The 3 Ways to handle the Changes to Commission in Real Estate…Ensuring you get the commission you deserve!

There are some significant Legislative changes being made. One of the biggest changes for Real Estate Agents is the ‘De-regulation’ of commission. Over the years many industries have gone through a deregulation process, my observations are that a majority if not virtually all of them have never been able to increase prices, but sadly significantly decrease prices forcing many operators out of business.

My personal fear for the Real Estate Industry is that we face the same fate. I have been fortunate to be part of the Real Estate Industry for almost 15 years and love it. One of the things I love most is the ability to write your own income. I feel this very part is in jeopardy.

For the longest time, with regulated commission, we had a benchmark to work to. It allowed owners to compare agents on an ‘apple-for-apples’ basis making it quite easy for highly skilled agents to win business and get full fees.
For some time now, discounting commission has been a significant issue for many agents as there has been a lot of pressure to reduce commission rates. One of the reasons being a shortage of stock, leading to greater competition in obtaining listings and agents feeling that by discounting is the best & perhaps their only way to win over another agent.

I believe the second & biggest problem with discounting commission is agents not being confident in how to handle the objection when it comes up. A Lack of effective scripts, selling value & confidence. I am saddened when I hear agents have felt as though they had to discount their commission in order to win the business. What saddens me more is the fact that this issue could be very easily avoided if more effort was putting into improving skills.
This is an issue that will never disappear and once you enter the slippery slopes of discounting, it is hard to stop and you begin to resent your clients and the work.

However there is a Solution! I have been asked by a lot of my students & clients for simple & effective ways on how to deal with the upcoming changes. To help, I have put together the ‘The 3 Ways to Handle the Commission Discussion’ along with an eBook which Compiles 9 Highly Effective Commission Scripts to ensure you get the commission YOU deserve!

 THE 3 STEPS:

Step 1: Create a Policy

Establish a ‘Commission Rate Policy’ in your office.

Policies describe how your business operates. They state what your organisations’ position is on a topic, in this case ‘Commission’ and how you go about achieving it. It really is that straightforward. Having a strict policy around the Commission rate in which your business provides its services is a vital factor in maintaining efficiency, consistency and clear communication.

Step 2: Develop your USP (Unique Selling Proposition)

Make sure you have a solid, well-rehearsed value proposition

Pinpointing your USP requires some hard soul-searching and creativity. The starting point & THE question you must ask yourself is: ‘Why would & should a prospective Seller or Landlord appoint me over my competitors and pay the same or higher commission rate?’

Step 3: Master your Scripts

You need GREAT Scripts!

Scripts are still one of the most misunderstood parts of selling. Effective Scripts are the essence of the sale and will virtually guarantee your results, yet a huge number of sales people don’t use them. I constantly meet salespeople who just ‘Wing It’!


[frame style=’alignleft’ title=” width=”300″ url=’http://www.peterh.com.au/wp-content/uploads/2014/12/effective_commission_scripts_sml.jpg’][/frame]

Effective Commission Scripts – Ensuring you get the commission you deserve

This compilation of the ‘9 Most Effective Commission Scripts’ will change the way you go about ‘Discussing Commission’ with your prospective clients. It will Prepare You, Empower You & give you the EDGE to ensure you Get the Commission YOU Deserve!

ONLY $27.00!

[custom_button target=’_self’ style=’btn_normal btn_type11′ href=’http://www.peterh.com.au/training/ebooks/effective-commission-scripts/?add-to-cart=555′]Buy Now[/custom_button]


 

 

Recently I was a marketing agent, for the first time in almost 5 years. One of my big drivers is to not live the statement of ‘Those who teach can’t’, so every year I go out and sell something in edition to my own products & services – for example, earlier this year I was selling Memberships to CEO’s throughout SEQ, Last year I worked on a new residential project selling units off the plan. I do this to keep my skills fresh and current and to test out my scripts to ensure that they are effective.

When I marketed the property in inner city Brisbane recently, I decided to put my training to the test and stuck to it to the letter! Like every agent I came across the ‘Will you discount your commission’ objection, along with ‘I don’t want to Auction’ and ‘I don’t want to pay for marketing’ objections. I used my very own scripts, Process, templates & training I provide Training Programs, and managed to get Full Commission, a balanced marketing campaign (digital & Print) all paid up front and an Auction!

We then used the Prospecting scripts, dialogue, plans, letters and processes to generate multiple other listing opportunities learned in TRACTION – Your Shortcut to YOUR Successful Sales Career Training Program. With great excitement, we followed all the processes outlined in my ‘AUCTION TRAINING’.

The Result, well, we had 7 Registered Bidders, a realistic reserve price set, competitive bidding to $70,000 above reserve and managed to negotiate an extra $25,000 before selling it! Almost an extra $100,000! The Formulas, processes, scripts, email & letter templates work!

With the introduction of the POA (Property Occupations Act), we are faced with a new version of the Commission objection – De regulation. What we all need to do to ensure our incomes are not eroded away, We MUST be Prepared & Position ourselves in a place of strength. The 3 STEPS outlined in this article, all used in conjunction will Prepare you, Increase Confidence & Position you.

This is our Individual Responsibility to ourselves.

GOOD LUCK!

If you haven’t already, subscribe to my ‘Free Training Blog’ here – I’m not far off launching an extensive and comprehensive training series.

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[frame style=’alignleft’ title=” width=”300″ url=’http://www.peterh.com.au/wp-content/uploads/2014/12/effective_commission_scripts_sml.jpg’][/frame]

Effective Commission Scripts – Ensuring you get the commission you deserve

This compilation of the ‘9 Most Effective Commission Scripts’ will change the way you go about ‘Discussing Commission’ with your prospective clients. It will Prepare You, Empower You & give you the EDGE to ensure you Get the Commission YOU Deserve!

ONLY $27.00!

[custom_button target=’_self’ style=’btn_normal btn_type11′ href=’http://www.peterh.com.au/training/ebooks/effective-commission-scripts/?add-to-cart=555′]Buy Now[/custom_button]


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