It's one of those mornings when I'm rushing around trying to get too many things done before I rush out the door.  Yet, my eye catches the flash of my phone which I've turned OFF precisely to avoid this type of distraction. I can't help myself.  I pick up the call.

The voice on the other line is friendly...and unfamiliar.  I instantly regret my mistake in picking up the phone. He launches into a sales pitch. I'm always intrigued by people who do their jobs well.  This guy is good!  He starts out by telling me that he's got referrals that he has to get placed today.  Folks are coming in to Kentwood, Michigan and he needs to find an agent to help them.  Could he interest me?

I cut to the chase. "So...how much is this gonna cost?" Without hesitation, he answers..."only $99 per placement.  And if they don't work out, we'll replace them with a guaranteed fit.  In fact, we're so confident about our product, that I want you to know about a special deal.  Our clients are FOR SALE today!  We'll give you 10 of them for only $990!  WOW!

It's the phrase 'clients for sale' which stuns me momentarily.  I have never thought of the people I serve as products which I can trade or sell for profit.  He takes my silence as interest and continues.  "In fact, we're so confident about our service, we'll guarantee you ONE sale out of the 10.  All for $990!

I wonder WHO these clients are?  Did they consent to be used for chattel?  Are they aware that their names and the hopes and dreams they expressed when they filled in the innocent looking boxes for assistance with their home search would result in their information being sold and traded on the real estate referral market place?

And then I think about the agents who are going to buy these names today.  Sinking hard earned dollars for the hope of landing perhaps one real estate deal...after all the clients are on sale.  And I guess one could do the arithmetic and figure that you'd be ahead if you spent $990 and got a deal that netted several thousand in commission perhaps...This can be especially tempting if you're a new agent or struggling to get leads.

But what's lost in the frenzy of boiler rooms filled with fast talking sales persons looking for the next sucker willing to part with some money is the fact that real estate referrals are NOT about selling people's names. It's about creating human relationships.  People refer people whom they know, like and respect to others whom they know.  Referrals are personal.  And that's why things become a little dicey when we take the referral relationship out of the personal context.

It's also why social media and sites like Real Town Blogs and  Active Rain are so incredibly powerful.  Through blogging, engaging with people on the network through comments, building relationships on sites like  Facebook, Twitter and LinkedIn, answering questions as a local expert on Trulia, Zillow or Localism, we put into place the precious building blocks which build authentic communication.  

Picture of french fries courtesy of wEnDalicious photo-stream on flickr

Copyright 2009  Audu Real Estate  All Rights Reserved

Well over a decade ago, I read Michael Gerbers' famous book, 'The E-Myth.'  I am the daughter of two entrepreneurs and an entrepreneur myself.  I have lived through the 'technician syndrome' that Gerber described in which vast amounts of energy are siphoned from the entrepreneur who must run their business on a daily basis and subsequently becomes a slave to the work rather than the inspiration driving the company.

So, when the idea of making a business 'Idiot Proof' was introduced during a professional real estate seminar, I was eager to embrace the method.  The process involved systematizing a business by breaking each action/segment into small, clearly defined steps.  The BENEFITS: a precisely written manual which ensured that anyone could replicate the same results every single time with the aim of creating a consistent consumer experience.

To illustrate the point, the presenter used the example of the methods that fast food companies have perfected through their training systems to ensure that your burger is pretty much the same anywhere you get it.  If you've ever worked in a fast food joint, you know that every single item that impacts the business is detailed in the manuals. 

The system is fully automated with cookware that tells you when the fries are done and guides you through the process of making every menu item.  Most workers are hired to do one little segment of the work and not much else.  Even the cash registers are coded with pictures to make sure that the right order is processed and the correct change returned.  The RESULT: workers who know a few details very well, but may be largely ignorant when it comes to understanding how the operation works. 

The problem with this type of system is that it thrives primarily within a stable environment.  An environment in which the delivery truck can be expected to arrive at the scheduled time carrying the necessary supplies.  The system requires tremendous amounts of coordination and performs with supreme efficiency when that order is present.  However if there is inadequate staffing or the supply chain breaks down, the system becomes vulnerable.  Ultimately the problem with this type of system is that LIFE IS UNSTABLE. 

In the real estate industry, we have created our own versions of Idiot Proof systems.  In a sense our Forms and transaction management systems have allowed many of us to facilitate millions of real estate transactions with efficiency and speed.  These systems have also made it possible for anyone off the street to enter our profession with a mere 40 hours of training and then sit down with a client to list a Million dollar home. The agent simply needs to know how to fill in the blanks.  

However, just like the fast food industry, the real estate system of transaction management may be inherently vulnerable precisely because it requires certain 'anticipated conditions' to operate efficiently.  When the stability of those conditions is threatened or upset entirely, as we are currently witnessing in the mortgage crisis, the entire house of cards is in peril, not unlike the perilous times in which we currently live.

Perilous times require creative, innovative individuals who possess the critical thinking skills to make intelligent assessments and respond to unforeseen and unexpected circumstances. 

Idiot Proof Mechanisms are guaranteed to fail in perilous times, because the conditions necessary to support them are wobbling or have crumbled entirely. The hidden gift of perilous times is that we are given a fresh opportunity to re-evaluate the true effectiveness of systems we have used without questioning.

So, I'm in the process of dis-assembly.  Although we still use and appreciate our board supplied real estate forms, our agents are being challenged to not rely on forms to do the critical thinking.  Agents are required to think through solutions and to be ready to explain WHY they think the options they are suggesting merit consideration.  The days of using systems without thinking about what you're doing are numbered  OVER, because fewer real estate transactions are falling into easily defined categories!

Today's real estate transaction involves, amongst a host of other critical skill sets,  having the negotiation skills and patience to see a Short Sale through to the end.  Being a competent agent means having the ability to utilize the Internet to create important professional networks and prospect for future business.  Today's agent needs to understand what is happening in the financial world and be informed about the developments in ancillary services like the inspection and title industry.  In my opinion, the days of 'cookie cutter' real estate are over...if they ever truly existed in the first place. 

Copyright 2008  Audu Real Estate  All Rights Reserved

Picture of french fries courtesy of wEnDalicious photo-stream on flickr