Have you ever had a sales experience that turned you off? Perhaps it was when you bought a car. You walked onto the lot, excited to start your journey, but ended up feeling hounded by an aggressive salesman. You felt like a prospect.
We have this problem in the real estate industry. Some agents have earned the reputation for being more interested in the sale than in the people they serve. This is the transactional approach to real estate. It starts with a scarcity mindset and the goal of converting leads to sales and ultimately commission checks. At best, this results in a one-time transaction where the person feels like a consumer. The agent feels like a slimy salesperson and “prospecting” for business is a dirty word.
The best way to win in real estate is by taking a relational approach. This starts with an abundance mindset – the idea that there is more than enough business for every great agent willing to provide a valuable experience for their clients. The goal is to share information freely and establish trust by providing value, regardless of the outcome. The client feels truly cared for and the agent feels fulfilled by serving others.
In the long run, a relational approach to real estate creates advocates who gladly refer friends and family.
The Differences Between Transactional & Relational Approaches.
Transactional Approach
A transactional approach to real estate starts with a scarcity mindset and the goal of converting leads to sales and ultimately commission checks.
- Scarcity Mindset
- View person as a “lead” or commission check
- “Capturing” business using scripts
- The person feels like they’re being sold and the agent feels like a salesperson
Relational Approach
A relational approach begins with an abundance mindset and the goal of creating value for people and winning advocates who gladly refer others.
- Abundance Mindset
- View person as someone to serve and help
- Not afraid to give and establish trust by freely providing information and value, regardless of the outcome, in order to create an advocate and generate referrals in the long run
- The person feels like they’re truly cared for and the agent feels an authentic sense of fulfillment in serving others