Real Estate Brokerages Start Using Network Marketing Principles Part 4

February 11, 2010

Further, to ward off the fear of fines, it could be stipulated that sponsoring a new rep makes the sponsor partially (if not wholly) liable for any fines the office incurs stemming from the reps they recruited.  This will deter them from trying to sign up anybody and everybody.  The end result: fewer new reps perhaps, but better quality ones.

Having a sponsoring program and giving a rep a vested interested in their ‘downline’s success gives the rep more incentive to mentor and advise their own people, improving their chances of success and taking a lot of the time burden off the broker of record.  This frees the broker of record to focus on higher level, more profitable tasks such as hiring new reps and starting offices in new areas.

I earlier mentioned how the internet and pre-selling have become vital parts of direct selling.  There’s a woman named Ann Sieg who is one of the driving forces behind this movement within network marketing.  Fed up with the traditional hard-sell tactics all the network marketing companies she’d been involved preached, she tried what is often the best thing to do when something isn’t working: the exact opposite.  Rather than focus on selling product for money, she decided to cultivate an unbiased expertise in her company’s area (health and wellness) and freely offer this advice.  The idea is that when people see she is offered good, sensible advice on health, she gains peoples’ trust.  Strikingly, she then found when people asked her opinion on what to do and she recommended one of her products, they almost invariably bought the product without question.  The results of this change from ‘selling’ to ‘pre-selling and being a consultant’ have been dramatic for Sieg … to say the least.  She now reportedly earns over $300,000 per month in her network marketing business.

The same thing is true with real estate.  People don’t like to be sold to.  They don’t want to be shown a bunch of homes they might like. They want unbiased expertise that will help them find exactly what they want for a price they’re comfortable with.  They want you to show them a couple of homes that very closely fit what they’re looking for.  So your job as a real estate professional is to become thoroughly expert in your farm area so you can readily help people do exactly this.

Filed under: Marketing Tips,Networking Tips

Tags: affiliates, branding, broker, broker of record, direct sales, downline, marketing, MLM, multi level marketing, network marketing, pyramid scheme, recruiting, sponsor, upline