Let’s chat value proposition.
- What is the value proposition of being on YOUR team?
- Do you have one?
- Do you actually deliver on it?
- If I asked your team what it is, would they say the same thing YOU think it is?
“Price becomes important only in the absence of value.”
We hear that saying all the time in terms of sellers interviewing agents and asking for a reduced commission. They expect a lower commission because the agent hasn’t demonstrated their value. Well, the same thing can be true on commission splits with the agents on your team.
So what is YOUR value proposition?
Many teams I talk with say it’s leads. My response usually is, “Great. And what else?” Then there’s usually a LONG pause.
If your ONLY value proposition is leads, you will inevitably hit a point where agents start thinking, “Oh, I could do this myself and make a lot more money.” I’ve seen it happen over and over. When an agent is new, or new on a team, leads might be enough. Over time, however, the value wanes and they either think they can do it on their own, or they actually CAN do it with any team, so they start talking to others who might give them a higher split. (Believe me, there’s always someone who will because many teams don’t actually operate as a business; they don’t realize the impact of their high splits until it’s too late and they don’t have enough income to support the infrastructure needed to support the team.)
So, back to value proposition. What differentiates YOUR team from others? What do you provide that others don’t? What is unique about your team?
When agents are choosing teams, does yours stand out like the horse on the right? Or do you blend in with all the other horses?
Where do you start to answer this question? Here’s a 3 Step Process:
- Make a list. The list should include both tangible and intangible things that provide value.
Tangibles might be things like admin support, systems access, training, coaching, builder relationships, an amazing touch program that yields 100 closings per year, or client events that are paid by the team. You can think of a million more.
Intangibles might be things like camaraderie, culture, instant credibility in the marketplace due to your team’s long-term reputation, a reputation within the company that opens doors to opportunities that others don’t even know are there, or the fact that who you surround yourself with matters and your team is full of top producers committed to high standards and personal growth.
- Once you make the list, translate it into actual facts and stories you can share. Be specific.
For example, a lot of teams say they have “training, coaching and systems”. What does that translate to? On the team I was on, it meant the average agent earned $80,000 their first year, and seasoned agents earned $100-$400k. And that over a 20-year period, only one agent ever left our team and made more alone, while any others who left (whether they joined teams or flew solo) made less. So, we didn’t just have “training, coaching and systems”, we had a PROVEN path to earning six figures.
If teamwork is one of your values, translate that. What are the stories that weave your fabric of teamwork together? On our team, it meant that when one of our agents got cancer, our Rainmaker stepped in and handled a buyer from start to finish for the agent because he was hospitalized. And no adjustment was made to the commission. The agent received the same payment he would have if he had been the one to show multiple properties, educate the buyer, do the inspections, attend the walkthrough, and go to closing.
- Then ask two questions:
Ask yourself, “Is our team a vehicle for our agents’ success, and can they reach their goals faster and more certainly WITH us than without us?” If the answer is no, you know either your value prop needs work or you have a value prop that you’re not delivering on.
Ask your agents, “Why are you part of THIS team instead of any other team?” If you’re afraid to ask the question, it probably means you’re not providing value. If you ask the question and you get great answers, HIGH FIVE! Put those agents on video and use them to share your story when you recruit to grow your team!
Download our FREE Ops Boss™ Value Proposition Worksheet to help in your own evaluation.
These are the kinds of conversations we have on a weekly basis with our coaching clients and at our annual retreat. Is it time for you or your Ops Boss™ to join the Tribe? Click to learn more about our one-on-one and group coaching opportunities and our once-a-year Ops Boss™ Leader Retreat in October.