I was talking to a client the other day and got some great advice. Actually, I already knew about the technique he used, but hadn’t thought to apply it to real estate!
This client is working with a number of investors on low-end real estate deals. The normal commission for these transactions would leave him homeless. Or, at least hungry.
So, how is he still making a good living? He charges a flat fee per transaction. He doesn’t call it real estate consulting with a menu of fees. He just has a minimum standard fee he charges for assisting in a transaction.
It works for the client because they get advice and counsel from a highly experienced REALTOR® who can provide meaningful insight on investing in real estate. It works for my client because he doesn’t worry about taking on low-dollar transactions.
The interesting thing, though, is how he handles questions about the fee. Last week, there were a couple of posts about sales and scripts on this blog. Here’s another great mini-script for you, also from the horse’s mouth.
When someone is surprised that this REALTOR® charges a minimum fee, and objects to the point of indicating that they wouldn’t work with him under such an arrangement, his response is similar to the following:
- I understand completely. I’d be more than glad to introduce you to one of our more junior agents who would be glad to work with you on a standard commission basis.
Is that beautiful or what? Who wants to admit that they don’t really want to work with the top dog?? Not many folks I know.
In fact, the reason I already knew about this “script” was due to the last time I changed hair stylists. I’d heard good things about the owner of a local shop. When I called to inquire, I found that the owner’s fees were more than I was thinking of paying. The receptionist said something similar to: That’s no problem. I can set an appointment with one of our more junior stylists for you. Since I really hate bad hair days, I became a client of the shop owner.
If you’re ever in a situation where a fee would make the difference between taking on a client or not – give this script a try!
