Are you offering your clients different commission packages? If you aren’t, you probably should. Top agents use this powerful strategy to provide value to their clients and position themselves as experts you can hire without breaking the bank. However, if you’ve never offered commission packages before or are new to the idea, you might not understand what you should do or are trying to accomplish. That’s why today, I’m breaking down the best strategy for presenting commission packages and sharing how you can position yourself to earn more per transaction.
Essentially, the strategy goes like this: You should offer three commission packages at different rates and levels of service. However, the cheapest option and the most expensive one are strategically designed to push people towards viewing your middle option as the best deal. Here’s how each one of your options should work:
- The barebones option. This is your cheapest package, offering just the basics without premium services. For example, it might include photography but without drone footage or anything that could be considered “extra.” While some may opt for this, its goal is to highlight why your main package is worth paying for more and demonstrate what your clients might be giving up. For example, it might be a good idea to reiterate that most sellers in the market will have more detailed marketing packages than this one.
- The goldilocks option. This is your standard commission package, and it should be what you’re driving clients to choose. The details of this package will depend on your skills and investment as an agent, so seek out training if you aren’t confident you can offer premium service. If you trust your skills, you will have the leeway to charge a little more than your competition; however, only do this if you can back up your price. I recommend developing this package first and working backward to build your barebones and luxury options.
- The luxury option. This is the ultra-premium option that most people probably can’t afford. It should be full of bells and whistles that most people will see as unnecessary, but don’t worry; this is actually your goal. While this luxury option offers tons of extra services, clients will look at your standard offering and see that they get nearly the same level of service for what appears to be a significant discount. Once again, while some clients may be willing to pay for this luxury service, the main goal is to make your standard offering look like the best deal.
Hopefully, this guide will help you develop your commission packages. If you need help ensuring your standard package is worth charging a higher commission for, please call or email me. In a market like ours, where transactions are declining, you need to ensure you get the most money possible per deal. I look forward to hearing from you!
