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Real Estate Brokerage

Why real estate brokerages are not startups

(REAL ESTATE) Brokerages are popping up nationwide that are sleek and modern, and also misinformed as they call themselves startups. Let’s talk about the technical definition.

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Businesses that are just starting out often refer to themselves as startups (which is inappropriate given that startups are funded differently, scale differently, and have completely different KPIs). Take real estate brokerages, for example. An increasing number call themselves startups, but when you look at the definition of a startup, can you really call yourself one?

Small businesses and startups have very different definitions (and there’s no shame in being a small business or an “innovative brokerage”). Let’s discuss.

1. Startups have a different goal altogether.

Typically, startups are about growth. They’re designed from day one to scale extremely quickly. Small businesses are often limited by a target market or geographic location. There’s nothing wrong with that, but they aren’t scalable the same way an international software brand is. Think about scaling in terms of a beauty salon versus MatchCo, an app that uses technology to create a foundation just for you. A franchise does not a startup make.

2. Startups generally seek outside funding to accelerate growth.

Startup founders often give up equity shares to generate funds before becoming profitable. Small businesses are typically self-funded, bootstrapped into profitability, and owned by one or a select few. A small business venture is typically less risky than a startup, too. The idea behind a small business venture is profit, and you want the business to last. Startups are structured to be sold or acquired once it hits critical mass – a “startup” is temporary.

3. Startups disrupt the industry.

Think about these companies – AirBnB, Google, Dropbox, Facebook, even Apple, a long time ago. In their early days, they were startups. It was risky to invest in these companies as they were trying something new (not iterating on something like the real estate practice which is one of the oldest professions in America), but they have outshone their competitors. They disrupted the marketplace. That’s what a startup does. And it doesn’t always work. Sonitus Medical attempted to disrupt the hearing aid market. They raised almost $90 million in funding before the Centers for Medicare & Medicaid Services decided the product wouldn’t be covered. The company held an auction and closed its doors. Brokerages have experimented with paying salaries, going paperless, or having all agents working remotely – these are all fabulous innovations and iterations, not disruptions.

The takeaway

We’ve been on the forefront for over a decade of ushering in the era of indie brokerages, paperless real estate brands, and counter-culture companies, but brokerages are simply not startups, and this is not up for debate. Iteration is not innovation.

Don’t call yourself something you’re not – be an “innovative broker” and rock it, because you’re not a temporary company seeking to scale so rapidly that you’re acquired for your indisputable disruption.

And finally, don’t fall for real estate brokerages pitching themselves as “startups” when they’re misinformed and really mean they’re simply, and beautifully “modern.”

Dawn Brotherton is a staff writer at The American Genius, and has an MFA in Creative Writing from the University of Central Oklahoma. Before earning her degree, she spent over 20 years homeschooling her two daughters, who are now out changing the world. She lives in Oklahoma and loves to golf. She hopes to publish a novel in the future.

Real Estate Brokerage

How predators trick the most intelligent agents, make them vulnerable to assault

Predators use the same sales methods as you do, both effectively luring you in through a funnel system of questions. Fascinating.

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Getting people to say “yes” is the ultimate goal for any salesperson. Many sales trainers will recommend that you ask for a little “yes,” then build on that by getting more little “yeses.”

You could begin with a simple request, perhaps completing a simple questionnaire. By getting people to make a simple decision, or perform a small action, you can fairly easily establish a new psychological “commitment.”

Implementing the “foot-in-the-door method”

Once you have that initial commitment, no matter how small, building on that foundation and making ever increasing requests get surprisingly easy. This is called the “foot-in-the-door method,” an approach based on trust and consistency, and it’s effective.

To prove the point, a group of researchers back in the 1960s, called on a group of housewives, asking if they could answer a couple of simple questions about household products. Then, a couple of days later calling again, asking if they could send five employees to survey the contents of their kitchen cupboards. The research revealed that that twice as many answered “yes” if they had answered those simple questions in the first call.

We also find it much easier to say yes to those we have good feelings about and seem similar to us. In other words, we like them! This is why refusing to buy Tupperware from a friend or relative is almost impossible!

Guess what? Predators use these same tactics

Predators and sexual offenders in particular, work very hard to be likable and use the very same “foot in the door” techniques to troll for their next victim.

Just like sales professionals, the predator seek those little yeses, but this time for testing and probing, seeking clues as to your willingness to be directed and controlled.

“The man in the underground parking lot who approaches a woman as she puts groceries in the trunk of her car and offers assistance, may be a gentleman or he may be conducting an interview,” suggests Gavin De Becker, in his book The Gift of Fear. “The woman whose shoulders tense slightly, who looks intimidated and shyly says, ‘No, thanks, I think I’ve got it’ may be his victim.”

De Becker then suggests, “Conversely, the woman who turns toward him, raises her hands to The Stop position, and says directly, ‘I don’t want your help,’ is less likely to be his victim.”

You may not be able to spot their deception

Offenders are also professional liars, truly skillful at what they do because they have had plenty of practice over the years. They’ve lied to themselves and everyone else in their lives. According to most experts who work with sexual offenders, not only is their lying hard to detect, but it is often very convincing.

“Even the guilty liar probably won’t avert his gaze much, since liars know that everyone expects to be able to detect deception in this way,” observed Paul Ekman, an American psychologist who is a pioneer in the study of emotions. “Amazingly, people continue to be misled by liars skillful enough to not avert their gaze.”

“’Declining to hear no’ is a signal that someone is either seeking control or refusing to relinquish it. With strangers, even those with the best intentions; never, ever relent on the issue of no, because it sets the stage for more efforts to control,” said De Becker “If you let someone talk you out of the word no, you might as well wear a sign that reads: You are in charge.”

Using this be aware of potential problems:

Predators meaning you harm will seek to control the narrative. They will make some positive statements and seek small yeses to gain what they eventually want – to get you to a place where they feel safe enough to assault or rob you.

Obviously not every conversation is going to occur just like this following example, but that said, let’s look at this scenario:

Potential predator calls you from a cell phone and the conversation goes something like this:

  • From the street I like the house at 123 Main Street. Are you familiar with the neighborhood?
  • Are you available to show me this home?
  • I’m preapproved with XYZ bank. Will you bring the paperwork, as I might want to make an offer.
  • Then, the final question: I’m actually here in the neighborhood. Can we meet right now?

If you got this far and found yourself answering with a string of small yeses, you’d better be ready to redirect and assume control or the outcome may not be pretty.

The agent responds in kind:

  • Sure, I’d love to show you the home, but I need to swing by my office first to grab the keys, OK?
  • Would you please bring your pre-approval letter along?
  • I’d like to meet at the office first so we can review your pre-approval, OK?
  • Then, the final question: Before we can meet, please send me a copy of your photo ID – management likes to know just who we are with and where we will be, for the safety of everyone involved, should there be a problem.

A prospect’s reaction to this request is important. If the final question is met with lots of bluster and indignation, this could be a big red flag.

Take measures to protect yourself in the field

The “foot in the door” is a well known and effective sales tool, unless it’s misdirected by someone who means you harm. Never ever allow a strange prospect to take control. Be mindful that most predators are accomplished and very convincing liars.

Always take precautions. Don’t meet strange prospects at the property. Always meet at your office or a neutral location such as Starbucks.

Always ask for and verify the photo ID of strange prospects, preferably before you meet – that way you have a chance to review pertinent information.

You should bear in mind that several of those arrested and charged this year for assaulting real estate agents were convicted sex offenders who managed to insert themselves into the lives of real estate agents.

All the measures we have discussed here are preventative, so take appropriate precautions when you actually meet with strange prospects. Here are some suggestions.

Does your Broker have a safety policy for its agents? If not, why not? Visit the NAR site for more information on safety courses and keeping safe.

Disclosure: the author is founder of Verify Photo ID, an app that verifies prospects ID’s and checks against a national sex offender database.

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Real Estate Brokerage

Refocusing your team before sales plummet

(REAL ESTATE) It’s that time of year again – holidays distract and procrastination sets in, so here’s how to refocus your team before they are led astray by the calendar.

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This time of year is always difficult in terms of focus. In most places, it gets colder, the sadness of no more summer has set in, and the impending holidays serves as a distraction.

This can be an issue at home, and especially at work. We kind of count down the days until a new year, as there’s a common thought of a fresh start.

If you’re a broker or team manager and are noticing this lethargy with your team, consider stepping up as a leader to get the team to refocus.

As the seasons change, so can our moods. It can be helpful to have quarterly check-ins with your team (either one-on-one or as a group) to discuss current methods, trends, what’s expected on either side, and what can be improved.

This form of open communication helps employees de-stress and may help them recharge and regain motivation. Another communicative form can be found in surveys.

Sending check-in surveys via email to your team to assess their feelings of the workload, the market, and to voice any concerns they have – it can be a great way to open the door for bigger, more important conversations. These surveys can be formatted to be answered anonymously, as well.

Be sure to always be accessible and focused yourself, as you’re setting the barometer of expectation. Allowing for this open communication can let you know what can be improved on your end, which can aid in refocusing.

Another way to bring your team together is by taking everyone out for a quarterly lunch. This helps your agents to bond, while also feeling like their work is being appreciated; therefore, motivating them to keep on producing well.

At the end of the day, you can’t be everyone’s friend, soo, if you’re observing behavior that seems to be unproductive or unfocused, don’t be afraid to speak frankly. Sometimes all it takes is for that behavior to be acknowledged to convince someone to step up their game.

Remember – each team and each manager is different. The attempt to get everyone on the same page and to continuously make strides as a team can take trial and error, but it’s something to always be cognizant of to avoid issues in the future and keep sales on track.

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Real Estate Brokerage

LeadFuze can save anyone’s sales numbers from the gutter

The amount of time and effort that goes into gathering relevant leads can be exhausting. LeadFuze is a software that searches and finds leads, crafts awesome emails (and follow up emails), and turns those cold leads into sales.

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As someone with a background in sales, I can’t even begin to explain the amount of time and effort that goes into gathering relevant leads, after all, there can be no business without customers. But the cost of finding the right target market, finding their contact information, and successfully reaching them, can be a burden. Which is why companies have begun investing in lead generators, such as LeadFuze, a new lead generation tool.

Now I’ve used some of these generated lead lists before, and literally had absolutely no luck, the numbers were either too old, or disconnected. However, with LeadFuze’s inquisitive onboarding process, they ensure leads are not only relevant, but attainable, eliminating the guess work, and time. They offer two options for customers, one is the basic lead generating software, and the other is “done for you” services.

Which one businesses select, depends on how much control they want to give LeadFuze: either partial with just enough control to provide lead lists, or full control, where they generate leads, communicate with them, and identify warm leads.

Checks your email for leads

For the Lead Generating software, setup is pretty easy, it requires a quick installation of their Chrome extension. From there, users can find prospects based on title, role, industry, location and other filters. Once selected, their software then goes and finds the emails, domains, and various social profiles automatically; which can then be exported into any CRM or emailing client.

The lead software has three different price points, including 20 free prospects with each, and packages sustainable for individual teams, and teams up to 15. There’s also a free trial option for up to 3 team members!

Crafts your emails, follows up

The Done-For-You option, is like the luxury vehicle of both services, and literally does all of the manual labor. After filling out the onboarding process, completing information about the specific business and industry, LeadFuze takes over and is in control from there. They start with email creation, crafting captivating outreach email messages, and follow-ups. After the business user is satisfied with the emails, they are sent one by one, to each lead that was generated for them, based on target market, industry, location and more. And just to make sure no one is left behind, prospects who don’t respond initially, will receive a follow up email.

When someone finally responds with an interest, and becomes a hot lead, LeadFuze relinquishes control back to the business, and allows them to continue dialogue and hopefully secure the sale.

Price points vary

This service is understandably more expensive, however still affordable when you think about the costs avoided, and time saved. They’ll even send you an example email if you don’t believe in their effectiveness.

I’m confident LeadFuze could have saved me a couple of grey hairs, during the countless hours of being hung up on, and talking to operators. So I know other B2B businesses will find a site like this extremely beneficial. If you value your time, and want to have a sales team that actually sales, try their free trial option, and see what they can do for you.

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