Posted by: realestatewebtrainer | June 4, 2011

Temptation and Marketing meet Technology – oh my!

Teaching Kids about Money goes deeper than what is at first glance a Sesame Show – No No; this is about Marshmallows Now, or lots of Marshmallows later. Think about this: “A third of us Adults have less than $1,000 in savings!” – and maybe the culprit is Technology!?

Here is the Video:

Technology, Marketing, and the Woes of Temptation

Here are some Key takeaways:

1. Many of us adults are not good at basic Math; as in how Financial Interest Works – How about compounding Interest? oh my!

2. Many of our agents don’t know how to calculate the increase of their own income. Let me share an example: If you are an agent who works for company A at a current split of 60% and contemplate moving to company B who pays a 70% – lots of agents conclude that their income will grow by 10% (70% – 60%) – Unfortunately that is the wrong answer. Your income would climb by 16.7%, in other words, everything being equal except for the Split; if you were netting $2,000 a transaction at company A with a 60% Split you will start netting $2,333 with company B NOT $2,200.

PS: Here is the formula – it is simple: [(Split2 – Split1)*100/Split1] – The percentage increase in income from Split1 to Split2 is: The Difference of the Splits times 100 divided by the original Split1. Example: from 50% Split to 70% Split your additional income is: 70-50 which is 20, times 100 which 2,000 divided by 50 = gives you 40% increase in income – Not 20%.

Example 2: from a split of 70% moving to 80% the increase in income is 14.23% – Not 10%.

I illustrate all of these examples to draw a fundamental point – Many agents are being taking advantage of because they fail to do the math; if it involves calculation they tend to shy away from it; fortunately this is not all agents – but a large number nonetheless.

3. Delayed Gratification truly relates to core idea of the discipline of work; Few ever master Blogging, Video Marketing, and SEO because they are impulsive about results. One Marshmallow now, or 2 Marshmallows later – so or we really that different from our own children?

4. Those who are temperate with their desires are more strategic and patient about results; they understand that starting with just $500, and putting aside $50 a month in Savings at 2% for 20 years will net you: $15,517.11.

5. But now let us talk about Technology and Marketing – All of us are bombarded with the ease of getting things now; just finance it. The advent of Mobile Devices and Internet Access everywhere you go means an escalation of Seductive Marketing Messages 24/7. We want things and we want them now and marketers know that – in fact what is Marketing? “Buy this thing now and you will be fabulous!” Marketing is driven by temptation and it works on all of us!

Share your thoughts!

Happy Blogging 🙂 – Key Yessaad

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