One of the objections that real estate agents hate (but will always have to face) is "Will you cut your commission?"
What's the ultimate answer to this question?
If your goal is to get listings without cutting your commission, there's a better way than saying No.
- Acknowledge the question.
- Explain that you don't discount your commission because you don't deliver discount results.
- Shift the conversation from your commission to the result they want (getting the most money for their house).
When you're skilled and you know how to represent your seller, you EARN your commission. And that makes you worth so much more.
If you're committed to training to be the best, the first step is to get The Book of Yes: The Ultimate Real Estate Agent Conversation Guide. Go to http://TheBookofYes.com to get your FREE copy.
One conversation that real estate agents have quite regularly, that we all hate to have, is the objection, “Will you cut your commission?”
Today, I want to talk about one conversation that real estate agents have quite regularly that we all hate to have, and that is the objection, will you cut your commission? Now, if there is one question that sends chills and shivers up and down the spines of realtors it's that question, Will you cut your commission?
Especially because we are living in an age where commission-cutting is rampant and it is becoming more and more common and because of the downward pressure of iBuyers and discount brokers and all that kind of stuff with the internet, flat fee brokers and all of that, it is not new my friends. I need to tell you, it's not new. I've been in real estate for over 20 years and I've got friends who've been in real estate for over 40 years, and the question “Will you cut your commission”, it happened way back then and the discount commission guys, discount brokers and flat fee brokers and all that, they've been around for decades, so it's not a new thing. Now, the internet's brought a little bit of a different dynamic to it, but it still creates the same conversation. Will you cut your commission?
Now, that is the question and today I want to share with you the ultimate answer to how to deal with the objection, “Will you cut your commission?”, because it's a tough one. If you are good, if you are skilled, if you are a professional and you know how to deliver great results, you actually earn your commission. Now, a lot of agents don't earn their commission, and that's one of the reasons that the objection is pretty common, is because there are so many amateur agents, so many agents who are not competent, who don't know how to get the best price for a house, they don't know how to negotiate strongly to protect their seller's interest, and all of that stuff that I train my coaching members so that they can sell houses for their sellers and get more money for them. When you do that and you know how to represent a seller as an agent, you are worth more.
I've got to pre-frame this training that I'm about to do for you on how do you handle this, will you cut your commission, with the fact that what you're standing for is that you deliver a better result. You deliver better service and a better result for a client, and that's why you're able to demand a higher price. Just like a Rolls Royce can demand a higher price than a Ford. No offense or disrespect to Ford, but a Rolls Royce is a better car, they deliver a better product. That's the reason that they cost, you know, $300,000, $400,000 and you can get a Ford for less than $100,000, even a nice one. All right, there's a big difference in an agent that all they know how to do is shuffle paperwork and an agent that actually knows how to help position a property to get top dollar offers and negotiate to get the offer for their seller with the best terms and price. So, there you go.
Will you cut your commission? What I was taught was the answer was “No”. If they ask, just tell them you're not going to. You don't do that, and here's how you say it. “No. Any other questions?” That's what I was taught, and I was taught that by the godfather of real estate coaching with great respect. But, I hated it. It bothered me to say it, and I'm like, why do I not like saying it, number one, and number two, when I said it, it always was like picking a fight with the seller. Right? If you've ever done that, you've ever used that objection handler, you know what I'm talking about. It causes them to want to fight, and here's the reason. “No” is one of the ultimate resistance triggers anywhere you go. What's a resistance trigger? A resistance trigger is something that you say that makes the other person, it immediately makes them resist you. Like, fine. That makes them resist having a relationship with you or saying yes to you.
Nobody likes to be told no. Ever since you were a little kid, right? Ever since you were a little kid, “No”meant that we had to just, we're going to go to battle. Right? “No” caused resistance because we don't like to be told no, and we didn't like it as kids and we don't like it as adults. When somebody just tells us no, we feel shut down, we feel disrespected, and so it just, it doesn't make us feel good.
Now, if your goal is to not cut your commission and that's your only goal, it works. If somebody says, "Will you cut your commission?" You say, "Nope. Any other questions?" It works. You will not have to cut your commission. However, if your goal is to get listings without cutting your commission, there is a better way, without having to tell somebody no. Because when you tell somebody no, they immediately want to fight you.
What I'm going to do is share with you exactly how I developed, how I learned to handle this commission objection that got people to say yes to me every time, and virtually every time, without having to cut my commission. Here it goes. This is actually taken directly from The Book Of Yes. If you do not have a copy yet of The Book Of Yes, go to thebookofyes.com, you can get a copy, it's got the full objection handler. I'm not going to give you the whole thing just because there's parts of it that are a little optional and different angles and all that. But, if you want the whole thing, it's here in The Book Of Yes, go to thebookofyes.com, get a free copy. You just pay the shipping and tell us where to send it, and we'll send it to you.
Here is, and this is not a sales pitch for the book, but I guess it is, but I want to give you the objection handler in today's video. I'm sure I'm going to get some good, interesting comments from some of you that don't like me talking about that. All right, so here you go. Will you cut your commission? “That is a great question, and I don't discount my commission. Can I tell you why?”
Okay, now let's break it down. First, I acknowledge the question. “Great question. I don't discount my commission.” Now, I just shifted the conversation, I just shifted the words from cut my commission to discount my commission. Okay? Because, what does discount tend to represent? Discount tends to represent something that has less value. It's a discount shopping, discount store, discount product. Discount tends to mean it counts less, it has a lower value.
“That is a great question, and I don't discount my commission. Can I tell you why?” I answer their question with a simple answer of “I don't do that.” But, it's how I say it that matters. First, I say “I don't discount my commission”, and then I ask them a question. “Can I tell you why?” Now, what are they automatically and immediately going to say? “Yes.” When you understand the power of the word yes is getting people to respond to you in a positive way, helps move a relationship forward. It's why this is called The Book of Yes. It is mastering how to get people to say yes to you without BS, and this is not BS. It's a straightforward answer. Discounting commissions is not something that I do.
“I don't discount my commissions. Can I tell you why?”
“Sure, tell me why.”
“The reason I don't discount my commissions is because I don't deliver a discount result. Now, I'm sure you are not looking to get a discount result, meaning you are not looking to sell your house for less. Correct?”
Now, question. Have you ever seen a seller who's talking about discounting commissions that is looking to sell his house for less money? The answer is obviously not. What I'm doing is I'm saying “I don't discount my commission because I don't deliver a discount result. You want discount results, you hire a discount agent. I'm not a discount agent, because I don't deliver discount results, and I'm assuming that you are not looking for a discount result, meaning you're not looking to sell your house for less. Correct?” What I did was I just shifted the conversation from my commission to the result that they want, and the result they want is they want more money for their house.
Now, there's another way. You can simply say, “the reason I don't discount my commission is because I don't deliver discount results. I'm sure you, there's a lot of agents out there that don't even sell most of the listings, a bunch of the listings they take, and they don't deliver results at all, and I'm sure that's not what you're looking for. Right?”
Nope, that's not what I'm looking for.”
“Good. I assume what you're looking for is the best results in the sale of your house, and by best results, I mean, you know, the most money in your pocket in the best amount of time with the least amount of hassle. Now, are you with me on getting you the best results?”
They're like, “Well yeah, that's what I want.”
“Perfect, that's what I do. Okay? Because, that's all we both want, right? Excellent.”
“Here's what I'm going to do for you. As soon as you give me the go ahead, I am going to go to work immediately to make that happen for you and get you the best results. Sound good?”
I'm telling you my friend, 95% of the time, that eliminates the discount commission conversation. How we do it is, one, we acknowledge their question. Two, we let them know that what we don't do is we don't discount, we don't deliver a discount result, so we don't give a discount commission. Then, once we give them a straightforward answer, now we refocus their attention away from the commission to what they want, which is, they want the most money, they want a better result. Then our job is to help them sell their house for more money and get them a better result.
Now, if you're watching this and you were going to like, “But I don't know how to do that!” Well that's why I train. It’s one thing to know an objection handler, it's another thing to know how to execute and get the best results for your sellers. I'm going to tell you this right now, that when you become the best at what you do, and I'm being straightforward with you here, that if you want to get better results, you want sellers to always say yes to you and basically find it impossible to say no to you, it's all about becoming the best at delivering the best results. When you do that, you have so much confidence and you can have so much certainty, that objections virtually disappear, and when they do come along, it's not just what you say, it's the confidence with which you say at that makes them go like, that makes sense, you're my agent. That's what I want for you. I want you to win.
First step on that is go get a copy of The Book Of Yes at thebookofyes.com, and then join me at an event, get into my training, get into my coaching. If you want to learn to deliver the best results for your clients on the planet, it's yours for the taking. You just got to be willing to make the commitment, take action, do the training, become the best, and you're going to like the results.
If the video has helped you and if this objection handler has helped you, make sure you give the video a thumbs up, put your comments, questions down below. Any feedback that you have on it, I love it, love to hear from you, and subscribe to the channel if you haven't done that yet. When you go to thebookofyes.com, request your copy, you're going to get a copy. It'll be brand new, won't be worn up, broken in like this one, you're going to get a brand new copy of it, and look forward to talking to you soon.