Articles of Interest

Why Higher Commissions Are Important
To You and Your Clients
By Darryl Davis (Reprinted with Permission)

In today's climate, it's more difficult than ever to not only get listings, but to get listings at a full commission. However, it's more important now than ever before that an agent learn the skills and techniques in order to stay profitable.

In addition to that fact that you want to compensated well, here's why you should improve your skill at asking for and receiving higher commissions.

Owners expect more for less -- It's harder to maintain profitability, while still offering supreme service to sellers. When you lower your commission, you essentially have two choices--to reduce your profit margin, or to cut back on the marketing tools you use to get the home sold for the highest possible price. Neither scenario is very attractive and is very helpful in guaranteeing you garner the highest price for that home.

It hurts our industry -- The more we cut our commission as an industry, the more we are lowering the perceived value of our services to the consumer. In any profession or industry, the price a professional charges is directly related to the service they provide. To raise the perceived value of what we offer, we need to raise our standards.

Here's an interesting statistic: 91% of all real estate sales are done using a real estate agent. If we didn't provide a much needed service, there wouldn't be so many buyers buying houses through us.

You deserve to get paid well –You work hard on behalf of your clients. You went through the courses and became licensed by your State. You know more about real estate than any seller. You are the professional and you deserve to be paid a professional's commission.

Make more money without working harder. Here's something to keep in mind: For every listing you get at 1% higher than what you've been getting, with an average sales price of $200,000, you receive an extra $2,000 per listing. If you only received 10 listings in one year, you just gave yourself a $20,000 raise without working harder or longer hours! That alone should be enough of an incentive to improve your skill on the listing appointment.

Doesn't it make more sense to be getting more instead of giving up more?

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About the Author:
For the past 14 years, Darryl Davis has traveled around the country coaching agents and brokers on how to achieve their next level of success. In 1993, he created The POWER Program, the only training course for agents that meets once a month for a full year. On average, graduating Power Agents double their production over their previous year. In addition, Darryl is the author of the best-selling book How To Become a Power Agent in Real Estate. To learn more about Darryl please visit www.DarrylDavis.com or call 1-800-395-3905.