Miami Real Estate: Are You a Salesperson or a Marketer?

Rapid growth characterizes The National Association of Realtors at present. Its membership has now swelled to over a million agents, from a minimum of 740,000 just a few years ago. The incredible run of real estate over the last five years is enticing hundreds of thousands of new agents. Most states, especially in Florida, are being swarmed with people taking the real estate challenge. At the same time the “churn” in real estate, which refers to the number of agents failing and leaving the industry, has to be escalating as well. It is becoming more difficult to make a living in Miami real estate.

On the one hand, the people at the top of Miami real estate ladder are cashing in on a seemingly endless assortment of opportunities. They are earning, on average, $2.4 million in gross commissions a year. On the other hand, the huge influx of new agents into Miami real estate is making it harder to make a living. How does this apparent paradox in the real estate industry happen?

The Miami real estate is undergoing a structural shift that is producing profound changes at every level of the industry. Miami real estate is evolving from a sales-driven industry to a marketing-driven industry.

Today’s top agents understand this and have become totally immersed on marketing. The problem is that since the real estate has been a sales industry for too long, it is quite difficult for this industry to adjust and shift gears. What makes things worse is that most brokers and agents lump sales and marketing together. But it is critical to understand the difference between the two.

Sales skills are the skills you need to convince somebody to buy. Sales skills are the scripts you say, the closing techniques you use when you are face to face with a prospect. But the key difference between sales-driven agents and marketing-driven agents is the way they think.

A salesperson wakes up each day and says “I need to find a prospect today so I can sell them.” They are always looking for the next person to work with, and this determines their actions. They cold call, sit open houses, take floor time, and even door-knock to find someone to close. If you are disciplined to do these things every day, please it could actually work for you and you will make money. I am sure that many agents have built businesses by doing these activities. However, as the number of agents who are still being taught to approach real estate from a sales perspective increases, it is becoming less and less effective.

Marketing is the art of attracting people who are interested in doing business with you as an agent. A marketing-driven agent wakes up each day and asks, “What marketing activities do I need to put in place that will interest people in calling me as an agent?” The agents who have embraced a marketing approach to real estate are rewriting the rulebook about what is possible in real estate and how the real estate business of the future will operate. These marketing-oriented agents are doing an ever-increasing volume of business that is making it harder for sales-oriented agents to survive

The future in real estate arguably will be directly commensurate with one’s the effectiveness of using marketing materials. Most agents know enough about real estate to succeed, provide great service the clients they have, and are willing to work hard. Nonetheless, you have to remember that no matter how good you are at closing, if you do not have a client to close, you will still fail in real estate.

The bottom line is that unless you become a marketing-oriented agent, you are going to find it harder and harder to compete. Cold calling, door knocking and floor time is going to become less and less productive. Or you can embrace the future and become a marketing-oriented agent that thrives.

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