Agent Positioning

Q.
As a new agent, what can I do to target my future business?

A.
Go here to read Agent Positioning 2.

This is somewhat a tough question with an answer that can never be 100% accurate.

The reason is simply because nobody knows 100% sure of the future. We do not know how the market will evolve in the future for a successful agency practice.

However, the 3 things that normally a writing of strategic position of this sort would entail are:

1. Understanding yourself;

2. Understanding your environment; and

3. Understanding your future.

So, the 1st part, understand yourself is Strength and Weaknesses as in SWOT analysis.

The 2nd part is environment. Social, cultural and Technological, as in PEST factor.

The 3rd part - future, I guess is something I invent myself.

The future part is one key topic in this article. Actually, it is much of the analysis on competitors and the potential pit falls in the biz. To simplify the matter, let us separate them into 3 groups.

1. Selling to Sellers - Developers
2. Selling to buyer Group - Investors (flippers)
3. Selling to third party - Potential buyers cum information seekers


Selling to Sellers - Developers

Most agencies embark on this biz segment in view of stock. Developers have stock, and most of them are currently over stocked. Hence, selling your agency services to them appears as a way out. Furthermore, as the margin of profit is getting less, maintaining a sales force by developer themselves is no more feasible. So, they are more than happy to appoint an agent who can take away that cost from their Income Statement!

However, Agent No.1 got a deal with Developer A. Agent No.2 got Developer B. Agency A and B becomes competitors. This is not so bad - as they are friendly competitors. It is healthy for the biz.

Then, here comes Agent No.3 who is very impressive. They got both Developers A & B. They place big booths all over. Well, you can say, why not!? They are impressive!

So, Agent  No.1 and Agent No. 2 pack their bags. Developer A and B say why?

What do you think?

Because Agent 1 & 2 want exclusive rights. Or else why should they carry your product? This is like marriage.

I'm married to you, why are you still having affairs? Don't you have some respect and loyalty to me?

Then Developers say: 'Well, I'm the boss! Don't tell me what to do, get lost!'

The moral of the story is:

1. Never trust your allies 100%! 

2. Never get married and expect 100% perfection from a marriage!

So, Agent No.1 sells for Developer A but quietly also sells for any other Developers - who does not want more commission?

Same with No.2 and no.3. At the end - it is a total mess out there!

Selling to buyers - Investors

The juice of selling to buyers are very much like investor club and making oneself a celebrity. You probably knew some of them around you.

These celebrities call themselves property experts, or Guru so to say. Some of them are technocrats and some of them are a bit more like movie stars.

This method usually ends up with over promising and under delivering because the crowd-following effect.

People who got the best deal filters down the deals to 'downlines'. Imagine you have got a crowd pulling effect - celebrity like. You have gotten some good deal with a project, you make your money first. This good deals are passed down to your downline, and they too make some money. As it passes down to those newbies, sorry the deals are no more 'hot deals'!

Hence, using people's money to make more money - as they say, is no doubt not sustainable in the long term. Why? Because eventually, you will fail to deliver! Then, your celebrity status becomes questionable. 

Probably you will get sued for certain bad decisions!


Selling to information seekers

This is the future! 

Currently not much money to make, so players are not many. Examples are The Edge Property, The Brickz, and some up and coming sites who writes articles and organize webinars.

To start doing this is to plan for long term. The biz model is more like Ho Chin Soon Research. It is about research and mapping, which is a commodity - product which Developers want.

But, the developers are doing their in-house research anyway. The public is not, however because they do not have the resources and expertise to do it.

Therefore, there is this gap. When a buyer looks for good advice to purchase, who can give them the advice?

And, I mean "Impartial advice"! Nobody! Why?

The Developer won't - because they are being bias to their own products.

The Agents won't - because there is element of selling their own stock or listings.

The Seller won't - because he wants the highest price for his property.

This gap needs to be fulfilled with a solid third party data, independent of the above three parties.

You probably need to appoint your own agent - not the agent selling for the seller side!

So, agencies that specialize on this type of market is rare, or limited to specialized job only. For example, industrial properties or land.

That is why the market for this sector is still in its infancy. You should concentrate on this market segment, find a niche and develop this position early!

Call me and let me know if you are interested!