DOSS Agents “MAKE MORE MONEY” by saving people money!

I know what you are thinking… “How is that possible!? How can a DOSS Agent make more money, by giving buyer rebates and reducing the listing fee for sellers?” At DOSS, it’s happening... DOSS Agents are making more money, by saving people money! As I wrote in my previous article “In that case, every Broker is a Discount Brokerage” we must keep in mind that the law states that real estate commissions are negotiable. Although, research shows that 73% of REALTORS? surveyed said that they are not reducing their commissions under any circumstances. So, can I ask you a very logical question? If 32% of all REALTORS? last year closed zero transactions, and another 33% closed less than three(3) deals all year long… does that mean REALTORS? would rather starve and/or go out of business before they offer a rebate or reduce their listing fee? Better question, will your Broker or current commission structure allow it? 

I’ve spoken to hundreds of thousands of REALTORS? throughout the country about this taboo topic and I’m always amazed by the range of brainwashed responses that flow through the lips of those that are barely making it because of the bullying, lies, and politics the real estate industry has taught and is teaching them to never reduce the standard rate of six percent(6%). Yet, the same REALTORS? that are telling the starving majority of REALTORS? not to rebate or reduce their commission are themselves in-the-closet discounters and rebaters who refuse to publicly admit that they do it. No matter the reason, mostly everybody does it! WHY!? Because commissions are negotiable! Because certain circumstances and situations require it to close a deal! Because you represent a seller that’s also going to buy, so you reduce the fee on one of the transactions! Because in some cases, if you don’t, you won’t make any money at all….. All of these are examples of why we discount and rebate the commission. Yet, the hypocritical minority(Top Producers, Traditionalist, etc…) that you admire and who are closing the lion's share of the transactions, routinely adjust their commissions as they intentionally mislead a very impressionable majority to subscribe to the notion of not reducing their fee which causes them(most REALTORS?) to price themselves out of this competitive game. Yep, they are telling you not to do it, while they are secretly doing it and closing more transactions. 

So, does the topic of this article now make more sense…. DOSS Agents “MAKE MORE MONEY” by saving people money. Specifically, and in regards to the topic of real estate commission, the simple truth of the matter is that DOSS does the same thing as most Traditional Agents. The only difference is, we advertise it upfront. NO SECRETS! NO SURPRISES! With that being said, I guess because we advertise it upfront, the status quo that also discounts and rebates their commission wants to label us as a Discount Brokerage. DOSS is not a Discount Brokerage!! DOSS is an End-to-End Fair-Priced Digital Real Estate Marketplace that automates the process, reduces transaction cost for the consumer, provides superior company-wide real estate services, all while increasing our Agents bottom line. 

THE PROOF IS IN THE NUMBERS 

Traditional Agent Scenario: The Traditional Agent(TA) is working with Broker X. That Traditional Agent is on an 80/20 split. Their average deal is $300,000. They cover all of their own marketing cost, they pay for their own tech tools, for sale signs, lock boxes, professional marketing, etc… In 2019, they closed 12 deals. They had to work the entire deal themselves with no support team. 

-$300,000 Sales Price

-x 3% Gross Commission($9,000)

-$7,200 Net Commission to TA

-$7,200 x 12 deals = $86,400

TRADITIONAL AGENT TOTAL COMMISSION--$86,400

DOSS techAGENT Scenario: DOSS techAGENTS pay a flat fee of $395 or a 25% referral fee when they receive a lead from DOSS. Exactly like the Traditional Agent, the techAGENTS average deal is $300,000. DOSS covers all of their marketing cost, DOSS covers the upfront cost of professional pictures and 3D Tours on all listings, DOSS charges an annual $360 Tech Fee and provides our techAGENT with all the tools they need to increase transactional efficiencies and to be successful, and DOSS manages their calls via a your listings, your leads system to help them capture and convert more deals from their listings. DOSS covers the cost for signage, lock boxes, professional marketing, etc.. In 2019, the techAGENT closed 30 deals. They had an entire support team that allowed them to focus on their highest and best use, getting more business! 

Lets assume that 10 deals are buyers, 10 deals are sellers, and 5 deals are sellers that are going to sell their house and buy a new home, totalling 10 deals(2 sided):

BUYERS

They get a 1% BUYER REBATE to lower their closing cost. 

-$300,000

-1% to Buyer($3,000)

-2% to techAGENT($6,000)

-$395 Flat Fee

-$5,605 Commission to techAGENT

-10 deals, $56,050

SELLERS

They get a 1% LISTING FEE and full-service. 

-$300,000

-1% Listing Fee($3,000)

-$450 Media Fee*

-$395 Flat Fee

-$2,155 Net to techAGENT

-10 deals, $21,550

*Media Fee - DOSS pays upfront for the all of the following services and collects a reduced cost of $450 at closing: Professional Pictures, 3D Matterport, Digital Storybook for Social Media Advertising, and 50 Professional Color Booklets mailed directly to the seller.

SELL/BUY

Sellers list at 1%, but they don’t get a rebate when they buy. 

-$300,000

-1% Listing Fee($3,000)

-$450 Media Fee

-$395 Flat Fee

-$2,155 Net to techAGENT

-5 deals, $10,775

-$300,000

-3% Commission($9,000)

-$395 Flat Fee

-$8,605 Net to techAGENTS

-5 deals, $43,025

DOSS techAGENT TOTAL COMMISSION---$131,400

STRATEGICALLY STATISTICAL

I never really believed statistics that are provided to me. WHY!? Because, good or bad, everybody has an agenda. I question everything and so should you! Yeah, just like everybody else, I routinely quote isolated facts to further justify my point. What about when you put these facts together: 

--1.3M REALTORS? 

--87% of New Agents fail within five(5) years

--32% of REALTORS? closed zero transactions last year

--33% of REALTORS? closed 1 to 3 transactions last year

--10% of REALTORS? made more than $110,000

--12 transaction sides is what the average REALTOR? closed last year 

--The median gross income of REALTORS? was $49,700

What story do these numbers tell you? This is what they tells me: 

#1: There are masses of marginal Agents throughout the country. Meaning, 65% of all REALTORS? close three(3) or less deals a year. That's approximately 845,000 Agents!

#2: There is no more 80/20 Rule in this business! 10% of the REALTORS? in the country are closing the lion's share of transactions. 

#3: The TOP 10% of REALTORS? close so much business, the averages negate the fact that 32% of REALTORS? close nothing! 

#4: The TOP 10% of REALTORS? close so much business that NAR statistically reported that the average REALTOR? closed 12 transactions.  

#5: The TOP 10% of REALTORS? close so much business, that although 32% didn’t close any deals, the median gross income of all REALTORS? in 2019 was $49,700. 

You see, my agenda is to enhance your perspective via a comprehensive snapshot of the details and statistics. My objective is not to support an antiquated belief or belief system that has an agenda to preserve itself. My goal is to provoke thought in the pursuit to enlighten you about the ideology of making more money by saving people money. I gave an example above of a Traditional Agent that closed 12 deals, a full 3% commission, with an above average commission split(80%), and an above the national average price per home of $300,000. This Traditional Agent via this example made $86,400. What's your commission split with your Broker? How much did you make last year? What's your average sales price? Did you close 12 or more deals?

The DOSS techAGENT in my scenario would rank in the TOP 10% by earning $131,400. Yes! It took 30 deals to make that much money. However, the DOSS techAGENT didn’t have to work as hard due to our GO-GIVER approach, culture, and mentality at our company. We currently have a DOSS techAGENT(Jesse Watson) that’s closing approximately 12 to 15 deals within the next 90 days. That’s already half of the 30 transactions I used in my techAGENT scenario. He will make more money in those 90 days than NAR said the average REALTOR? makes all year long. Don’t take my word for it, ask him for yourself: [email protected]. 

The moral of this story, is to educate and think for yourself. The worst thing anybody can do in today's world, is to be a sheep. That’s the fastest way to get slaughtered in the competitive world of real estate. If you want to discuss DOSS, if you want to make six-figures next year(2021), if you want to work with a refreshing and new brand that actually leverages technology, a brand that has a purpose and mission, if you want to WIN, I’d be honored to schedule a video call with you to explore how we can WIN together…. Email me at [email protected]. You will be glad you did! 

DOSS: BETTER. FASTER. SMARTER.