Real Estate Agents: Differentiate or Die

Differentiate or Die The Psychology of Magnetically Attracting Higher Paying Clients

with the Attract NOT Chase Method

It is not...“How can I makea sale today?”

Asking the Wrong Question!We have been

“How can I set up a system of attraction that brings a steady, reliable stream of ideal potential clients to me, asking for my advice or assistance as the trusted authority on real estate or, even better, who are predetermined to be my clients, if accepted?”

Question should be asked.A more sophisticated

It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.

- Charles Darwin Disruptive Innovation

“ “

moves to 

Similarity Difference

Money not

Attract not Chase!You want to bethe preferred choice BEFORE there is competition!

What are the benefits of Differentiation

• Earn higher commission• Makes competition irrelevent • Superior and sustainable value proposition• Clients are more loyal • Attract higher quality referrals not price shoppers• Streamlined customer satisfaction through pre-set expectations• Lower cost to acquire a client• Marketing attracts pre-sold prospects • Less leads to accomplish income goals• Higher net profit per transaction• Higher quality of life

?• No selling required• Higher quality client database• minimize or even eliminate price or fee resistance• More income to create or buy business systems (accelerate growth) • More income to hire people (leverage)• Less stress and more certainty • More room for error in your model• Higher level of confidence • Clients trust your advice• Business is more fulfilling

Differentiate OR DieYou must have a clear competitive advantage that adds massive value to the consumer experience.

Differentiate OR DieWhat is it that differentiates you from the competition, that REALLY matters to the client that you can measure.

Mr. Clean

96 hour guaranteeCar Wash

Our strategy lasted because it was based on two powerful business principles, commoditization is evil and people are everything. My advice to you when you think strategy. Think about decommoditizing. Try desperately to make products and services distinctive and customers stick like glue think about innovation, technology, internal processes, service add-ons---whatever works to be unique.

-- Jack Welch

““

that““

Differentiationcustomer preference

liabilityis a

doesn’t drive

Christmas PresentOpening Service

Passionate and Profitable: if you want to win loyalty and create a customer base with an almost fanatical devotion you need to create a complete experience. An amazing and surprising experience, that is a value proposition.

““

-- Lior Arussy

DifferentiatedValue Wheel

Differentiated VALUE

Determine Highest Value to

Ideal Client Create Innovative

Value

Differentiate the Value

Deliver the Value

Articulate the Value

Integrate the Value

Measure the Value

Leverage the Value

Extend the Value

ContinueTo ImproveThe Value

What is

Expert Advisors

AFAs (Average Frustrated Agents)

Flat Rate Brokers/Fee For Service

You don’t want to continue to build your business on a dying model.”

Disruptive Innovation?

“

Disruptive Innovation wipes out the middle of the market and leaves highly differentiated expert advisors at the top of the pyramid and the “disruptive innovation” creates a new market and value network at the bottom.

“ “

What can we learn from other industries that haveExperienced Disruptive Innovation?

Should we really

What would happen to your business if you had to convince each buyer to pay your commission up front?

Do you think sellers clearly see our value or feel like it’s the only option?

•

•

be concerned?

...If you are looking for an answer which is implicit in your question, I predict there will be a Darwin-ian thinning of the herd in real estate.

“ “-- Dan Kennedy

Nobody trusts professional completely – that’s the good news. But unfortunately while 50% of people in a Harris Poll completely trusted their doctor, only 7% completely trusted their real estate agent. At the other end of the spectrum only 4% didn’t trust their doctor “at all” but 20% didn’t trust their real estate agent “at all”.

Public Enemy #1: “The AFA”

The person who gets the client because of a home search and is chosen second is the agent that is at risk of becoming irrelevant.

AFA

Are yourelevant?

“ “

Average Agent:• Just above a used car salesman• Commissions are negotiable• Not respected• Not trusted• Part time job• Only interested in the “sale”• Viewed as a commodity • Not knowledgeable• Not positioned as an Expert

Do the

AFAs Expert AdvisorAFA has a brochureAFA uses PowerPoint

AFA sounds like atape recorder

Expert Advisor has as bookExpert Advisor engages in dialogue, diagnoses, and prescribes often making use of pad and paperExpert Advisor gives thoughtful response

opposite of AFAs

!

Do the

AFAs Expert AdvisorAFA does a CMA

AFA meets buyers atthe houseAFA has to close

Expert Advisor Does a Market Absorption AnalysisExpert Advisor meets clients attheir businessExpert Advisor prescribes anaction plan

opposite of AFAs

!

Trust, Relationship, Equity, Wealth• There is no stability or equity in making sales

• Everything said by you, your staff, in person or all medias and marketing is grossly de-valued and handicapped if not said by somebody whom the prospect or customer trusts

You must understand first that people trust for the WRONG reasons. By understanding how people come to trust you can deliberately manufacture maximum trust.

Where does trust come from?“ “

• Authority-doctor, layer, accountant, police officer• Affinity-shared background, experience, philosophy, fraternity• Credibility: Factual basis for trust• Longevity: Years in business, in the community• Celebrity: Being known or being known for something• Familiarity:  reassuring omnipresence • Frequency: more often heard and seen, more easily trusted• Second Party Transferal: earned, engineered, borrowed, rented, purchased endorsement• Geographic or target market: being for a certain customer• Demonstration: seeing is believing

Where does trust come from?

• Unreasonable expectations regarding necessary investment in customer acquisition

• Inadequate preparation for sales appointments and presentations (winging it)

• Acting on assumptions rather than collecting verified factual information

• Creating advertising methods without research, tested and proven models, or copywriting skill (developed or purchased)

Fail at Building Trust?Where do most marketers

Challenges for Building Trust?

• Fear of loss of money• Fear of loss of security• Fear of change• Fear of making decisions• Fear of getting burned• Fear of loss of status• Fear of being “sold” by a salesperson• Fear of making a mistake

“ “We have to anticipate all of the barriers to building trust and build systems around lowering them.

“ “You are not really selling your expertise, your expertise must be assumed, because your prospect cannot intelligently evaluate your expertise.  

Salesman Stench•Don’t be immediately available (delayed access)• Don’t be too flexible, overcompensating• Don’t appear too eager• Don’t be pushy• Don’t try to “hurry” the prospect• Don’t be overconfident and cocky• Don’t Evade questions• Don’t use familiar sales tools

Eliminate the!

Principle of

• Establish trust in you prior to your proposition (watch video, read article, etc....)• First, be THE provider of expert advice• Intentionally delay presenting propositions and asking for money• Instead, focus on building credibility, fascination, and as an outcome, TRUST• Do not take immediate calls from your “prospects” seeking to hire you• Have a definite process that you put them through• Force the client to become more familiar with you prior to any sales conversation

the Delayed Sale

How toManufacture Celebrity and Authority• Write a book• Write a how to guide or free report• As Seen on TV: ABC, NBC, CNN, FOXNEWS, MSNBC, Featured in USA Today, Wall Street Journal, New York Times• Local Radio show• Interviews within local affinity groups (public speaking)• Public relations: Local TV, Radio etc.• Chamber contributor for real estate statistics• Picture with Darren Hardy (Success Magazine) Designations from Higher Authority• Borrow Celebrity from NAEA

How

Familiarity is generated by reach and frequency through multiple niches. You want that entire niche to “bump into you” every time they turn around.

“ “Familiarity Breeds Trust

Use the Force Multiplier Effect.

• Chamber of Commerce• Rotary• Schools• Lions Club• Boyscouts• Target Neighborhoods

Exposure breeds trust

HowFamiliarity Breeds Trust

The Unmatched

People tend to trust people who appear to be LIKE them. • Hunting and wild game• Military• People with high network• CEOs/Executives of companies• Local hot spots• Political Position• Religious beliefs• Classic cars• Pets and animals

• Business owners• Seniors• Cigars• Sports teams• Fitness freaks• Boating• Fishing• Horse racing• Travel

Power of Affinity

Establish Your AuthorityThe higher up the income ladder you go the more you are being paid for WHO you are rather than what you do.

““

- Dan Kennedy

The

Real estate agents present and sell propositions. Consequently, they are always selling against resistance because prospects in selling situations feel compelled to resist.

Power of Prescription

The cardiac surgeon doesn’t have to sell you on the anesthesia, the hospital, or the brand of surgical instruments he will use and your goal should be to be in a position, at ALL COSTS, to prescribe in such a way.

ThePower of Prescription

The Ultimate Proof:Demonstration“

“

Proof Role

1. Proof of Concept• Market Research• Proven repeatable system• Thousands of the top agents

representing 1,000’s of homes sold• Developed by NAEA

in Building Trust

Proof Role

2. Proof of Personal Relevance• Message to Market Match• First Time Home Buyers, Working with

a CHBA was best decision I made• Your Home Expired Just like these

clients and I sold them

in Building Trust

Proof Role

3. Proof of Promised Benefits• Client Testimonials

in Building Trust

Proof Rolein Building Trust

4. Proof of Superiority• Certified Home Selling Advisor/Certified

Home Buying Advisor• As seen on• Book• Celebrity

LeveragingHigh Profile Clientele• Public officials• Local celebrities• Higher up officers in the military• CEO of large companies and employers• Bankers, Attorney and other business people• Sports celebrities• People of influence

as Proof

Examples of Exclusivity at work:

ThePower of Exclusivity

In an ideal trust relationship our clients should expect that we do not accept ALL new clients and they would be hopeful that they will be accepted.

• VIP access to a club• Apply to college• Join a country club• Get into a new club• Buy or lease in a community• Get into business club (EO)Wait behind the red rope

Wait for acceptance Wait behind the red ropeWait upon acceptanceWait upon acceptance

How do you

• Are you earning higher fees than your competition with little or no resistance?• Do you create an incredible, consistent   customer experience?• Do your clients happily follow your steps to

have the opportunity to become a client?• Are you profiting more per client than your competition?

Measure Your Trust