Posted by: realestatewebtrainer | July 11, 2011

Money is not always the Cure for your Real Estate Projects

Every Business Venture requires not just the proper funding, but also the proper fundamentals of Business Management. Many a times, some choose to use financial incentives as the mechanism of bringing about success, but divorced from procedures, habits, and behavioral understanding, many end up is the dust bin of fallen dreams.

Money is not always the Cure for your Real Estate Projects

Our modern society has bought the illusion that the more money you throw at a project the more likely you will be to move it forward; an illusion we all suffer from. Behavioral Science is starting to test this simplistic idea of “Incentives for Success.” – Human Nature is not always incentivized by Money alone.

A recent study of “Organ Donation” may illuminate Behavior versus Procedures – in some Western Countries, when it is time for you to renew your Driver’s License, can you check a box to “Opt in” to be an Organ Donor; where in others the process is the same but you must check a box to “Opt Out” from being an Organ Donor. Behavior Scientists found that Organ Donation in “Opt In” Countries was at 14% – yet rises dramatically to 90% in “Opt Out” countries.

Now, some of you may be thinking that this has nothing to do with Real Estate and Internet Marketing, and I would disagree; The lens of successful projects must include not only the “Behavior Understanding” of your Customers, of your Brand, of your Colleagues – but yours as well… To reduce your projects to just paying for them is awfully reductionist – but to choose to understand the actions and habits of those involved in the project will give you an edge towards success.

Let’s discuss some examples:

1. The Behavior of Real Estate Agents is tied to their perception of who they are in the market; offering them more money is not always the best way to get them to join your company. Most Real Estate Agents build a “Comfort Box” with the brokerage they work for, and get used to certain procedures; the way to add listings to the MLS; the way to take pictures; the way Floor Duty works; the time of day of office meetings; etc.

Their relationship to these procedures generate habits, and habits are the brain’s way of helping you function – think of driving and breathing; you are not running procedures in your head to perform these tasks.

Therefore to offer Real Estate Agents more money, or a higher Split, may not produce the results you desire – but at times tackling their Behavioral Procedures and how they work their business; is where the conversation could become more fruitful. Seek Simplicity and Leadership of Understanding and you will start connecting authentically to Agents.

2. Another important way of being you must also seek to understand is “The Scarcity Index” of all your Agents: The Scarcity Index is the simple measure of fearing that which you don’t have. It is not a number, but each one of us has a certain amount of it. Prosperity is built on this core idea – the more you fear losing everything by focusing on something, the higher your Scarcity Index – the reverse, of course, would be to to be driven to be content with working with what you have, and end up gaining more and more.

As the Broker you can do this experiment yourself: take two agents, equally matched, give one them 1 Lead a day – and the other 4 Leads a day. If you do not tell them that you are giving them a disproportionate number of leads – the one with 1 lead a day will outperform and produce more closings. If you tell them their production will be the same and the agent with 1 Lead a day has a reason to resent you, and develop a ‘Scarcity Mentality.’

Scarcity creates its own Psychology and affects Behavior; Keep in mind that More is not always More.

Happy Blogging 🙂 – Key Yessaad, Internet Marketing Trainer

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