For years realtors have been performing some form of project management as a course of being a good agent. And they have been doing it for FREE, aside from their commission. But as commissions come down, agents need to seek out areas where they can monetize their skill set. Good realtors are good project managers.
As a matter of fact, General Contractors looking for a Project Manager would be well-served if they hired a realtor. But why? Why would a Contractor take on the cost of a human resource when they can easily sub out the work to realtor for half the cost?
To my knowledge this type of coordination between an agent and a contractor has never happened before. Why? NAR didn’t like it! They felt it might represent a “conflict of interest”. And in the NAR environment of sell and move on quickly, it may have. But with the goal of maintaining a holistic long-term approach toward home maintenance the fears of a conflict subside.
It wouldn’t make any sense for a Residential Asset Manager (RAM) to sacrifice a client for a quick churn and burn on a home project. Again, the RAM takes the long view for their business, and doesn’t focus on the immediate CASH NOW at all costs.
As noted, this approach is NOT for all agents. This approach is also NOT for all Contractors either. Older contractors from previous generations aren’t comfortable ceding any level of control. They fear getting ripped off. They fear what they perceive as a slacker generation of workers. Getting old is a bitch.
The new era of realtor is looking for the next generation of tradesman. Seeking those who can see the inherent value in a realtor-based salesforce. Because realtors, via their relationships with homeowners, are the natural conduit to the tradesmen community.
Electricians, plumbers, landscapers and masons may not be the best salesmen for the consumer market. A better approach would be to lean on those who are salesmen to the consumer market. A tradesman can beat themselves up trying to market to thousands of end users. End users who may or may not need their services. But a tradesman with relationships to a couple dozen realtors can find their schedules fully booked.
Insert cliché. Something about working smarter not harder.
We all know what sales funnels are. We all know what end-user sales leads are. (hint, mostly BS) A tradesman with a funnel full of realtors will always have work. A tradesman with a pocket full of “maybes’ has a road that’s clearly uphill.
By working together, the agent becomes a member of the contractor team for a specific project. Ever hear the expression “tip-out”?
It comes from the restaurant industry and refers to the money a waiter shares with the staff, i.e. busboys, cooks, hostess, etc. In our situation it’s akin to a contractor tipping out his realtor. And before you ask, it won’t be much. Remember, from our previous blogs, the RAM is in it for the long haul and small volume wins over time is the strategy. The point is, it’s something!
How do the mechanics of this work? As of this date, we don’t know.
Wynd Realty is currently speaking with contractors and accountants. To date, people have seen the logic behind this plan and praised its intention. As a company, we will continue to purse the plan we have laid out over the last several blogs.
For additional information and commentary about the Wynd Realty RAM program, please contact, jeff@wyndrealy.com
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