Richard Robbins is a trainer that specializes in coaching and training leaders in the Real Estate industry. He is also CEO of his very own successful practice Richard Robbins International. He recently published a video on 5 ways to help agents through the negotiation process when dealing with commissions. He outlines some very helpful tips to help negotiate commissions. Here is a summary of the 5 tips that he outlines in the video:
1) Qualify Prospects
It is easier and more effective as an agent to focus on clients that are serious about buying or selling their home. If they are not serious or do not care when or if the transaction will go through then negotiating commission will become a greater issue. Robbins says that you should ask questions in order to understand the potential clients: why, time frame, expectations and most importantly ask if they are ready to move forward. Express ideas like net profit and say that you can show them exactly what they will make including your fair commission. This gives them a sense of value while they negotiate.
2) Have a Pre-appointment Process
This process again adds value to your sales pitch. Often times agents will have a clear understanding that before the meeting they must have a clear process to add value to themselves. Some agents have a pamphlet or a sales brochure that can be sent along to explain some things about the client’s needs. Then usually a phone call is made 24 hours in advance to pre-confirm the meeting. This again adds value to the client as you are personally confirming their meeting.
Once at the Appointment
3) Share Information that is New to a Client
This also adds value to the prospect. This can be done in many ways and truly sets you apart from other agents. Regardless of what you tell the client as fact you must back up what you say with evidence. Often an agent can add credibility to themselves by presenting information about the market. Other times an agent can be transparent with his closing rate or his “days in market.” This is a great way to show what you bring to the table over your competitors while you negotiate.
4) Handle Objections about Commissions
Will they ask? Most likely when you are meeting with a client or prospect they will ask about your commission. They may ask you to cut your commission or threaten leaving for the competition. Stay strong. You have already offered and shown them how valuable you are. Express again your experience and knowledge within the field as their best fit for an agent. You know their why and have already connected with them so you can use that too. Again show what they will be making net including the commission you wish to receive.
5) Don’t be attached to the Outcome
If you have followed these steps and truly tried your best to close the sale then you should be satisfied. Don’t be attached to the outcome; be attached to what you did throughout your presentation. While the outcome is important mastering the pre-qualifying and pre-appointment process will yield you results. The most important thing is to show clients potential value from the service you will offer them. This will make it easier to negotiate your commissions.
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