In the world of sales, titles don't always do justice to the complexity of the job. Take real estate agents, for instance; they may not carry the title of "salesperson," but they are. And twice actually. It's an intriguing phenomenon that holds valuable lessons for B2B salespeople, who often find themselves in a similar dual-selling role. Strangely enough, it's a topic often left unspoken. That is why we are here.
1. Acting as Middlemen
Real estate agents serve as intermediaries between sellers and buyers, much like B2B salespeople who navigate the delicate balance between their customers and their own companies. On one hand, agents assist sellers in marketing and selling their properties, while on the other, they help buyers find their dream homes. This duality mirrors the B2B salesperson's challenge of catering to the needs and demands of both their clients and their organization. Ultimately, one could argue that they are the architects of their own fate.
Captain of your own ship
2. Selling the Price
One of the most captivating facets of the real estate agent's role lies in their capacity to wield influence not only over the transaction itself but also over the price at which it unfolds. They skillfully promote the buying price to the seller, a strategic move often employed to facilitate a swift deal. In the realm of B2B sales, professionals often find themselves confronted with a parallel scenario, where they must effectively market their company's product or service to the client while simultaneously championing the value of the client's specific requirements within their own organization. The greater the complexity of the solution, the more challenging the internal sell becomes, as deviations from established norms are likely, and innovative approaches are often necessary to secure success.
3. The Commission Dilemma
In Stephen J. Dubner's book "Freakonomics," the author sheds light on a critical aspect of the real estate industry. Agents work on commission, which is typically a percentage of the selling price. However, there comes a point in a deal where the difference between the asking price and the offered price has minimal impact on the agent's commission. This situation often leads to a fascinating dilemma – should the agent prioritize the best deal for the buyer, the seller, or their own interests?
4. Balancing Act
This dilemma highlights a common challenge faced by B2B salespeople. They must balance their commitment to their clients with their responsibility to their organization's bottom line. Striking the right equilibrium between these two often-conflicting priorities is no easy task, but it's essential for long-term success.
However, it's crucial not to perceive this scenario as a passive state of equilibrium. Instead, envision it as a dynamic rugby scrum: two opposing teams investing every ounce of effort to gain ground, with their respective endeavors often countering each other's progress. There's palpable tension on both sides. Even though both sides are ultimately aiming in the same direction but facing opposite forces, within each side, diverse and sometimes seemingly opposing factors are at play. Upon closer examination, these elements may appear to be at odds, but they ultimately contribute to the same overarching objective.
In the midst of this intricate landscape, a single individual bears the responsibility of navigating this terrain to forge a mutually beneficial agreement.
5. The Over-Sell Tendency
An intriguing byproduct of the commission-based structure prevalent in the real estate industry is the tendency for agents to lean towards overselling the buyer's offer. This inclination arises from their eagerness to expedite transactions and promptly secure their well-deserved commission. Interestingly, this behavior isn't exclusive to real estate; B2B sales professionals might also find themselves tempted to hasten deal closures, sometimes at the expense of negotiating the most favorable terms for the company they represent.
In all fairness, it's worth noting that there are instances, particularly when working for publicly listed organizations, where the pressure to meet quarterly forecasts can be immense. In such scenarios, companies may be inclined to offer substantial discounts simply to accelerate transactions and advance the deal by one quarter. Paradoxically, this can have a detrimental impact on the sales agent, creating a complex dynamic within the sales process.
In conclusion, real estate agents and B2B salespeople share a common thread – they both operate in a world where selling isn't a one-dimensional task. They must navigate the intricate web of interests, balancing the needs of clients and organizations. The lesson to be learned is clear: successful sales professionals, regardless of their industry, must master the art of selling twice. Understanding this duality and finding the right balance is the key to thriving in the ever-evolving world of sales. And it's worth noting that the most challenging sale isn't always the one that immediately comes to mind…