Taking Service To The Next Level

2009-08-17T12:20:00.000-07:00

There are dozens of ancillary service possibilities for Real Estate Agents to participate in, but if it involves the transaction, for example, settlement services or loan origination, there is the issue of compliance with HUD and RESPA if an agent wants to receive compensation. If it involves the volunteering of a contractor’s name there is generally no compensation, but there can be a risk. Your good name and perhaps your wallet are on the line if the contractor does a poor job.

National Buyer’s Advisory Board has discovered one ancillary service that every real estate agent or company can promote now that has nothing to with the transaction, but is needed by more than 47% of present and past clients. Not only can you now provide a tremendous value added service for your clients, but it keeps you at the front of their mind as the professional who is truly looking out for them. To top it off you can be compensated with residual income for providing this value added ancillary service. In this day and age if you’re not giving your client all the services they want and need you can be sure your competition will. Even if you are having a difficult time selling houses these days; THAT'S NO REASON NOT TO MAKE MONEY! Our previous clients and customers appreciate the value added services we bring them long after the sell. It's one more reason they will call us when they are ready to sell or buy the next time.

We all know real estate agents, brokers and even entire companies are dropping out of the game faster than you can say, “would you like fries with that Big Mac.” According to a recent article in Business Week; “"There’s a huge army of Realtors who would make more money with a full-time job at McDonald's." But we can’t say we weren't warned. Long before the bubble actually burst the headlines were glaring in our face. Some of the headlines I recall: “THE GOLD RUSH IS OVER” May 2007; Thin Sales Make Agents Hungry October 2006; Quitting Real Estate Not a Bad Idea October 2007. Admittedly these are rather depressing headlines; but the fact is successful brokerage firms learned this secret several years ago that ancillary income is essential to survival.

In 2004 50% of all broker firms offered ancillary services. In 2006 the number had risen to 75% according to NAR. One company with over 31,000 transactions in 2006 earned 43% of their income from ancillary services. Marylyn B. Schwartz CSP writes in The Case Of The Vanishing Commission “We must accept that the most important parts we play are that of information providers and ancillary service facilitators.”

If you are looking for a way to increase your bottom line there really is only one answer ~ ANCILLARY SERVICES that create additional income.

Agents with a vision to see the possibilities, who know how to think outside the box, will be the ones who remain in business when others have fallen by the wayside because all they knew how to do was show a house and offer a home warranty. The agents that survive are the ones who not only create value for their services in the eyes of the clients and customers they serve, but additional income for themselves at the same time. Let’s face it, a $50 referral fee on a home warranty even if you do 25 sales this year is not a lot of money.

Whether you're currently a top producer or just trying to survive; the time has come to add REAL INCOME producing ancillary services to your business practice. Just look at what others are saying about this very important subject. K.R. Harney writes in Realty Times, “NAR has adopted a new strategic plan that urges its million-plus members to consider expansion into packaging of ancillary services. "What we have here," said NAR vice president for research Ellen Roche, "is a recognition that packaging (already) is being done by our members" -- chiefly the largest brokers. Most of the 50 top realty brokerage firms in the country offer at least a handful of ancillary services to home buyers. The packaging strategy now being pushed by NAR is more like the "one-stop shop" that the association has favored in the past, said Stephen Cook, vice president for public affairs. The new NAR packaging strategy is also a tacit recognition that many brokers are earning declining percentages of their total revenues, but see growing potential in ancillary revenue-producers.”

Consider the main points from a 2004 article by the Editor of Realty Times entitled Clareity White Paper: Ancillary Services Key To Broker Survival. Clareity Consulting suggests brokerages must derive revenue from ancillary services. Half the time, clients will choose service providers suggested by their Realtors yet agents frequently suggest service providers with no affiliation to the brokerage. Not only are agents uncompensated for these referrals, they may be giving away the opportunity to set the terms for one-stop-shopping and other service expansion, leaving the way open for companies outside the conventional real estate industry to meet consumer demand.

There is considerable consumer demand for the one-stop-shopping experience. Consumers have given us their message loud and clear...THEY DEMAND MORE SERVICES!!

The question is what are you doing about it? Agents must offer income producing ancillary services in order to survive. So what to offer? At NBAB and AgentEducation.com we are now on a mission to get the word out about the importance of income producing value added services and to share with those who will listen the #1 ancillary service every agent should be offering to their clients.

We are now looking for a few great agents in various markets who still have some life left in them. While we wish everyone well, we don’t have time to waste with negative agents who think we are just trying to sell something. We’re looking for those who know that something has got to change. If you are one who is ready for a change we would like to talk with you soon. There's no hardball spill. We will simply share with you how we have implemented our own ancillary strategies and how you can do the same. New York Times Best Seller, Robert G. Allen says, "The whole idea of Multiple Streams of Income will be a powerful paradigm shift for most people.” But for those who are willing to embrace change there is incredible opportunity.

We have even developed at 10 Point Opportunity Analysis Profile that can be applied to any business venture or opportunity you are considering. This profile can be applied to the start up of a traditional business with thousands of dollars in upfront investment, but is especially beneficial for real estate agents looking to find ways of increasing their monthly income.
· #1 we are first concerned with integrity. Does the product or service in anyway hinder the integrity of our business? Does your ancillary product or service really do what it claims to do? Every year thousands of companies are put out of business by the courts and rightly so because the actual results didn't live up to the claims.
· #2 Does the opportunity have a recession proof quality to it? In the present economy with employment on the rise we are all more aware of the products and services we can do without. Those products and services which are viewed by the masses as essential will weather the economic storms far better than fads. There's not much of a market these days for mood rings.
· #3 What are the chances the product will become obsolete? When was the last time you bought a wind up watch or used a floppy disk?
· #4 Am I required to stock an inventory? This should be of special concern to those starting a home based business. Our advice here: BE CAREFUL! How many friends do you know who have a garage full of products that they couldn't even give away much less sell?
· #5 What is the start up cost? Am I required to buy so much inventory in order to start my business? Does the company entice potential affiliates with higher commission opportunities if more products are personally bought? That being said, it is not unreasonable for startup investments in home based businesses to run $200 to $500.
· #6 What is the overhead or ongoing cost of being in the business? Can you afford it? It is a wonderful exhilarating feeling to start a new business or add a new service to an existing business, but the key is in being able to keep the business going.
· #7 Is the product or service marketable to the masses? We understand there is some one some where who will always buy something, but what do you know about your market potential? How big is your market and how essential is your product or service to that market? Is there a growing demand for your product or at the very least a stable demand? Will your customer be a repeat ongoing customer or is it a one shot sell.
· #8 What is the potential for creating residual or passive income? For example insurance brokers have always enjoyed the benefit of residual income, as have songwriters and bestselling authors. But products that are one shot sells offer very little potential for creating residual income. Which means that you are constantly having to fish in new ponds. In other words, you are always having to work for your next dollar. Of course there is always the potential for referral business, but this is not to be confused with true residual income, because referral business is just more work. Residual income is income that continues to be generated long after the initial effort has been made.
· #9 What kind of support will I have? There are plenty of opportunities available today that are literally sink or swim. Fortunately the vast majority of home based business opportunities today offer tremendous support in the field and in the home office, because your success is their success too. But keep in mind it is your hard work and not the promises of others that ultimately determines your success.
· #10 Is this a product or service I can enjoy selling? Do you have a passion for what you are doing? Most people live for the weekends because they hate what they do. We feel that success has a great deal to do with doing what you enjoy!

Finally, as a real estate processional it makes sense that the closer the ancillary service is in relation to what you already do as a real estate professional the better. If you are trying to market cosmetic creams or vitamins to the client you just sold a home to they may look at you as a bit flaky, but if the service you are offering is more directly related in some way to real estate the greater the potential for success. As an example most clients don’t buck up against the idea that you are offering them a Home Warranty. Thus, the more ancillary services you have to offer like that the better off you are.

In my twenty three in real estate I have never seen an opportunity that receives perfect marks on all 10 points. But that has now changed and we would like the opportunity to tell you more about one company that has scored perfect marks in our 10 Point Opportunity Analysis. Our goal is to simply make an introduction one real estate professional to another. You’ll see for yourself the next step you need to take in taking your service to the next level.

To learn more contact me today.

TO YOUR SUCCESS!

Kenneth Koon, Director
AgentEducation.com

WHAT NOW

2009-03-11T11:23:00.000-07:00

As the housing slump continues many agents are reverting back to former careers or simply letting their license lapse. (see article Realtors QUIET) According to one report the number of agents in Atlanta letting their licenses lapse is growing at a faster pace than the number of overall licenses held.

Even the top agents are moving into survival mode to be sure, but for goodness sake don't let your license lapse. You worked too hard to get the license to throw in the towel. The market will turn around eventually; and those who have kept up their license with the required education will be the ones that reap the benefits.

Even if you do take on another job to make ends meet or completely change careers, that's no reason to let a license lapse. Just this morning a referral came in from an agent who has gone back to nursing. The client is looking to buy a $350,000 home and financing is already approved. The referral agent will pick up a referral fee of $1500 to $2000. This would not have been possible with a lapsed license.

Remember the first Rocky movie. Rocky worked in a meat plant and used a side of beef to practice boxing. He told Pauly, "Ya gotta do, what ya gotta do." Certainly we must all do what have to do in hard times. But by all means keep up your education and the day will come when you can get back in the ring again.

Georgia Real Estate Training

Taking Service To The Next Level

WHAT NOW