Comments on: How Would I Justify My Commission? http://www.realestateradiousa.com/2008/01/28/how-would-i-justify-my-commission/ Internet Money! Money On The Internet! Sun, 14 Mar 2010 22:11:56 -0500 http://wordpress.org/?v=2.9.2 hourly 1 By: What Would You Do? | BloodhoundBlog: Real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments http://www.realestateradiousa.com/2008/01/28/how-would-i-justify-my-commission/comment-page-1/#comment-702 What Would You Do? | BloodhoundBlog: Real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments Sat, 12 Apr 2008 14:31:36 +0000 http://www.realestateradiousa.com/blog/2008/01/28/how-would-i-justify-my-commission/#comment-702 [...] How Would I Justify My Commission? [...] [...] How Would I Justify My Commission? [...]

]]> By: Real Estate Radio Episode 79 | Real Estate Radio USA http://www.realestateradiousa.com/2008/01/28/how-would-i-justify-my-commission/comment-page-1/#comment-438 Real Estate Radio Episode 79 | Real Estate Radio USA Tue, 18 Mar 2008 00:58:18 +0000 http://www.realestateradiousa.com/blog/2008/01/28/how-would-i-justify-my-commission/#comment-438 [...] Bryant joined us on the program today to discuss the never-ending question regarding the justification of commission. The discussion was spirited and even Lindsay the Producer, soon to be Agent Rockstar, had a few [...] [...] Bryant joined us on the program today to discuss the never-ending question regarding the justification of commission. The discussion was spirited and even Lindsay the Producer, soon to be Agent Rockstar, had a few [...]

]]> By: Barry Cunningham http://www.realestateradiousa.com/2008/01/28/how-would-i-justify-my-commission/comment-page-1/#comment-124 Barry Cunningham Wed, 30 Jan 2008 05:38:32 +0000 http://www.realestateradiousa.com/blog/2008/01/28/how-would-i-justify-my-commission/#comment-124 Great Job Wayne! Can't wait to have you writing and collaborating from up North...looking forward to it and I love the analogy with the plumber! Great Job Wayne! Can’t wait to have you writing and collaborating from up North…looking forward to it and I love the analogy with the plumber!

]]> By: Wayne Malcomb http://www.realestateradiousa.com/2008/01/28/how-would-i-justify-my-commission/comment-page-1/#comment-123 Wayne Malcomb Wed, 30 Jan 2008 02:50:42 +0000 http://www.realestateradiousa.com/blog/2008/01/28/how-would-i-justify-my-commission/#comment-123 Barry, I have giving a lot of thought about your question as to how I would justify my commission. During the Atlanta seminar you made me think a lot about what I am doing consciously or unconsciously to justify my value to my customers. To be honest I have been doing this so long I had not broken down what I have been doing that would make me more valuable to my customer than choosing another agent. I just did it. There is a story about a homeowner who called a plumber to fix a clogged drain. The plumber came out, assessed the situation, took out a hammer and tapped the pipe in a couple of places and the clog cleared out and the water flowed like, you know, water. The plumber handed the owner a bill for $200. The owner was furious and complained that it was unreasonable to charge $200 just to tap on a pipe with a hammer. The plumber agreed to adjust the bill. He took it and wrote $5 to tap pipe and $195 to know where to tap. That would be a perfect analogy for a real estate sales person. I have seen multiple deals flop from unqualified agents, homeowners and attorneys that did not know how to put the deal together even though they had all the players. There is a skill to closing a deal. That is what a true sales person does to earn a commission. The confusion comes when we have gone though a period of time when there were so many clogs (deals) that people just began with a poke & hope attempt, tapping (taking orders) and felt they were owed the same as someone who is truly an advisor. It was actually so bad or good that the fastest one to answer the phone was “salesman of the month.” During most times of non-boom action, order takers could not survive. Thus you will continue to see people holding an Agent’s license that are not sales people, drop like flies. A commission sales model is the best as you are paid what your worth. The truth is that most agents know they are not worth much and unless there is a feeding frenzy or another source of income (spouse or red lobster) they leave or never start in the business. If you really want to help the real estate agent image, make it more difficult to become one. Sincerely, Wayne Malcomb Niagara Frontier Funding & Realty Lockport, NY 14094 www.niagarafunding.com 800-216-6829 PS: Sold 42 homes in 2007, 6 were list and sale, average sales price $98,000. I also wrote the loan on 30 of them. Personally paid advertising averaged $1,350/month. Not including office space, car, cards, PDA or cell phone. That’s approximately $385 per deal. Barry,
I have giving a lot of thought about your question as to how I would justify my commission. During the Atlanta seminar you made me think a lot about what I am doing consciously or unconsciously to justify my value to my customers. To be honest I have been doing this so long I had not broken down what I have been doing that would make me more valuable to my customer than choosing another agent. I just did it.

There is a story about a homeowner who called a plumber to fix a clogged drain. The plumber came out, assessed the situation, took out a hammer and tapped the pipe in a couple of places and the clog cleared out and the water flowed like, you know, water. The plumber handed the owner a bill for $200. The owner was furious and complained that it was unreasonable to charge $200 just to tap on a pipe with a hammer. The plumber agreed to adjust the bill. He took it and wrote $5 to tap pipe and $195 to know where to tap.

That would be a perfect analogy for a real estate sales person. I have seen multiple deals flop from unqualified agents, homeowners and attorneys that did not know how to put the deal together even though they had all the players. There is a skill to closing a deal. That is what a true sales person does to earn a commission.

The confusion comes when we have gone though a period of time when there were so many clogs (deals) that people just began with a poke & hope attempt, tapping (taking orders) and felt they were owed the same as someone who is truly an advisor. It was actually so bad or good that the fastest one to answer the phone was “salesman of the month.” During most times of non-boom action, order takers could not survive. Thus you will continue to see people holding an Agent’s license that are not sales people, drop like flies.

A commission sales model is the best as you are paid what your worth. The truth is that most agents know they are not worth much and unless there is a feeding frenzy or another source of income (spouse or red lobster) they leave or never start in the business.

If you really want to help the real estate agent image, make it more difficult to become one.

Sincerely,
Wayne Malcomb
Niagara Frontier Funding & Realty
Lockport, NY 14094
http://www.niagarafunding.com
800-216-6829

PS: Sold 42 homes in 2007, 6 were list and sale, average sales price $98,000. I also wrote the loan on 30 of them. Personally paid advertising averaged $1,350/month. Not including office space, car, cards, PDA or cell phone. That’s approximately $385 per deal.

]]> By: Barry Cunningham http://www.realestateradiousa.com/2008/01/28/how-would-i-justify-my-commission/comment-page-1/#comment-119 Barry Cunningham Tue, 29 Jan 2008 15:37:07 +0000 http://www.realestateradiousa.com/blog/2008/01/28/how-would-i-justify-my-commission/#comment-119 Hello John, We all know there are some real professionals out there but we know the majority of real estate agents are really brining the industry down. It's a real shame. The ability to enter the business is way too easy. Hello John,

We all know there are some real professionals out there but we know the majority of real estate agents are really brining the industry down. It’s a real shame. The ability to enter the business is way too easy.

]]> By: John Dundee http://www.realestateradiousa.com/2008/01/28/how-would-i-justify-my-commission/comment-page-1/#comment-118 John Dundee Tue, 29 Jan 2008 05:02:55 +0000 http://www.realestateradiousa.com/blog/2008/01/28/how-would-i-justify-my-commission/#comment-118 I am a veteran 39 year real estate broker. It is a social embarrassment having to associate or be near my so called residential piers. Ex-bar tenders, housewifes, car salesman, etc. holding themselves out as "Professionals" without any real education or training other than that to pass the simple RE test. A manicurist has to have more schooling and trainging to get a license.Real Estate is a college degree now. The only only hold the residential agents have in life is the illegal monopoly of the MLS. When broken down and competive listings system evolve it will be a blessing for the whole United States and these people can go work in retail at minimun wage where the belong. I am a veteran 39 year real estate broker. It is a social embarrassment having to associate or be near my so called residential piers. Ex-bar tenders, housewifes, car salesman, etc. holding themselves out as “Professionals” without any real education or training other than that to pass the simple RE test. A manicurist has to have more schooling and trainging to get a license.Real Estate is a college degree now. The only only hold the residential agents have in life is the illegal monopoly of the MLS. When broken down and competive listings system evolve it will be a blessing for the whole United States and these people can go work in retail at minimun wage where the belong.

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