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Communicating Your Value Proposition

Do you ever have customers that think your commission is "too expensive?" Rather than negotiating a lower commission, I would challenge you to try communicating your value proposition differently. When someone sees the value in our work, they often don't question the cost. The cost comes into question when a person doesn't see the value for the price that they are paying.

Here are a few tips on communicating your value proposition to your customers in a way that will not have them questioning your "commission."

  1. Stop using the word "commission" and start using "compensation." A "commission" insinuates your customer is being "sold" something that you are then being paid on. "Compensation" is a fee that is earned for services rendered. This slight change in verbiage will show your attention to detail and how you intend to EARN each dollar you earn on the transaction rather than the commission you intend to collect.

2. Give your customer a detailed list of EVERYTHING that you intend to do for them with detailed descriptions. You might not think that your customer will ever read all of the descriptions or even look at the entire list of what you provide, however, your customer seeing everything on paper (whether they read it or not) shows the volume of what you do and builds trust.

3. Cut the noise! When marketing your services, make sure that first and foremost your customer knows-

a. What problem you are solving for them

b. How you intend to solve it

c. How their lives will look different after working with you

While giving your customers a full detailed list of everything included in your services is important, it is equally important to have a one- sentence summation of how you intend to set yourself apart from others in your industry and answer the three questions above. This follows Don Miller's "The Story Brand" method that puts your customer in the "hero" role of your business' story and you as the "spirit guide." When it comes down to working with you, how will you help your customers more/better than the next realtor or business? We can help you to come up with your own personal brand message if you are struggling. Contact us today.

4. Use an Ideal Customer sheet to set expectations. Studies have shown that when more is asked or required of someone to be "a part" of something, a person is more likely to rise to meet these expectations. When you walk your customer through what your ideal customer looks like, you are communicating to them how much YOU value your time and work and therefore they will also value your time and work. Going over an Ideal Customer sheet also gives an impression of "exclusivity," which has also been known to draw people in.

5. Connect! When communicating your value proposition to your customer, make sure to connect emotionally with them. Using your EQ, mirror their energy and make sure you are addressing their unique needs. Consider doing a "needs evaluation" with your customer to specifically address the problems or tasks that are most important to them as an individual rather than what your industry might define as more important.

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