Realty Reality

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RISMEDIA-NRRE October 2001

Realty Reality

Generate More Revenue with Gen X

By Marylyn B. Schwartz, CSP

Q.

I am an active agent as well as a broker/owner. Through conversations with other agents and broker peers, it is clear that we all struggle with ancillary service issues. We have noticed that e-commerce is another way companies are offering their clients value-added services. How important are these services, and should we encourage our agents to take full advantage of them?

A.

The whole subject of affinity relationships has been bantered around for over 10 years now. I remember when I was a VP with a major relocation company. We began to explore the topic of how to synergize our connections and bundle services to bring added benefits to the customer and additional revenue to the bottom line.

Yes, revenue generation was a big consideration, as we all worried about where commissions were heading. In retrospect, we were thinking correctly. As companies began to develop partnerships with compatible outside vendors, those natty RESPA issues came rushing to the foreground. Many of the issues remain unresolved today.

However, with all respect to RESPA and with full acknowledgement that we must abide by the law in all of our transactions, I believe in affinity relationships. When agents do not use them to their advantage, they miss opportunities to differentiate themselves, serve the client by making their lives a bit more streamlined and respond to what the public clamors for?ways to save money and get better customer service.

There are two generations out there that use the Internet as a primary form of communication. These groups don?t write mom or dad a letter, they instant message back and forth or e-mail. The Gen X?er (born between 1961 to1981) grew up with technology and loves all things new and innovative. If they can go to the Web and make arrangements to move their household goods, get a mortgage, close a sale, write a home warranty, etc., they are going to do it. Don?t let anyone tell you otherwise.

The trend toward shopping online has suffered a few setbacks, and it?s easy to understand why folks could be lulled into thinking that it is not necessary to provide a choice in the way their clients choose to do business. However, the Web is here to stay and any company that does not look at this medium as a tool toward garnering greater market share is sorely missing that proverbial boat.

Trillions of dollars have come into the hands of baby-boomers as a result of the passing of the World War II generation. This trend will continue over the next 10-plus years. The real estate industry knows how to serve the needs of the boomer generation. It?s the Gen X, Y and Z ? consumers that deserve our full attention.

Let?s give them all of the opportunities, bells and whistles we can bundle together. If we are going to continue to draw a profitable share of the real estate market, we must offer a full array of products that enhance our value in the eyes of a demanding prospect base. Where permissible, partner with outside service providers of all kinds, put your listings online, use e-mail as a way of communicating, let people shop and make decisions in their “jammies” and come to be viewed as a full-service Realtor in the eyes of the “give-it-to-me-now” client.

Marylyn B. Schwartz, CSP, is a noted expert in real estate sales training, corporate sales training, team development and diversity. She is president of Teamweavers Seminars. E-mail questions to teamweaver@aol.com.