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Real Estate agents are often asking themselves, "How low should I go on my commissions?" Don Hobbs and I believe the opposite and in today's interview we talk about how you can start to master the brand of YOU, true Expert Secrets, in order to get more.
Show Notes
Welcome back to the Think Bigger Real Estate Show. I'm your host Justin Stoddart and I am thrilled today, I'm absolutely thrilled today, to have with me a legendary real estate trainer, coach, leader, Mr. Don Hobbs. Anybody who's been in the industry for any period of time will know Don's name. In fact, prior to real estate he was, in fact, we were just talking about his personal relationship with Jim Rohn and Tony Robbins, which are some of the biggest minds in personal development. So before we get into the topic, I just want to thank you, Don for taking some time to be here in porn into the audience today.
Hey Justin, I'm so happy to be here. I love your energy. I love who you are and what you're doing and I'm thrilled. It's always a fun thing to get a chance to talk to a group like this.
It's awesome. Well, I know they're going to be thrilled to hear what you have to share with them today. So let's dive in. The way I've set up today's conversation is that there are agents in the country that Don knows, that Don's coached, that are not lowering their commissions amidst industry disruption, they're raising their commissions. They're going 7%, 8%, 9%, even 10%. Is that feasible? It almost seems like that could not be possible in a world where you've got 1% listing offerings everywhere you go on all the billboards and buses that drive by, right?
Or Redfin or whoever, right?
Whoever. Yeah. How are people doing this Don? Is this real. You're telling me that, you know people that are doing this and they're having success with it, not just once on an unassuming buyer or seller. Like they're doing it, they demand that.
Yeah, in fact it was just funny you went for that right away because that's such an interesting thing. There's so much pressure and there's so much sameness amongst Realtors and Justin, that's the challenge, right? We're just a giant commodity group. You know, if you think about any commodity, I don't care if it's, you know, I can buy Lexus here, a Lexus there, but here it's $1,000 cheaper. I mean, if things are the same, then price is the only thing that matters. When things are not the same, we don't mind paying more for more. We don't mind. We don't mind paying more for it--a brand we trust a name we know. But we do mind paying more for the same. And that's the challenge. And Realtors have made themselves that way. So I think the biggest thing I would say is it's really about branding and, and really about building something that people can identify with and hold on to is "She's the expert." Or, he knows my market. He is the guy, or she is the gal, you know that makes it work and we're not afraid to pay for that. I had somebody the other day where I walked in and he said, his listing contract is already filled out at 7%, and he was concerned about the commission and he thought it was going to be a pressure down. And they said, "We thought you'd be more." I just laughed my butt off when I heard that. I was like, how cool is that to think that the expectation of value was so high, they were shocked and surprised pleasantly at 7%. It's really cool, but that has to do with the brand. And you can't do that by just being a Realtor. You can't do that by being one of the multitude. You can't do that by doing what most Realtors do. You can't. It's not going to happen, right?
I love that. You and I have studied some of the same sources and there's this concept about becoming an expert. And I know that's one thing that you, when you coach and teach and train, it's how do people, as you identified, separate themselves from the masses and truly become an expert. Let's talk about this concept of gaining expertise so that one can be moving in the direction that these agents you're talking about are moving, which is we're not lowering our prices. And if in fact we may be doubling down on our value, therefore we're more valuable and can charge more.
Yeah, absolutely. I know you and I talked about a book that we both like and, and have in our libraries called Expert Secrets. So let's start with a recommendation. Let's give our man Russell Brunson a good plug right there and sell some books. But you know, Russell Brunson has got this concept of being the attractive character, the interesting character. You know, that person, and I think that agents don't see themselves that way, which you realize today if you look around, if you're at all observant, you see that there are people with less talent in almost any industry that have made themselves somebody by raising their profile and becoming the expert. One thing I want to make sure, and again, I'm certainly going to promote that the agent needs to get to be good. I mean, they need to be an expert. They need to find out, you know, what that niche is and then everything about that group and that style o property or whatever it is. But the biggest thing is remember that we don't find out if you're good or not good until after we've called you. So the reality is that only leads to the legend of more. By the way, thanks for the word legend. It makes me feel, when you said that was, I think that means I'm old, but I'm alive. I'm living legend, so it's okay. It makes them the legend that this is who we need to call. So it's more the, how we get people, the perception of expertise. That makes me feel like they're the answer to my problem--the solution to my real estate needs. Right, and it comes down to how do we become somebody's Realtor, Justin, before they actually need one. And most Realtors don't think that way. They're like, how do I get to them just as they need one how do I get to be one of the three or four or five being interviewed and I'm saying, how do we just eliminate the competition and get them to call and say, Justin, come list me. Right. That's, that's the end all be all. Yeah, there's Nirvana.
Yeah, where you have somebody calling saying "Don, do you have time to come list my house? I know you're really busy. I know you are highly sought after." Yeah.
And when they do that, what happens, and this is what's so perfect about this scenario is, I call you and say "Come list me." When you come, you're not having to justify your price. You're not having to tell me all the things you're going to do. There's no over promising because it's almost like whenever you do that sells everything we see around here, do that for us. That's what happens when you reach that level of brand and recognition.
And we talked a little bit about that first step in Expert Secrets, right? It's becoming an attractive character. And we're not talking about your physique and how good your hair looks, it's really about taking on a persona and taking on this level of expertise, this leader role, right to where people know that you can get them from where they are to where they want to be and you've positioned yourself over time repeatedly to where people recognize that if I'm here and I want to be there, then Don is the one to get me there. That this agent is the one to get me there. And you become this attractive character to them that you're the missing link in the story that I want to create.
Yeah. That's awesome. Looking at the comments, Chris. I don't know who Chris is but...
Yeah, Chris Angel. Chris Angel. Hey, Chris is validating the way I introduced you and Chris is the real deal. So there you go, Don.
Yes, I think you're right on with Justin. It's really how we get people to see the things, and by the way today, where it used to be that you had to be an expert and then it would take a long time for that expertise to be known, today it's video, it's social media. There are so many ways of demonstrating and it's not bragging, it's personal branding, personal marketing. Any of this that we're talking about becoming that expert is not about bragging and boasting. It's really about demonstrating value. It's about demonstrating who we are. And then it's about presence. How often, if I see you a lot then you must be good. If I see you a lot, you must be a pro. If I see you a lot, then the mind says there's my solution, right? It must be the answer because it's an answer for a lot of people. And so that's literally what we're trying to build is that, that impression, that perception.
I love it. I love it. So the other thing discussed in this book is, is moving to a cause, right? Being cause based as opposed to just doing a profession. It's actually having a mission, being mission based or caused base. How do you see that show up, Don, and people that you coach when they take on real estate in a different way where it's less about "I do this for a living, but it becomes more of a mission and a cause." I'm sure that's kind of part of what you coach and teach people to do.
It is. Right now we're working on a very cool campaign with somebody about their faith based mission and the things that she does that they just see her as such a giver. They want to give to her. And that's so powerful. I'll tell you a fun story. I'm driving through the city streets of Denver, Colorado years ago. Some people have heard this story because it's an old one, but I'm driving through the city streets on my way to a seminar. And on the way I passed this guy on the street who's pulling a poster board that says, "Will sell real estate for food." This is the real deal. It's not a joke, right? But, but I'm passing him on a busy street. I can't stop, but I'm thinking I'm going to a seminar to try and find that guy who's willing to put themselves out there and do wacky stuff and really grab attention.
Right? I wanted to stop and go, "Who are you?" So I get to the group and I'm querying about this guy. And of course nobody likes him, "Oh, that guy. He's degrading our industry. He's horrible... Blah, blah, blah." So about three weeks, none of them know that the story though, all they do is rag on him and just hate him, which is what happens when you're unique. And, so three weeks later, in the mail I get this newspaper, which is the Cherry Creek, so the local, not the Denver Post, but that's localized, you know, local newspaper. On the front cover of the whole newspaper, there's this guy's picture, top of fold, which is prime real estate. And it shows a picture of this guy and the article on page four, a full page article.
And of course when you read it two things are true. One is A), you can't buy the front page B) you can't probably afford to buy a full page article. And yet this guy had it. Now, when you read the article, it was about him, pledging to donate 10% of his personal commissions to the Food Bank of the Rockies. So he in fact sells real estate for food.
Brilliant.
Right?! And in an upscale market. Alison, the love of my life, she's got her a Condo Contessa and in that she gives 5% to Austin Angels, which is for foster kids. And so that's a big part of her campaign, or by the way the charity of the client's choice. So Austin Angels or your choice, right? So we're finding more and more people going in that direction. I think it's a great way. You look at Whole Foods, you look at Tom's Shoes, you look at so many companies that have really become conscious and are really moving that direction. I think it's absolutely even Amazon by the way, has a program for doing that. So I think, yeah, I think it's powerful.
I do too. When you move from being an agent to, to being mission based it is powerful. Yes. The other thing I want to, I want to touch on here is about creating a new opportunity. That's something else that Russell Brunson discusses in his book Expert Secrets is not just having an "I also help people negotiate a buy or a sale, but creating a new opportunity. And I want to set this up with a story that I shared with you. I was with an insurance agent earlier this week and he told me the story that he and his family are preparing to go on this trip of a lifetime to Europe. They're going to go see Stonehenge. They've got all these places they want to see. And he thought to himself, "I'm a smart guy, I've got access to the Internet, I'm going to do research. I'll book the trip and I'll figure it out.
And he said, "I went online and there was so much information that I got lost. I got overwhelmed because there's so many reviews and so many options." And he said, "I finally decided I need a travel agent. I need somebody to help me."
And I think in today's world, sometimes we use travel agencies as being a prime example of an industry that got disrupted and they are no more. And that is true of the masses, right? Those that didn't follow Don's advice of standing out and becoming an expert and being unique, they did what everybody else did all the way down until there was no margin, there was nothing left. Whereas some of them created this profitable niche. And now, people go to the Internet and there not a shortage of information, but there's a shortage of an advisor, helping them interpret that information and make good decisions with it. Let's compare that to real estate, Don. As maybe the new opportunity that's out there that will help these agents start to take on this role of expert and be able to be more valuable to their clients.
Yeah, that's great. Great, great, great topic. So I've always talked about the fact that you need to be different to stand out and so you know there's the guy on the street corner and that stands out, right? There's things that you can do that make you that way. Most people don't have the creative mind for it. They're so busy following the followers and by the way, don't follow Realtors, they are primarily broke. I mean that's not where we want to follow. We want to think outside that box. And so to your point, one of the things that I've noticed is we have to get people to start finding their niche market. And it's so counterintuitive because we think that by going after something specific, we're going to lose the masses. And I'm always joking with them, last night I did a talk and I said, you know, you imagine that you're going to lose all this market like you had any of it. You know what I'm saying? It's kind of like they imagine all the three deals they would've lost instead of the massive amount of influence they can have in one arena. And one of my old friends, Alan Dom was like Alison in which she focuses on condos in downtown Austin. But Alan was in Philadelphia and the Condo King was his mantra or slogan and literally in one building, Justin, I've never heard anybody else do this. In one building now that had 53 listings taken and 52 were his in a whole year. He had 97% market share for that year. And of course then it was expandable to the next building and the next building and the next building. So what happened is he had 97% and 76% and 57%. I mean, as he kept stacking on buildings you know, he did 1200 transactions a year. He's probably higher than that now.
But the bottom line is it's all of that niche playing. And if you were to talk to him, in fact, NAR did an article on him a few years back and what he said was, "I get offers all the time to do all kinds of real estate. People all over Philadelphia call me." But I don't take anything that's not condos. And I refer that out and take a split commission and I stay focused. Realtors are so busy looking, searching, seeking, trying to get the next deal that they'll go anyplace, do anything. I've got a listing 40 miles that direction, 20 miles that direction and a buyer, they're running around town in that direction. I mean they're so desperate. Get out of the scarcity mindset, focus on one thing, really get known for something. There's your expertise by the way. And in that, do you think he can charge more? I mean, do you think he can walk into a condo and charge 10%? I guarantee he can. So this is where we start to really separate what the normal agent does from the rockstars.
I love what you've said and that's a really powerful example that there's an opportunity cost. Every time we say "yes," we're also say "no" to something else and if it's not our niche, then we're going to pay a price for that and we might not know what that price is until we look at an example like you just described. If somebody that said "No to single family residences...," "No to this... not that, not that... because all of that allows me to say "Yes to condos." "Yes, yes, yes." And it becomes, like you said, your brand and your niche and people have to go to you because you're the one who spends all of your time and efforts and energy building the associations and the network and the expertise in that particular area.
Yeah, for sure. That's exactly what it is. And, and I think when people get the simplicity of that, like I would almost say anybody who wants to start a real estate business, I don't care if they're brand new a lot of times they'll go, "Well, let me get some general real estate experience and then I'll figure out what my niche is going to be." And I'm saying like, "What do you want to own? Name it, call it your it." And you know what made the Condo King the Condo King? Had he ever sold a Condo? Did he sell more condos? It's like it doesn't matter. You claim it, it happens and then it's self proclaimed right, it's self sustaining. So I think for you, for all of us, we just need to say that's almost a first step: Identify the market.
When I do seminars I identify it differently and I actually give them an Avatar to avatar questions to really get into like, who am I looking for? This is really the essence of today's success because you're right, there are way too many agents out there. And just like the travel industry we are being thinned out and there's "the haves" and "have nots" and the haves are doing the smart things and it makes sense. It's so counter intuitive and so if you're fear based, it's going to be real hard to let go and really succeed at the highest levels.
Well then, I think that's maybe a perfect segue into the fact that you're coming to Portland, Oregon. And so if you work in Oregon, the state of Oregon, Washington, or any of the nearby states, you're going to get to hear Don give a presentation called The Brand of YOU. I've been asked, and I feel super honored to emcee the event and I'm excited to have you spend an hour going into depth on what we've just scratched the surface on and are really helping agents identify how to build this brand to where they really stand out in the marketplace and they don't have to be fearful of "Do I keep lowering my commissions" and be in that race to the bottom, but creating such value that their clients are surprised when their prices AREN'T higher. Like what a great place to be and what incredible information you're going to share with people. I'm so excited to hear more.
Well I'm, I'm super excited too and I'm glad you're going to emcee it as I really wait to get your energy mixed in with us. It will be spectacular. I'll have a great evening. As I remember, it's kind of an evening event. We're going to get into, and it's a short time. It's not a one day or two day program, but it does get into where we can talk about these very issues and where do we start that process and then what are some of the tools. I always look at it, Justin, that there was, and I'll cover this of course, but there's the niche, there's the target, there's the strategy--how do I get to them...what does that look like? Then there's the tools and then there's the execution.
And unfortunately what most agents get hung up on is the tools. I'm doing direct mail, I'm doing email, I'm doing social media. So to what end with what focus? With what purpose? With, you know, like how do you know if it's a, a good post or a bad post based on what? You don't know your target market, so how would it be based on anything? So we really try and take them from that. We'll be talking about some of those very specific things they can do and you know how they can get their presence way up and get seen way different than they are today. So we're going to have some time to do that. I look forward to it big time and we'll get in some of the tools the tricks and even the mindset because so much of it starts here, right?
We're not going to change your actions until we change your thought process and how we see ourselves and what we are building. We just started an agent in Austin with our team and I said to her, "Today, you're looking for your first deal and in 10 years, the sad part is you could be looking for your next deal. And if you do it right, you won't have to worry about that. And if you do it wrong, you'll be looking for your next deal or you won't be here. Yeah. Right. Does that make sense?
Yeah, absolutely.
That's what we're going to do. So I'm excited about it. I'm really pleased and I agree with you. Anybody that's within driving distance come down because it's going to be a fun event. We're going to be in a cool place with some cool cars and there's an auto collection. I think it's not a showroom, but it's, you know, awesome. Who knows. I'm going to see Mercedes and Ferraris and all kinds of fun stuff in there. And we're going to have a little Don Hobbs time. We're going to have a little Justin Stoddart time and, and I think it will be a really fun event.
That'll be awesome. I love what you shared about the mindset piece. That's really the premise on which Think Bigger Real Estate is about. There are so many tactics out there that people get lost. I've even spoken with some of my closest friends and clients and they're like, "Justin, it's almost overwhelming how many things there are that you could do to generate businesses as a real estate agent." And so I have to think it's not about the "how to," it's not about just the skill set. It's also about mindset. And a big mission that I'm on is to help grow the people so that they have the capacity to choose and implement the right tactics. So anyway,
I'm going to tell you that if we ever get a chance to talk, if we ever get a chance to do something, my time with Jim Rohn and the time, the years that I've had, I'd love to contribute to that Think Big part because there's so much that we can do with our different thinking that will change everything in our lives. So I love what you're doing. It's fantastic. Thanks for even including me today.
Yeah, no, it's been a total pleasure. And I'll tell you, Jim Rohn, between he and Stephen Covey, were probably,... I credit them for getting me down a path where I fell in love with personal development and I fell in love with bringing it to other people. So I'm so excited that I'm now one, just one person removed from the late Jim Rohn, which is exciting. And I can see, much of the inspiration that he brought shining through you. So thank you again for your time, my friend. What a, what a joy. This has been and I can't wait to meet you in person. And we've got a lot of great people here that, said some great things in the comments: Anne Stewart said, "Don is the expert on this. I've learned so much from him." And she is such a great person and producer and that says a lot.
And then again, Chris Angell said, And that's why you're a legend. You've taught this for so long and this is how human nature works." Thank you so much Chris. Maybe we can convince you to make a trip to Portland and come be with us at this event. So anyway, thank you everybody for your comments and others as well and I want thank everybody for tuning in to the Think Bigger Real Estate Show where my mission again, is to help grow you so that you can grow your business. So thanks again Don. It's been a pleasure and I look forward to our next conversation.
Hey Justin, I'm so happy to be here. I love your energy. I love who you are and what you're doing and I'm thrilled. It's always a fun thing to get a chance to talk to a group like this.
It's awesome. Well, I know they're going to be thrilled to hear what you have to share with them today. So let's dive in. The way I've set up today's conversation is that there are agents in the country that Don knows, that Don's coached, that are not lowering their commissions amidst industry disruption, they're raising their commissions. They're going 7%, 8%, 9%, even 10%. Is that feasible? It almost seems like that could not be possible in a world where you've got 1% listing offerings everywhere you go on all the billboards and buses that drive by, right?
Or Redfin or whoever, right?
Whoever. Yeah. How are people doing this Don? Is this real. You're telling me that, you know people that are doing this and they're having success with it, not just once on an unassuming buyer or seller. Like they're doing it, they demand that.
Yeah, in fact it was just funny you went for that right away because that's such an interesting thing. There's so much pressure and there's so much sameness amongst Realtors and Justin, that's the challenge, right? We're just a giant commodity group. You know, if you think about any commodity, I don't care if it's, you know, I can buy Lexus here, a Lexus there, but here it's $1,000 cheaper. I mean, if things are the same, then price is the only thing that matters. When things are not the same, we don't mind paying more for more. We don't mind. We don't mind paying more for it--a brand we trust a name we know. But we do mind paying more for the same. And that's the challenge. And Realtors have made themselves that way. So I think the biggest thing I would say is it's really about branding and, and really about building something that people can identify with and hold on to is "She's the expert." Or, he knows my market. He is the guy, or she is the gal, you know that makes it work and we're not afraid to pay for that. I had somebody the other day where I walked in and he said, his listing contract is already filled out at 7%, and he was concerned about the commission and he thought it was going to be a pressure down. And they said, "We thought you'd be more." I just laughed my butt off when I heard that. I was like, how cool is that to think that the expectation of value was so high, they were shocked and surprised pleasantly at 7%. It's really cool, but that has to do with the brand. And you can't do that by just being a Realtor. You can't do that by being one of the multitude. You can't do that by doing what most Realtors do. You can't. It's not going to happen, right?
I love that. You and I have studied some of the same sources and there's this concept about becoming an expert. And I know that's one thing that you, when you coach and teach and train, it's how do people, as you identified, separate themselves from the masses and truly become an expert. Let's talk about this concept of gaining expertise so that one can be moving in the direction that these agents you're talking about are moving, which is we're not lowering our prices. And if in fact we may be doubling down on our value, therefore we're more valuable and can charge more.
Yeah, absolutely. I know you and I talked about a book that we both like and, and have in our libraries called Expert Secrets. So let's start with a recommendation. Let's give our man Russell Brunson a good plug right there and sell some books. But you know, Russell Brunson has got this concept of being the attractive character, the interesting character. You know, that person, and I think that agents don't see themselves that way, which you realize today if you look around, if you're at all observant, you see that there are people with less talent in almost any industry that have made themselves somebody by raising their profile and becoming the expert. One thing I want to make sure, and again, I'm certainly going to promote that the agent needs to get to be good. I mean, they need to be an expert. They need to find out, you know, what that niche is and then everything about that group and that style o property or whatever it is. But the biggest thing is remember that we don't find out if you're good or not good until after we've called you. So the reality is that only leads to the legend of more. By the way, thanks for the word legend. It makes me feel, when you said that was, I think that means I'm old, but I'm alive. I'm living legend, so it's okay. It makes them the legend that this is who we need to call. So it's more the, how we get people, the perception of expertise. That makes me feel like they're the answer to my problem--the solution to my real estate needs. Right, and it comes down to how do we become somebody's Realtor, Justin, before they actually need one. And most Realtors don't think that way. They're like, how do I get to them just as they need one how do I get to be one of the three or four or five being interviewed and I'm saying, how do we just eliminate the competition and get them to call and say, Justin, come list me. Right. That's, that's the end all be all. Yeah, there's Nirvana.
Yeah, where you have somebody calling saying "Don, do you have time to come list my house? I know you're really busy. I know you are highly sought after." Yeah.
And when they do that, what happens, and this is what's so perfect about this scenario is, I call you and say "Come list me." When you come, you're not having to justify your price. You're not having to tell me all the things you're going to do. There's no over promising because it's almost like whenever you do that sells everything we see around here, do that for us. That's what happens when you reach that level of brand and recognition.
And we talked a little bit about that first step in Expert Secrets, right? It's becoming an attractive character. And we're not talking about your physique and how good your hair looks, it's really about taking on a persona and taking on this level of expertise, this leader role, right to where people know that you can get them from where they are to where they want to be and you've positioned yourself over time repeatedly to where people recognize that if I'm here and I want to be there, then Don is the one to get me there. That this agent is the one to get me there. And you become this attractive character to them that you're the missing link in the story that I want to create.
Yeah. That's awesome. Looking at the comments, Chris. I don't know who Chris is but...
Yeah, Chris Angel. Chris Angel. Hey, Chris is validating the way I introduced you and Chris is the real deal. So there you go, Don.
Yes, I think you're right on with Justin. It's really how we get people to see the things, and by the way today, where it used to be that you had to be an expert and then it would take a long time for that expertise to be known, today it's video, it's social media. There are so many ways of demonstrating and it's not bragging, it's personal branding, personal marketing. Any of this that we're talking about becoming that expert is not about bragging and boasting. It's really about demonstrating value. It's about demonstrating who we are. And then it's about presence. How often, if I see you a lot then you must be good. If I see you a lot, you must be a pro. If I see you a lot, then the mind says there's my solution, right? It must be the answer because it's an answer for a lot of people. And so that's literally what we're trying to build is that, that impression, that perception.
I love it. I love it. So the other thing discussed in this book is, is moving to a cause, right? Being cause based as opposed to just doing a profession. It's actually having a mission, being mission based or caused base. How do you see that show up, Don, and people that you coach when they take on real estate in a different way where it's less about "I do this for a living, but it becomes more of a mission and a cause." I'm sure that's kind of part of what you coach and teach people to do.
It is. Right now we're working on a very cool campaign with somebody about their faith based mission and the things that she does that they just see her as such a giver. They want to give to her. And that's so powerful. I'll tell you a fun story. I'm driving through the city streets of Denver, Colorado years ago. Some people have heard this story because it's an old one, but I'm driving through the city streets on my way to a seminar. And on the way I passed this guy on the street who's pulling a poster board that says, "Will sell real estate for food." This is the real deal. It's not a joke, right? But, but I'm passing him on a busy street. I can't stop, but I'm thinking I'm going to a seminar to try and find that guy who's willing to put themselves out there and do wacky stuff and really grab attention.
Right? I wanted to stop and go, "Who are you?" So I get to the group and I'm querying about this guy. And of course nobody likes him, "Oh, that guy. He's degrading our industry. He's horrible... Blah, blah, blah." So about three weeks, none of them know that the story though, all they do is rag on him and just hate him, which is what happens when you're unique. And, so three weeks later, in the mail I get this newspaper, which is the Cherry Creek, so the local, not the Denver Post, but that's localized, you know, local newspaper. On the front cover of the whole newspaper, there's this guy's picture, top of fold, which is prime real estate. And it shows a picture of this guy and the article on page four, a full page article.
And of course when you read it two things are true. One is A), you can't buy the front page B) you can't probably afford to buy a full page article. And yet this guy had it. Now, when you read the article, it was about him, pledging to donate 10% of his personal commissions to the Food Bank of the Rockies. So he in fact sells real estate for food.
Brilliant.
Right?! And in an upscale market. Alison, the love of my life, she's got her a Condo Contessa and in that she gives 5% to Austin Angels, which is for foster kids. And so that's a big part of her campaign, or by the way the charity of the client's choice. So Austin Angels or your choice, right? So we're finding more and more people going in that direction. I think it's a great way. You look at Whole Foods, you look at Tom's Shoes, you look at so many companies that have really become conscious and are really moving that direction. I think it's absolutely even Amazon by the way, has a program for doing that. So I think, yeah, I think it's powerful.
I do too. When you move from being an agent to, to being mission based it is powerful. Yes. The other thing I want to, I want to touch on here is about creating a new opportunity. That's something else that Russell Brunson discusses in his book Expert Secrets is not just having an "I also help people negotiate a buy or a sale, but creating a new opportunity. And I want to set this up with a story that I shared with you. I was with an insurance agent earlier this week and he told me the story that he and his family are preparing to go on this trip of a lifetime to Europe. They're going to go see Stonehenge. They've got all these places they want to see. And he thought to himself, "I'm a smart guy, I've got access to the Internet, I'm going to do research. I'll book the trip and I'll figure it out.
And he said, "I went online and there was so much information that I got lost. I got overwhelmed because there's so many reviews and so many options." And he said, "I finally decided I need a travel agent. I need somebody to help me."
And I think in today's world, sometimes we use travel agencies as being a prime example of an industry that got disrupted and they are no more. And that is true of the masses, right? Those that didn't follow Don's advice of standing out and becoming an expert and being unique, they did what everybody else did all the way down until there was no margin, there was nothing left. Whereas some of them created this profitable niche. And now, people go to the Internet and there not a shortage of information, but there's a shortage of an advisor, helping them interpret that information and make good decisions with it. Let's compare that to real estate, Don. As maybe the new opportunity that's out there that will help these agents start to take on this role of expert and be able to be more valuable to their clients.
Yeah, that's great. Great, great, great topic. So I've always talked about the fact that you need to be different to stand out and so you know there's the guy on the street corner and that stands out, right? There's things that you can do that make you that way. Most people don't have the creative mind for it. They're so busy following the followers and by the way, don't follow Realtors, they are primarily broke. I mean that's not where we want to follow. We want to think outside that box. And so to your point, one of the things that I've noticed is we have to get people to start finding their niche market. And it's so counterintuitive because we think that by going after something specific, we're going to lose the masses. And I'm always joking with them, last night I did a talk and I said, you know, you imagine that you're going to lose all this market like you had any of it. You know what I'm saying? It's kind of like they imagine all the three deals they would've lost instead of the massive amount of influence they can have in one arena. And one of my old friends, Alan Dom was like Alison in which she focuses on condos in downtown Austin. But Alan was in Philadelphia and the Condo King was his mantra or slogan and literally in one building, Justin, I've never heard anybody else do this. In one building now that had 53 listings taken and 52 were his in a whole year. He had 97% market share for that year. And of course then it was expandable to the next building and the next building and the next building. So what happened is he had 97% and 76% and 57%. I mean, as he kept stacking on buildings you know, he did 1200 transactions a year. He's probably higher than that now.
But the bottom line is it's all of that niche playing. And if you were to talk to him, in fact, NAR did an article on him a few years back and what he said was, "I get offers all the time to do all kinds of real estate. People all over Philadelphia call me." But I don't take anything that's not condos. And I refer that out and take a split commission and I stay focused. Realtors are so busy looking, searching, seeking, trying to get the next deal that they'll go anyplace, do anything. I've got a listing 40 miles that direction, 20 miles that direction and a buyer, they're running around town in that direction. I mean they're so desperate. Get out of the scarcity mindset, focus on one thing, really get known for something. There's your expertise by the way. And in that, do you think he can charge more? I mean, do you think he can walk into a condo and charge 10%? I guarantee he can. So this is where we start to really separate what the normal agent does from the rockstars.
I love what you've said and that's a really powerful example that there's an opportunity cost. Every time we say "yes," we're also say "no" to something else and if it's not our niche, then we're going to pay a price for that and we might not know what that price is until we look at an example like you just described. If somebody that said "No to single family residences...," "No to this... not that, not that... because all of that allows me to say "Yes to condos." "Yes, yes, yes." And it becomes, like you said, your brand and your niche and people have to go to you because you're the one who spends all of your time and efforts and energy building the associations and the network and the expertise in that particular area.
Yeah, for sure. That's exactly what it is. And, and I think when people get the simplicity of that, like I would almost say anybody who wants to start a real estate business, I don't care if they're brand new a lot of times they'll go, "Well, let me get some general real estate experience and then I'll figure out what my niche is going to be." And I'm saying like, "What do you want to own? Name it, call it your it." And you know what made the Condo King the Condo King? Had he ever sold a Condo? Did he sell more condos? It's like it doesn't matter. You claim it, it happens and then it's self proclaimed right, it's self sustaining. So I think for you, for all of us, we just need to say that's almost a first step: Identify the market.
When I do seminars I identify it differently and I actually give them an Avatar to avatar questions to really get into like, who am I looking for? This is really the essence of today's success because you're right, there are way too many agents out there. And just like the travel industry we are being thinned out and there's "the haves" and "have nots" and the haves are doing the smart things and it makes sense. It's so counter intuitive and so if you're fear based, it's going to be real hard to let go and really succeed at the highest levels.
Well then, I think that's maybe a perfect segue into the fact that you're coming to Portland, Oregon. And so if you work in Oregon, the state of Oregon, Washington, or any of the nearby states, you're going to get to hear Don give a presentation called The Brand of YOU. I've been asked, and I feel super honored to emcee the event and I'm excited to have you spend an hour going into depth on what we've just scratched the surface on and are really helping agents identify how to build this brand to where they really stand out in the marketplace and they don't have to be fearful of "Do I keep lowering my commissions" and be in that race to the bottom, but creating such value that their clients are surprised when their prices AREN'T higher. Like what a great place to be and what incredible information you're going to share with people. I'm so excited to hear more.
Well I'm, I'm super excited too and I'm glad you're going to emcee it as I really wait to get your energy mixed in with us. It will be spectacular. I'll have a great evening. As I remember, it's kind of an evening event. We're going to get into, and it's a short time. It's not a one day or two day program, but it does get into where we can talk about these very issues and where do we start that process and then what are some of the tools. I always look at it, Justin, that there was, and I'll cover this of course, but there's the niche, there's the target, there's the strategy--how do I get to them...what does that look like? Then there's the tools and then there's the execution.
And unfortunately what most agents get hung up on is the tools. I'm doing direct mail, I'm doing email, I'm doing social media. So to what end with what focus? With what purpose? With, you know, like how do you know if it's a, a good post or a bad post based on what? You don't know your target market, so how would it be based on anything? So we really try and take them from that. We'll be talking about some of those very specific things they can do and you know how they can get their presence way up and get seen way different than they are today. So we're going to have some time to do that. I look forward to it big time and we'll get in some of the tools the tricks and even the mindset because so much of it starts here, right?
We're not going to change your actions until we change your thought process and how we see ourselves and what we are building. We just started an agent in Austin with our team and I said to her, "Today, you're looking for your first deal and in 10 years, the sad part is you could be looking for your next deal. And if you do it right, you won't have to worry about that. And if you do it wrong, you'll be looking for your next deal or you won't be here. Yeah. Right. Does that make sense?
Yeah, absolutely.
That's what we're going to do. So I'm excited about it. I'm really pleased and I agree with you. Anybody that's within driving distance come down because it's going to be a fun event. We're going to be in a cool place with some cool cars and there's an auto collection. I think it's not a showroom, but it's, you know, awesome. Who knows. I'm going to see Mercedes and Ferraris and all kinds of fun stuff in there. And we're going to have a little Don Hobbs time. We're going to have a little Justin Stoddart time and, and I think it will be a really fun event.
That'll be awesome. I love what you shared about the mindset piece. That's really the premise on which Think Bigger Real Estate is about. There are so many tactics out there that people get lost. I've even spoken with some of my closest friends and clients and they're like, "Justin, it's almost overwhelming how many things there are that you could do to generate businesses as a real estate agent." And so I have to think it's not about the "how to," it's not about just the skill set. It's also about mindset. And a big mission that I'm on is to help grow the people so that they have the capacity to choose and implement the right tactics. So anyway,
I'm going to tell you that if we ever get a chance to talk, if we ever get a chance to do something, my time with Jim Rohn and the time, the years that I've had, I'd love to contribute to that Think Big part because there's so much that we can do with our different thinking that will change everything in our lives. So I love what you're doing. It's fantastic. Thanks for even including me today.
Yeah, no, it's been a total pleasure. And I'll tell you, Jim Rohn, between he and Stephen Covey, were probably,... I credit them for getting me down a path where I fell in love with personal development and I fell in love with bringing it to other people. So I'm so excited that I'm now one, just one person removed from the late Jim Rohn, which is exciting. And I can see, much of the inspiration that he brought shining through you. So thank you again for your time, my friend. What a, what a joy. This has been and I can't wait to meet you in person. And we've got a lot of great people here that, said some great things in the comments: Anne Stewart said, "Don is the expert on this. I've learned so much from him." And she is such a great person and producer and that says a lot.
And then again, Chris Angell said, And that's why you're a legend. You've taught this for so long and this is how human nature works." Thank you so much Chris. Maybe we can convince you to make a trip to Portland and come be with us at this event. So anyway, thank you everybody for your comments and others as well and I want thank everybody for tuning in to the Think Bigger Real Estate Show where my mission again, is to help grow you so that you can grow your business. So thanks again Don. It's been a pleasure and I look forward to our next conversation.
Creators and Guests
Host
Justin Stoddart
What is Think Bigger Real Estate?
The road to success for real estate agents is well-marked. The road to significance is not. Here, we help you to Think Bigger than just your business. We inspire you to seek success AND significance, income AND impact. We do that by interviewing the biggest thinkers and highest achievers in the real estate industry, extracting the secrets to having it all.