THE HIGH PRICE OF STUPID
How to spot smarter agents and sell for more by Neil Jenman Reading time: Apx 7.5 mins Most real estate agents have three characteristics: Greedy, Lazy and Stupid. GREEDY Greedy…
by Neil Jenman
Reading time: 3 mins apx
Imagine this for a job. It’s in the real estate industry.
On average it pays $5,000 an hour. You see, you only spend five hours – that’s the time, as an agent, that you’ll spend “working” to arrange a buyer for an average home.
Today, in many areas, the average price exceeds a million dollars. Which means the average commission exceeds $25,000 – if you do five hours work. Sometimes you only do two hours and pocket $12,500 an hour.
And get this:
You, the employee, set the employment terms. As well as telling your boss (the home seller) what you get paid, you set your job conditions.
Now, here’s what makes this about the best job in Australia, (especially if “best” is measured in effort expended for dollars pocketed): Your employment agreement has been prepared by sharp, high-priced lawyers.
And they have looked after you.
The employment agreement contains clauses that make sure your boss pays you no matter how little you do. Or if you are rude to your boss. Or if you mislead your boss.
Even if you do nothing you still get paid.
Yes, your read it right: You can get paid for doing nothing. You see, there’s a clause where your boss does all the work – finds the buyers, shows the property, gets the buyers’ details, makes sure the conveyancers are briefed – and you still get paid. The full whack. No discounts.
On a million-dollar home that’s $25,000. For doing absolutely nothing.
How good is that?!
Yes, your boss did the work!
But it doesn’t stop there.
To ensure you keep getting paid for little or nothing, you’ll need a stream of new bosses – home-sellers.
Finding home-sellers is expensive. But you’ll love this rort: Your employment agreement has a clause whereby your boss forks out the money for you to find more bosses.
Yes, yes, yes, this is really good – for you (not your bosses, of course!). And in case you’re worried what may happen if your boss finds out that you’re using his or her money to find yourself new leads, relax.
If your boss refuses to pay, you take legal action. If you get a really difficult boss, you lodge a caveat on their home; they can’t sell without paying you the money you demand (for finding new leads for you).
As for “warning letters” regarding your performance (or KPIs), forget it. There is no such thing as a “warning letter” in this job.
You can start late and finish early. You still keep your job.
You can take as many days off as you like. You still keep your job.
You can be as obnoxious as you wish – there’s nothing your boss can do.
Told you those employment agreements are good, eh? You bet.
Once your boss signs that agreement – designed by your lawyers – well, there is only one way to say this: “Your boss is royally stitched”.
If your boss gets exasperated (because you don’t perform) and decides to hire someone else, wait for this: According to another clause in the Employment agreement, your boss will pay twice. Once to you, the non-performer and once to the new person. It’s called “double commission”. Most home-sellers agree to it – unwittingly.
Here’s something else: If your boss wants to complain and decides to leave a negative review on an agent-review site, it can’t happen. Your boss is only allowed to leave reviews for agents who performed, not non-performers.
How can this be?
Easy. The agent review sites forbid most negative reviews. If your past bosses can’t warn your future bosses about how bad you are, you can be as bad as you like.
WARNING!
Be careful.
Some bosses – usually home-owners who’ve done research before they sell – have discovered a simple but devastating way of getting rid of clauses that enable you to work for little or nothing.
They delete them.
Yes, that’s right – cross them out.
Most bosses (home-sellers) are unaware that they have the right to delete, change or even add-in, clauses in your Agreement. So, when you encounter knowledgeable home sellers (“know-alls”), it’s worth trying to bluff. Try saying: “This is a standard agreement by the Real Estate Institute.” Then use the “social proof” persuasion and say: “Everyone signs it.” Now, of course, some bosses know that real estate institutes protect agents not consumers. They may also know the “social proof” method.
The biggest problem you’ll encounter, however, is when you meet one of the growing number of bosses (home-sellers) supported by Jenman Support. You’ll be asked to agree to eight protection points which effectively cancel the nasty clauses in your Agreement (known as a Selling Agency Agreement).
When you encounter home-sellers helped by Jenman Support, you’ll need to decide: Are you willing to treat your boss (the home seller) ethically? If not, walk away. If yes, go ahead – take on the job of being an agent under the Jenman Support protection conditions.
Here’s good news for agents who genuinely want to treat sellers fairly. Placing the interests of home-sellers before your own interests will lead to more success for you – in the long run.
And shouldn’t you be in business for the long haul?
Work hard for your employer and treat them well. That’s the essence of the “Jenman method”.
It’s why more sellers are now calling Jenman Support before they call an agent.
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Peter Reedman says:
I have Ben following Neil Jenman for almost twenty years.
During that period his inspiration just keeps gaining and gaining.
I don’t think it is improper to describe Neil as ‘A Great Australian’