“20 Minutes of Successful Niche Secrets – EPISODE 63”,
Where I speak to you about being a welcomed guest in the eyes of your client
“20 Minutes of Successful Niche Secrets – EPISODE 63,”
How to be a Welcomed Guest with Glenn McQueenie
Glenn: Hi! It’s Glenn McQueenie, and welcome to my 25-Minute Success Series Podcast. Today we’re going to do something interesting. It’s really been this project that I’ve been working on over the last couple of weeks, and it’s really about understanding why niche markets are so successful. And what I’ve really come to notice is, it’s really the difference between being seen as the specialist or celebrity (or the go-to person), and being treated as a welcomed guest when you meet somebody, compared to being viewed by your prospect or client as an annoying pest.
So I want to really think about it. We’re coming to the end of 2018. We’ve got a lot of planning and a lot of work going on to have 2019 be your best year ever, so I thought we could maybe just talk today about building a business on the welcomed agent model, compared to the irritating agent model. It’s really this amazing concept, if you think about it. If you’re viewed as an irritating agent, you have a lot of resistance. You feel it when you’re meeting someone who doesn’t know you, like you, or trust you – it’s just a random, cold person, compared to being viewed as a welcomed agent, where you’re known and you’re revered by your clients and your sphere of influence.
So if you imagine, it’s almost like the speedometer in your car, where on the far left side, at 0, is where the irritating agent sits. And at the far end of your speedometer on the other side is where the welcomed agent sits. If you imagine all the resistance it takes to get your car up and going, just to get up to speed (which would be the top of your speedometer), then any more incremental speed is really easy. You just touch the pedal lightly. But all the work that your car has to do is at the beginning, getting it started and getting it up to speed. So think about that. On the left side of your speedometer would be the irritating agent model, and the welcomed agent model would be further up your speedometer.
So let’s take a look at what the definition of irritating is, and it’s to cause irritation. Annoying, provoking, or to stir anger. When you use it as a verb, it’s to cause someone to feel impatient or angry. That’s the definition of irritating. So let’s look at the definition of welcomed, which is a verb. When you’re welcomed, the definition is you greet someone arriving in a glad light or friendly way. It’s to be glad to entertain someone or receive something and react with pleasure or approval.
So imagine if that’s what the basis of your business was in 2019 – that every single one of the clients that I was going to be working with next year actually greeted me in a glad, polite and friendly way. They were glad to entertain and receive you, compared to what a lot of agents build that don’t have a niche market or don’t focus on one core area of their business. You can feel the tension when you walk into a room, or when someone is slightly irritated or annoyed, or you’ve stirred them to anger in some way, or if people are just feeling impatient or angry.
So it’s just a really interesting concept of how do we build a business that grows? And I’m going to tell you right now, the purpose of this call is to get you to be thinking about building your business as the welcomed agent, compared to the irritating agent. So let’s look at the two differences closer up.
The irritating agent has more of a 25-day approach. They say stuff like, “I need a deal this month. I’ve got to do a deal. I really need a deal badly.” It’s a very short-focus business, because they need the deal badly. And I totally understand why that is, because in my book when I talk to short-term Bob, that’s how short-term Bob lives his life. Short-term Bob is just working, working, working, not really getting many deals. And then he gets a whole bunch of deals (or gets a few of them), and is burned out. They’re always cash flow poor. They always need the deal, so they have this 25-day approach. Now, if we look at the welcomed agent, they have more of a 25-year approach, because their business is based on a lifetime value of their clients and the referrals. They’re just planning their business out longer. They’re trying to be involved with their clients over the next 25 years. Imagine the approach. When you meet with first-time buyers, you’re like, “I’d really like to work with you over the next 25 years, and what I mean by that is that’s my approach in dealing with you. This is not just a deal to me, or a transaction. You’re going to see that when you find your dream home, you might fall in love with it, but I might say to you, ‘You know what? This is your first home, and you’re probably going to sell it in five or seven years, and what we really need is the most re-sellable home. I’m not sure this is the most re-sellable, because it’s been on the market for three months or six months or nine months. I know you really like it, but I also know you’re going to be really mad at me if I put you into this, and then it takes a year or two, or a bunch of months to sell this property and it doesn’t appreciate as much.” And then you could even expand that further. “And then the other thing is, once you start having kids, I’m going to be talking to you about maybe buying some investment condos to help pay for their education in the future. And then we’re going to be moving you up to the best schools and best neighbourhoods, and I’ll be keeping you posted on that – what the best schools are, what the best trends are, where the best value is in the market. And during that time, your parents might call and ask me for advice on if they want to downsize or not, and I’m more than willing to do it for free.”
So you can see it’s a totally different approach. You can either be irritating agent, 25 days because I need the deal, or welcomed agent, which is the 25-year approach, because I’m trying to build lifetime value and clients for referrals.
The irritating agent’s business stops the moment they stop prospecting. It grinds to a halt, because it’s very much prospecting-based, lead-generated. There’s nothing wrong with that if you like to cold call and door knock, or Internet leads. If that’s your passion, go and do it. I’m just saying that the moment you stop spending the money on that and putting the time into it is also the moment that your business stops. Whereas, with the welcomed agent, their business continues to grow via repeat business and referrals from that sphere of influence and their past clients.
The irritating agent also communicates from outside to people who may not like, trust, or respect them. They’re marketing to people they don’t know, and who might not trust, like, or respect them, whereas with the welcomed agent, the business is really inspired from within, and it’s really rewarded from within. It all grows from inside as a result of all the value and equity that you’re building in that business.
The irritating agent’s also a very expensive business. It costs seven more times to build that business than the welcomed agent. See, the welcomed agent business grows itself at a very low cost, based on a 33- or a 36-touch program. You’re just constantly in contact with them and adding value all throughout the year for the rest of their lives. The irritating agent also has an expense-based business. It’s all expenses, because they have to buy their leads, whereas the welcomed agent has the asset-based business. It just grows over time. If you ever look at your business, the people who are probably the most successful in your office are the people who have been building a repeat and referral-based business over time. Or they’re building a niche business, and they keep focusing all of their efforts into one niche market, and just by default, they get seen as the specialist in that. Then the marketplace starts to come to them instead of them going to chase it. So with your niche, it is a bit expense-based at the beginning just to get the ball rolling, but then if you give them a world-class experience, it just grows within.
Another thought about the irritating agent business is there’s a lot of high resistance, and there’s also lots of competition out there. I don’t think the public ever sits there and goes, “Boy, I hope five agents call me today or knock on my door,” right? Whereas, the welcomed agent’s just very low resistance. In fact, there’s no resistance. And more importantly – there’s no competition. And because there’s no competition, you get a higher margin and you can charge more, and that’s the beauty of that model.
So let’s just continue on with a few more differences between them. The irritating agent has no niche market because they’re trying to be everything to everyone, while the welcomed agent is just focused on one or two niche markets, and then they just go really deep. As I talked about earlier, it’s like digging deep into that territory and finding the inner wisdom and knowledge that can’t easily be “Googled.”
I think the irritating agent is also seen as a commodity that’s easily replaced and interchangeable – “If I don’t get you, I’ll get somebody else” – because that’s the type of people they attract. Whereas, the welcomed agent is seen as an indispensable part of the transaction or indispensable part of their life, and they just can’t do it without them. You’ll hear that all the time being with your clients. When you do a great job, they’re like, “Oh my God, I’m so glad we’re working with you. We just couldn’t have done this without you. Thank you so much!” And then you say, “Well, you’re welcome!” because you’ve built the welcomed agent business, right?
The irritating agent has a very high cost, low conversion rate. Best scenario is 1.5%, and that’s across all types of mediums from cold calling to door knocking to Internet lead generation. If you convert 1.5%, you’re actually doing really well, because that’s what the industry average is. Whereas, the welcomed agent (niche agent) has a really low cost model and a high conversion, because all of their business is usually referred or self-generated. The conversion rate is 80-90%, because they also don’t have any competition.
The irritating agent, if you think about their mindset, accepts minimal responsibility, they tell and sell, they only respond when asked, and they usually complete the minimum effective dose to do the deal. Just the minimum; they never do the maximum, because they don’t have time. Once they close you, they’ve got to move on to the next. Whereas, the welcomed agent thinks about, “I want to build these clients for life here. I’m going to assume all the responsibility for this transaction and make sure it goes really, really well. But more importantly, I’m going to spend lots of time educating and guiding. I’m not going to be telling and selling; I’m going to be educating and guiding. I’m going to be anticipating my clients’ needs. I’m going to be exceeding their expectations, and I’m really trying to just grow the tribe of raving fans.”
And that’s the game that you get to play for 2019. Really, the question you have to ask yourself is: which business model do I want to build? Do I want to build the irritating agent model, or the welcomed guest model? It’s really up to you, because you’re going to go to the market that you’re going to match up the most with. If you’re someone who doesn’t really want to have a lot of deep relationships with people (it’s too smarmy-marmy for you), and you just want to do deals like boom, boom, boom, boom, boom, there’s nothing wrong with that market. It’s just a lot more work, and it always stops the minute you stop. If you get sick or if you go away, the business grinds to a halt. It’s almost like a cardiogram of someone having a heart attack, where there’s no activity, and then you turn it on and you go to high activity, and then you get burnt out and you crash down to the bottom, and then you turn it back on. It’s just this big, huge cardiogram with wide swings. It looks like someone’s having a heart attack. Whereas, I think with the welcomed agent model, first of all, they look at it like a business. It’s a longer-term model that they’re building. It’s not short-term. It’s not like I’m getting into real estate for a year or two to make a bunch of money and get out (which is probably what a lot of us thought when we got in). This model is really more about, how do I build a business that grows, that is an asset that keeps growing, that I can keep growing the equity in that business, and that will honestly fund my life for the next 20-25 years?
The moment you create a niche market and create the unique solution (and it’s unique to them and everyone else who’s similar to them who has the same problem) and market it properly is the moment the market moves to you. You get into the lead-receiving business instead of the lead-generating business. When you’re in the lead-receiving business and the leads are coming to you because you’ve created a unique solution to their selfish needs, what you’re going to learn is, the next step is you have to create a unique service offering plan for them that builds a tribe of raving fans. There’s no point nailing your niche, but then when they come to you, you just give them terrible service, because your niche can’t grow. So the first step is, what’s a unique solution? That’s when you bring you and your unique abilities to a target market. Then the next part is, what is the unique process and the unique experience I want to bring them through? What’s the journey you’re going to bring them on? And more importantly, you could reverse engineer that: what do I want them to be telling their best friends 30 days after the transaction about what it was like to do business with me? That’s it! You have to think about it as, what do you want them to be telling their friends about the experience you granted them? That’s where referrals come from.
I watched that movie last week, “Bohemian Rhapsody,” which is a great movie of Queen. I have to tell you, I enjoyed the movie, but I’ve referred tons of people to it, and the producers weren’t paying me a referral fee. They don’t even know who I am. Certainly the local cinema wasn’t paying me, but I was referring that experience to my friends because I care about them. I wanted them to have the great experience, the best experience, or just the experience that I enjoyed for that couple of hours of entertainment. Why am I doing it? I’m not getting paid on it. It’s just because I really care about my friends. More importantly, maybe deep inside, I want them to come back afterwards and go, “Hey Glenn, thanks a million. That was such a great referral. It was a great movie. We had a great time. Thanks for letting me know about it.” That’s exactly the way you plan your real estate business. It’s 25 days after the closing, they’re talking to their friend, and you want them to be raving about the unique experience you created. And when you do that, you get to win the game, because your business grows, the asset value grows, the equity grows, and you just get to live the life of walking around the welcomed agent, instead of being perceived as the irritating agent.
So I hope that helps! Go out and set a great 2019, and thanks a million for listening again. Bye now!