The Week of 2/20/2023 in Review

This past weekend I recorded The Full Fee Audio Book. I will let you know when it is available.

You can purchase the book on Amazon - The Full Fee Agent.

It is now available in paperback also.

 The Decision to make 6% your Standard (or not).

Reading through every page of the book for the audio recording was a very interesting way to experience the book.

If it is in the book 1 time it is in the book 100 times - you can't overcome emotion with fact, logic, and reason. I kept reading that line over and over again. If Chris and I drilled one point home... it was that point which is very ironic.

The spark that created the working relationship I developed with Chris was exactly that - the realization that you cannot overcome emotion with fact, logic, and reason. When I read Chris's best seller Never Split The Difference... that was my big take-away. That is what changed the entire way I coach. Before Chris... I was the guy who was trying to take emotion out of the equation and boil everything down to fact, logic, and reason. What a turnaround!!

Another thought that gets repeated many times in the book is how you must take your emotions out of the sales equation. It is not about YOU and what you want!! It is learning how to cross the street and see the world from someone else's point of view. You already know what you are thinking. What is important is to understand what they are thinking and why. Until you do this and until you make them feel understood... THEY CAN'T HEAR ANYTHING YOU ARE SAYING!! This is Sales 101 and no one ever teaches you this.

As we share in the book, the organizing principle for writing the book revolves around the concept of the Favorite and the Fool. Most agents still do not understand how critical this is. Most every single real estate agent in North America (and the world)... thinks they win or lose business based on their listing presentation and to a lesser degree the commission they charge. This is simply not true. 80% or more of the time... business is based on being the Favorite or the Fool and that process starts long before you set foot in anyone's living room. I highly suggest you become an expert on this reality. It impacts most everything you do in your business.

And now to what I really want to share this week...

Probably the most important decision you make in your business is the fee you charge and is it your standard.

I want to start with this premise...

How can you call yourself a top performer if you are not charging a full fee?

Think about this for a moment. In what other industry do the best charge less? The answer is simple - no industry. Think of any top performer anywhere... do they rely on charging less to get business? Let's get even more extreme. In the most recent Super Bowl... could Patrick Mahomes buy his team a touchdown in a critical situation. NO!! He had to earn every point scored on an increased level of skill and effort. The idea that top agents have to resort to adjusting their fees down to get business is absolutely ridiculous. 

I know I stand alone on this front however I will never back down.

Having a standard of charging a full fee is what makes you great in this business (review last week's column). Without the standard of charging a full fee... YOU WILL NOT BE GREAT. There is no skill involved in giving potential sellers an inflated price (only to work them down later). There is no skill in paying for staging or anything else. And there is certainly no skill in reducing your fee to getting a listing.

I want to share this real life situation that all of you can relate to you. It sums up this business perfectly. You and I will probably come to different conclusions and that is okay.

A few months back I had one of my top, top clients go through the following:

The seller (an analytic and information junkie) put 3 top agents in competition.

The agent put in a least 2 hours of prep time for the appointment.

They knew up front they were in competition.

The actual listing appointment went 2+ hours. The agent felt it was well received. The agent followed up diligently after the meeting.

The agent did not hear anything back for 2 days which was a trigger and somewhat unsettling. Can't they at least send a quick text?

Eventually the seller responded with an additional request for information which the agent fully responded to in a timely fashion. More work.

This request was followed by another request for an additional in-person meeting to review some more pricing information. Again the agent prepared for the meeting and showed up ready to answer any and all questions.

After this meeting the agent had the feeling they were the Fool in the game which again triggered some inner turmoil (you know the feeling).

Finally after 10+ days of back and forth and being on pins and needles the entire time... the agent found out they got the business.  However there was one small catch and you can guess what it is. The agent had to work for a very reduced fee in order to get the listing. It was going to be them or one of their competitors.

As you can imagine... and as you would have done... they took the listing.

Here is the big question in this situation - Did anyone really win?

The seller is probably thinking... they got the person they wanted at the fee they wanted... victory. However we all know there is going to be some lingering resentment on the part of the agent whether they are willing to admit it or not.

From the agent perspective... what happened? Yes, they got the listing. Yes, their competition did not. Yes, more market share which could lead to more business. And yes... they had to sell a little piece of their soul to do so.

Now, we can debate this last point however I think it is significant.

The agent in question is a 5% agent like most of you. In this situation they had to dip lower. 

It is important to keep in mind this is someone who is a top professional. They pride themselves on the service they provide and the results they generate. They bust their butt to keep people happy. And after approaching the business like this for 30+ years... they still have to reduce their fee even more to get business???

This is the trap of adjusting your fee down. It is a very slippery slope that is almost impossible to transverse. Where does it end? When do you stop giving? At what number?

Here is the interesting twist to this story. A few months prior to situation outlined above, this same agent was in a very similar circumstance. Again, they gave in to get that listing. And after that experience... they vowed never again!!

Unfortunately... you see what happens. Never again turns into one more time... again and again.

Making 6% your standard changes everything. It simply makes you great and empowers you because you have to BE GREAT to charge 6% and not starve. You have to up every aspect of your game versus adjusting everything down. Rather than being squeezed by a crafty seller... you have real walk-away power and they know it.

More importantly...

You understand one very important piece of this entire puzzle!!

They are not hiring you because of your presentation.

They are not hiring you because of your fee.

They hire you because they want you and trust you. You are the Favorite!!

This is reality 80% or more of the time, not 100%.

As a top agent, you are welcome to chase every listing and treat every opportunity as being equal. Please know all listing opportunities are not equal. Being able to say NO is the real test of greatness. Being paid what you are worth is the big payoff.

The story I outline above is real. It is the challenge all of you face on a regular basis. How you respond is up to you. I know for certain... no one has confronted you about your fee the way I do. The entire industry gives you a hall pass when it comes to commission. They see this as simply a smart business decision.

Is it really?

Something to think about and another reason to read the book Chris and I wrote!!

Note: Make sure you hit View Entire Message below to see the complete edition of The 2 Minute Drill.

6% is a mindset more than anything else.

The mindset is simple - I get paid what I am worth.

And anyone who doesn't want to pay me my full fee is simply not my client.

That doesn't make me right or them wrong or vice versa..

I have my standard. This is the fee I charge everyone. I believe in my value. I am willing to walk away when someone isn't willing to pay me.

There is no angst. No fear. No worry. No doubt.

Only a standard and a commitment to stick to it.

6% is a habit. A really good habit.

The difference between getting 3.5% on the listing side vs. 2.5% is a 40% difference.

This money is pure profit and compounds over time.

It is absolutely worth the effort.

This money is what makes your retirement possible at an age you choose.

There is something called the Adjustment Standard - we adjust to the standards we set.

When you make 6% your standard... you have to adjust everything up. Your mindset, time blocking, CRM, process management, tactical empathy, numbers management... all of it.

When you don't make 6% your standard... everything naturally gets adjusted down over time. This leads to more chasing, convincing, closing on people and in the end... more stress and struggle.

Now I drop the real bomb on everyone...

Here is real difference between agents who charge 6% and those who don't...

Please don't hate me...

The 6% agent believes they are good enough.

Everyone else is still struggling with... I am not good enough!!

The fee you charge is directly related to your self-worth!!

******

One final note...

Every agent who charges 6%, does it in a market where most agents are charging 5% or less. There are only a very select group of markets where most agents still charge 6% as the norm.

The bottom line is this...

Making 6% is a true game changer. 

When you build your business around 6%...

Everything you do must be better.

In the end... 6% if the thing that makes you great.

It is also a decision that truly empowers you.

The idea that you cannot charge a full fee in this business and thrive... is complete and utter nonsense.

Challenge yourself... invest $1000 dollars in The Full Fee Agent online video program.

There is no way you will not get your money back times alot... if you really pay attention and put the smallest amount of effort into what you will learn!!

A Note to any Team Leader

It’s Not About You

In the end, building a team is about far more than just hiring people. It’s a wholesale shift in perspective, from “me” to “we.” If you want to scale up your business while retaining your quality of life, well, you only win when everyone wins. That means you have to build an organization designed to make other people successful, not just you.

In fact, the better your team can function without you, the more valuable it is, to you and potential buyers. If your team depends on you to constantly feed them leads and clean up their messes, you can never get away from the grind. In contrast, with a well-established, high-performing team, you can take a long vacation or even a sabbatical and trust that the business will continue to function while you’re away.

Plus, at the end of your career, you’ll find that all your hard work has built something that can continue to generate value for you even after you retire. For most agents, their last deal is their last paycheck. But for a team leader who has done their job well, the team itself has equity. It can be sold to a family member, an employee, or even a third-party buyer. But this only works if the team doesn’t revolve around you—if another leader could take it over and continue producing similar results.

Don’t fool yourself into thinking this will be quick or easy. Too many agents start teams with the fantasy that they’ll attract other agents just like them, not have to invest anything in them, and make lots of money off of them. It doesn’t work that way. 

I should know—I’ve seen agents start teams and then disband them once they realize they’re only running an adult day care center, managing other people’s emotions and listening to their whining. One of my coaching clients built her team up to six agents, but despite the effort she poured into it, none of them were producing at a substantial level. She let them all go and kept only her assistant, and she now makes $1 million a year with a fraction of the headache.

Most agents, if they’re honest with themselves, would do better as a solo agent with a small support team than as a true team leader. If you’re a superstar seller, having 1-2 executive assistants and 1-2 support agents to take care of excess business would enable you to leverage your time a lot more effectively. The big difference is that this structure would never allow you to extract yourself from the business—it all revolves around you. That’s okay, as long as you understand it and accept the limitations it creates.

***

Let’s be honest: It’s hard enough to get yourself to do the six building blocks (Mindset, Time Blocking, CRM ,Process Management, Tactical Empathy, Numbers Management). As a team leader, it will be your job to get other people to do them—and you can’t teach people to do something you don’t know how to do. 

Are you prepared for that? That’s what it takes to get everyone on the same boat rowing together. A team is about synergy and leverage, which can’t exist when everyone is doing their own thing.

That said, a team doesn’t have to have outrageously high production to be successful. If you can build a system where everyone can produce 10-15 deals a year, you’ve got something. Not everyone needs to sell 100 homes and make $1 million a year. Some people just want a good job, with support, opportunity, structure, and social interaction. That’s something a good team can provide that a brokerage can’t.

If you’re still seriously considering starting a team—or if you already have one—I strongly recommend you read this section from last week on Player Development. This is a critical piece when it comes to scaling your business without burning out. It is also the thing that will set you up for a potential sale one day if that is something you are thinking about.

The 6% Conversation

Keeping with the theme of this week's 2 Minute Drill...

Here is a basic outline of the Commission Conversation...

*******

Agent: I'm going to get something out on the table that might be a potential sticking point.

95% of what we do...

We do on autopilot.

Our habit mind is much more powerful than our conscious mind.

Habits compound over time, either for us or against us.

Bad habits are very hard to break. There is real science behind this.

Please read the following:

Bad Habits

Here are 2 calls that stood out this past week:

Role Play

Mindset Call on Greatness

This week we continue with Session #3 of our Mindset Program. Everything begins with Mindset!!

It is not too late to join.

Last week we announced out NEW Time Blocking Program which starts March 30th.

CLICK HERE FOR ALL THE DETAILS!!

Time Blocking - Getting The Important Things Done

• Week One - What is Time Blocking? Why it is so important and why you are not doing it. 
• Week Two - The Mechanics - How you actually Time Block. 
• Week Three - Creating your Personal Calendar.
• Week Four - How you make Time Blocking into a Habit that sticks.

"I know they are never moving from that house."

This was the response an Agent gave me last week when I suggested they reach out to a Past Client they had not spoken to in a while. What is wrong with this way of thinking? EVERYTHING!

The goal of you staying consistently in touch with people is to build relationships and make sure they don't forget about you. We look at every contact in your CRM as a relationship, not a transaction.

Your Past Clients should hear from you every 90 days. End of story. So what if you think they are never moving. You never know what can happen! And all of your contacts have friends, family, etc. that also may need to buy or sell.

Stop the story in your head and just make sure you are in touch!