If You Don't Want To Be Treated Like A Commodity, Don't Act Like One
What is the definition of a commodity?
A commodity is an item that is readily available from several sources and is competitively priced. It provides nothing that cannot be acquired elsewhere and there is little unique about it.
Commodities like eggs, milk and flour live on shelves and watch as prospective buyers walk by, poking and prodding them, before turning them upside down to see the price on the bottom and then walking away.
The market purchases commodities because they already know, for the most part, what they are going to get. And they agree to the listed price required to receive that value.
A particular commodity needs a buyer more than the buyer needs a particular commodity. After all, the buyer has choices, the commodity does not.
Real estate professionals can be commodities too. And once you fall into that trap, you get stuck in the never ending challenge of trying to get noticed among all of the other commodities “on the shelf.”
A lot of folks think that all of the real estate technology out there is turning real estate professionals into commodities. Technology, after all, levels the playing field. Now consumers can get access to the information that once was your own protected domain. And other real estate professionals have access to the same real estate technology that you have.
Add in all of the discount brokers running around, and you can understand why many think that the days of the 6% commission are numbered.
I think this is a shortsighted approach and assumes that real estate professionals can’t think, adapt, learn and/or reinvent themselves in the face of a changing business landscape.
Technology actually makes it easier than ever to differentiate yourself, because it makes getting yourself and your message out into the marketplace a whole lot easier.
So how can you use real estate technology and marketing to avoid the commodity trap?
Here are some quick ideas:
- Find a niche and target it online and offline. Buyers and sellers are NOT a niche and even first time buyers and sellers are probably too large of a niche depending on your area. Becoming the expert in helping technology entrepreneurs relocate to Chicago – now that’s a niche. You can find those people.
- Answer this question: How can I use the real estate technology I already have to help my buyer or seller get what they want in a way that no one else is doing?
- Start your own blog and write in it every few days. Don’t quit. I know you think you don’t have the time, but you must make the time. Writing in your blog is an investment in your business that is no different (except that it is probably more productive) than attending your next networking meeting or sending out flyers. Your real estate business has one asset that no one can ever duplicate. That asset is you, your opinions and your perspective on real estate. Leverage it by delivering it to more than one person at a time.
- Don’t be afraid to reject the business you don’t want. By doing that, you’ll free up more of your time and energy to attract the business you do want. Create a system with technology including your website, autoresponders, and 800 lines that help you filter out unwanted business automatically.
- Create your own “system” of doing business. You need a “this is how we do it here” type of setup to communicate to your clients that working with you is going to be a good experience different from any previous agents they’ve worked with. Tell them why it will be different and then deliver on those promises.
Yes, some real estate professionals are becoming commodities. And technology is helping that change to happen more quickly than ever.
Just remember, you have choices. You are never forced into anything. You don’t have to just sit around and watch it all happen.
Only you can make your business better and smarter than it was yesterday.
Now is the time to start.
Interesting post!
Agree with you whole heartedly over there, when you state that some real estate professionals are becoming commodities. And technology is helping that change to happen more quickly than ever.
It’s true that Only we can make our business better and smarter than it was yesterday.
— Abby Aug 15, 12:02 PM #