Think Like a Farmer

I watched the following video by BNN where they interview Aron Cadeau, president, FlatFeeRealty.ca. I found it very interesting and thought provoking. Check it out here

The major point that does not stick with me was the answer to the question: how does Flat Fee Realty makes its money? Or, how does it afford to advertise like the other competing brokerages? The answer: volume.

What's wrong with this picture?

Personally, in the true spirit of Jerry Maguire, I think less clients and more personal attention is important in this business. A Realtor who earns a flat fee may focus their efforts on completing a transaction so they are free to move on to the next customer. As Brian Buffini would put it, they are interested in winning the battle but may lose the war. That is to say, they are interested in closing the deal, but may lose the client in the long run. In a transaction based business, closing deals (and earning a pay cheque) becomes the most important goal.

In relationship based business, or a referral business, the focus is shifted to personal attention and doing the best job possible for your clients. Even if a transaction doesn't complete, a relationship is cultivated. Who doesn't want to recommend a professional who has done an outstanding job for them? The goal is not to get transactions over the short run, but to build relationships and plant seeds for the long run. Think like a farmer.

Cadeau says their average Realtor in his company closes 30 deals per year compared to the average which is around 8. Although it would be nice to close 30 deals in a year, I would rather have fewer high quality experiences with my clients to ensure the continued growth of my business in the long run.

On another note, maybe I'm biased because I'm in the real estate industry, but I find it weird when an organization of professionals advertises themselves as being cheaper than the industry average. Would you go to a Lawyer or a Doctor who advertises themselves as being cheaper than the rest?

I think I can

I picked up the Power of Positive Thinking by Norman Vincent Peale from the library today. I realized in this profession, self doubt needs to be thrown out the window. The only thing standing in the way of me and the kind of success I’m driven to achieve, is the little voice in my head that’s saying “Nooooooooo” (imagine little helium induced voice).

The little voice, I’ll call her Debbie (Debbie the downer), pops up at the most inconvenient times. Real estate agents are meant to be notorious networkers/mover/shakers; you know… the ones at the party that talk to everyone! Over the holiday season I found myself in many situations where, yes, I approached and talked to many people. But there was one thing missing. A little dialogue I can say over and over and over again in my head, but for some reason, will not leave my lips. Even if I’d start speaking it Debbie would chirp in “Noooo no no no”. I’m SUPPOSED to say “Hey, guess what, I’m in Real Estate! If you or anyone you know was going to buy/sell a home, do you have a Realtor you’d refer them to?”…“No? Well I’d love to be that person!”

It sounds easy right?

Then according to Buffini I’m suppose to ask them for contact information and tell them I’m going to send them some “Items of Value”. Helpful information that everyone finds useful! This is where it really gets sticky for me.

I can’t decide if it’s a generational thing or what, but the idea of getting mail once a month from a Realtor, kind of makes me cringe. If it makes me cringe, how am I supposed to endorse myself in this way? More self doubt!

The truth is, I have a database of friends/family/past co-workers and most of them have either an address, phone number or e-mail address. I have been told I should be contacting people to give a “gentle reminder” each month that I’m a real estate agent. Hi, remember me, I help people buy and sell homes! By doing this, when someone I know runs into someone they know who is buying or selling, voila, my name pops into their head and a referral is born.

I have not 100% decided if I’m going to go the e-mail route or mail route. Mr. Brian Buffini would not approve of e-mail; I have no doubt in that. Really, if it’s e-mail, people can unsubscribe! I guess I should not be thinking people will want to unsubscribe… (AHHHH, Debbie getoutofmyhead!)

So if you’re reading this… FYI, you may receive a gentle reminder sometime soon...
And you will like it!