Listings that you need to include in your website and online paid ads to get fast commissions
Let’s say your website is already driving traffic (visitors) the next important thing to do is to wisely choose your listings. Of course as real estate agents we can put any listings we want in our website, sky is the limit but it would be wiser if majority of your listings can give you fast cash right away ones sold.
Let me explain… Ones again I will base this on my experienced.
Have you pondered deeply "WHY ARE YOU SELLING A PRODUCT?" Let’s just removed for awhile the distinction “real estate broker” and “real estate agent”. In my opinion in the EYES of the client we are all salesmen and saleswomen.
I cannot think of any reason why do we chose to become a "salesman and saleswoman" and that is to earn more or let’s say to earn big for our family and love ones.
Of course if we want to earn big, is there any nice feeling other than getting our commissions "right away" and not waiting for such a long time. So my strategy was to build listings majority of which, ones sold-out I can get my commissions right away and not waiting for such a long time.
In my opinion it's useless to be a salesman or to sell a product if you will not be reciprocated right away
I'm not saying literally right away but at least you don't need to wait 1 - 2 years just to get your full commissions.
A sample scenario:
Agent A sold a home worth P5M
Commission of agent is 3% - P150,000.00
pre-selling
20% down payment payable in 1 year
Developer do not have a win-win situation policy (no monthly commissions)
Agent will get full commission upon full down payment
Agent has an allowance
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Agent B sold a home worth P5M
Home is re-sale
Agent gets only P1.5% - P75,000.00
Agent has no allowance
Agent is not tied up with a developer
Agent gets the P75,000.00 after 30 days
I'm not saying this is always the "scenario" but at least you have an idea.
If I’m the real estate agent, I will choose Agent B because I was RECIPROCATED right away for my effort. With the P75,000.00 in hand I can already be flexible. I can spend for my marketing activity, I can re-invest the money in other business or investments. Again, I go back to the question "what's the use of being a "salesman" if you don't get reciprocated right away"
The disadvantage of Agent A
- Nobody knows the future
- Not sure if the client is still alive by the time down payment term is over
- Not sure if the client will not have a financial problem in the near future
- Not sure if the client will not change his / her mind
- Not sure if you are still alive by that time
The disadvantage of Agent B – seldom gets 3% commission on a deal and of course some of the above also.
I’m not paranoid but these are possibilities that may happen… I rather wait just 30 days or a little longer.
I’m not saying Agent A did not have a good decision, what I’m trying to point out here is “there is a better way” to get fast commissions.
Again this is only my strategy, I’m not forcing anyone to adapt what I do, It worked for me it may not work for you. Depends on what listings you want to include in your website.
My friendly suggestion is "mixed-up" your listings
Some agents prefer the 50/50 approach "50% re-sale and rents and "50% pre-selling"
I prefer the 80 / 20 approach "80% re-sale and rents and 20% pre-slling". I put all my resources, marketing and selling strategies on the 80% to get fast commissions.
You may look for developers who gives allowance and at the same time give monthly commissions (pro-rata) – just imagine if you closed 5 deals, it’s almost like you are being paid a salary by the developer. If one or two clients backs out at least you get some portion of your commissions.
- Get re-sales for faster commissions
- Get rentals for faster commissions
Happy Selling fellow sales agents!
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