.
A sales person, by nature, is motivated by closed sales and personal gain.
A business person, by nature, is motivated by creating and maintaining the best product or service that can become salable at some time.
Let’s use these questions to spell out the difference in mindset the two may have. You can then use this questions to analyze your own business.
16 Questions That Determine if You’re An Entrepreneur vs A Sales Person
Here is a list of 16 questions on how you view, market, or run your current business. The answer to these questions will determine whether or now you are running a business or just another sales person chasing a check.
1. Do You Have A Database?
A business owner has a database they consistently market. They view their relationships as future business and make staying in touch with their network a priority. They most likely have an email or direct mail list to keep in contact with network. Over 60% of business comes from referral or past clients, but it’s impossible to attract when you’re not top of mind.
A sales person doesn’t care to keep track of a database. If they have one, it’s on a spreadsheet or CRM, but nothing is actively done with it in terms of consistent communication. A sales person does not consistently stay in touch with past clients.
NOTE: If you are having trouble marketing your database, sign up for Referral Sweet.
2. Do You Have A Website You Own?
A business owner has a website they fully control vs one they lease because they are playing the long game. A business owner constantly invests in working on their website always looking to improve or add value with it.
A sales person may also have a website, but it’s most likely one that was given to them by their broker or a very inexpensive tool. You may have a website but have never once updated it since the time you got it.
3. Do You Measure Your Lead Generation Efforts?
A business owner measures successful lead generation efforts by measuring cost vs return on investment. When they see a positive return on a certain marketing activity, they double down on it.
A sales person doesn’t know what Return on investment is.
4. Do You Have “Systems:” That Enhance The Client Experience
A business owner believes in enhancing the consumer experience. They reinvest a portion of their income back into the client experience with every transaction. Sometimes it’s a closing gift or it’s a service, but it’s something the client doesn’t forget.
A real estate sales person thinks customer service is just in the way they communicate with clients during the course of a transaction.
5. Do You Actively Spend Time Business Planning Or Have A Coach?
A business owner spends multiple hours each week planning on how to leverage into a team and remove themselves from the sales process. They are actively looking at hiring or ways they can hire and scale their business.
A real estate sales person spends multiple hours each week planning on which lead generating system to use next.
6. Do You Have An Actual Listing Marketing Plan?
A business owner has a marketing plan that involves more than an MLS listing, open house, and a sign in the yard. They have a marketing strategy uniquely prepared for each property. Their goal is to first please the seller with their service, then leverage spin off business from the listing. The last goal is to sell the actual house.
A real estate sales person marketing strategy is the status quo.
7. Are You Consistently Building Your Personal Brand & Online Presence?
A business person is constantly building upon their personal brand with video, content creation, and other marketing strategies that position them as the expert.
A real estate sales person relies primarily on lead generation activities only when it comes to marketing.
8. Do You Have A Team Or An Assistant?
A business person invests in an assistant or hires help. If they are not able to yet, it’s a goal they have.
A real estate sales person thinks it’s too damn expensive.
9. Are You Investing In Education?
A business owner is constantly investing in their own education and attends training events.
A real estate sales person thinks everything they learned in real estate school was enough or they know it all. They constantly come up with excuses why they are not learning or implementing anything new each year.
10. Do You Have Your Own Branding?
A business owner has their own branding, logo, slogan.
A real estate sales person uses their brokers.
11. Do You Own Your Own Signage?
A business owner invests in their own branded open house and for sale signs.
A real estate sales person uses their brokers.Do
12. Do You Keep A Savings Account?
A business owner sets up a certain percentage of income earned to be reinvested back into their business. They also save money for market valleys.
A real estate sales person uses 100% of their income to pay last month’s bills. They don’t think the market will ever change and typically live month to month.
Business owners view their day to day much different than sales people do. There isn’t a right or wrong answer for you, it’s just on how you want to run your business. It’s ion my opinion that to survive going forward at least in real estate, you have to be an entrepreneur.