The Link Between High Commissions and Finding Your Niche

While it might be tough to knock back a listing, turning down a potential sale might just be the best thing for your career if the property doesn't fall within your area of expertise.

While an 'anytime, anywhere' approach can still work, more often than not, the agents who earn the highest commissions are very focussed on a certain niche. That might be something like a particular suburb, a certain price point, a demogrpahc, or even something like selling off the plan. It doesn't matter what your specialty is, just having on and sticking to it can help propel your GCI upward.

Here are some reasons why finding and maintaining a niche will help you improve your revenue.

Specialisation

Finding your niche in the market offers a path to more significant, more consistent commissions. By becoming an expert in a specific market segment, you increase your value proposition, distinguishing yourself from competitors and enhancing your credibility. 

When you possess in-depth knowledge about a particular niche, you become the go-to person for that specific property type or area. Your specialisation also enables you to provide superior service and advice and this helps your clients make the best possible decisions.

This level of expertise can attract higher-priced properties and allows you to increase your commission revenue.

Building a strong reputation

Marketing in a very specific area also plays a crucial role in reputation building. In a niche, you're a big fish in a small pond. When you consistently deliver excellent results, word spreads quickly. Positive reviews and referrals within your area can lead to a steady flow of new business.

In a niche, it's easier to become a recognised name and trusted agent. Your reputation can result in attracting more listings and closing more sales, contributing to hight commisions over time.

Efficiency and cost-effective marketing

Marketing to certain types of buyers or sellers is also more cost-effective and efficient when the target market is smaller. Rather than trying to reach the broader market, you can concentrate your efforts on a smaller, more defined group. Your marketing can be hyper-focussed on the specific needs, concerns, and desires of your niche. It's a lot easier to letter-drop a suburb than it is to cover an entire city to get your name and message out there. Additionally, a smaller market provides the opportunity to create and nurture your prospect and client relationships in a more meaningful way through increased touch points. 

This focussed appraoch also results in less wasted marketing spend, and you can do a lot more in a smaller timeframe. It also allows you to establish a stronger connection with your target audience, which can lead to increased loyalty and repeat business over time.

List building

When building your career in real estate, you are just building your database of potential buyers and sellers. If you think about trying to build up the list of names in your CRM, then it will be far easier to do over a smaller area. 

If for example, you target a certain suburb, you only have to get 1000 leads in your CRM and if 7% of those sell their home every year, you have already generated 70 sales per year.

In the same way, on the sales side, the biggest agents are often the ones that have the biggest email lists of potential buyers. This is a great point of different that you can use at a listing presentation and gives a powerful way to test the waters for worried vendors. 

By niching down and building lists in a targeted way, you give your markting a boost for both the buyers and sellers. 

 

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