A recent post in Active Rain asked very simply "When Do Realtors Stop Working for Free?" She mentioned that she: "got an email today from a colleague who is a real estate investor. He is very savvy and someone who "gets" it. His advice can be summed up in a couple of snippets. If we are as smart as we think we are and we give great advice, why are we giving it away?"
The comments were overwhelmingly from agents that agreed with her premise but questioned how they could get paid in any way other than by commission. But there were a few responses that blew me away - one actually said that she "hated this conversation" because she maintained that we are (I guess she thinks we always have to be) commissioned salespeople without ever letting her mind expand that practices change when businesses do.
I continue to be amazed at how wedded we are to the commission structure as the only way to get paid. Yikes! You know we used to drive around in the horse and buggy but someone came up with the automobile and thought it just MIGHT work a bit better. And the blacksmiths who continued to put their heads down and shoe horses were soon out of business. Jeez! We used to use a typewriter. And how often are you using a fax machine these days?
For those who say you will make less money by having the ability to charge fees...PULEEEZE! You will earn MORE, not less, when you offer choices. You will get business you never would have had. No one is saying that you have to give up your commission income but having the ability to charge non-contingently secures a good living. When you're a consultant, you're never commission-ectomied because you can always offer to work by non-contingent ways. This is not conjecture - it's the experience of a growing army of real estate consultants who provide quality, transparent choices to the consumer in the services we can provide and how we can get paid for them.
I know change is difficult, but our industry has changed and we must also. We are no longer strictly salespeople charged with moving the product. We are charged with providing objective counsel that is in the best interest of our client, not ourselves. This is far more in line with service providers such as attorneys and accountants who get paid by fee.
Get with it folks!

