When Real Estate Agents understand their true value proposition is in the data, it will allow them to broker more deals. While creating higher value assets in their business that can pay them actively and passively well into the future.
Real Estate Agents are in the business of Data and Business Intelligence. This creates a value proposition well beyond their current commission cheques.
Let me get this very clear at the upfront. I am personally Pro-Real Estate Agent. However, the role and duties of an Agent are going to evolve into further focused specializations than it is today. This means Real Estate Agents need to embrace the change and capitalize on it while other industries continue to resist it.
What is your Real Estate Speciality? What are you known for and why should other Real Estate Agents call you for your expertise?
Just like surgeons have embraced technologies to perform better surgeries or diagnose illnesses faster. Yes, that’s right there are surgeries where it is mostly performed by robot now. And Just like Pilots had to learn how to release the plane to a robot aka “Autopilot”. Real Estate Agents need to embrace Big Data and AI to enhance their business, not kill it.
How you position yourself to use Big Data and the outputs it can provide for you will significantly influence you cash-flow earnings over the next few years.
How do you answer these questions?
- Why do other Real Estate Agents call you?
- How do you get referred to people?
- What’s your one thing?
- What’s your dominate market offer?
- How are you using data to find deals?
- How are you leveraging technology to facilitate communication 24/7?
- How are you leveraging automation and systems so you can work smarter not harder?
Today’s world is changing quickly. And with the release of crypto-currencies and smart contracts, we are going to see the real estate world be transformed by these advancements. If you think real estate has already been disrupted you are kidding yourself. The world of crypto-based smart contracts is still in diapers. They are working out how to fit into today’s data-rich world Real Estate World. They are still trying to define how they fit into society. Once they work it out and gain traction get ready for MASSIVE disruption in the way business is done, and transactions are completed.
What is the True value of a real estate agent?
People complain about the commissions paid to real estate agents and their role. However, if you have a special skill you should be paid well for it. That said the reality is that few Real Estate Agents earn more than $30,000/per year and it’s because they are mistaken about their value proposition. They don’t focus on what matters most and get distracted being “busy”.
Some Real Estate Agents complain about the different business models that are being offered or the companies that are changing the commission structures. But that’s the advantage of competitive business, and you don’t need to reduce your commission when you have an increased value proposition.
There will always be a want or need and position in the market for Rolls Royce, Porsche, Mercedes, and BMW. There will always be a role for Real Estate Agents. What will happen is a lot of the tasks that can be automated will be, and this, therefore, increases the value proposition.
If you ask the Average Realtor what makes them different from the 1.2 million others? They will typically struggle to answer. This is the heart of the problem.
However, if you ask a Plastic Surgeon why they are different? They will answer you based on their specialty and the techniques they apply to deliver you the result you want. They understand their value, and they know how to capitalize on it to create a massive and profitable business. They are usually narrowing their specialty based on the techniques they apply. Not broaden their specialty like agents try to do selling real estate to everyone.
So why can’t Real Estate Agents do the same thing? Why shouldn’t they be able to do the same thing?
The reality is the Real Estate Agents that understand their true value can and will realize they are Data Specialists or Technology Companies. The ones that don’t will complain whinge and sulk back into the dark while working their “Real Jobs”.
The Real Estate Agents that know how to focus their value proposition on Niche market segments and leverage Big Data to service these markets will win. Just because the word “big” is associated with data does not mean it’s not applied to very specific focused verticals.
To be clear “Residential Real Estate” is not a niche vertical.
Real Estate Agents have access to large amounts of data and are failing to apply the business insights to this data. I also understand that Real Estate Agents are yet to truly understand the value of their data and how they can monetize it.
For years Agents have been focused on finding listings and selling these listings to generate their commissions. But as soon as they can realize there is value in the data and a clear path to monetizing this data Real Estate Agents will change their value proposition. If you have not realized it that time is now… yeah, today not tomorrow.
Real Estate Agents need to realize they can provide their leads and clients with access to products and services associated with the property buying experience.
Here are some of the questions you need to start asking yourself as a Real Estate Agent?
- Your Leads and Past client data is valuable the question is how you can monetize it?
- How can you use this past data to acquire new clients?
- How can you monetize this data with other vendors or service providers? There is no problem with this if it is done correctly.
- What can your client data indicate about your marketing or the types of people you are attracting? This allows you to fix or increase your marketing to attract more of the right people.
- Are their other opportunities you can offer to your clients that they would be willing to pay for? Remember they all don’t need to take it but if a percentage do it is free money.
Over the next few years, you are going to see more tools released that focus on helping Real Estate Agents apply business intelligence to their data.
For example one of the tools that HelloAlex is offering their clients is data enrichment. We take your leads and client data and convert a Phone Number or Email address into up to 150 variables on the lead. This means that you know the name and mailing address, net worth, family members, age and sex of your leads allowing you to better optimize your marketing and promotions.
This allows you to automatically send postcards or letters to your online leads who gave you only their phone numbers or email address. When you layer your online and offline marketing, you significantly increase your conversions.
Data enrichment of lead data is only one part of the service. HelloAlex can then analyze this lead profile and provide you with insights on who your leads and clients really are. When you know who they are specifically, you can then attract more of them.
From this data you can also assess the conversations you are having with your leads and optimize these conversations to save you time. Spend more time with the right people and less time with the wrong people.
This is just a small glimpse into the current and future value of your Data. The more you start to assess your database as an asset the more revenues you will generate this year and into the future.
You are going to start seeing Real Estate Agents create stronger value propositions within their communities. Ohh and offering to provide people with a property valuation is NOT a strong value proposition to attract clients. Showing buyers how to save up to 45% on their mortgage however is. If you want to know more about that just contact www.HelloAlex.io
Real Estate Agents need to review their data options and assess the systems they are using to increase the value of their data. The sooner you can start to do this the sooner you can gain a competitive advantage.
About the Author: Benjamin Bressington CEO, Founder of HelloAlex.io
Benjamin Bressington is the driving force behind defining the technology vision of HelloAlex and working with the developers to turn lines of code into magic (because that is, in fact, what it is). Previously, he spent time building e-commerce websites, helping create sales systems, consulted to million-dollar companies and authored multiple books. (Can you say overachiever much?) When he has spare time, he loves cycling. In fact, he loves rides that are 60 miles long. With hills. So he clearly has us beat in the fitness department. Around the office, Benjamin is known as the “guy who talks funny.” But before you think we’re being mean, know that it’s because he’s Australian. Alright, mate?
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